Savings working group report: Media release, first impression
I am busy with labour market data (and the EPL transfer window), so you won’t get a good read on the report from me until later tonight, or even tomorrow.
However, I was happy with the media release in the most part. Especially the discussion of tax bias toward housing (and away from interest bearing investments) and the fact that it was over-investment in the housing stock (paradoxically while we were underbuilding in terms of the number of houses – this bit is just from me, not the release though) was one of the main drivers of debt accumulation.
Mentioning the risks of a “sudden stop” is a good step towards the justification of some type of externality/multiple pareto ranked eqm among outcomes – which could justify subsidisation. So if they have made that case, with associated evidence, it is a relatively persuasive one.