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It punishes people who save money in unproductive ways, such as stuffing it in a mattress. We want to encourage people to invest their savings productively, ben
by simonh 5y ago
It punishes people who save money in unproductive ways, such as stuffing it in a mattress. We want to encourage people to invest their savings productively, benefiting them and the economy. The middle class are generally very good at this, putting capital into pensions (which are invested), tax efficient savings schemes, shares and property.
- vkou 5y agoThis is correct. The middle class owns little in cash, but owe a lot in debt. Inflation eats a little of the former, and significantly lowers the burden of servicing the latter. Inflation isn't the thing they need to worry about. What they need to worry about is making sure their particular job's wage inflation is keeping up with the average.