UK General Discussion: Rishecession

[Southern Senator North Carolina Yankee]

So yesterday at work, I randomly thought of the og Spitting Image skit where the whole Commons expresses its desire for Thatcher to "GO NOW".

Then this happens.

[Southern Senator North Carolina Yankee]

Well - it could be worse. At least we’ve disavowed Trussonomics as a country. Some people want to give it another try…
https://mobile.twitter.com/WSJopinion/status/1582551879703302145

A massive unfunded energy subsidy is restrained spending, news to me!

Trussonomics is somewhere in between zombie-Reaganite voodoo economics and Peronism.

(key word being "zombie". Reaganomics can work very well when tax rates are high to begin with, like they were 40-50 years ago. It doesn't work when tax rates are low!)

As I have said repeatedly, she saw that one significant concession to public opinion (which is, lest we forget, *massively* hostile to right wing libertarianism) as a green light to go full Britannia Unchained everywhere else. This was never likely to work, even if the speed of its implosion still surprised.

I do hope you aren't doing the "*real* libertarianism has never been tried" schtick

To be clear, my point is just that it's well established that this kind of economic policy fails when initial tax rates are left of the Laffer curve. So yeah, real Brownbackism has been tried and failed. But that was in a low tax environment to begin with, so it's not comparable to the high tax environment in the mid-late 1900s (when Reagan took office, the top marginal rate was 69%).

Not trying to derail the thread here, I was just being careful not to paint Truss's insane "economic" plan with overly broad a brush.

The bigger problem here is that a non-world reserve currency nation thought it could get away with murder. The downfall of supply side is not just that it doesn't work in low tax (and commodity dependent locales), but also that if it is dependent on deficit spending to carry out, it only is feasible to the extent that the bond market is willing to tolerate it. Clearly here, they were not.

This is a taste of what deficit spending would do to the US if it lost its status internationally both in terms of world reserve and oil being sold in dollars.

The idealist answer would be well "they should cut spending" and we all know how that is going to go in the real world and so the onus is at the end of the day the one ballooning the deficit is the one who cuts the taxes before they have cut the spending to pay before it.