Does Trump have a moment of Liz Trex?

One of the main Western leaders announces an unconventional economic policy, as it finds financial markets, as it leads the country’s currency and feeds a snowstorm of warnings about the long -term consequences.

President Trump announced all this through his comprehensive tariff, announced last week, but before it, it was there Liz TrosThe former Prime Minister of Britain, with the offering of the over 44 days of tax for 44 days in the fall of 2022.

The similarities between Mr. Trump and Mrs. Trusse are striking, but for a decisive difference: I had to cancel the tax cuts within days, and He was forced to leave the office Through her conservative party for more than six weeks, the shortest period of the Prime Minister in British history.

For some analysts, this difference is a tribute to the flexibility of the British parliamentary government and the useful discrimination between Britain and the United States. To date, Mr. Trump has pledged to adhere to his definitions, regardless of the massacre Restore in the markets Or if it stagnates the recession, it seems that there is little that anyone can do to force him to change the path.

“Severity can really harm the United Kingdom,” said Jonathan Ports, professor of economics and public policy at King’s College in London. “In the end, the British institutions, especially Parliament and the media, were sufficient to ensure the work of the regime.”

“If this is the case in the United States, it is still seen,” he added. “If not, the whole world will pay the price.”

Britain, which was struck by Mr. Trump with a tariff of 10 percent, is already acting as a country on the brink of the crisis. In an attempt to support the British auto industry, the current Prime Minister, Kiir Starmer, announced that he would do Relax the bases of luxury car makers Like Aston Martin and McLaren, they are asked to gradually get rid of gasoline and diesel cars by 2030.

However, when Mr. Starmer was asked on Monday whether he would abide by his financial rules that place restrictions on public borrowing, even in the wake of Mr. Trump’s tariff, he called for tax discounts, Mrs. Trus as a warning.

Mr. Starmer said: “I have tried Liz Tars experience with this country from setting financial rules, checks and balances,” said Mr. Starmer. “This caused a tremendous impact on the lives of workers, as inflation prices and interest rates passed through the ceiling.”

Like Mr. Trump and his magic by definitions, Mrs. Trus was ideally committed to the delusional tax policy. Likewise, it was strange.

The tax cuts, which were planned to finance it by increasing borrowing, were skeptical by economists. She was proposing an inflationary policy in a moment when Britain and other countries were fighting high energy prices The cost of the cost of living. It refused to submit its plans to audit by the government’s financial control authority, the budget responsibility office.

The markets were responded to by the Torvedoing shares of British companies and pushed the pound near the equivalent with the US dollar. The International Monetary Fund has warned of Britain’s financial instability.

As a smaller economy, Britain was more vulnerable to these courses from the United States. The return on government bonds under the leadership of Mrs. Trus, which led to neglecting fears of a credit crisis and ultimately leading to her fall.

The return on the treasury bills decreased even with the spread of Mr. Trump’s tariff, reflecting the traditional situation of the United States as an investor resort and protecting the president from some of the pressures faced by Mrs. Trus. Despite Monday, they started to rise.

Within a few days, Mrs. Trus withdrew tax cuts and her consultant in the treasury, Kawasi Kawarting, the main architect of the policy of the show side. England bank enters Support British bonds The disturbances are declined in the market. But the credibility of Mrs. Trus shattered. After her party members told her that she had lost their faith, she handed her resignation.

Professor Ports said: “Like a camel, the market reaction is not only moved by changes in actual policy, as they were as harmful as they were in both cases, but by trying to destroy institutions that usually restrict politics,” said Professor Ports.

For all Mrs. Trus’s mistakes, some economists argue that tax cuts can be considered less extreme than Mr. Trump’s tariff. In a different financial environment, its agenda on the show side was relatively traditional for the center’s right government. But in the wake of the Korona virus and the invasion of Russia to Ukraine, which is that Intelligence inflation The Central Bank led to raising borrowing costs quickly, the tax cuts were at a very bad time and informed them badly.

“The biggest similarity is the efficiency crisis,” said Kenneth Rojov, professor of economics at Harvard University. “Liz Trex’s policies may have been logical in another world. But they just got out of the blue color, so they had no credibility.”

Professor Roger said that Mr. Trump’s tariff has less credibility among economists, not the least of which is that it looks separate from any strategy. He said: “Trump did not explain where we are going, and it is difficult to find anyone not paid propaganda for him he believes this is a good idea.”