Like I said, I’m no expert, and may well be upside down, I have no evidence, it just seems odd to me.
The point is, why did they not start raising interest rates sooner, rather than a headline grabbing ‘biggest single rise ever!!’ as soon as they knew Liz was going to win and cut taxes?
I thought they were experts, could they not see this coming? Everyone knew Liz truss was going to win and everyone was told that tax cutting was their intention. They’ve acted like they were shocked at the budget, but it’s exactly what they told everyone they were going to do in all the media since bojo left.
The PM and Chancellor seem to have come up with a plan that wasn't consulted on with anyone else.
By anyone else, I mean the Governor of the Bank of England and whomever else is critical these days
to acceptance of a government's economic plan. Maybe the 1922 Committee, as the last thing you want
as a new Prime Minister is feeling the ebbing away of support of key backbenchers. In your first week or so as PM!
It appears that neither of these blithering idiots has the least clue how macro economics work. That's a staggering thing to say, considering Truss is supposed to have studied PPE at Oxford. Kwarteng's behaviour is just as shocking
as he has a PhD in economic history from Cambridge.
The dogs in the street knew that after Covid, the government's debt, while not catastrophic, at the very least needed a cautious hand while we found out over the next few months, whether there was to be a recession and if so, how bad. Instead, Truss decided she'd borrow to finance current spending, which is a no-no under any circumstances except the most dire. But to make matters worse, she also made a huge cut in Corporation Tax, as well as eliminated the 45% Income Tax rate. I'm no economist, however, I suspect that all that was needed if anything, was to indicate that Corporation Tax would be cut, say by 1% a year over five years, if economic indicators allowed it. Business would've been happy with that, as it would've given them certainty until at least the next election.
At the same time as announcing increases in spending, Truss announced the tax cuts mentioned. That makes no sense whatsoever, unless the government is sitting on a huge surplus of cash and it isn't. The reverse is true.
There is NO EXCUSE for the gross stupidity, to put it very mildly, of Truss & Co. Only the completely self obsessed, who have learnt nothing from the actions of past governments, could possibly make so many foolish errors so quickly and on such an epic scale.
Sorry. To answer your questions specifically. Politicians may say they're going to do something. They may even promise to do something. Known as a 'political promise'. But, neither mean anything. Politicians are forever putting up what are known as trial balloons, to see how the public and media respond to possible future legislation that they announce they're considering. Thus, nobody in their right mind in any public or private institution would do anything material, on the basis of what a politician says. Is that clear enough? Without going down the rabbit hole.
Nobody knew until the final week or so of voting, that Truss was likely to win. And even then, it wasn't a certainty.
It wasn't even a certainty the day Truss went to see the Queen. She might've been savaged by a pack of zombie corgies in Balmoral and the Conservative and Unionist Party might've had to rerun the leadership election.
