Clueless Kwarteng borrowing time and giving to the rich

Chancellor Kwasi Kwarteng delivered a mini budget unfit to purpose by giving away a large slice of the government’s current income to rely heavily on borrowing instead. Cuts in government  income and National  Insurance  is sure to have an impact on this government’s  abilities to deliver on previous  promises of improvements to the NHS  and the  seemingly  forgotten pledge of ‘ levelling-up’. What’s  also gone from the mandate of  which this government  was elected to do is the commitment to ‘Net Zero’ by scrapping  or postponing the funding which was set aside to do this. So on almost all mandates from the 2019 Conservative  Election  Manifesto they have broken almost every Election  Pledge. This goes to show that the Tories  can’t be trusted to deliver.

Trickle Down Economics doesn’t work

Now Kwarteng is gambling with the economy. He has tried to convince us that he is a genius but instead he has shown that he has only a rudimentary  grasp of economics. His most recent  attempt shows that he can master smoke and mirrors. The majority  of us in the UK will receive a mere 1 penny in the pound amounting to 2 bars of soap and a litre of milk over the course of a month and we are supposed  to be grateful for that: whilst the rich benefit disproportionately. This is another attempt  to install a failed economic theory first tried out by Margaret Thatcher. It didn’t  work then and it won’t  work now. It’s  not a new idea it’s  a rehash of Thatcherism. Trickle down economics doesn’t  work. All it does is increase the divide between  the rich and the poor and opens the door for the richest to exploit the poorest with unemployment  and wage slashing.

To achieve this Kwarteng  has sacrificed the government’s income and instead has reverted to borrowing  to keep the County  afloat. This equates to a situation  of being afloat in the middle of the ocean in a boat full of holes which is sinking, whilst sending out a Mayday  call to the Super Rich to come and rescue us. I doubt there will be much interest  as the Rich will just remain at home counting their increased riches which this mini budget has so kindly  laid at their doorstep.

Labour’s plans were to increase government funding through investment to benefit everyone: Tory mini budget benefits only the richest

In stark contrast with this is the economic examples of what Labour would have achieved  if Jeremy  Corbyn  had won the 2019 General Election. In his most recent interview with Nick Robinson from the BBC. . In this interview  Mr Corbyn  contrasts Labour’s  investment plans in comparison  with Kwarteng’s borrowing  plans. Labour’s  aims are to grow the economy  which comes from increased investment  to generate funds for the government. Labour’s plans are to increase government funding through investment by taking back into public ownership the Energy Providers and the Railways. Any initial  borrowing  was going to be done to re-nationalise the same companies that are now exploiting us. So this would eventually have been a source of income for the UK Government. Liz Truss and Kwasi Kwarteng are instead protecting the richest sector of Britain whilst reducing much needed Government funding and giving it back to the richest. Thus depriving the NHS and the other areas where public funding is needed most. Plans for Levelling -up have seemingly been shelved because where is the money going to come from? Kwarteng is borrowing time to get to the next general election and duping the public on the way. He is hoping you will be satisfied with your 1p in the Pound tax cut. Hardly the massive tax cut that Liz Truss was promising it turns out to be just another empty promise by the Tories.  Contrast Labour’s thought through plans with Kwarteng’s plan to borrow, borrow and borrow  some more until  a time comes when Britain is bankrupt and can no longer get any credit. Kwarteng’s  plans are unsound and rely heavily  on the goodwill  of the very rich to come to the rescue. Also Kwarteng’s  plans are making the Bank of England drive up the Intrest Rate so when you gain a penny they take 10 pennies back off you. So Kwarteng’s  smoke and mirrors turns out to be a very transparent  trick indeed and the audience feels cheated out of even the admission  fee to this shambolic and amateur performance. Britain  deserves  better. The Truss and Kwarteng  show has got off to a very poor start with 2 very amateur performers starring  in the lead roles.

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