Liz Truss cost of living crisis policies would make inflation worse | Economics | New Statesman

Liz truss has shown a "complete failure" to address the inflation driven UK cost of living crisis, says economist Duncan Weldon.

Economist and Journalist Duncan Weldon speaks to the New Statesman's Will Dunn to discuss his cover story in the latest issue of the New Statesman magazine, titled "The coming economic storm: As inflation reaches a 40-year high and with Britain facing a punishing recession, the Conservative leadership contenders have failed to grasp the scale of the crisis."

In this video, Weldon explains how, as inflation continues to rise, Conservative politicians are "not fully appreciating" the scale of this "economic crisis." Weldon explains just how serious the current economic crisis is, and lays out the "nonsensical" policies that Rishi Sunak and Liz Truss have provided as a solution - including tax cuts and using "agency workers" to replace striking workers.
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[NewStatesman]

Liz Truss faces an "awkward, apathetic" reception from the Tory Party.

[fredfish]

Stunned! Basically, no mention of Brexit. I got a PhD in economics and I don't care how you model it, quantitatively or qualitatively, the number one factor promoting sustained long-term high levels of inflation is Brexit. The only option for England is to "rebadge" and reverse course. Given the ongoing abuse of Europeans, and the economic progress the EU is achieving overall with the absence of UK membership, I don't think the EU will have England back.
Truss's policies, as a remainer, reflect her understanding that the only thing that now matters in the Conservative Party is survival and promotion to better fill the paypacket - and the Party members love her for it. They are a cult. Sunak on the other hand knows full well the stupidity of Brexit. He is no idiot. He made his money by helping his sponsors move HQs to tax havens. He is in government to promote and protect those interests.

[nicholasbethell]

Liz Truss appears to have skipped economics when she studied PPE at Oxford. I would be embarrassed if I had taught her.

[emmahowells]

As always make the poorest poorer, while the rich gets richer. Like the energy companies, record profits while the public is struggling to pay those energy bills.

[justsayen]

The problem now is there's no energy cap on businesses and it is an unsustainable business model and they're closing up shop and moving overseas where there is a cap on energy.
And let's not forget that money that's going to pay for energy is not staying in your economy to be circulated it's gone to shareholders of these energy companies.

[Grandude]

I find it odd that in a Frank discussion about the British economy, when listing contributory factors brexit was left out.

[robinspat]

We need a GE NOW, we need PR voting now, we Need windfall tax on unexpected profits. We need competent politicians to Mitigate Brexit catastrophe now.

[spartacusforlife]

It's laughable saying a 10% wage demand will increase inflation when bankers are saying it will rise to 23% early next year. The wage demand is well below inflation so therefore will not drive it higher

[bryansmith]

How many people years into mortgage repayments are going to find themselves not able to afford to repay and consequently lose their homes And in addition also have thousands wiped off their lifetime income when they lose their houses As an ex-bankrupt I know that pain I lived through And I have never really recovered even at 68yrs old

[justsayen]

Correction labor did not expect the government to pay for the energy cap, it was to be paid for by (what I've heard it being called as a "unexpected Prophets") essentially by a windfall tax.

[pureplay]

3:45 and Brexit mate, the elephant in the room.

[joergquasnowitz]

It is interesting to watch time and again, how everybody thinks Thatcherism got Britain out of the crisis of the 70s. It was not her policy decisions in my view that did that, but her joining the European Union (then EEC). Her tax cuts and deregulation started the problems Britain has today. So it is rather unsettling, to watch the UK today repeating Thatcher's worst errors while at the same time undoing her only decision, that helped to solve the crisis of the 70s.

[christopherward]

Why does your discussion skirt around Brexit and ignore the fuel companies profit taking?

[jimbob-robob]

@3:35 It is odd he didn't list Brexit as one of the economic shocks...

[richardcope]

Crystal clear exposition. #economics #energycrisis

[peterbeavis]

Brexit is also a major factor in the problems we are in.

[robinspat]

Britain’s World War II debt paid back over 60 odd years, where inflation took care of actually reducing the amount paid back in real terms. There is a lot to be said for repeating the exercise

[misterman]

This is crap we could of had a reelection by now ? I'm sure there stalling us to crap this country over beyond the point of repair

[andrewwalsh]

Government backed £multi Billion loans to energy retail companies, to freeze consumer prices, is a great idea!

Robert Maxwell couldn't have thought up a better wheeze... to fleece the UK taxpayer!

[andrewruddy]

Very interesting. Thank you for making and sharing.