The theory is that a negative interest rate will make people more likely to spend their cash if it isn’t earning them an income.

The opposite is true. People saving for their senior years have some idea of what they will need to live on. They base their current savings level on the income they expect their savings to earn.

Tell them that they will not only not earn a fair rate of return on their money but will have LESS in the bank 10 years later and people will spend less and save more. Just to make sure they will have enough to live on in the future.

There will be a crash in current disposable spending as more money is saved.