NYT snippet on UK only
Dealbook Column no link
by Andrew Ross Sorkin
fair usage limited quote
‘Investors expect relative predictability from a Sunak government. During the race for prime minister this summer, Sunak defended his plans for higher taxes as fiscally responsible, compared with Truss’s promises of tax cuts to spur economic growth. The markets’ virulent reaction to Truss’s plans, which led to sweeping efforts by the Bank of England to prop up the government bonds known as gilts, suggest investors favor a less revolutionary approach, like what Sunak has promised.’
Both the US and UK are getting a new industrial policy based on corporate taxes and the top bracket tax rate going up spurring reinvestment.
The main thing about the higher taxes is to drive up corporate investment in manufacturing because the expenses are written off. This worked brilliantly for the US in the 1950s. During the period the R&D budgets in the US were relatively speaking the largest and written off.
The longer term benefit towards bringing down global inflation are the US and UK creating economies of scale in manufacturing a very deflationary pressure. China can no longer be that engine of lower prices globally. She does not have the water to expand her industrial base.