The U.S. cavalry arrived in London early in the day. The Prime Minister Liz Truss has laid out a wonderful supply-side economic growth plan, which looks like the basic thrust of Kevin McCarthy's commitment to America plan. She is slapping tax rates and deregulating energy. I love it that the liberal business media you know who I'm talking about is trashing it. That tells me that Truss has it exactly right. She wants to reduce tax rates, personal income, corporate income, and payrolls permanently. She's ending the ban on fracking, put into place by her predecessor Boris Johnson.
She is basically repealing Boris Johnson's entire agenda, which is a good thing. Johnson was raising taxes with big social spending and going with the Green New Deal in a big way. Even though he's a Tory, he sounded like Joe Biden and as far as these phony deficit moaners from business media, supply-side tax cuts and deregulation over time will produce so much new growth and so much less tax avoidance, that the revenues will come in to finance the tax cuts and then some.
The Laffer curve is in other words. By the way, Liz Truss is basically operating a Reagan-Thatcher Trump economic policy and don't forget, like our Bank of England is raising rates and tightening money. The Fed seems to have the tight money, strong king dollar story right here in the states, but there are no tax cuts and deregulation for supply-side growth. That's a big problem that will lead to a deeper bear market recession if not fixed soon.
I hope Prime Minister Truss doesn't delay the tax cuts, which was a mistake Ronald Reagan made. The sooner the plan is implemented, the quicker Britain will climb out of the doldrums.
Congress Republicans have published their Commitment to America and it looks like a pro-growth, supply-side agenda to me. The GOP platform would tackle inflation by curbing spending, cutting taxes and moving back to Donald Trump's deregulation policies. Like Truss and Kevin McCarthy, they would end the ban on leasing, permitting, fracking and pipelining to move back to energy independence.
They are putting a premium on combatting crime and illegal immigration. They intend to advance a parents bill of rights, make healthcare more transparent with greater choice and competition, and protect constitutional freedoms, including free speech, religious freedom, and safeguard the Second Amendment. They will leave abortion issues to the states, as per the recent Supreme Court decision, and leave election law to the states with voter I.D. Non-partisan observer access is provided. This is a common-sense oriented package of policy commitments.
Crime and crime are the headlines. The issues that are going to decide the midterm elections are going to be those. The GOP seeks to overturn Joe Biden as a result of Liz Truss overturning Boris Johnson.
Britain and America have had a special partnership, which is the world's leading democracies, after some modest disagreements in the 18th century. Think of Magna Carta and the constitutional rule of law. Now it's good to see that the two great English-speaking nations are moving their cavalries in the same direction.