Bank of England: ants should become grasshoppers

This is two years old, but it’s appalling enough to be still worthy of note. The Bank of England is telling people (or, at any rate, told people two years ago), to stop saving money and spend their savings:

Savers should stop complaining about poor returns and start spending to help the economy, a senior Bank of England official warned today.

Older households could afford to suffer because they had benefited from previous property price rises, Charles Bean, the deputy governor, suggested. They should “not expect” to live off interest, he added, admitting that low returns were part of a strategy. . .

He continued: “Savers shouldn’t necessarily expect to be able to live just off their income in times when interest rates are low. It may make sense for them to eat into their capital a bit.”

Now, this is manifestly awful, but it’s even worse than it appears at first appears. Those who do as they are told and blow through their savings are still going to need income to survive. They will have to go on the public dole. So what the British government is doing is taking people who want to provide for themselves, and have saved their whole lives in order to do so, and move those people into dependency on the government.

This isn’t just bad economic administration. It’s immoral.

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