Quote Originally Posted by Geoff Parkstone View Post
I was talking in economic theory MA as the flows of money in and out of savings impact the efficacy of the stimulation model. It may be that there is minimal impact from the savings multiplier as you say, but it still exists even if you know noone who has saved.
Doesn't help those without savings for a start.

Also, If I have £1000 a month to spend and months ago that was £200 mortgage, £200 energy, £50 council rates, £350 food and £50 at the pub, that would now be (figures for illustration) £300 mortgage, £400 energy £50 council rates which is £750. That leaves £250 for food. OK, so I can shop at Lidl or Aldi as they tend to be cheaper which will help a bit. We also eat less and less well and might just about survive. However, the shop is getting £100 a month less from me and probably a similar amount per month less from most of their other customers as well. Big drop in shop takings will lead to job losses. Same at the pub. I now have no money to spend there so I don't go and others are in the same boat so less bar staff are needed. Less shop staff and barstaff and they are now on the dole paying less tax......