Mr Bean lectures the prudent, the savers, that they must go out and spend more. He tells us the whole point of providing practically no return on our desposits and savings is to persuade us to spend more.
Doesn’t Mr Bean – or the Bank – realise that the UK has a treble deficit problem. It’s not just the public sector that has borrowed too much. In the boom years individuals borrowed too much as well. We are all collectively embarked on cutting the mortgage and putting some more money into savings and pensions. We also have a balance of payments deficit. We need to export more and import less.
Consumers might spend more if they got a better return on their savings and had more savings income. With the current cripplingly low level of savings income people are saving more to try to compensate. As house prices fall, people become more alarmed by the level of the mortgage. Mr Bean doesn’t understand human nature, let alone economics.