Dear money was justified as necessary to force national saving

Evidence

In March 1920 Blackett shared with the chancellor an article by Pigou that reiterated the common dogma: “Th e country is in tremendous need for new capital… . It is imperative, therefore, that people should save. Cheap money does not encourage them to do this. Dear money does” (A. C. Pigou, “Dear Money,” Th e Times, March 1, 1920, 10; also in T172/1384, fol. 50). — Clara E. Mattei, The Capital Order, 1697

Categorization

• XREF: The dear-money-as-saving-compulsion dogma connects to classical economics’ assumption of an immediate savings-capital formation link, and to the broader austerity-as-class-weapon thesis running through this book.