Invest Money to Generate Wealth

UK market is going through a recovery and the government is trying its best to devise certain policies that make the people invest in the market. For this purpose the interest on savings in not being increased as the government does not want the people to keep their money on the banks as it holds the economic activities back. This has led to criticism from certain experts as they opine that so much money in the market would give birth to a new tide of inflation and that would be difficult to control afterwards. The government however has been keen to import business activities in the country and thus discouraging savings.

The Eurozone Crises has also compelled the government to keep the money in the market because unless the business does not excel in the country, there does not seem to be any alternative way of wealth generation and the banks borrowing money would be no good idea for this struggling UK economy. Wealth generation is a key part of a growing economy and only more capital can bring this as without capital it is impossible to generate any job opportunities and more profits. The government’s decision from a capitalist’s point of view looks right but the counter argument also has weight that government is deliberately trying to manipulate the buying and spending behaviors of the public.

However, the government point of view looks valid and after watching the troubles that the Eurozone is going through these days, it looks a better idea to generate wealth instead of preserving it. Preserved wealth would be good for the individuals but if it is properly utilized and invested, it can be expected that it will be good for the overall good of the country. Britain needs capital investment at the moment and to multiply their money, people should invest it in business instead of keeping them in the banks and business might give them much more dividends than the bank could ever give.