The Wall Street Journal on the resignation of UK prime minister Liz Truss and the death of stimulus

The rapid rise and fall of Mr. Truss marks a stark lesson for global leaders over the risks of trying to boost their economies with stimulus packages during a period of rising inflation and interest rates. 

Ms. Truss’s advisers said balancing the books held back the government’s ability to juice the economy by funding tax cuts with debt, leaving Western nations that are already stuck in a cycle of low growth and ever-rising taxation to fund the U.K.’s public services. Ms. Truss’s team worked on the basis that markets would absorb the debt the U.K. government offered in return for the prospect of 2.5% annual growth.

~ Max Colchester, "U.K. Prime Minister Liz Truss Resigns After Six Weeks; Truss to become shortest-serving prime minister in British history," The Wall Street Journal, October 20, 2022