NS&I last week cut interest rates on their savings products to negligible levels. Which prompts the question: who’s to blame for this?
Many answers to this question are blighted by two widespread errors.
One is what psychologists call the just world illusion – the notion that the economy is fair. In truth, though, the economy is not a morality play in which we get our just deserts. Even if savers deserve a reward for their prudence (which some doubt) there’s no reason to suppose we’ll get it.