All the Phony Fuss
Photograph: Tayfun Salcı/Zuma Press Wire/Rex/Shutterstock
This is a story with so many twists and turns, watching the story unfold in real time is like reading a good British mystery come to life. No has died. Unless you count metaphorically dying. In office.
As I watched the story of Liz Truss unfold, the once and now former British Prime Minister, this line from the Robert Burns poem “To a Louse” came to mind.
“O wad some Power the giftie gie us, to see oursels as ithers see us!”
Scottish Poet Robert Burns 18th century. “To a Louse” [1]
No, Liz Truss is not the louse.
With the passing of the Queen history has shifted. I must admit that I have long admired the Queen and her passing feels like a loss.
With her passing there is a new King for the first time in 70 years.
And as it turned out a new British Prime Minister.
Both starting their new roles within 2 days of each other.
This story begins with the resignation of Boris Johnson as Prime Minister and the appointment of Liz Truss as the new Prime Minister.
On September 6th Boris and Liz made the trip to Balmoral Castle in Scotland, where the Queen was residing.
Boris had to officially tender his resignation to the Queen. The Queen then officially appointed Liz Truss as the new Prime Minister.
Liz was only the third woman in the history of the UK to become Prime Minister. That alone was an event to celebrate. Can you imagine how she felt at that moment? Becoming Prime Minister. Meeting the Queen for the first of her anticipated weekly meetings.
Truly a high point in her career.
Sadly, the Queen passes away two days later.
Prince Charles becomes King Charles and Liz Truss meets with the new King. She is now one of very few Prime Ministers to serve under two Monarchs. The last Prime Minister was Winston Churchill who served Queen Elizabeth and her father King George the VI.
The country enters a period of mourning for 10 days. The eyes of the world are watching this momentous historical event.
The official mourning period ends on September 19th.
Not a great beginning for Liz Truss’s first 12 days as Prime Minister.
She appoints a new cabinet.
Kwasi Kwarteng is appointed Chancellor of the Exchequer.
On September 23rd Chancellor Kwarteng presents the “mini budget”. The budget is not well received.
The British pound “collapses”. The financial markets are in chaos. The pension scheme is suffering disastrous losses. The Bank of England steps in to calm the markets. It doesn’t work.
Liz has been in office 18 days.
On October 14th Kwarteng is dismissed as Chancellor, serving 38 days.
Liz Truss is in trouble. The finger pointing and scapegoating begins, and it is relentless.
Of course it is Liz’s fault the value of the pound to the dollar is collapsing. Of course it is Liz’s fault the economy is in chaos. Of course it is Liz’s fault the pension schemes face ruination.
Back up.
How could the presentation of a mini budget wreak total havoc on the markets and the economy? A budget from a Prime Minister who has been in office less than three weeks?
How is that possible?
Did Liz Truss become the most powerful person on the planet?
How many world leaders have the power to send an economy spiraling based on a budget presentation?
That seemed preposterous.
I was curious to know exactly what was in this budget that could wreak such economic havoc?
I read The Growth Budget 2022.
The beginning of the budget addresses the rising cost of energy and the accompanying inflation.
It was a good start but took an unfortunate turn. In a period of high inflation, maybe the budget should focus on decreasing inflation instead of stimulating the economy which leads to inflation.
Reading the budget I could hear the enthusiasm Chancellor Kwarteng evoked as he said:
“We need a new approach for a new era, focused on growth.”
And all hell broke loose.
I fleetingly thought that maybe he presented the wrong budget. Or maybe it was written with such haste they forgot what country they were in. Or maybe it was written years before COVID, and they decided to use it now.
I’m sure there was no intention of crashing the markets but therein lies the problem.
There seemed to be a total lack of awareness for the real economy and for the historic change the country was going through.
In my view there was one other big problem.
Liz Truss inherited the economy Boris Johnson left behind.
She didn’t cause inflation. She didn’t cause the problems in the pension system; she didn’t cause the pound to fall in value relative to the dollar. She did not cause energy prices to rise.
Those problems existed long before she became Prime Minister.
She inherited an economy in trouble.
The budget was never going to succeed. Liz Truss was never going to succeed.
And the House of Commons was going to make sure of it.
She resigned after 44 days, becoming the first Prime Minister with the shortest tenure.
I’m glad she resigned. Not because I think she did anything so unscrupulous as to cause the wrath and blame she received. I’m glad she resigned because the scapegoating she received was out of proportion to the real issues, and no one else could see it or was willing to admit it.
As an observer I am doubtful that her resignation is going to improve the British economy.
As of today there is a new Prime Minister: Rishi Sunak.
PM Sunak is vowing to fix all the mistakes Liz Truss made in 44 days.
The Growth Plan 2022 speech – GOV.UK (www.gov.uk)
[1] Translation:
Oh, would some Power give us the gift
To see ourselves as others see us!
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