Watching the news this morning, and attempting to get my head around parts of the UK budget, the argument pitched of getting children out of poverty with raising the two child cap is difficult to argue against. But, what does it do, it deliberately diverts funds to many that may be productive (when they focus on “benefits”), which number one costs money (not mention the deficit) when spending and the inflationary nature of this, but the signal, to workers who are charged more for this non working benefit. They made the choice between more deficits, inflation, and buying the votes of the class they are deliberately increasing the number of the demographic, against taxing carefully, cutting back and with policies aimed at driving growth. The approach is deeply divisive, short termist and I cannot see a way forward where she doesn’t have to come back next year. Surely giving money back by increasing thresholds as people attempt to earn more would actually give money back to those with bigger families while not penalising those who are living within their means. The problem is making the argument against reducing child poverty (in the short term) is a tough one to make, but long term is will create a population of child and adult poverty, in my opinion yes, but I’m thinking through the numbers as well. GBP and 10 year gilts will go 🚀