Morality and markets
While there are plenty of hedge fund owners and masters of the universe who are complete amoral shits who would sell their own children for a profit, there is a limit to what even they think they can get away with.
The profit on child sales would have to be massive if you were to ever want to go home again, for instance.
The morality is however not based on what is right or wrong but what you can get away with, both in terms of regulation and the likelihood of making a profit.
So while the markets wait for the Chancellor to find the cuts to fund tax breaks for millionaires he should bear in mind that somethings are not possible, not if you want to bring the markets round to supporting you.
That’s because the markets are not just obsessed with economics, they watch political stability as well. The cuts necessary to find tens of billions for years will not work if they destroy the government, break up society, cause millions to stop spending, lead to riots on the streets and break up the country.
Government ministers are already talking about cutting the “fat”, there is no fat. The NHS is near collapse it needs much more money not less, cutting benefits to pay millionaires money they don’t need is not possible for ever, education cuts will destroy long term productivity prospects.
The fact that this is all immoral is not the issue so much as the fact that it is politically and economically stupid and unsustainable.
The markets know this, the chancellor is walking a very narrow line if he wants to regain credibility and balance the books.
Unless he reverses those tax cuts.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.