The Conservative Party

Elbow beards said:
I'm not well up in economics.
Can someone explain the consequences to the country, when this latest government gamble fails?
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It short we are a country that buys in way more than we export. Practically everything is going to cost more. This is on top of the inflation that we already had. There is no upside for the average man in the street, if you export goods or services they will be cheaper for your buyers abroad but that only applies to a very small segment of our economy and one that was decimated by brexit. Its staggering levels of incompetence.
 
Chippy_boy said:
Oh the fucking irony. You've forgotten the last Labour government's parting note, clearly.

By the way, I think the budget was economically pretty good and in some ways, I admire Truss for having the balls to go with it.

BUT, and it's a HUGE but... I think it was politically idiotic. As I've stated, I could not give a toss about bankers bonuses, but removing the cap, LOOKS bad. Ditto lowering the top rate of tax, again it LOOKS bad. She should have used the money to give the poorest a couple of grand off their heating bills and maybe 2p off the basic rate of tax. That would have been just as effective as a stimulus to the economy, but instead she's given Labour all the ammo to beat up the Tories with the usual complaints.

I think barring miracles - like the war in Ukraine ending damned soon and their being a massive upswing in confidence and the economic outlook - then the Tories will get kicked out as a result of this at the next general election. The red wall won't vote for them again, which clearly from a Tory perspective is a right fucking balls up.
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spot on.
 
Chippy_boy said:
Oh the fucking irony. You've forgotten the last Labour government's parting note, clearly.
Click to expand...
That note, origin and author unknown, most assume refers to the fact that Bown's government bailed out the Banks and therefore massively increased public debt. Something that pretty much every western government did and which the tories supported. It was 100% not by choice.
 
Elbow beards said:
I'm not well up in economics.
Can someone explain the consequences to the country, when this latest government gamble fails?
Click to expand...

So gilts have gone through the roof, which effectively means it costs considerably more now to borrow (when we’re just about to borrow more money than at any time in the last seventy years), which means the government will have to spend more money servicing that debt instead of elsewhere, such as spending on public services.

Coupled with that, the pound is tanking, not just against the dollar, which means anything imported today costs considerably more than it did even last week. That’ll have a knock on effect for consumers in terms of rising prices, so pushing inflation even further and so everyone in real terms will be a lot worse off, even with the tax cuts, which still made most people worse off anyway. The Bank of England will react to try and bring inflation back under control, rising interests rates further which will also then have an impact.

So ultimately, if they are after growth, I can’t see how that can possibly happen unless it’s foreign investment flooding the market, which will take considerable time to flow through. That’s assuming it actually does - given the trade barriers we’ve self inflicted, even with the cheap currency, we’re not a particularly attractive proposition in a lot of sectors.
 
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