Re-read Truss’ 45 days and discover the vices of the relationship between markets and political powers

The Bolsheviks of Downing Street, implementing an anti-tax and pro-growth manoeuvre, did not respect the traditional neoliberal rule: stay out of the game and limit themselves to keeping the rules. Instead, they entered the game as lazy and intrusive competitors, trying to open a new adventurist phase in neoliberalism. And they paid for it

Many have observed Liz Truss’s forty-five day government e Kwasi Kwarteng in Downing Street as a simple story of failure, and radical, definitive failure. Truss, with his advisers and Chancellor of the Exchequer, are two ultra-liberals, let’s say so to simplify. They have struck a colossal blow, after having taken power in the Tory party with an anti-tax and pro-growth campaign, ferociously cutting taxes and social security contributions for all, without regard for the progressiveness of taxes, counting on a powerful further public debt, marginalizing independent regulators, and the result was the fall of the pound, the pension fund crisis, a beastly increase in interest rates, and finally their stampede and withdrawal of the so-called “mini budget” plan and the rise to power of Rishi Sunak, who thought the opposite and now raises taxes willingly. Against them have risen the market indices pushed by bond traders, laden with distrust of debt and pro-growth solutions, and the entire international community of liberal and conservative gurus, coordinated and nourished by stinging arguments from the financial press and the City of London, without distinction, with unusual very explicit pronouncements by the Monetary Fund and the American Federal Reserve. They lost, they were crazy, chapter closed. Nevertheless.