The Irish Budget

[ali-cat]

The Labour Party want to “spend, spend spend” it's way out of the recession, but the Irish Government want to “save the economy from a downward spiral”. The Irish Budget will be incredibly painful in the short to medium term – but is this a better way to go? When in debt, save instead of spend?

http://www.belfasttelegraph.co.uk/news/local-national/republicrsquos-budget-cuts-lsquofor-the-common-goodrsquo-14261995.html

[Judith]

[quote user="ali-cat"]

The Irish Budget will be incredibly painful in the short to medium term – but is this a better way to go? When in debt, save instead of spend?

[/quote]

Personally, I've always cut costs when money is in short supply, or if I had too many debts - but not being an economist I don't know it the same applies to governments.  I did wonder if the reason the interest rates are so low is that they hope that instead of saving, people will spend, spend, spend, to get the government off the hook - and look what happened the last time they let that happen!!!

[Russethouse]

 Firstly to encourage savers you need decent interest rates, to keep and create jobs we need the confidence to spend .....don't we ?