Liz Truss’s big bet since taking over as UK prime minister is to lower taxes just like St. Ronnie and Trump did in the US. Said Truss:
“Lower taxes lead to economic growth, there is no doubt in my mind about that,”
Trickle down will work this time, we promise, say UK Conservatives.
The tax reductions will require the UK government to borrow bigly to balance their budget. They hope that there will be so much growth that the UK will make it all back in future tax payments. Just like in the US, the lie is that these tax cuts will pay for themselves! Something that has never happened.
The UK Treasury said that the top personal rate will be cut from 45% to 40%. That will be more beneficial for the wealthy than the majority of British society. Shortly after the cuts were announced on Friday, the pound sank almost 2.6% to its lowest level against the US dollar since 1985. Wrongo hates to quote Larry Summers, but he said this:
“The UK is behaving a bit like an emerging market turning itself into a submerging market…it is pursuing the worst macroeconomic policies of any major country in a long time.”
Bloomberg’s Mark Gongloff tweeted:
“Liz Truss just announced the UK’s biggest giveaway to the rich since 1972, which resulted in an IMF bailout. Now the pound is crashing in the middle of the worst inflation since the 70s. Bold strategy….Let’s see if it pays off.”
It’s hard to believe this will go well with the UK already in a recession. On to cartoons.
Russian men are facing tough choices:
Ukrainian ballot:
Reserves get their orders:
Trump’s building something new in NY:
He says witch hunt a LOT:
The coming election may surprise some people:
I still remember how in the brief period in Iraq after Saddam Hussein was toppled and it appeared we had won, a few conservatives spoke about remaking Iraq into a capitalist dream including instituting a flat tax.
The British conservative party is still at heart led by ideas better suited to the very rich. Brexit was a really bad idea. And now they imagine that tax cuts can help. They really can’t. Nor for what the UK needs. The value of conservatism is generally in telling the nation that some new ideas are not so good. But conservatives themselves have few good ideas. The PM is in it over her head.