It seems that President Biden is going to destroy another bug bear and finally kill the silliest economic argument ever devised by a democratic country, trickle-down economics.
Trickle-down economics alongside sado-monetarism (collectively called supply side economics), has been the predominant economic ideas for the last 40 years.
However, the Covid-19 pandemic has brought Keynesian style economics back to the forefront and has made fashionable the idea that a modern society is dependent on people and cannot be run solely for the benefits of the elites and the ruling class.
At the meeting between the new Prime Minister Liz Truss and President Joe Biden at the UN 21st September, 2022, it was reported that Biden told Truss that he have had enough of trickle-down economics! Obviously he read Liz Truss pitch for leader of the Conservative party and surmised that she would bring this policy onto the UK public.
Well on September 23rd, 2022 we what the market ‘gods’ thought of Liz Truss idea of cutting the taxes of the rich and putting that cost onto the general public years into the future. It nearly crashed the economy!
Liz Truss has subsequently had to sack her finance minister Kwasi Kwarteng for carrying out the policy she told him to do. Saving her job by destroying her friends career.
I have had a bet that she will be sacked/resign before Christmas 2022 and there will be a general election in 2022 or 2023.
Joe Biden has been more consequential than anybody thought and his pronouncement on this and other ideas are becoming the new orthodoxy, which is quite surprising.
Demand-side economics should have happened in 2008. It did happen but only for those of the asset class via quantitative easing the rest got austerity.
So we will get demand-side economics in the UK but it will happen when Labour become the majority party after the next general election.
It was once described as