The new Prime Minister, Liz Truss, has been in office for less than a month, and already her policies are coming under fire. One of her key platforms during the election was cutting inflation and taxes during a recession, but many economists now argue that this has been disastrous for the pound and the UK economy.
The pound has plummeted in value compared to other currencies, making it more difficult for businesses to export goods and services. And with businesses struggling, the government has been forced to borrow more money, driving up the national debt. Inflation is also rising, as the cost of living rises faster than wages. As a result, many people are feeling the squeeze, and are struggling to make ends meet. It is clear that Truss’s policies are not working, and she needs to reconsider her approach if she wants to avoid further economic damage.
Liz’s Financial Policies: Why They Are Not Working
Liz has proposed a financial policy known as ‘trickle-down economics.’ This policy has been widely criticized as it has been proven time and time again to not be effective. The theory behind trickle-down economics is that by giving more money to the wealthy, they will in turn spend more money and boost the economy.
However, history has shown that this is not the case. The wealthy are more likely to save their money or invest it, rather than spend it. As a result, trickle-down economics does not help to boost the economy or create jobs, as supporters claim it does. Instead, it benefits only the wealthiest people in society, while doing nothing to help those who are struggling. Prime Minister Truss would be wise to reconsider her financial policy and look for other ways to boost the economy and create jobs. Otherwise, she risks further inequality and division within society.
The pound plunged to a 37-year low
The pound has been on a roller coaster ride lately, and Friday’s speech by Kwarteng was a major drop. The pound fell to a 37-year low of $1.06, yields on the 10-year debt rose more than 30 basis points to 3.83 percent, and the rate of five-year notes rose by a record 51 basis points, but the government has vowed to stay calm and carry on.
Today’s figures are being surpassed only by the 1980s. Despite the volatility of the past few days, the cabinet is confident that they can weather the storm and keep the economy stable. Only time will tell if their resolve will be enough to turn things around.
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