Those of you who are old enough can remember the 80s. Not only the music from the 80s but politics on the right side. UK`s PM Margareth Thatcher and US President Ronald Reagan. Two characters who did so much great for the world.
Take a closer look at the pound. It`s 1 against the US dollar. Just like it was in the ’80s. The economy in the UK is in trouble, but PM Liz Truss wants to do something about that. And what she`s planning to do is very similar to Trump’s policy: tax cuts.
Liz Truss is pro-growth, and this is similar to Giorgia Meloni`s policy. They are both dismissed as extremists, and people are worried. Truss is also pro-fracking, and she will end the ban on fracking from oil and gas.
On top of that, she will provide relief for rising energy costs, reduce to the income tax rate, and slash corporate and payroll taxes. This is very similar to Trumponomics. If not to say; Reaganomics. And if Liz Truss can do all this, she can become the UK`s next Margareth Thatcher.
Many people believe that the more tax people pay, the more the government earns. But it isn`t that easy, and it doesn`t always work like this. When you raise taxes, very often we can see that revenues are declining.
I like to see a cheap pound because it makes me buy things from the UK very cheap. The lower the pound is, the cheaper the products are. Not only that. A lot of people around the world will take their next trip to the UK because of a lower pound. It means a party for the rest of us, and that can boost the economy in the UK. This is bullish.
Italy is doing the same. Meloni will cut taxes as well, and people are worried. They call them both extremists and neo-fascists. But they are the opposite. Let`s wait and see.