The Truss mini budget

[fillyboy]

Appears to be responsible for the the global collapse of society and capitalism as we know it, only years of high unemployment, high taxes, austerity and the slashing of public services will save us. Extraordinary.

What's even more extraordinary though, is how many people have been taken in by this.

 

[Deleted member 18243]

Appears to be responsible for the the global collapse of society and capitalism as we know it, only years of high unemployment, high taxes, austerity and the slashing of public services will save us. Extraordinary.

Yes, nothing much happened before Liz Truss became PM.

What's even more extraordinary though, is how many people have been taken in by this.

I'm convinced that the British public are like goldfish: short attention spans, events quickly forgotten; when the same thing comes around again it's like a new and unprecedented catastrophe.

 

[Justin Passing]

I've caught a couple of informative chats about what she was trying to do, and there are some informed articles in print.
I don't claim much understanding of the theories about growth. There seems little agreement, so they can't all be right. (Overridingly it's bad for the planet, but that's another matter).
There was a program on Radio4 in which economistas looked at what she did and why it wouldn't work . (EG, cutting taxes for the rich 'worked' for Thatcher but she cut highest tax from 70% to 40%. Now, 45 to 40 was never going to do much. There are parallels with what Reagan did too. It's probably on a podcast. Half an hour worth hearing. A walk on the Supply side.
Here it is but the link's not quite right:

As Truss was quick to point out, most of what she did was about the fuel cap, OK, plus some stuff for tax cuts. There was wailing that it wasn't funded. Well OK but neither were furlough payments. One will hopefully not recur in decades, the other will go on a few years. Is that the only difference?

It was monumentally stupid to do daft-looking things without any explanation, but what was disastruss was the "market" reaction, it seems to me, rather more than the measures themselves.

Question time last eve was mildly interesting. Stuart Rose was on, always worth a listen, and a savvy woman who's something like the editor of The Economist. At one point she said she was in violent agreement with Rose. I used to use that phrase in meetings. There was always someone who thought a fight was in the offing.

 

[Odds]

Oh Lordy! this'll be fun.
Andy and Gone find a way to explain how Lithium Liz was ahead of her time and misunderstood.

 

[Notch7]

austerity and the slashing of public services will save us. Extraordinary.

What's even more extraordinary though, is how many people have been taken in by this

That’s what this govt have been doing for 12 years.

You were taken in by them.

 

[Deleted member 18243]

wasn't funded.

A rather anodyne phrase for the most destructive method of government we've ever had.

 

[noseall]

Appears to be responsible for the the global collapse of society and capitalism as we know it, only years of high unemployment, high taxes, austerity and the slashing of public services will save us. Extraordinary.

What's even more extraordinary though, is how many people have been taken in by this.

Have to agree. And now Rishi is seen as a saviour.

 

[Notch7]

Appears to be responsible for the the global collapse of society and capitalism as we know it, only years of high unemployment, high taxes, austerity and the slashing of public services will save us. Extraordinary.

What's even more extraordinary though, is how many people have been taken in by this.

Sunak is as bad as Johnson, Truss and every other Tory.

we need rid of these liars

 

[gant]

Yeah that's what we need a change of liars.

 

[^woody^]

The economic situation today is not confined to the UK, it's the same in all peer countries and economies. Further the situation today would be the same if the Truss government did not happen.

However, the economic policies that Truss proposed are commonly acknowledged as being the ones that are ideal for stimulating a sluggishness economy and promoting growth. Whereas Sunak's policies are reactionary and intended to knuckle down and ride out the storm not deal with it or shorten it.

By reducing tax levied on business and those creating business, a government actually increases tax income via other tax streams creating a nett gain. That's a proven economic policy.

So despite appearing badly implemented, it seems that Truss did have the correct policies and ideas.

 

[Justin Passing]

By reducing tax levied on business and those creating business, a government actually increases tax income via other tax streams creating a nett gain. That's a proven economic policy.

Only works if you have other stuff right - I recommend that BBC thing. They're all "Old" philosophies . The case studies of what worked or didn't are interesting. CLinton didn't seem to be doing much that was striking, but apparently it worked.

Ask George Osborne. He tried it, lowered business tax and it just cost a load of money.
Obviously - tax business at 0.1% - loads of business, no money coming in
tax business at 99,9%, no business to tax.

The clever bit is getting the % right, without letting the people starve or getting everyone scared to death so nobody invests.

A Tiny % of thepopulation/businesses pay a huge proportion of tax. We need to encourage them to be more active, so they're happy to pay more tax, not just do more turnover!
How the hell you do that - answers on a postcard.?
We seem to stumble on by finding more of the county's assets to sell off. I bet if we built that amazingly big battery factory - if it was profitable we'd just sell it to some foreigner.

 

[Justin Passing]

A rather anodyne phrase for the most destructive method of government we've ever had.

Not anodyne, just fact. . Liz's mini budget, tax cuts, "weren't funded". NObody's moaning about the most expensive part though - the fuel money. Disproportionate fuss about the 45% tax cut - an almost trifling £2bn, which might have worked, nobody knows. . It was a punt - speculation..

 

[Justin Passing]

I'm convinced that the British public are like goldfish: short attention spans, events quickly forgotten; when the same thing comes around again it's like a new and unprecedented catastrophe.

Agree with that - we are definitely pathetic.

 

[Notch7]

However, the economic policies that Truss proposed are commonly acknowledged as being the ones that are ideal for stimulating a sluggishness economy and promoting growth

They aren’t actually.

History shows us that trickle down doesn’t work.

Trumps tax cuts did not create a boost in tax revenue, it caused the opposite

https://www.cnbc.com/2019/12/05/us-tax-revenue-dropped-sharply-due-to-trump-tax-cuts-report.html

 

[Notch7]

By reducing tax levied on business and those creating business, a government actually increases tax income via other tax streams creating a nett gain. That's a proven economic policy

It’s not.

UK has the lowest corporation tax rate in the G7, UK also has amongst the lowest productivity and amongst the lowest investment in the G7.



What businesses want are: low barriers to trade across markets, great vocational education, high skills, flexible workforce, excellent infrastructure, good healthcare. Trusses plans included none of those things.