Monday 6 July 2020

When will we learn the personal economic cost of the pandemic?

We are all living in a confusing cloud cukoo land at the moment, just waiting for someone in government to tell us that after all the huge sums of money borrowed to keep the nation going and saving millions of jobs, the other side of the coin must be faced: paying for it all with higher taxes or whatever. No government likes being forced into raising taxes because that won't go down well with voters. But how else will the massive debts be paid off? Voters are not idiots. They must surely realise that there will be pain at some point. Boris Johnson has promised that none of those who suffered financially from the long period of austerity imposed on them by the Conservatives - ie everyone - will suffer again. But surely the millions whose jobs were saved by furlough grants can't expect to go back to work as normal and live the same life as before? All governments run on debt but not on the scale made necessary by the pandemic lockdown. As our superstar chancellor of the Exchequer Rishi Sunak has said, that is unsustainable. So when will the higher taxes come into effect and will they be higher for everyone or just the wealthy? Well this is a Conservative government so there won't be a wealth tax. And anyway wealth taxes can prove shortsighted because these are the big-time employers as well as the rich upper class. Much will rest on the shoulders of the chancellor and so far he has done such a good job that it gives us reason to hope that he will come up with the right formula. I have more faith in him right now than the rest of the cabinet from Boris downwards. Michael Gove, the cabinet office minister, is, according to some commentators, the man who is really in charge behind the scenes. But where is the evidence that he has a masterplan for this country? I think I would rather trust the snappily-dressed chancellor Sunak to do that for us.

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