Britain may be looking for another prime minister if the decision is made based on personal rating. Yes, Liz Truss has touched the lows of both Theresa May and Boris Johnson at the end of their tenures, just weeks into her ascension: “This is the worst poll result we have shown for a Conservative prime minister since the 2010 general election,” James Crouch, the head of policy and public affairs at Opinium, told The Guardian.
She has a really tough job just like any other national leader. There are limited variables one can play right now to ignite Keynesian growth and accelerate national productivity with inflation ravaging economies.
Before the social media era, Ms Truss would have managed the backlash of cutting tax cuts for rich people when some British citizens cannot pay for their electricity bills. But with Facebook and Twitter, the reactions are now instantaneous. While a typical conservative playbook, cutting taxes for rich people is looking like a stale idea in a world where the government is expected to do more as people struggle.
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Yes, I get the idea: allow the rich to keep more of their money so that they can invest and create jobs. Unfortunately, the correlation between tax cuts and more investments is not strong! And most citizens seem to agree these days. Do not begin a government by promising to help the 1%; the 99% will not celebrate that policy no matter your intentions.
Following the backlash and economic turmoil unleashed by part of British Prime Minister Liz Truss’ “growth plan”, which has seen the pound sterling decline to its lowest in decades, the government has announced it will not be continuing with the plan to cut income tax rate.
The plan, which was a major part of Truss’ campaign promises, involves cutting the highest income tax rate in Britain – and was quickly announced by finance minister Kwasi Kwarteng.
But in a statement shared online Monday, Kwarteng said the plan “had become a massive distraction on what was a strong package”.
Indeed, Liz has reversed that own-goal policy! Now, she can go and score for England; she can do it.
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Sometimes all options are bad options, it all depends on the one you are willing to bite. Even if you bankrupt the richest 1%, you may not still find enough resources to cushion things for the rest who are struggling.
What needs to grow is the overall size of the wealth, and without that happening very fast, more miseries are on the way. You number of people producing must outnumber those enjoying, else you will run of options someday.
This life is tougher than we have deceived a lot of people to believe in, and now government is running out of ideas.
We create distortions whenever we promise or share goodies, without corresponding productive outcomes. This scam cannot go on forever…