Friday, January 16, 2009

Four Bees

The Blessed Economist’s Economic Strategy has been leaked to the media, so we are making it available free of charge to households, CDHB nurses and doctors, businesses and governments everywhere.

  1. Bring down your debt, as fast as you can, while you can (it is probably too late to sell your house, unless you are really desperate and need to beat the next round of price falls).
  2. Build up your cash buffer at the bank, so you can cope with the unexpected.
  3. You do not need a new Ipod (or cellphone, or HD TV or SUV), so Be sensible.
  4. But, if you must go out for a meal, try Korean.


Unknown said...

Very sound advice in these times. If, however, you are in the blessed position of having no debt, have built up and still are building up a cash buffer at the bank, do you have an obligation to society to take advantage of some of the cheaper prices for goods and services and help keep money flowing in the system. By not spending when one can, are we not perpetuating the downward spiral of the economy. Really enjoying your blog and, by the way, I would prefer Thai.

Ron McK said...

Thanks Derek
Those who are blessed with spare cash are free to spend it as they please. However, they do no have to spend it to help the economy. Saving money helps the economy just as much as spending. Money saved in the bank is available to be lent to others to spend. Most important, it is available for lending to businesses to buy capital equipment that will make their staff more productive. Our country needs saving more than it needs spending.