New UK budget delayed

The new PM has said Truss was not wrong. He wants high growth too. He also said something about “tough decisions”. My forecast, and worth what you paid, is he will hand out tax cuts and deregulation to the “JCs”, just as Truss proposed, but, instead of blowing up the deficit, he will propose draconian cuts in everything that benefits the general population, to establish himself as “fiscally responsible”. The City will be delighted.



The reason for the delay is they haven’t figured out how to sell it yet. The last go was a disaster, obviously, but rather than accede to the markets, the public, the everyone except themselves, they’ve decided to do it anyway, they just need a catchy name to hide it.

I suggest “supply side economics”, except that name has been used and discredited, at least by some people.


… or increase consumption taxes.

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“I’m willing to make choices that are politically embarrassing if they’re the right thing to do for the country, if they’re in the national interest,” Hunt said.

Amazing how a group of people can be impeccably well educated and act as dumb as a box of rocks. The perception that it will pay to be dumb is very powerful. Meanwhile the UK wont have an industrial policy but instead a lower your standard of living policy. No one is fooled not even those with the rocks in their heads who support supply side economics.

Note in bold “if” is the weakest suppotion. Might as well have said, “trust me” so we would see in neon not to trust him.

Seems, from the coverage on the Beeb, the problem was Truss would blow up the deficit. Apparently the City does not have confidence the UK can run deficits to infinity, like Shiny-land does. So the GBP cratered, interest rates soared, markets tanked. As long as the deficits that are created by “supply side” tax cuts, are papered over with spending cuts elsewhere, the City will be happy.

US States can’t run deficits to infinity either. That is why the previous Michigan Gov papered over his two rounds of tax cuts for the “JCs” by increasing taxes on the poor and retirees, and cutting funding to cities and counties, so the city and county governments had to be the bad guys, explaining to their constituents why there isn’t any money for their favorite programs.



When the US went supply-side, forty years ago, the narrative was the tax cuts would be funded by spending cuts, and the things that the government had defunded would be funded by “user fees”. There were analyses published at the time, showing the average person, after the 1980s tax cuts, was paying more in “user fees” than they had realized in the tax cuts.

I have commented before how Michigan government funding for universities has been cut from 80% of university revenue in the 1970s, to only 30% now, with the balance shifted to the student “users” of the universities. Michigan has some of the worst maintained roads in the country. Some years ago, the (L&Ses) raised fuel and vehicle registration taxes, to “improve the roads”. But, as the revenues for the “user” tax increases flowed in, the (L&Ses) removed an equal amount of money from the road maintenance account that had been coming from General Revenue, to help cover the tax cuts for the “JCs”.

That is what I envision for the UK: not across the board tax increases for working people, but rapidly growing fees, and service cuts, at the NHS. Soaring costs to educate their spawn. City water and sewer system maintenance defunded. Road maintenance defunded. The UK will be like Michigan.

Another tidbit that came up on the news a few days ago: major staff shortages at the NHS. Apparently, a major portion of NHS staff were from outside the UK, and, thanks to BREXIT, they are now leaving, just like the farm labor from Eastern Europe that the UK used to be able to recruit.




Lying out right does not go down in the UK. Especially as the economy gets destroyed. The moves will get the same puking reaction they got the last time. Now is a time for demand side economics in the UK…and the US…the UK politicos get zero choice without a big upchuck for trying to do the wrong thing.

This new government might not last as long as Truss.

I called

Outright lying. It is not a “embarrassing…” It is sheer lying.

Or, another name, Austerity;
maintaining the capitalist pecking order, where labor receives the burden, no benefits.

Samo, samo.


What’s wrong with ‘trickle down economics’? That hasn’t been used in a while :slight_smile:
Of course, many people didn’t even get a little damp from the trickle so there’s that.



I usually roll with “feeding a donkey strawberries and expecting strawberries to come out the other end”


No problem. Remember the writing on the Brexit-bus: The 350m per week Britain spent on EU membership could be diverted to the NHS.

Oh wait, ‚could‘. It was never the Brexiteers’ intention to actually do that.