It's more the politics that are interesting than the economics

Tax take is very high compared to by gone eras. But this is primarily driven by demographic factors. Ageing population, ever more pensioners drawing their pensions but no longer active in the labour market, ever increasing health bill from same ageing population.

All of these factors have then collided with a once/twice in a century pandemic and a European land war. It's not surprising everything is f**ked.

None of the choices around how we deal with this are palatable. Cut real pensions? Constrain even further the NHS? Start charging for more healthcare? Or during recent crises no furlough and/or no energy subsidy in the winter.

What is clear is that the Truss/Kwarteng answer to this (keep spend whatever you like, cut taxes, borrow HUGE sums at low rates) was pie in the sky.

There are simply no easy choices.

Posted By: Under soil heating, Oct 17, 12:50:42