Truss disaster and the Ominous socialist future of Britain

The 45-day government of Liz Truss came to an end on Thursday, October 20th. Truss managed to deliver one of the most catastrophic governments in the history of the UK. She even managed to make it seem like an excruciatingly long tenure even with a historically short 45-day tenure. Her tenure saw the fall of the pound, the evaporation of market confidence, and domestically, over 30% (highest ever since the beginning of polling in Britain) lead for the labor party in polls.

 

 

 

Liz Truss’ government claimed to implement the Thatcherite policies of free market economics. She even tried to copy (characterize really) the former PM of the UK Margaret Thatcher in her speeches. Just a day before Truss resigned, she said in the parliament, “I’m not a quitter, I'm a fighter”. A very similar line to what Thatcher said, “The lady is not for turning”. PM Truss indeed implemented the much necessary tax cuts and especially the tax cuts for the rich. Which indeed was the Thatcherite policy. But she did this at a time when the British economy was just coming out of the pandemic lockdowns and is in the middle of the Ukraine-Russia war. Because of the war, energy inflation is rising at an unprecedented pace. So in order to lessen the burden of inflation on the common person she announced a massive relief package. She vowed not to cut public spending in either the NHS or any other government spending. That is certainly the opposite of what Thatcher stood for. This combination of tax cuts costs the exchequer over 45 billion pounds and increased public spending which increased the pressure on the exchequer, caused market panic, and forced the Bank of England to intervene. This intervention was seen as a humiliation for Britain by the Markets. Markets expect such drastic economic changes from emerging markets but not from developed countries. Especially not from a country that has London as its capital which has served as the global financial capital for centuries now. As mentioned above, this led to the fall of the pound, and the market confidence evaporating.

 

Also Read: Who are Swedish democrats and what does their 'victory' symbolize? 

 

Liz Truss who is a self-proclaimed Thatcherite has fallen from her position of power in a historically disgraceful manner. As she was holding the banner of the Thatcherite revolution in the 21st century, the revolution which resulted in a disaster has now raised several questions. Even though Liz Truss claimed to be a Thatcherite, she increased public spending which is the opposite of Thatcherism, her words and half of her actions (tax cuts) will be remembered forever. She will be portrayed as a capitalist disaster by the left. Her policies of the tax cuts, which are indeed necessary for growth, will be vilified. Her disastrous tenure will be straw manned against any future tax cuts. As in India, any future Agriculture reformer would be reminded of what happened in 2020-21 in and around Delhi. Truss’ failure economically and politically may pave the way for a generation-long Labor rule with ultra-left policies. That will push Britain back to the socialist era of the 60s and 70s. And for now, the only hope for the UK's free market capitalists is the first Hindu PM of the UK, Rishi Sunak.