No Danny, No.

Guido is enjoying the to-ing and fro-ing* between Fraser Nelson and the Fink.  Today something Fink said stood out as uncharacteristically crass:

If the Tories were now to cut taxes immediately upon on entering office, what would happen? It would, erm, destabilise the economy, wouldn’t it.

No, Danny it would not.

Imagine, and this will take some imagination, Nick Clegg in No. 10 and Vince Cable in No. 11 the day after the election. They implement their manifesto pledge to raise the tax threshold to £10,000 reducing the Treasury’s take by circa £100 £20 billion.  It would cost about one-tenth as much as quantitative easing and be a far greater stimulus.  That would be £100 £20 billion injected into the real economy rather than foreign bond investor’s portfolios, benefiting the lowest paid the most.  That would inject a colossal boost into the economy,  increasing demand on the high street, to manufacturing and to every consumer facing business.  The effect on GDP and overall growth would be tremendous, not destabilising

Danny might retort with tales of bond yields rising as a result, but bond traders understand that a growing economy supports their coupon payments, whereas a flat or contracting economy is a greater sovereign credit risk. A growing economy can afford to finance a budget deficit if necessary. An over-taxed, low to no growth economy can’t. High taxes, and Britain is a high tax economy after 13 years of Gordon, destabilise the foundations of a strong economy, driving enterprise into the ground or overseas.  Guido remembers when this was ideologically core to Conservative thinking, it was when they won elections…

*If you haven’t been following the debate it starts with Fraser’s lecture to the CPS which Fink responded to.  Fraser came back with this and Fink answered here. Then Fraser gave his response.  This piece refers to Fink’s latest response.




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

A senior Brexiter:

“If Theresa and Julian have sold us out here they are in real trouble. She reassured us all at the 1922. There is no way she can recover if she has now fucked us over.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Question Time Runners and Riders Question Time Runners and Riders
Thomas Markle: Harry “Open To” Brexit Thomas Markle: Harry “Open To” Brexit
Watch: AC Grayling Vs Andrew Neil Watch: AC Grayling Vs Andrew Neil
In Full: 103 Resignations Under Corbyn In Full: 103 Resignations Under Corbyn
Banks Legals Verhofstadt Over Putin Tweet Banks Legals Verhofstadt Over Putin Tweet
Hypocrisy of Chuka Hypocrisy of Chuka
Daily Brexit? Daily Brexit?
Claire Perry Accuses Bercow of “Sexist and Demeaning” Behaviour Claire Perry Accuses Bercow of “Sexist and Demeaning” Behaviour
Farage vs Verhofstadt Farage vs Verhofstadt
Watson Dodges Labour Live Watson Dodges Labour Live
WATCH: Andrea Jenkyns Takes on Remain Protesters WATCH: Andrea Jenkyns Takes on Remain Protesters
Philip Lee Resigns Philip Lee Resigns
Handshake That Made History Handshake That Made History
Sun, Mail, Telegraph Warn May Sun, Mail, Telegraph Warn May
LibDem Policy: It’s Transphobic to Call Ian Huntley Ian Huntley LibDem Policy: It’s Transphobic to Call Ian Huntley Ian Huntley
Penka Saved Penka Saved
WATCH: Corbyn Labour Live Sketch WATCH: Corbyn Labour Live Sketch
Guy News Special Report : Remain Campaign Cheating Guy News Special Report : Remain Campaign Cheating
Don’t Know Level With May Don’t Know Level With May