Quote Originally Posted by Vindec View Post
The so called fiscal event is an interesting experiment. Will it work? The City has already decided it won't. Gilt yields are rising, the pound is collapsing against major currencies and the stock market is falling. In theory much in today's statement will stimulate growth but the consequences could go very badly if the markets are correct. Does trickle down economics work? In theory yes but in practice probably not. Of course any budget will be met with opposition, as it has been, but in reality it's obvious that the more people earn the more tax they pay so any reduction in taxes will obviously favour the better off. While I am sceptical that today's fiscal experiment will work one thing is for sure - increasing benefits will not and cannot stimulate growth.

In my humble and largely uninformed opinion more needed to be done to help the middle earners; they are the spenders and they are the people that are most likely to stimulate growth. The higher earners and rich are unlikely to spend more as they have the spending power already and that is unlikely to change as a result of today's announcements.
They'll save the extra money in uncertain times, personally I don't think it will work.