Wonder why government punishes money savers?
When government (or central bank) reduces interest rates, they are potentially sacrificing money savers in favor of investors. I do not think is fair for savers at all. Thoughts?
It’s to encourage investment and spur growth. That’s why interest rates go down in economic downturns
The economic machine moves forward when people spend money, not save money.
Saved money is typically invested anyway unless you lock up the cash in an iron chest. The trouble with saved money is that it has less risk and to cover the risk the guarantor party needs to cut interest. So effectively savers go through a middleman called Bank.
Spending money generates growth and inflation. Saving money is deflationary and frags down consumption and gdp
Money hoarders ruin the country. The more money people spend, the higher GDP will be. The economy will stall if no one spends money
Because all democracies in the 21st century are literally slaves to the big banks, and the banks want people to borrow as much money as possible.
That is a totally weird way to look at it. Lowering interest leads to increased spending at the macro level. That’s the point of reduced interest rates.
Using others ppl money is what made US to owe 22+trillion to other countries. That is irresponsible. I doubt US will ever be able to pay them back
US will be able to easily pay it back. $22T sounds like a lot but it is not compared to the size of the economy. I guarantee we all borrowed far more relative to our incomes to buy a house. We also don't owe most of the $22T to other countries. The majority is held by americans. Only about 28% is held by foreigners.
Because the government favors rich people and rich people invest, not save.
They want people not to hold their money, but spend it instead. Desperate cry out to boost the economy
Yes but they are trying to prolong the economic cycle artificially more than needed and just making snowball bigger and bigger
Elections are coming...
The goal of government and central banks is not to help investors or citizens, it is to perpetuate their own existence.