Drudge Retort: The Other Side of the News
Friday, September 30, 2022

Britain is in a self-inflicted financial crisis, years in the making, that threatens to accelerate the economy's dive into recession -- and the country's new prime minister is coming under intense pressure to blink.



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More from the article...

...In the week since the government unveiled the biggest tax cuts since 1972 with scant detail of how they will be financed, the pound has crashed to its lowest-ever level against the dollar, the cost of insuring British government debt against the risk of default has soared to the highest since 2016, and the Bank of England has been forced to intervene amid concerns about the nation's pension funds....

"It's the latest in a long line of self-imposed economically illiterate decisions," said Peter Kinsella, global head of FX strategy at Union Bancaire Privee UBP SA in London. "It started with Brexit, and now we're seeing the latest iteration."...

The problem for Truss is that she made the tax cuts the centerpiece of her program for government. An about-turn so early into her tenure would be politically fatal: She only won office thanks to the backing of grassroots party members. Most MPs in her own party voted against her, leaving her exposed to a backlash if they sense her policies will lead to defeat.

While Britons wait to see if her gamble on "trickle-down" economics pays off, they face a dramatic increase in borrowing costs -- something that could trigger a housing crash and deepen any recession -- or a round of swingeing public spending cuts....

[emphasis mine]

It seems that there may be some in the UK who do not buy in to the theory that tax cuts for the wealthy's "trickle down" to help the working folk.

#1 | Posted by LampLighter at 2022-09-29 04:26 PM | Reply

C'mon, man, don't they know that tax cuts for millionaires pay for themselves?

Here let me show how:

1. Cut taxes for the top 10%
2. The top 10% hoard an even greater portion of the nations wealth.
3. ????
4. Everyone profits.

#2 | Posted by Nixon at 2022-09-30 07:47 AM | Reply | Newsworthy 1

Liz Truss has been PM for three weeks and already Britons want her out. Having taken a while to react to their country being run by a dolt, they do not want to repeat the Boris Johnson train wreck and slow-rolling arse showing on national television. At this point Brits hope for Mrs. Kensington but will take Austin Powers ...

#3 | Posted by catdog at 2022-09-30 09:47 PM | Reply

The UK isn't doing anything Republicans haven't done multiple times now since 2000 (2x under unitary control of government during Bush, 1x during Trump) Borrowing so you can hand out tax cuts your wealthiest citizens and corporations didn't need in the first place doesn't lead to economic growth. It leads to them hoarding more money. They, when Republicans are out of power, they whine about the debt they created.

When Clinton left office, we had a grand total of $5.6 trillion in debt and were running surpluses, which could have completely erased the debt.

During the Bush/GOP years, they doubled the budget, slashed taxes, doubled the debt, and left us systemic annual deficits, adding to that debt every year.

Even though they whined about debt and deficits when Obama took the WH, what's the first thing Trump & Republicans did? Borrow more money to pay for further tax cuts.

That's the definition of insanity: doing the same thing over and over expecting a different result.

#4 | Posted by AMERICANUNITY at 2022-10-01 05:31 PM | Reply

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