You can see it coming
Higher interest rates are on the way and they are going to cause a recession. There is not much doubt about it, only yesterday 2 former chancellors said it was inevitable.
But the government is like a rabbit caught int he headlights, it only has one policy and it doesn’t work. At each and every time spending must be slashed in order to provide money for headline grabbing tax cuts, even when stealthy tax rises are pushing the tax take ever higher. Even when the NHS is on its knees and even when we desperately need more not less defence spending.
This is a repeat of the policies on the Great Depression which Keynes hated so much. As a result we have the worst of both worlds, higher tax and worse public services.
One of the most worrying aspects is investment by government and business. Investment now is future growth, future productivity, future higher wages and future tax income.
Until we start investing a lot more there is little hope of things getting better and a dammed good chance of a permanent slow decline.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media