The Daily The Rapid Downfall of Liz Truss
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Oct 21, 2022 The podcast dives into the astonishing resignation of Liz Truss after just 44 days, the shortest ever for a UK Prime Minister. It unravels her controversial economic policies and the chaos they sparked in financial markets, sending the pound plummeting. Experts weigh in on the political turbulence and rising inflation. Discussion of potential successors like Rishi Sunak and even Boris Johnson adds intrigue. With public sentiment running high, the episode captures a critical moment in British politics and the ramifications of leadership miscalculations.
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Truss vs. Sunak
- Liz Truss and Rishi Sunak emerged as final contenders to replace Boris Johnson.
- Truss campaigned on tax cuts for economic growth, while Sunak prioritized controlling inflation.
Tax Cuts and Inflation
- Cutting taxes during inflation can worsen the problem.
- Truss won due to support from older, wealthier Conservative party members who favored tax cuts.
Kwarteng's Announcement
- Kwasi Kwarteng, Truss's chancellor, announced radical tax cuts.
- These unfunded cuts spooked markets, causing the pound to plummet and bond yields to spike.