I don't normally comment on the UK, but I have to say I am now deeply worried. The UK has a deep, deep economic malaise, and it is not because tax rates are too high, or because of the cap on bankers bonuses.Thanks for reading @tashecon blog! Subscribe for free to receive new posts and support my work.
I agree with several points. Brexit is a mess, the country has spent forever in failing to invest properly in people/infrastructure etc, the BOE are a joke and so on.
However I’m not so sure today is that bad in itself. I think it’s very biased to say you won’t spend more with the tax cut (I know I will), plus I will move non GBP into GBP given the rate. Cutting higher rate taxes is never easy but it is good policy (if not optics).
From my perspective, the one I can’t fathom is why are they not raising a windfall/levy on utility gains (that could be a huge mitigant to the energy cost) but everything else is pretty sensible.
As an American, I have a somewhat different perspective, and after all, we have our own homegrown problems here as well, but from this side of the pond, I view the Truss efforts as, arguably, the only thing she can do. austerity is clearly not going to solve these problems and the energy crisis is not of her making, but something she inherited from decades of policy mismanagement in the past. Perhaps a high inflation, high interest rate scenario is enough to reduce the real value of debt outstanding for all debtors and will lead to a far better and more balanced economy in the next 24-36 months. that's not to say that the next 2 years will be fine, just that I would argue she had to do something, and all the old theories have already been proven wanting. just look around the world.
Tim, skilled immigration rules have changed q significantly from the 'reducing net migration from the 100s to the 10s of thousands' idiocy during the pre-Brexit era (May, Cameron) and this is good for getting non-EU skilled workers, especially. the post-study work visa is back, as well as the potential talent (top 200 unis). this has been muddled a bit by Covid, but it is much easier now for global talent
UK is one surprise bill away from abject poverty. So many live check to check, and have no idea how to save money.
I agree with several points. Brexit is a mess, the country has spent forever in failing to invest properly in people/infrastructure etc, the BOE are a joke and so on.
However I’m not so sure today is that bad in itself. I think it’s very biased to say you won’t spend more with the tax cut (I know I will), plus I will move non GBP into GBP given the rate. Cutting higher rate taxes is never easy but it is good policy (if not optics).
From my perspective, the one I can’t fathom is why are they not raising a windfall/levy on utility gains (that could be a huge mitigant to the energy cost) but everything else is pretty sensible.
As an American, I have a somewhat different perspective, and after all, we have our own homegrown problems here as well, but from this side of the pond, I view the Truss efforts as, arguably, the only thing she can do. austerity is clearly not going to solve these problems and the energy crisis is not of her making, but something she inherited from decades of policy mismanagement in the past. Perhaps a high inflation, high interest rate scenario is enough to reduce the real value of debt outstanding for all debtors and will lead to a far better and more balanced economy in the next 24-36 months. that's not to say that the next 2 years will be fine, just that I would argue she had to do something, and all the old theories have already been proven wanting. just look around the world.
Tim, skilled immigration rules have changed q significantly from the 'reducing net migration from the 100s to the 10s of thousands' idiocy during the pre-Brexit era (May, Cameron) and this is good for getting non-EU skilled workers, especially. the post-study work visa is back, as well as the potential talent (top 200 unis). this has been muddled a bit by Covid, but it is much easier now for global talent