Putting pensions to work: Economic easing and the role of pensions in promoting growth
Article
Positive cash flow is the key to sustainable economic growth for any participant in the economic process, be it a government, bank, company or individual. The UK government, the banks, individuals in general, and the overseas importers are currently not in a strong enough cash-flow position to spend more. This leaves pension savings cash flow as the only viable non-inflationary source of funds for economic expansion.
If the government, the private sector and pension fund managers can agree to work together then this economic easing scheme would help to ensure that companies have the funds available to expand in the most economically sensible way: by increasing share capital ringfenced for longer-term growth investments. It will also facilitate a more efficient deployment of pension savings cash flow in the company sector, a desirable objective for long-term pension savers.
Related items
From bystander to builder: government guidance will be essential for industry to thrive
Global political attention remains fixed on Washington. US president Donald Trump’s tariffs (and the circling threat of new tariffs) are challenging the global economic order and throwing governments into chaos. Intensifying economic…Accountability matters: Securing the future of devolution
English local government faces major reshaping.Nuclear enrichment: Building a stable and effective nuclear workforce
The government has talked a good game on the future of nuclear generation.