In an attempt to shorten the above (recession) Kwasi Kwarteng, the chancellor of the exchequer for England announced that england would "borrow" 45 Billion, in order to jump start the economy. This in and of itself has me impressed by him. This was the obvious move from him, albeit not so obvious for most domestic observers (that probably never even bothered to read his book). The idea is to kick start the economy, create trade (=wealth) and continue on their merry way, without the EU. In this regard, the idea gets a 10/10 rating from me.
However, while an idea can get a favorable response, its all about the finer details. Ultimately I am not convinced this will work and may instead become a poisoned chalice for the next government (whoever that is in 2 years time). The idea hinges on England
prospering. If English business does not prosper, then they will need to find money from somewhere to quite literally, pay the bill (and in such a scenario there are going to be alot of people looking for handouts).
Having read alot of the noise around this plan to jump start the economy I found this to be the most relevant article, or rather the one i agreed with most :
https://www.washingtonpost.com/business/the-uks-45-billion-tax-cut-isnt-radical-enough/2022/09/23/e37b3e42-3b5f-11ed-b8af-0a04e5dc3db6_story.html i.e. that its not radical enough (should have borrowed more), that it would require skilled labor (that they dont have). A quick comment as well - they dont like foreigners, or to be polite about it, their government has for decades erected barriers to discourage and prevent foreigners into the country (i.e. with that and brexit - no influx of skilled labor) The expectation is that the net result of all this will just further widen the social divide that exists in england.
A brief comment on social divide - in all countries there exists a divide between the rich and poor. In england (and northern ireland) this is more pronounced then in most european countries, on account of a history of landowners. This divide is also probably why Brexit was successful in the first place - if you have a decades long blame-game campaign that you feed to poor people (at the bottom of the income pool), and you play on their fears for years then you are going to them to gobble up your lies (ergo, Brexit). In my country, if there are no jobs, you go abroad. This is not always the case for countries (say, England). what this means for england is that they have a very large base of low income earners. It is up to the government to find a way to harness their potential (but no evidence to suggest this will be done).
So in summary, good idea, questions over its implementation and support. The problem with this move is that it remains to be seen if the underlying business in the UK can recover. It remains to be seen how much this will do for the poorest in England and it remains to be seen whether the english government will continue to support this plan, or whether (VERY LIKELY) they will put roadblocks (pun intended) up to hinder/destroy this plan. If the northern Ireland talks go poorly, you can consider that a big roadblock.
All in all the cost of brext just jumped up.
This post was edited by ferdia on Sep 26 2022 05:41am