{"id":1710803,"date":"2022-10-25T17:15:09","date_gmt":"2022-10-25T21:15:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1710803"},"modified":"2022-10-25T17:20:18","modified_gmt":"2022-10-25T21:20:18","slug":"charles-gasparino-uks-new-pm-rishi-sunak-must-spur-expansion-cut-spending","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/charles-gasparino-uks-new-pm-rishi-sunak-must-spur-expansion-cut-spending\/","title":{"rendered":"Charles Gasparino: UK\u2019s New PM Rishi Sunak Must Spur Expansion, Cut Spending"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcharles-gasparino-uks-new-pm-rishi-sunak-must-spur-expansion-cut-spending%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1710803&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><aside class=\"single__inline-module alignleft\">\n<div class=\"inline-module inline-module--columnist inline-module--author\">\n<div class=\"inline-module--author__img\">\n\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"76\" height=\"69\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/02\/Gasparino_Charles_headshot.png?w=76&#038;h=69&#038;crop=1\" class=\"attachment-nyp_columnist size-nyp_columnist\" alt=\"Charles Gasparino\" srcset=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/02\/Gasparino_Charles_headshot.png?w=152 152w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/02\/Gasparino_Charles_headshot.png?w=114 114w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/02\/Gasparino_Charles_headshot.png?w=76 76w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/02\/Gasparino_Charles_headshot.png?w=38 38w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/02\/Gasparino_Charles_headshot.png 706w\" \/>\t\t<\/div>\n<\/div>\n<\/aside>\n<p>Much has been made of the fact that Rishi Sunak is the markets\u2019 choice for British prime minister. He\u2019s everything that Liz Truss isn\u2019t: Financially savvy with the bearings to understand the economic folly of cutting taxes and allowing deficits to soar.<\/p>\n<p>All that sounds good on paper, until you realize that Britain has a growth problem. Its economy is contracting, and fast.<\/p>\n<p>Sunak better figure out a way to get the British economy growing or he will join Truss as the latest Tory PM tossed aside.<\/p>\n<p>Market pros forced Truss out by unloading British debt, nearly plunging the UK economy into a Lehman moment. But they are far from giddy even with one of their own in charge (Sunak is a former investment banker and hedge fund manager).<\/p>\n<p>Monday\u2019s market reaction was pretty tame given the moment (the pound traded a bit lower, while the Financial Times Stock Exchange index rose a tad) and for obvious reasons: The country\u2019s economy looks a lot like America\u2019s in the 1970s \u2014 saddled with \u201csecular stagnation,\u201d economist Larry Summer\u2019s favorite term to describe the prospect of little of any growth for years on end, and massive inflation.<\/p>\n<p>Some of it might be the result of Brexit and the costs of semi isolationism from the rest of Europe. Most of it probably isn\u2019t. Government bloat, regulatory burdens and high taxes discourage business investment. Lockdowns during the pandemic squeezed the economy to a standstill. Massive fiscal spending, hyper low interest rates fueled inflation \u2014 all under supposedly conservative Tory leaders, including the man Truss replaced, Boris Johnson.<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/1436040741.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/1436040741.jpg\" alt=\"Rishi Sunak\" class=\"wp-image-24386088\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/1436040741.jpg?quality=75&#038;strip=all&#038;w=2048 2048w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/1436040741.jpg?quality=75&#038;strip=all&#038;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/1436040741.jpg?quality=75&#038;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/1436040741.jpg?quality=75&#038;strip=all&#038;w=512 512w\" \/><\/a><figcaption>People hope Sunak can help British economy grow.<\/figcaption><figcaption><span class=\"credit\">Getty Images\/Dan Kitwood<\/span><\/figcaption><\/figure>\n<p>Now the British people are paying the price: inflation hovering around 10% and the latest GDP print showing the economy contracted by 0.3%.<\/p>\n<p>Truss thought it was a good idea to play the Thatcher card and slash taxes to bring some life back to this dying patient. It\u2019s how she bested Sunak during last summer\u2019s Tory beauty contest for PM, when Sunak blasted Trussanomics that didn\u2019t \u201cadd up.\u201d More polite than George H.W. Bush\u2019s famous crack that equated Ronald Reagan\u2019s supply side tax cuts to \u201cvoodoo economics\u201d some 40 years ago, and it\u2019s why Sunak is now residing at 10 Downing Street.<\/p>\n<p>Now he has his work cut out for him. Some believe he might channel the economic strategy of his old boss, Johnson (Sunak was his chancellor of exchequer). He could raise taxes even more to pay for the imposing levels of British debt that are approaching 100% of GDP and sparked the bond-market uprising against Truss\u2019s unfunded tax cuts.<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/GettyImages-1388929662.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"817\" height=\"1024\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/GettyImages-1388929662.jpg\" alt=\"Liz Truss\" class=\"wp-image-24386116\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/GettyImages-1388929662.jpg?quality=75&#038;strip=all&#038;w=1634 1634w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/GettyImages-1388929662.jpg?quality=75&#038;strip=all&#038;w=1226 1225w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/GettyImages-1388929662.jpg?quality=75&#038;strip=all&#038;w=817 817w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/GettyImages-1388929662.jpg?quality=75&#038;strip=all&#038;w=409 408w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/GettyImages-1388929662.jpg?quality=75&#038;strip=all 1024w\" \/><\/a><figcaption>Market pros forced Truss out by unloading British debt.<\/figcaption><figcaption><span class=\"credit\">Getty Images\/Max Mumby<\/span><\/figcaption><\/figure>\n<p>But that\u2019s a recipe for even more secular stagnation. It will only burden the British people with more economic misery, and could make the loony-tune lefties who run Labour appealing during the next election.<\/p>\n<p>Sunak is no dope. He\u2019s speaking to money managers and top bond investors, the same ones who tell me fiscal austerity is important when your deficits are this large, but growth will be key to his survival \u2014 and the country\u2019s.<\/p>\n<p>Sunak will have to do what Truss couldn\u2019t: Sell the markets on the idea that you can\u2019t grow an economy by taxing business to dust. Regulations need to be cut and, by all means, the Bank of England must stop printing money. It might be good for hedge fund investors, but the rest of the country suffers through a very working-class (and voter unfriendly) tax known as inflation. And he needs to make cuts to government spending.<\/p>\n<p>If he can\u2019t pull this off, Rishi, like Liz and his old boss Boris, will be out of a job soon enough.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Much has been made of the fact that Rishi Sunak is the markets\u2019 choice for British prime minister. He\u2019s everything that Liz Truss<\/p>\n","protected":false},"author":1,"featured_media":1321749,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1710803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1710803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1710803"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1710803\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1321749"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1710803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1710803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1710803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}