As another sign that the world has been knocked off its axis, the Brits are now officially in recession with two straight quarters of negative growth. (At least the Brits aren’t redefining a “recession” as Biden has tried to do.).
The new “conservative” Prime Minister Rishi Shunak and his finance minister announced on Friday their plan to combat the recession by…raising tax rates.
Why the hard times on the other side of the pond? Britain foolishly locked down big time during COVID under Boris Johnson and then borrowed and spent to prop up their economy. As a consequence, their gross output is smaller today than at the end of 2019. That’s nearly three years of no growth.
Except for the government sector, which has soared.
Raising taxes worsens recessions it doesn’t solve them.