I I didn’t get where I am today and make predictions about how the economy will perform in the new year. But I feel it my duty to stress the entanglement in which this shadowy government has got itself and us, and the relationship between the three macroeconomic policy errors that have made us what we are—that is, “A sick man from Europewith a worse economic performance than any other member of the G-20 economies except Russia.
What prompted me to do this was the BBC Today Last week, guest editing was done by Ms. Sharon White, President – her favorite state – of John Lewis Partnership. White took the opportunity to invite other economists to discuss the current economic crisis in the United Kingdom. What surprised me was the way they agreed, yet The fiasco of Truss-Kwarting’s brief “financial event”.the UK’s main macroeconomic objective – which in this case meant the government and the Bank of England – was to restore “credibility”.
What matters to your reporter is the means by which they intend to regain credibility, and the possible consequences of doing it wrong.
They are responding to Truss-Kwarteng’s abandonment of financial orthodoxy with a deliberate revival of the sadistic monetarism that did so much short- and long-term damage to the economy in the 1980s. They feel that restoring “credibility” will require tough fiscal policy – higher taxes, lower public spending – and tight monetary policy, leading to the cascade of higher interest rates we are seeing now, although the consensus is that this will exacerbate the recession now upon us.
Which brings us to the second macroeconomic policy error: the needless austerity initiated by the Cameron/Osborne/Clegg government since 2010, after it shamefully asserted that the 2008 financial crisis was the result of business overspending and not, as the Chancellor of the Exchequer was, permanent then, sir. Nicholas (now Lord) MacPherson referred to a “banking crisis pure and simple”. In this, alas, I am afraid, they were aided and abetted by my old friend Mervyn (now Lord) King, who compared the economic situation in the United Kingdom with that of Greece, which was already in serious trouble.
Thanks to the superposition of the Truss-Kwarteng experience on the impact of more than a decade of austerity, the British economy is now often referred to disparagingly. I’ve even met people who compare the UK now to Argentina in 1900 – which at the time was one of the largest economies in the world before its historic decline.
The return of Sadhu will do nothing valuable for the investment and growth that the government desires. exactly the contrary. Which brings us – I know you’ve been waiting for this – to the third big macroeconomic policy mistake of post-2010 Conservative dominance: Britain’s exit from the European Union. It was bad enough. But this particular mistake has two parts: Brexit itself, and the blunt refusal to admit the mistake and reverse the whole policy.
Recent polls show that not only do the majority of respondents understand that Brexit is a catastrophe that cannot be mitigated, but that the majority would now favor another referendum. Although he has exited the European Union, our current Prime Minister, Rishi Sunak, is beginning to realize the error of his previous ways, and desires to foster a closer relationship with the European Union. However, it is under the leadership of the right wing. Yes, we’ve come to Abbreviation of advertisement tampering Where the crazy party of the anti-immigrant Brexit party is right He goes after Sunak if he hears the cries of action About the staff shortage caused by – yes – Brexit.
in vertical postI have compared the state of the prefects of ancient Rome from AD 68 to 69, Year of the Four Emperors, with Sonak taking the risk of being a newly minted Vitellius, all of which are highly vulnerable to Vespasian’s forces. I wasn’t kidding, and I note from the current issue of New country state That David Gauke, one of the few sane members of Boris Johnson’s government – and thus expelled from it – wonders if Snack can last this year. This is in the first week of January, with a right-wing faction aiming to bring Johnson back.
last week, I have written elsewhere in observer About Cambridge SpiesMany of them went to Trinity College, Cambridge, which is also my school. I note that Trinity’s current Dame Sally Davies says in the college’s annual register: “Brexit is another storm that comes back again and again. Whether the problem is visas, fees for overseas students or other matters, including tax cuts by the government – This will be a major problem for years, if not decades, to come. The solutions will be difficult.”
What Davies could have added is that the economic damage done to this country by Brexit outweighs anything Cambridge spies do.