In one day, Liz Truss made a political U-turn, from defending the tax cuts for high earners on Sunday to abandoning them on Monday.
John Hassler, a professor of economics, believes that Britain's new prime minister, who was a strong proponent of Brexit, wanted to show action through the proposal.
- There was a thought among those who were proponents of Brexit that they would remake Great Britain and shake it to life.
They didn't think Boris Johnson could handle that and now they would do it with a flying start, he says.
Hassler believes that why the proposal went wrong is due to two things: Firstly, the country's economic experts were not taken into account, and secondly, the proposal was presented at the wrong time.
- In this situation that Great Britain is in, with rampant inflation and a demand that is actually too great in relation to what the economy is capable of producing, you should not stimulate.
Broad tax cuts and incentives are simply the wrong policy, says John Hassler.