TThe sheer scale of the impending economic shock becomes clear every hour. Click – A Goldman Sachs Sign A 22% inflation will rise next year. Click again and Bloomberg Reports British energy companies will generate £170 billion in excess profits over the next two years. If interest rates do it hit 4%Banks will also pay out the unearned mortgage money, as well as dump the loads from the money lent to the government. Good profits will be made from national misery.
The dawning of each day reveals how everything, everywhere, is at a perilous tipping point. Martin Lewis warns of it Lives will be lost Of cold and hunger, amplified by Sir Michael Marmot’s warning yesterday of children are at grave risk. “It’s a disaster, plain and simple unsustainable,” Lewis says. If only he was to be the new chancellor…continue with the dream team of Jack Monroe and Marcus Rashford.
But next week we are faced with the appointment of a leader who has nothing to say and who acknowledges the enormity of the catastrophe ahead, and whose specific policy of tax cuts is the opposite of what is needed. In the great crisis of 2008, Gordon Brown and Alistair Darling averted impending catastrophe with policies they could only have imagined a day earlier: bank nationalization, bailouts, and rewarding quantitative easing. Is anyone sure of that? Les Truss Will Kwasi Kwarteng plan on anything like the required size?
Showing Rishi Sunak to Tory members in leafy Hertfordshire this week he faced not a single question – not a single question – regarding the cost of living crisis. From this unrealistic twilight zone emerges an ill-fitting leader to deal with the worst crisis of our lives, with a typical 10% drop in disposable income projected by 2024, according to the Resolution Foundationwhich would be worse than during the oil shock of the 1970s, the worst in a century.
New dangers come every day. Corner shops and bars will be closed. Libraries and museums cannot be warm hubs for cold people because they close their doors to save on fuel bills. Schools, hospitals, nurseries and colleges cannot pay. Credit card borrowing will rise, and food banks are already running out.
Of course people will strike wherever they have unions to organize: their demands are already well behind the latest expected inflation figures. Direct employers cannot pay from government-restricted budgets: only the government can pay. “self-control“Demanded by the Governor of the Bank of England without saying anything about 39% height for FTSE 100 CEOs this year, as reported by the Center for Higher Pay. The wonder is not that unions are “hard-core” (which they are not) but that during the last decade of austerity they were largely subordinated to lower real wages. why? It takes extraordinary outrage for union members to vote to strike, as they suffer the loss of their paychecks with uncertain outcomes. This time the wage cuts are too horrific to bear.
In the face of this unimaginable catastrophe, the only solutions are things that were once considered politically unthinkable. It challenges the notion that a £30bn tax cut is the answer, particularly when it is biased for the best. Why does cutting corporate taxes lead to ‘growth’ when corporate investment is absent even in the best of times? When I presented six companies alone £16 billion surplus profit During the pandemic, what we need is windfall gains on the profiteers, Labor urges.
This is a wartime emergency, where the West is resolute against Putin’s invasions. In a war for which Ukrainian lives have paid, we are obligated to pay with our money. but who? Everyone, but most of them should come from those with broad shoulders. In wartime, money is raised in the form of war bonds, and in solidarity and property taxes, where most of the wealth is located. Public services must go on, neither public servants can pay the price nor small businesses that have collapsed. Massive Covid-style support is a necessity for social survival. Immediate minimum action would require universal free school meals to prevent any child starving, and an immediate, parallel inflationary increase in the already meager public credit. But much more than that for many families is essential if we are to prevent Marmot’s worst predictions.
Rowan Williams is among more than 500 clerics suggestion A 1% wealth tax for those who own £2 million or more. Professor Aaron Advani of the University of Warwick says a one-time 1% raid, paid out over five years, will do Raised £80 billion. Invest this in renewables and insulation to move towards energy self-sufficiency, so that the country can protect against future energy shocks.
Liz Truss, who wrote The Unspeakable Avalanche of Baldness in the Sun Yesterday, vowed to be a “liberty-loving and tax-cutting man” to lead the British people through the economic storm with my clear and truly conservative plan “with ‘bold action as tax cuts, decisive reforms and a cutting back on absurd red tape’.” How far away she is from voters in the curiously meandering Sun leader, who warned her: “Tax cuts and growth are vital as a travel trend for her governors — but they won’t stop the poorest freeze in December.” He tells her not to “protect the billions of Shell and BP from misguided ideology.”
But in her recent events this week, she vowed no windfall, no new taxes, and no energy rationing (and perhaps No speed limit either). No one alive has witnessed such an economic catastrophe – and this is its unimaginable response.