The Conservative Party

mexico1970 said:
You can have an opinion on anything, it doesn't matter if it impacts you at all. Should people just stay in their lanes and not have an opinion on things that don't affect them?
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Might be a better world if they did

Busy body cunts most at times

Having said that, it is only my opinion on that
 
Chippy_boy said:
This question was raised earlier and of course I don't know because I am not close to government. But my guess is for two reasons: Mainly because in theory it makes the UK a more attractive place for high earners to want to base themselves and pay tax. So an incentive for inward investment in much the same way as the corporation tax cut. And secondly because it fits with Tory ideology of low taxes. They can't afford to cut the basic rate much because so many people pay it and there is no "upside" in terms of greater compliance, i.e. everyone is on PAYE anyway. IIRC less than 1% were paying the 45% rate, so they could afford to cut that more deeply, AND as I say it might not cost anything at all if we get more people paying it as we did when we cut from 50p to 45p

BUT, and its a huge BUT, I really do think it was an utterly stupid thing to do. It looks terrible even if it costs us nothing.
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The point of the tax cuts is to stimulate growth. If you want to stimulate growth then you put more money into the pocket of the greatest number of people, not more money into a small number of people, especially as they will not spend the money to stimulate the economy.

The tax cuts were to be funded by Govt borrowing, yet Friday’s statement has increased the cost of Govt borrowing. The run on the pound has to be stabilised by higher interest rates which means higher mortgage product costs, and for those ending their fixed terms, much higher mortgage payments wiping out any marginal tax benefits. The markets have factored in the higher interest rates and the BoE will be obliged to meet those expectations or create another run on the pound. None of this will stimulate growth. Indeed higher interests rates mean more costs to consumers which is the opposite of stimulating growth.

Not bad for Kwarteng’s first day in office, where the markets where obliged to put the new Chancellor on notice.

It also means Kwarteng will end up having to resign.
 
Chippy_boy said:
Of course commentary such as this is music to the ears of most of you. But listening to that monologue I have to say I have never heard such a pile of nonsense. IMF having to bail us out??? Good grief, what utter tripe. Talk about a bloody drama queen.
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“Drama Queen” “utter tripe” “pile of nonsense”

This reminds me so much of project fear.

Experts in their fields come out and predict what will happen, conservative loyalists and politicians reply by saying it’s all part of project fear and then 3 years later we all live through what the experts predicted while the morons who said it wouldn’t happen have either fucked off or say “how dare you say you told me so”

You’ve been honest enough over the last couple of days to point out you’ve not got an economics background. So when you say things like “utter nonsense” it’s a reaction based on northing but a blind faith in the Conservative party and BOE. You don’t have any expertise with which to refute or reject the claim, and yet you do because…?

Anyway a return to 1970s economic diasaster ending in IMF bailout is what Nouriel Roubini has predicted for the UK and he knows what he’s talking about, which is why other people are floating it as an end destination if someone doesn’t step in and fix things soone.
 
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