In U.K. Fallout, Lessons for a World Facing Harsh Economic Realities
The sharp policy U-turn by Liz Truss, Britain’s prime minister, reveals the perils of taking the wrong path in the fight against scalding inflation.
Government leaders in the West are grappling with rising inflation, slowing growth, and worried voters worrying about a cold winter and high energy bills.
But Britain's Prime Minister Liz Truss was the only one to come up with an economic plan that upset the financial markets.
This attracted the anger of global leaders and the public and undermined their political position.
Restored a prescribed increase in corporate taxes from 19 percent to 25 percent
This announcement backfired on a proposal last week to abolish the top 45 per cent income tax on the highest earners.
The prime minister, who has been in office for a little more than five weeks, also promised that spending would grow less rapidly than proposed, although no specific offer was made.
One of the strongest was quickly distributed by the International Monetary Fund.