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The Paradox of Prudence

The David McWilliams Podcast

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The Importance of Money in the Economy

When you hoard something, no one else can use it. We have to accept now that our economy and society is generating enormous amounts of surpluses - this isn't just a one off. And then we say, could you imagine using 12 billion of the government's money? You could fix all childcare and give it away free. All these things that we could have done in the 80s, 90s, we didn't do because we had no money. Now we have lots of money and we're still not doing the things because we're afraid of inflation or an economic problem. I'm afraid of this is all failure of imagination.

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