The Conservative Party

Cuts in all government departments to put a sticking plaster over the monumental damage the 'mini' budget did because of Truss and Kwasimodo's hard line dogma? The NHS is on the bones of its arse, education spending per pupil is lower than it was 10 years ago and Truss having promised an increase in previously depleted defence spending during her leadership campiagn. There's nothing left to cut.
 
When Truss finally emerges from occultation today and simply parrots the line that the budgetary measures are necessary to stimulate growth, if I was interviewing her I would ask her to cite one, just one instance of tax-cutting, supply-side measures producing this effect.

I would also inform her that there is evidence that inequality of the sort that already afflicts the UK hampers economic growth, whereas a moderate amount of redistribution does not have a negative impact on such growth.

Here is a link to one of the relevant studies.


There are others.

From the conclusion:

'It would still be a mistake to focus on growth and let inequality take care of itself, not only because inequality may be ethically undesirable but also because the resulting growth may be low and unsustainable. And second, there is surprisingly little evidence for the growth-destroying effects of fiscal redistribution at a macroeconomic level...for non-extreme redistributions, there is no evidence of any adverse direct effect.'
 
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