Post by tiptoes on Jul 22, 2022 6:47:45 GMT
Normally during a period of rising inflation, it would be idiotic to add fuel to the fire by facilitating price rises through cutting taxes and increasing demand. But unlike the inflationary period in the ,late 80s caused by the Lawson's irresponsible loose fiscal policies, this isn't a demand-pull inflationary boom but a cost-push price rise where the large increases in energy prices have led to firms having to increase prices to maintain profit margins. So any tax cuts in this scenario are unlikely to be inflationary as aggregate demand is not exceeding output produced by employment. Truss, with her limited grasp of economics, rather than making clear this point seems to be arguing that tax cuts produce higher GDP so will provide more revenue for the Exchequer to reduce the deficit and help pay off National Debt.
Incidentally this lightweight woman with her frivolous musical tastes has come in for stick for trying to play up her common people Northern upbringing when she lived in the more desirable suburb of Leeds and still managed to get into Oxford from Roundhay Comp. But it's exactly the sort of background an identikit Labour politician possesses when he/she pans the Tories for being too posh, although Rishi through his wife's wealth is stinking rich making other fat cat Tories like JRM, Jenrick, Sajid Javid and Nadeem Zahir look relatively slim felines.
Incidentally this lightweight woman with her frivolous musical tastes has come in for stick for trying to play up her common people Northern upbringing when she lived in the more desirable suburb of Leeds and still managed to get into Oxford from Roundhay Comp. But it's exactly the sort of background an identikit Labour politician possesses when he/she pans the Tories for being too posh, although Rishi through his wife's wealth is stinking rich making other fat cat Tories like JRM, Jenrick, Sajid Javid and Nadeem Zahir look relatively slim felines.