Bank of England warns of the consequences of thrift

[FarCenter]

It says in its latest Quarterly Bulletin that household decisions to spend or save will have major consequences for the economic outlook, because consumer spending accounts for two-thirds of total spending in the UK.

"Any attempt to reduce consumption is likely to push down on output and hence household incomes. That could actually make it harder for households to increase their savings – known as the paradox of thrift."

The Bank says that even if households saved as much as 10pc of income, it would take nine years to bring wealth back up to the average of the last 20 years.

<SNIP>http://www.telegraph.co.uk/finance/economics/6212215/Bank-of-England-warns-of-the-consequences-of-thrift.html

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Gotta keep the wage slaves buying down at the Company Store.

[GodlessBiker]

For christ's sake, what are people supposed to do?

[ddeclue]

1. FU BOE...

pay the consumers more and the owners less so that they don't have to borrow to spend.

[DJ13]

2. Create jobs, pay more, and charge less for credit

Problem solved.

[metapunditedgy]

3. Yet another empty threat by the wealthy, telling the common folk to finance their lifestyles. n/t

[Speck Tater]

4. It is a citizen's solemn duty to sacrifice themselves for the good of the rich. nt

[onethatcares]

5. wait until the Chinese tell their people that.

we'll be an entire planet of consumers with no one making anything.