Perhaps it is time to re-manufacture inflation then, as some kind of cure-all?
Inflation - discourages scrimping and saving.
Inflation - therefore encourages investment.
Inflation - Erodes Debt
Inflation - therefore encourages “debt to invest” rather than “debt to consume”.
How best to rob the masses?
Mis-report the inflation rate as being “low” when it is fact somewhat higher, and then people out of sheer sloth will leave their spare cash lying around in bank accounts, where the non-existant interest rate return has the effect of guaranteeing the slow depreciation of one’s own savings, whilst Businesses can borrow that cash at long-term lower rates than would otherwise be unavailable.
Note that every excuse in the book has been given as to “Why the Bank of England cannot raise interest rates” when it was supposed to be a “foregone conclusion” that they would “Raise rates, any minute - honest!” This feint, in my mind - is just the Bank of England trying to stimulate demand for “fixed rate mortgages” when there has not been a need for such a “Product” for over a decade now.
Interest rates cannot be increased faster than the banking system can absorb the inceased default rate, should these rate hikes become “regular” let’s say.
All in all, those who’ve invested for “long term interest rates to be this low” - are reletively prosperous, whereas those who fall for the line “Rate hikes any minute” are volunteering extra overheads into the financial system.
Rich people who wish to STAY rich meanwhile - buy rock solid high dividend yield shares, easily returning 3-4% when base rates are at 0.5%. Yet, investing in even Blue Chip shares - is still considered tantamount to “Throwing one’s money away” - when in fact, it is leaving it in the bank @ 0.5% when inflation is over five times that amount - that is REALLY “Throwing one’s money away” of course.
The other “brake” on the British Industrial Economy - is Energy NOT being as cheap as chips.
You can blame our lacklustre handover of our former energy monopoly to the EU - for THAT one of course.
We could just as easily buy in some cheap Russian excess imports - if only we hadn’t had rubbished relations with Russia, I suspect at the EU’s insistence… 