Can someone explain how the UK Government’s plan can possibly stimulate economic growth?
In: 8
Trickle down economics is the idea. Make the extremely rich richer, with a smattering of (literally) a few quid to the lowest earners in tax breaks; they spend more and invest in business, everyone wins because the economy grows and people get paid more.
The problem is trickle down economics has been proven to be a myth the world over. The mini budget, a time of unprecedented inflation over the last two decades, only serves to add to the inflationary pressure because the people with large disposable incomes have more to spend, whereas the people who can’t afford food and electricity still can’t afford them, this leads to higher inflation which necessitates increased interest rates and devaluation of the pound as we’ve seen, which in turn makes mortgage rates go up and the price of imports (like food and energy) get more expensive.
So there you have it. All because the auto mod didn’t like me saying “it doesn’t work”
Latest Answers