From Pillar to Post – British Prime Minister Liz Truss Resigns
After just six weeks in office, U.K. Prime Minister Liz Truss has resigned after risky economic executions had created terror within British financial markets. The abrupt departure makes Truss hold the shortest-serving tenure in British prime minister history. Her economic package of measures, the main reason for her departure, included a tax-cut plan that even had mixed opinions from members of her own party.
The tax cuts follow the usual theory of supply-side economics, where the country’s citizens can hold on to more money, in turn, increasing consumer spending and investments across all income levels. However, within the current chaotic state of the energy-crisis-induced economy, economists say the plan may have taken too long to influence economic growth; therefore, this sent the pound crashing to historic lows with British financial markets into a major sell-off over fears of worse inflation.
Regardless, the news of the resignation will yield a new leadership election for the Conservative Party that will be conducted next week. The winner will automatically become the Prime Minister of Britain, and several speculate that the former Chancellor of the Exchequer Rishi Sunak and cabinet minister Penny Mordaunt are the front-runners for office. As of now, investors in not only Britain but across the globe will be waiting anxiously to see a new, hopeful candidate that can swing the tides for the U.K.’s economy.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
