Despite the obvious economic roots of the UK’s political crisis, the press has covered the quick collapse of Liz Truss’ Prime Ministership and the even quicker succession of her rival Rishi Sunak largely as a battle of personalities. Liz Truss versus Boris versus Rishi, with Keir Starmer as a kind of Greek chorus. Absent is any look at WHY things came to this. WHY did the markets for UK Treasury bonds and for the pound have such an immediately negative reaction to the Truss mini-budget? And why did so many Tories embrace a self evidently mad growth strategy? What were the underlying causes of Tory desperation? And why did the Tories, despite being warned, walk away from more sensible options? And what will the triumph of some combination of Rishi Sunak and Jeremy Hunt mean for the ability of British public policy to foster innovation and productivity growth?
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The Walls are Closing In–the Economic Roots…
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Despite the obvious economic roots of the UK’s political crisis, the press has covered the quick collapse of Liz Truss’ Prime Ministership and the even quicker succession of her rival Rishi Sunak largely as a battle of personalities. Liz Truss versus Boris versus Rishi, with Keir Starmer as a kind of Greek chorus. Absent is any look at WHY things came to this. WHY did the markets for UK Treasury bonds and for the pound have such an immediately negative reaction to the Truss mini-budget? And why did so many Tories embrace a self evidently mad growth strategy? What were the underlying causes of Tory desperation? And why did the Tories, despite being warned, walk away from more sensible options? And what will the triumph of some combination of Rishi Sunak and Jeremy Hunt mean for the ability of British public policy to foster innovation and productivity growth?