The UK economy is in very big trouble, but the government doesn’t seem to know what to do about it, and neither do opposition politicians.

Tim Morgan’s comment:

It’s now emerged that there’s a big row going on between the department for business – which wants support for industries affected by surging energy prices – and the Treasury (finance ministry) – which doesn’t.

In my view, a case can be made – generally, not just in Britain – for energy subsidy, but this requires resource-shifting (i.e. taxes have to be increased, and/or other public spending reduced, and/or various other forms of consumption cut back).

The UK economy is in very big trouble, but the government doesn’t seem to know what to do about it, and neither do opposition politicians. The problems can be defined as (a) lack of understanding of economic realities, and (b) unwillingness to adopt policies which could improve the situation, but which would be unpopular.

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