In the midst of a crisis like this, it’s natural to reach for historical comparisons. Perhaps the kind of economy we’ll inherit when the coronaviris crisis has passed is unprecedented? Perhaps not?
Never before has the state expanded to the levels we are seeing ie paying our wages, propping up businesses and limiting our freedoms. The Office for Budget Responsibility suggests the deficit will be £218bn more this year than estimates just a few weeks ago. A tax burden, significantly falling GDP, higher unemployment and rising inflation.
So as we begin the route out of this crisis towards recovery, where is the best place to look for historical comparisons? Who previously put us on the road to unprecedented economic growth? It’s tempting to look back to 1979 & Thatcherism. Perhaps cutting corporation tax further can further help businesses? Stamp duty reductions to get housing markets moving or cuts in income tax to help households.
Certainly, Thatcher embarked on a journey of reviving businesses & reducing national debt from the late 70’s onwards.
Therefore, perhaps the ideal time to have Boris, an undoubted Thatcherite, at the helm?