• BananaTrifleViolin
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    2 years ago

    Truss seem’s unable to accept that her ideas and approach were fundamentally broken. Borrowing to fund tax cuts for the wealthy is just a bad idea. The supposed logic that it would stimulate growth as it is based on an over reliance on “trickle down economics” and also a lack of appreciation of the reality of the last 13 years since the 2008 economic crisis. Interest rates have been low, and “quantitative easing” created cheap money amassed by the wealthy and cheap credit with a low return economy; the wealthy have been hoarding this money rather than investing it in growth and enterprise.

    Borrowing to invest in infrastructure such as the hospital rebuilds, HS2 and the Northern Power House rail, and to build a fund for a UK public alternative for business & investment financing to foster entrepreneurs - that would have been a good approach. Using the money to build and buy assets, and invest in growing new companies would both stimulate the economy by putting money into peoples & businessed pockets, while getting something directly in exchange - assets and loans/shares in new companies - and should reassure the markets that the money isn’t just being frittered away on a crazy experiment.

    • Tenebris Nox
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      2 years ago

      If you listen to the right-wing commentators they don’t disagree with Truss’ plans - just the speed in which they attempted to implement them. I heard Nick Ferrari say as much yesterday on LBC.

      Longer-term, Sunak’s wing of the Tory party is to the right of Truss in terms of economics. Seems to me that the only major difference is that Sunak/Hunt are prepared to use state intervention more aggressively to confinue to channel capital to the already-rich. Just over a longer time.

      Edit: weird mis-typings on my phone.