Inequality - and the ideas of UK PM Truss . . .

[TorquayFan]

I'm no economics wizard but I do understand a little. Whilst wanting to give PM Truss a chance, instinctively, her mooted plans to revive the UK economy make me shudder.

Selected paras from George Monbiot https://en.wikipedia.org/wiki/George_Monbiot

Trussonomics is a fanatical, fantastical creed, and the last thing Britain needs

'Look at Truss’s proposal for addressing the energy bills crisis. Instead of taxing the record profits of oil and gas companies, she’s using the taxes the rest of us pay to allow them to keep raking in monstrous sums. Even this policy, presented as a means of helping poor people with their bills, will, when combined with the new cuts in national insurance, ensure that the richest households receive twice as much help with their living costs as the poorest households.'

'The “plan for growth” on which Truss campaigned was pure neoliberal gospel: “cut taxes now, unshackle business from burdensome regulation, implement supply side reform ... create new, low-tax, low-regulation ‘investment zones’”. Her key advisers are drawn from covertly funded neoliberal thinktanks. She will go as far as electoral politics allow in transferring wealth from the poor to the rich, attacking trade unions and protesters, opening the floodgates for pollution and greenhouse gases and dismembering the NHS. Already, her government has floated proposals to scrap England’s anti-obesity measures and to remove the cap on bankers’ bonuses, the purpose of which is to discourage the reckless gambles that caused the last financial crash.'

'After 40 years of this experiment, we can state with confidence that the economic success it proclaimed is illusory. Its buy-now-pay-later economics works by inflating asset values and household debt and burning through human relationships, conditions of employment and the living world. Now that there is little more to burn, Margaret Thatcher’s fire is reduced to embers, as is much of the world we knew. Yet Truss seeks only to breathe life into the coals. And this is when it gets really dangerous.

As neoliberalism wages war on social security and the public sector, impoverishes millions and destroys conditions of employment, its political consequences could be as disastrous as its economic consequences.'

Serious stuff and for this I apologise - I want it to work, but for me, the Tories are on the road to 'economic hell'. I humbly suggest it's worth the whole read - https://www.theguardian.com/commentisfree/2022/sep/17/trussonomics-britain-prime-minister-liz-truss-neoliberalism

Another from the 'the Guardian' - but the DT has the same vibes . . . .

 

Tory MPs fear Liz Truss’s policies will create a ‘complete open goal’ for Labour

'Tory MPs are already listing the campaigns they will face from opponents come the autumn.

“The removal of the green levies on fuel and the opening up of fracking – the whole environmental movement will start campaigning against Conservatives, even though we’ve been quite green,” said one MP, adding: “The lines of political attack for Labour are incredibly clear. Bigger bonuses for bankers. The cut in national insurance will primarily help people on higher incomes.

“The freezing of energy bills primarily helps people on higher incomes because energy bills are bigger. None of this is targeted. Honestly, it’s creating a complete open goal for Labour politically.'

'Another warns that the spending splurge on tax cuts – which Truss and chancellor Kwasi Kwarteng will frame as part of a dedication to growing the economy – will hit the Conservatives’ key calling card. “Fiscal prudence, or sound money, is one of the defining characteristics of conservatism,” they said. “We are a party of sound money or nothing.”

While some wonder privately if Kwarteng is secretly working for the Labour party, one former minister dismisses the idea. “I totally disagree,” they said. “There is nothing secret about it.” '

'A source close to the Treasury described the plans as “very naive”. Meanwhile, Truss is unlikely to have much of a honeymoon. Several MPs pointed out that, in the first round of leadership voting among MPs, she managed to claim just 50 votes.'

'Meanwhile, the dismissal of the Treasury’s top civil servant, Tom Scholar, continues to cause alarm in Whitehall and sets up an immediate tension with the new administration.'

Once again - serious stuff. But there's many Brits on here so  https://www.theguardian.com/politics/2022/sep/18/liz-truss-policies-tory-mps-open-goal-labour

 

Edited September 18, 2022 by TorquayFan

[Chomper Higgot]

She seems to think removing restrictions on Banker’s bonuses will sort the economy out.

 

Borrowing money to fund help with fuel bills (tax payers get to pay it back later) while refusing to tax windfall profits of energy companies. So borrow to protect windfall profits and send the bill to the tax payers.

 

Oh and of course, tax cuts, putting more cash into an economy already struggling with inflation.

 

Look after the bankers.

Defend energy company windfall profits.

Give tax cuts to the already wealthy.

 

The BoE is forecasting 18 months of recession and high inflation while at the same time Liz Truss is promising 2.5% annual growth.