The "give more money back to the rich" makes no sense in the current economic circumstances.The pretence is that by spending more, the rich will boost the economy. But there is no evidence for that.Whereas tax money carefully targeted and spent on capital projects can:1 Increase productivity (and thereby increase growth, which is what this is supposed to be about)2 Keep the money in the UK (instead of being spent on overseas villas, fine wines or luxury goods made overseas).3 Create targeted employment in the areas where it is needed most. (Where a large proportion of the tax money so spent will come straight back in again as payroll taxes, VAT, etc).4 If carefully managed, spent in a way that is not inflationary (or manages inflation) and so avoid the need to for the Bank of England to put up interest rates.Whereas the current policy is:1 Let's put more money into the economy by putting money into the hands of the richest (by reducing their tax) (The Government - foot on the accelerator).2 Let's take that money back out again by raising interest rates, at the expense of borrowers (making people poorer) and businesses (reducing borrowing, and so investment) (The Bank of England - foot on the brake).This is all, quite simply, barking mad. It's like trying to walk upstairs and downstairs at the same time. It makes no economic sense at all. One has to wonder whether Truss was awake during the "E" part of the PPE degree at Oxford.And borrowing does make sense. There are very few successful businesses every built without borrowing. The national economy is the same. It is a simple (indeed the most fundamental) question of return on investment. "If I borrow X and invest in new capital equipment (or roads or other communications e.g. nationwide fast broadband, or education, or green energy or ways to reduce energy costs, etc. etc), will my savings (or profit on increased sales) be greater the costs of the capital required?"This is why austerity was never an economic policy. It was a social policy driven by a political agenda.The state, like any business, needs to borrow to invest to stay competitive. Borrowing is not a dirty word.
T P Howell ● 1452d