The International Monetary Fund (IMF), the much-respected global financial body has attacked the economic policies of Liz Truss and urged her to rethink tax cuts for the very rich.
This brings a slight glimmer of hope to millions in the UK who are about to be hammered with rising interest rates especially for mortgage owners.
The IMF said it was “closely monitoring recent economic developments in the UK and are engaged with the authorities” and warned that the fiscal stimulus risked undermining the Bank of England’s efforts to curb inflation.
It is an extremely rare intervention by the IMF over a developed country’s economic policy.
We are entering uncharted waters and the crisis that has gripped the country since the mini- budget will seriously impact on the whole population, every single one of us will be affected in some way.
And now Moody’s, the global credit rating agency is threatening to cut the UK’s credit rating. It’s likely that Tory greed and lust for power may plunge the UK into a crisis that will cause human and economic misery on a vast scale,
While we can expect sales of champagne to rocket over the next year as the very high earners celebrate their lower taxes, the only minor consolation is that it will be a lot more expensive to buy because of the low pound. But of course, it’s not only champagne that we import; oil, energy, food, raw materials for industry, the costs of holidays abroad will also rocket. Then there is the costs of servicing a mortgage and every loan will become more expensive especially credit card debts. We must not underestimate the negative impact that the mini-budget will have on the whole country and on our individual lives.
Many will have seen and experienced these delicious chocolate experiences at a party, seeing the liquid chocolate percolate down to the bottom of the fountain and collecting it. Totally delicious and fun to watch.
In a way trickle down economics should work the same way as the chocolate fountain. In fact we are assured that it will. The reality is that chocolate is stuck at the top of the fountain and never gets to the bottom and it cannot be collected. In fact, it’s being siphoned off secretly.
The messages from the Truss team are that the chocolate does trickle down for everyone to sample and enjoy. This is a total con and a monumental insult to the workers of this country, The chocolate is only available to the top 1% and it would not be a surprise to say they were either the donors, supporters or voters that got Liz Truss elected.
Meanwhile stories abound that letters of no confidence are being submitted about the new PM already. It may seem rather early for them to start arriving but it’s a sign of the huge reckless and irresponsible gamble that Truss is taking with the individual prosperity of every one of us and the nation as a whole.
The North East is forgotten again
With average salaries in the North East being around £27,971, a local worker will gain around £200 from the mini budget. However, this is crumbs compared to what many city workers stand to gain which will run into tens of thousands of pounds. Perhaps they will holiday more in the locality and sample the beautiful beaches at Tynemouth and Alnmouth and the trickle-down benefits will be seen and experienced locally.
Sadly, these extra funds are more likely to be spent abroad or sheltered in a tax haven.
The phrase ‘trickle-down’ has a lovely feel to it, making us all feel warm and good about ourselves, but as an economic policy it’s a failure.
Do not be taken it by this economic policy. It’s been peddled by those who stand to gain the most from it and they have absolutely no interest in the 99% of the population who lose by the adoption of this economic thesis.
My fear is that as we approach winter and people stress over the ability to turn on lights and the heat, who is actually going to help us?
We know it will not be Liz Truss and the Tories. They have zero interest in the workers of this country and crashing the pound was their first big mistake, but so many more may be on the horizon.
This is lining up to be the most difficult winter ever for tens of millions right around the country.
Will Liz Truss be on your Christmas card list this year?