Today’s Mini Budget.

I see that the pound has crashed. No doubt part of the plan.

CoolCoco

If a poor person gets another £1k they would spend it thus boosting the economy, if a rich person is given extra £1k it will just add to their bank balance, they wouldn't necessarily spend it. Has 'levelling up" been forgotten now? Is it now just "trickle down"?

Agree.

An old music hall song comes to mind:-
"The rich get rich and the poor get poorer, in the meantime ain't we got fun"

Sweetpeasue

CoolCoco

If a poor person gets another £1k they would spend it thus boosting the economy, if a rich person is given extra £1k it will just add to their bank balance, they wouldn't necessarily spend it. Has 'levelling up" been forgotten now? Is it now just "trickle down"?

Agree.

So do I.

If I’ve got 10p in my pocket I have to spend it.

I don’t think I have ever felt as depressed about a government as I am now. They are just reckless on so many levels, and the fall out will be so painful for so many.

Can see there's a hole in this argument as a poorer person doesn't HAVE to spend it. They're capable as anyone else to save.
I agree with the general principle.

In a year’s time it will be absolutely clear what a great chancellor and PM Gordon Brown was during the worldwide recession in comparison. The present approach is best described as couldn’t organise a p..s up in a brewery.

Many will feel insecure with this budget, the instinct then is not to spend but to save, we have no plans to spend more, paying extra into the mortgage now interest rates are rising seems a good idea.

Not exactly batten down the hatches, more go carefully.

‘Nothing but fear in the UK’: Top US economist slams Liz Truss tax cuts and warns pound could plunge below dollar'

The link to above

au.news.yahoo.com/top-us-economist-liz-truss-warns-pound-plunge-below-dollar-153400217.html

Its the poorly paid that are struggling the most ,the energy hikes and huge rises in essentials will mean a few hundred pounds or a mythical £1000 will be swallowed up without even touching the new rises .Of course the "poor" wont be saving it ,they cant eat or heat thanks to this incompentent and frankly criminal government Sweetpeasue

I feel for those who can’t afford to buy what is essential at the moment.
Sweetpeasue a poorer person doesn’t HAVE to spend it. They’re ac capable as anyone else to save.
There’s always the workhouse of course.

Yes I saw that coming and you're completely right paddyanne34
A quick response to Urmston gran.
The very poorest will not be able to hang onto money.
Still agree with CoolCoco post though.

Trickle-down economics?

Capillary economics, more like, with money steadily drawn upwards from those at the bottom of the pile to those at the top!

I don't know why, but looking at them doesn't inspire any confidence in me at all. Depressing.

Urmstongran

What do we think of Kwarteng’s statement?

Not a lot!

Knittingnovice

I don't know why, but looking at them doesn't inspire any confidence in me at all. Depressing.

Doesn’t inspire confidence from anyone across the globe, maybe Truss has ultra rose tinted spectacles.

Once lived on the poorest Council Estate could imagine. Slept on a mattress on bare floorboards. Took us 3 yrs to get out of it by saving a minimal amount. Kids slept in sleeping bags. No bedding. I know what it's like to be poor and thought it clear whose side I'm on. Defending any idea that the poorest could be wasters. Obviously not very well.
I don't believe in trickle down theory.


S

Daisymae

I see that the pound has crashed. No doubt part of the plan.

It wouldn't surprise me if the pound is being "shorted".

When I said the poor would spend their moneyI didn’t say they’d waste it. They’d be more likely to spend on food, clothes, essentials for the home, all those bills. Even if they spent it eating and drinking in the pub that would be contributing to the economy more than someone who leaves it in the bank.

I agree with you vegansrock.

I can appreciate what you’re saying Sweetpeasue and you did well by being prudent, but being aware of some working families who use food banks I know that every penny and more is accounted for because of the double whammy of heating and food prices.

MaizieD

I still don't understand where all this 'growth' that's going to boost the economy is coming from.

Perhaps someone could explain how a domestic ,market comprising primarily people who can't afford to buy very much apart from heating, eating and housing, is going to 'boom'.

If they're expecting the rich to do it by spending in the UK and trickling down their wealth those 'rich' are going to have to do one heck of a lot of spending..

They certainly are going to have to do a lot of spending.

My partner has an income at the bottom of the top 10% in the UK and he will benefit by a few hundred pounds a year. The extra money might cover his extra fuel and food bills. He's not going to be badly off, but he certainly won't be flush with cash.

Meanwhile, the remaining 90% will be poorer as a result of rising prices, the falling pound and tax changes not compensating. They're going to cut back on haircuts, subscriptions, eating out, etc etc. Some at the bottom have already made cuts, so goodness knows what they'll do. Maybe they'll borrow - at a time when interest rates are going up.

Meanwhile, those with incomes over £150k (the top 1 or 2%?) will be thousands of pounds better off. How many haircuts, meals out, theatre visits, etc can an individual pack in? They won't spend their money productively. They'll buy property and/or failed businesses. which won't increase productivity.

Please, please tell me somebody where my thinking is fundamentally flawed.

I hope nobody in the Tory Party will ever have the nerve to refer to Liam Byrne's jokey note "I'm afraid there is no money".