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A comment on Sterling collapses as investors fly into dollars. Parent comment

Re:Sterling collapses as investors fly into dollars by throwawaylinux on Monday September 26, 2022 @06:45AM (#32981452)
> under Truss we are seeing tax cuts for the rich funded by borrowing

Any reduction in government income is funded by borrowing for a budget that is not in surplus, which seems to be the default state of things these days.

And what's stupid about government reducing income and borrowing in a downturn?

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Re:Sterling collapses as investors fly into dollars by cool_dude85 on Monday September 26, 2022 @06:57AM (#32981528)
>And what's stupid about government reducing income and borrowing in a downturn?

Government finances are not like your household's, reducing spending is exactly the opposite thing the government should do in a recession.

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Re:Sterling collapses as investors fly into dollars by wucaworld on Monday September 26, 2022 @07:30AM (#32981753)
That is not correct.

Spending is the appropriate response when faced with a demand driven recession. This is a supply driven recession and reducing govt demand may not be a bad idea.

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Re:Sterling collapses as investors fly into dollars by throwawaylinux on Monday September 26, 2022 @07:05AM (#32981569)
I don't know what that has to do with what I wrote though.

Reducing revenue is also one of those things that conventional wisdom says a government "should do" during a recession, so I'm asking why it was stupid.

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