Spend it! No, save it!

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Advice from our political leaders is, to say the least, confusing. Labour would like us to spend a lot more in the shops and their big incentive was a VAT cut that knocked all of 2.13% off prices that were being massively cut anyway.
The Tories think we should save and are proposing a tax incentive to persuade us at a time when most informed opinion is clearly saying that if we all start saving now the recession will get even worse.
Maybe good old Ronald Reagan had it right when he said that the nine most terrifying words in the English language are: “I’m from the government and I’m here to help.”
I’m not convinced anyone knows the answer and, in the absence of a clear consensus, I suppose we will all need to do what we think is right for us. Some of us will save our money away until things get better. Some will decide that this is the right time to make major purchases as prices fall to remarkable levels. Some will even take out personal loans to buy at these low prices. Who can say they are wrong to do so?