Seminar based on classic economics

In the seminar the group discussed the monetary policy and how Keynesian economics still have a large relevance today. The Central Bank controls the interest rates on mortgages and loans which is currently 0.5%, the same rate as it was in the 1930’s following the Great Depression.   The best way to boost an economy is to print money and give it to the poor as they spent it on goods, going to the pub and having a generally jolly good time.  It is unwise to give it to the rich as they save money which lies stagnant in an account; therefore it is not circulating around the economy.  The way to solve this problem is to tax the rich in order to give money to the poor to spend quickly so that the economy begins to pick up.  

This is the case in Britain today where the wealthy people of society pay a vast sum of money each year in taxes to the government, which ends up being spent on benefits to help the poor. Referring back to Keynes, the government is spending large sums of money on wars such as Afghanistan and Iraq. However this is not a good time to fight a war as Britain is in a state of economic decline with record figures of unemployment and people claiming benefits.  As a group we discussed how it is a bad idea to fight a war at this time with the world economy on the verge of collapse and David Cameron should end this war as soon as possible to save money and more importantly lives.