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Credit crunch hurting the young generation PDF Print E-mail
Written by Wollongong   
Friday, 27 March 2009 13:57

crunchNot too long ago, the Torn City Investment Bank announced that it's interest rates were no longer fixed. Instead, they would become variable, changing in time. This move was encouraged by the City Government, as it would reduce the amount of money going into our economy.

Allthough this is a good move macro-economically, it does have some significant side effects.

While the older generation has had the privilige of building wealth through the bank, the younger ones are now facing lower interest rates, making it harder for them to "catch up" with the older citizens.

On a personal level, this ratechange also affects your reporter negatively. However, yours truly will manage to cope. But it is the little man who may feel treated unfairly: while the old guys got 50% for three months, the newcomer needs a half year to gain the same.

This shows that our city Treasurer is trying to tackle the inflation problem from the wrong angle. Like this newspaper has argued before: it is not a reduction in revenues we need, but an increase in the ways of spending money. Not just by making existing features more expensive, but by introducing NEW and exciting ways of parting with your money.

A suggestion from Torncitycomplete: if those images we get at the start up would be "for rent" (much like the tc newspaper banners), it could easily be rented out for a sum significantly higher than that of the newspaper. 

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3.23 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."

Last Updated on Friday, 27 March 2009 14:23
 

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