Truss Takes a Bold Economic Gamble. Will It Sink Her Government?

[brooklynite]

New York Times

LONDON — Prime Minister Liz Truss of Britain campaigned as a tax cutter and champion of supply-side economics, and she won the race to replace her scandal-scarred predecessor, Boris Johnson. Now she has delivered that free-market agenda, and it may sink her government.

Four days after Ms. Truss’s tax cuts and deregulatory plans stunned financial markets and threw the British pound into a tailspin, the prime minister’s political future looks increasingly precarious as well.

Her Conservative Party is gripped by anxiety, with a new poll showing that the opposition Labour Party has taken a 17 percentage point lead over the Tories. It’s a treacherous place for a prime minister in only her third week on the job.

Labour is seizing the moment to present itself as the party of fiscal responsibility. With some experts predicting the pound could tumble to parity with the dollar, economists and political analysts said the uncertainty over Britain’s economic path would continue to hang over the markets and Ms. Truss’s government.

[harumph]

1. One can hope.

[TheRealNorth]

2. If it destroys the British social safety net....

Any hit to economy will be viewed as worth as the rich will walk away with billions in reduced taxes.

[brooklynite]

6. Not if the result is a Labour win...

[haele]

3. Maybe. Media moguls and the City will benefit from her policies short term

They are cynically hoping she crashes the economy so they can snap everything up in a fire sale, then charge the undeserving an arm and a leg so they will continue to be rich.

Profits over people.

What do they care about the great unwashed that exists to serve them?

Haele

[leftstreet]

4. Conservative Party is "gripPed By anXiety!"

Is it because of the devastating fallout their policies will have on the peons?

Nope, because the opposition party is gaining!

Pox on them

[panader0]

5. I thought I read here the other day that the pound and the dollar were already at parity.

Can Britain reverse Brexit? It seems that added to it's economic woes.

[brooklynite]

7. Currently at $1.09

Reached as low as $1.03