Economist Podcasts In for a penny, in for a pounding: Britain’s economic gyrations
Sep 27, 2022
Sumaya Keynes, Britain’s economics editor for The Economist, and Alice Su, the Senior China correspondent, engage in a captivating discussion on the UK’s economic turmoil. They analyze the dismal market response to the new government's ambitious tax cuts and the declining pound. Additionally, they delve into China's controversial DNA collection in Tibet, examining its implications for social control. The evolving trend of retirees rejoining the workforce post-pandemic adds another layer to their insight on labor market dynamics.
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UK Economic Instability
- The UK's recent economic struggles are self-inflicted due to tax cuts mirroring 1980s Reaganomics.
- These tax cuts aim to stimulate growth but raise concerns about the nation's economic credibility.
Reaganomics Revisited
- There's a persistent belief in the Conservative Party that tax cuts fuel growth, reminiscent of Reagan's 1980s policies.
- Reagan implemented large tax cuts amid high inflation, claiming they would boost the US economy.
Pound vs. Dollar
- The UK's plan might struggle more than Reagan's due to the US dollar's reserve currency status, attracting investors in uncertain times.
- A weakening pound increases import costs, adding to inflation and making things harder for the central bank.