Liz Truss Has Commented On The State Of The Economy And People Are Baffled
Liz Truss has left people baffled with her latest comments on the state of the British economy.
The UK’s shortest-serving prime minister attacked Rachel Reeves after the latest grim set of figures for the government.
The Office for National Statistics (ONS) confirmed that the economy had flatlined between July and September - Labour’s first three months in office - having previously said it had grown by 0.1%.
It comes after the ONS revealed last week that gross domestic product (GDP) shrank by 0.1% in October.
Commenting on X, Truss said: “Economic doom loop continues thanks to Rachel Reeves’ unfunded tax rises.
“Until Britain rediscovers the Laffer curve and cuts tax, regulation and the state - we are in dire trouble.”
The Laffer curve is an economic theory which states that there is an optimum level of tax, and that the amount of money raised for the public purse goes down once that tax rate increases.
Truss was forced to quit after just 44 days as PM after the £45 billion of unfunded tax cuts announced in her mini-Budget sparked economic chaos.
Economic doom loop continues thanks to @RachelReevesMP unfunded tax rises.
— Liz Truss (@trussliz) December 23, 2024
Until Britain rediscovers the Laffer curve and cuts tax, regulation and the state - we are in dire trouble. https://t.co/aJwdbMUF2R
Users of X were left confused by Truss’s post, with one user accusing her of being “economically illiterate”.
That is an economically illiterate statement.
— dave lawrence ???????????? (@dave43law) December 23, 2024
Tax rises cannot be unfunded as by their very nature you are taking money and therefore 'funding'
No wonder your budget crashed the markets if that is the level of understanding
Others were equally baffled by the former PM’s remarks.
Unfunded tax rises?? haha
— JenkoBoy ???????????????? (@CentLeftJenko) December 23, 2024
Of course, I agree with your analysis, but may I ask what you mean by ‘unfunded tax rises’? I’ve heard of unfunded spending commitments, where a government spends money it doesn’t have, but how can tax increases be unfunded? Do you mean the increase in the rate will not yield an…
— Sir Harry Flashman (@FlashForFreedom) December 23, 2024
Ah yes, those pesky *checks notes* unfunded tax....rises? ????????????♂️
— The Pitts (@LeCol94) December 23, 2024
Unfunded tax rises? Someone should remove your access to the internet.
— Oladotun (@Dot_E_Fresh) December 23, 2024
It was also pointed out that the ONS figures referred to the UK’s GDP between July and September, but Rachel Reeves did not announce her tax rises until the Budget in October.
Therefore, Truss was wrong to blame the Chancellor’s actions for the disappointing data.