Many people are “forced savers” at the moment

Julian Jessop and Philip Booth quoted in The Sun

People have saved £16.2billion in April according to the Bank of England despite millions of workers being on furlough.

The IEA’s Economics Fellow Julian Jessop commented on the story in The Sun saying: “Even many of those who have seen their incomes fall – including those furloughed on 80 per cent of their normal wages – may have been adding to savings.

And IEA Senior Academic Fellow Philip Booth added: “Many people are ‘forced savers’ at the moment. Not only are people prevented from working, those who are still earning have not been spending anything like the amount they would in normal times. Meanwhile, the government is borrowing huge amounts of money to pay people on furlough who may then have little to spend it on.

Read the article in full here.