What’s being missed here, is this Green Recovery Bond is being targeted at those who have savings but aren’t investing.
The article even says this. There’s 125 billion worth of savings that people aren’t touching, and only 5% is expected to be ‘spent’ in the recovery period, hence this recovery bond to try and tap into that money.
It’s also something they’re trying to reframe as ‘we’ll take your savings, build public services and reward you with interest’, something they’re doing because the more conservative media and the Tories have a stranglehold on the message that ‘taxes are bad’, ‘spending causes debt, control the deficit’ nonsense that pushed the public into supporting austerity.
Whether this idea actually works remains to be seen, but it is a decent start and for sure, people are more likely to shift money into a competitive savings than investing, so it’s a good idea to try and tap into that.