When Theresa May was gearing up for a summer-long leadership campaign, she identified a worthy target: George Osborne’s addiction to easy money and the whole notion of quantitative easing. Rock-bottom interest rates and QE, she said, boost asset prices – and, in so doing, transfer wealth to the richest. When she became Prime Minister, the Bank of England decided to do another £70 billion of QE. We can guess that the effects will be the same as they were last time: more inflation and a surge of asset prices, making the richest even richer. As I say in my Daily Telegraph column today, QE is a magic wand of inequality.
The problem is that no one understands QE, so it never gets the scrutiny it deserves. The slightest tweak to any tax is weighed up to see whether it is progressive or regressive.
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