Lobster’s Robin Ramsey Explains Why Thatcherism Didn’t Work as Claimed and Why Truss Will Fail

In my last piece I said that Lobster’s editor, Robin Ramsey, has a background in economics and that he said in one of his pieces for the magazine that the Tories recognised long ago that trickled down economics didn’t work. They still wanted to cut spending and punish the poor for being poor while giving lots of more money to the rich. They just had to find a better pretext for it. So they started arguing for their wretched policies on grounds of morality. Now Truss has gone back to the old trickle down argument. In the recent issue of Lobster, 84, Ramsey has a piece in his ‘View from the Bridge’ column, ‘All Trussed Up’ explaining why Thatcher’s economics policies didn’t work in the way she thought they did, and even despite her best efforts, and why this means Truss’ policies will fail. He writes

‘On the day that Prime Minister Truss made her announcement about dealing with the energy crisis here, The Times (8 September) briefly mentioned (on p. 39) that the Chancellor of the Exchequer was off to the City to discuss ‘Big Bang 2’ – further deregulation of the financial services sector. Centrally, I would guess, will be a change to the rules introduced after the financial crisis of 2007-9 which increased the amount of capital the banks had to keep in reserve. In other words, financial gambling is going to be encouraged again. The central question with this new government is this: do they really believe that this warmed-over Thatcherism will work? My guess is that they do; that they have spent too long in a free marketeer intellectual ghetto to understand even the Thatcher years. They have failed to grasp that Thatcherism didn’t work on its own terms: it did not ‘cure’ inflation and did not produce more economic growth than its predecessors. Mrs Thatcher’s ‘reforms’ were possible because her government had North Sea oil revenues to pay for mass unemployment; could sell off chunks of the public sector; and, despite her best efforts to kill it, had a manufacturing base three times as big as it is now. The new government has little oil revenue; a much diminished manufacturing base; and not much of the public sector left to be sold. It will be interesting to see how long it takes them to grasp that the horse they are enthusiastically flogging is dead.’

For further information, go to https://www.lobster-magazine.co.uk/article/issue/84/the-view-from-the-bridge-47/

Tags: , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: