"Giving money to home buyers without building any more homes just means
you push up the price of homes (helping elderly home owners)" Evan Davis (Newsnight presenter) tells us https://twitter.com/EvanHD/status/578186700956037121
Mr Davis doesn't seem to understand how the accelerator principle works.
If you want to get money circulating in the economy you need to lend it to people who will spend (rather than lending to the banks, who just sit on it).
Therefore the Chancellor is not only helping first-time buyers, but also ultimately putting money into the hands of the one group (pensioners) in society who are likely to spend any cash that comes their way, thus stimulating the economy.
Personally I thought the Chancellor's budget yesterday was a triumph.
Mr Davis doesn't seem to understand how the accelerator principle works.
If you want to get money circulating in the economy you need to lend it to people who will spend (rather than lending to the banks, who just sit on it).
Therefore the Chancellor is not only helping first-time buyers, but also ultimately putting money into the hands of the one group (pensioners) in society who are likely to spend any cash that comes their way, thus stimulating the economy.
Personally I thought the Chancellor's budget yesterday was a triumph.
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