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Ann Pettifor


Sep 23

8 tweets

Thread: This budget represents a putsch by the undemocratic extreme right wing of the Tory Party...Truss and co have no electoral mandate.

Note: not the Plan for Growth (2013) or Build Back Better: Our Plan for Growth (2021).

The Tory Manifesto of 2019 promised: "Millions more invested every week in science, schools, apprenticeships and infrastructure while controlling debt."

Furthermore, the dismissal of the austerity ideology, while correct, is a painful slap in the face of all those Tory and Labour local authorities that post-2010 slashed (and continue to slash) services to obey the Osborne "fiscal rule" ...

When interest rates were zero or negative in real terms, the UK slashed public services. Now that govt borrowing costs are high, the UK will borrow extravantly to invest in lower taxes for the 1%...

The problem with that is tax cuts do not raise investment in real productive - and tax revenue generating - economic activity...

So we now have a return to Barber's disastrous "dash for growth" and Lawson's 1988 "giveaway budget". After which, in the third quarter of 1990, the economy crashed. Watch this space.

Furthermore the extraordinary gulf that has opened up between the Bank of England and the Treasury is rightly spooking markets. The cost of massive increase in govt borrowing is soaring, while both govt & Bank flog bonds to a sceptical market...

Ann Pettifor


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