Tuesday 10 July 2012

Savings


Why We Should Save

There are many ways and already, are many institutes/facilities which accommodate people’s needs to save and invest, but I am, a newly appointed minister in this time of economic need; I will encourage many workers to start saving and to help them save with my new schemes which I am purposing only to benefit every individual personally and also to help the economy to strengthen and re-gain its rightful status.

Some workers may be discouraged to save as much, especially in difficult economic times due to many regulations still appointed today but I would like to show the public what I purpose should happen.
One of these regulations would be the restrictions on job seekers allowance; which may not be paid to anyone who has £5000 savings and investment and so I believe that workers should be encouraged to save as much as they can, without having to worry about their illegibleness to job seekers allowance.
I think this should be done, by not taking into account the money workers have invested into companies and investment-bonds but I purpose that investors are not allowed dividence or cash prizes from the investment, during periods when workers are receiving job seekers allowance, but instead it should be taken by the government.
As well as that I would like to raise the maximum savings amount from £5000 to £7500 as it would encourage workers to save more without worrying, so they would be able to maintain a standard of living during unemployment.

I would like to introduce the above suggestion as soon as possible as I believe it would be beneficial for the economy as more workers would save more, and also invest allot more, and more importantly the increase of investment in companies would be away of increasing the Aggregate Demand and helping companies raising money without having to lend as much to produce more and meat demands.
This would require the government paying more JSA, but they would also be financed for most of it, as I have stated above: that they should receive investor’s dividence or cash prizes if they are on JSA.

Currently the government is still going along with previous pension schemes where national insurance contribution is deducted from each worker, and paid as state pension after retirement age.
Our population in the UK is ageing-meaning more pensioners in the future, and fewer workers with a low birth rate.
This trend shows fewer workers and more pensioners and so resulting in higher national insurance tax from each worker to gain the money to pay pensioners, normal state pension.
I propose that state pension should be abolished and so each worker has to make private contributions compulsory, and so anyone who starts work for the first time from August 2011 and so resulting in pensioners having their pension, whether they are in the Private or Public sector.
The rationale behind this is due to the emerging pension gap and so workers don’t have to worry about remembering to save because I also propose that the percentage of their wage is automatically taken out and paid into their individual pension account; I also believe that this whole procedure should be controlled by the government and not privately, eliminating the risk of collapsing, private systems.
My proposition is good for the economy as it will help the government to pay everyone their own pension, and it will not put off others from saving-thinking that their money will go to someone else but it will go to them.
As well as that it will keep up the funding old homes and also special benefits for the older generation and so there should not be a run out of money and the government should not need to refer to any loans to pay for pension resulting in zero chance deficits.

I think both of my propositions are well thought of and should be put into action as soon as possible, to strengthen and help the economy strife back to the boom, and save money and worry for workers.
Even though, I believe both propositions are unique and will be helpful, but only if one was allowed to go through I would choose the fact that Job seekers allowance should not be restricted at £5000 but increased to £7500 and not to take into account investments into government and firms, because I believe that it gives workers security and confidence to save, and invest into companies to help them and resultantly, helping the economy.

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