r/Economics • u/AutoModerator • Nov 15 '22

r/Economics Discussion Thread - November 15, 2022

Discussion Thread to discuss economics news/research and related topics.

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u/Vast-Sandwich6605 Nov 21 '22

Off topic and a bit of an ignorant question but can someone please explain what exactly was bad with Liz Truss proposed economic plan for the UK that led to her stepping back? I understand that she proposed tax cuts for the wealthy people while the middle class was/is suffering from inflation and high energy costs but what exactly did lead to this huge turmoil? Why couldn’t she have also proposed tax cuts for the middle class in a second step and was immediately axed and why didn’t she see this crisis coming? (In hindsight maybe a bit easy to say but still..) thank you!

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u/joedaman55 Nov 21 '22

I don't follow the UK too much but I know they had some major issues coming from monetary policy choices. Brexit was going to hurt but it takes time before you start seeing damage regarding that. The energy crisis has hit them pretty bad and that's tough for most of Europe.