Essentially the title encapsulates the Government’s issues. How to make the pie bigger? Surely that must come first. Clearly we need to pass round larger slices to the NHS, Education, Defense etc etc.
Mrs Truss PM at the time of writing, for reasons which are easy to understand (if not agree with) was entirely focussed on making the pie bigger through some fairly simplistic actions, i.e. Making UK a low tax and attractive base for international talent and corporate investment. A simple and superficial idea, but sadly life is not as simple as that. For the uninitiated, lower income from lower tax base has to be balanced with expenditure, therefore there will have to be radical reduction or radical borrowing certainly in the short to medium term. How the PM and Latin speaker, Kwarteng didn’t take this into account is nothing short of astonishing. Even the most elementary economist knows all about Laffer’s curve and fiscal lag.
How could anyone, be so narrow minded and still be voted in as our leader is a mystery to many, but now the s**t has hit the fan and the UK is now seen as unreliable and chaotic. The consequences are appalling, with the cost of borrowing escalating and adding to the flames of rampant inflation.
The Pie is therefore getting SMALLER, that’s what inflation does!
Enter a new Chancellor – a realist. A steady hand on the economic tiller, ‘Jeremy Hunt’. Guess what? Not only do we face inflation, the only one medium term way out ie to save and save some more – AUSTERITY!!
This is undoubtedly a bad situation made worse by a narrow minded leader who is not qualified to lead the UK especially now. If we had a surplus and Brexit had turned out well, if, if, if only!. But Brexit has not turned out well, the world economy is shot, kind support of the maniac Putin and the UK has become a laughing stock because of the ‘Blue Rinse Brigade Tory Members’ who voted in the hopeless leader Truss.
The pie is smaller, and getting smaller. How then does the Government react. Do they put aspects of incentivised growth on the back burner? Do we go flat out on Austerity?
How do we contain the demands of workers all demanding a salary/wages are hyked to keep up with at least medium turn inflation?
The UK is in danger of abandoning its place as the mother of democracy, the ideal state that can no longer sustain its place as one of the world’s great powers. The mess before our nation is not soluble in the short term unless we have a respected Government Leader, and a population that understands the problems which are vast from; migration to climate change, from freedom to totalitarianism. They are all up for grabs in the medium term.
Truss must go!