The article compares the economic policies and subsequent market reactions of former UK Prime Minister Liz Truss and US President Donald Trump. Both implemented policies that led to significant market turmoil, resulting in a sharp reversal of their approaches.
Truss's short-lived premiership was marked by a controversial 'mini-budget' featuring significant tax cuts and deregulation. This led to a sharp decline in the value of the pound and a surge in interest rates. Facing immense pressure, she reversed course, sacked her Chancellor, and resigned after just 45 days in office.
Since leaving office, Truss has portrayed herself as a victim of a 'deep state' conspiracy. She now supports Trump's policies, including his stance on immigration, climate change, and his foreign policy towards China. She blames market forces for her downfall.
The article highlights striking parallels between Truss's and Trump's approaches to economics. Both took risks that the financial markets punished severely. However, a crucial difference lies in the accountability structure of their respective political systems.
The article concludes that while both leaders faced similar market reactions to their policies, Trump's position differs from Truss's due to the absence of direct parliamentary oversight of the American president.