I have been stunned. The right decisions were made, doing what the public demanded, and it is suddenly the worst, most unpopular thing ever. Deeper issues are behind this.
The fortnight has calmed down a bit, the markets are up, but the mocking continues. What did Liz Truss do wrong? That would take some unpicking.
Plenty are out to get her, and this time not just Keir Kneeler – picking a government only of those who supporter her bid for leadership and casting out able, experienced ministers would always cause rebellion from her own side – throwing out a whole establishment has been the end of many a ruler, as the shades of half a dozen mediaeval kings could tell, and the dynamics of the House of Commons are like a mediaeval court.
Then there are the establishment experts, who really needed to be cleared out, but the market was spooked, and that was a deathly blow.
The markets have been recovering. The pound is up a bit – Europe is still crashing, as you expect, but British viewers will not see that – we only look at our own. This is no time for faltering – Liz must hurry to achieve a transformation before the looming General Election.
One would have thought, logically, that all would realise that taxes are far too high, stifling the growth that has been trying to reassert itself since we were released from lockdown. The spending however, the excess spending, on a relentless ratchet – too many are sucking at the teats of the Treasury to let go easily, and they know, like any baby, that the more they suck, the more milk is produced. Spending must come down, dramatically; the budget deficit must be slashed, ideally to zero. Let those who live of the taxpayers’ largesse start complaining about their cost of living crisis, but let those of us who work for a living to create value have the money we have earned.
Then again, as taxes are reduced, the money is swallowed up in inflation and mortgage interest. The average household will not make a distinction between money lost to tax and money lost to price rises and interest payments – it is all money taken out of their pocket. Then there is a contradiction: instruct the Bank of England to stop hiking mortgage rates, and the market gets spooked again, but leave them unsupervised and th rates shoot up. I always thought that interest rates were increased to tackle inflation because this stops high spending and so the demand in supply-and-demand, but now there is not enough spending, and the inflation is caused by energy prices and high taxes. Is the Bank so one-dimensional? Possibly.
Cut taxes, and re-educate the Bank of England if you can, but cut taxes or we really will crash
It is almost as if there were a conspiracy. Conspiracies are usually nonsense, but here you wonder: the high-tax low-growth economy is unsustainable, but plenty have come to expect and to rely on it. If the teats run dry, they have a great deal to lose – they might have to get proper jobs for a start. There is too much self-interest in all this.
It appears that Liz Trus was right: it is not just a question of adjusting rates and spending, but of breaking the ratchet, the system of baked-in decline and recasting the government machine into something more (what’s the word? Ah yes -) Conservative.
Also, taxes are not all that matter – the 2019 manifesto is still there waiting to be honoured. It is a good manifesto apart for a couple of really bad points on social and housing policy – so get that done and let the nation see it is being done. There is little time, so speed up. Cast out the Blair-age laws against freedom; sack the wokery and outlaw their practices from the state, making Starmer a clear danger as he threatens the opposite. Drive back the boats and cancel the abused right of asylum. Aye, and cut taxes again and again.
- From Boris to Liz
- The Truss issue
- The Bill and the Rights
- Closing the Web
- Differences of Fit And Unfit Counsellours:
- The Borisiad
- By Boris Johnson:
- The Borisaurus: The Dictionary of Boris Johnson by Simon Walter
- William Pitt The Elder: a biography by William Hague
- Pistols at Dawn: Two Hundred Years of Political Rivalry from Pitt and Fox to Blair and Brown by John Campbell
- Politics in the Age of Fox, Pitt and Liverpool by John W Derry
- An Utterly Impartial History of Britain by John O’Farrell
- 1000 Years of Annoying the French by Stephen Clarke