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The Archbishop of Canterbury has now weighed in on the Prime Minister’s use of trickle-down economics. This economic theory sees the wealthy receive economic help in order for the poorer to be benefitted by investments from the rich which in theory opens more jobs and opportunities.
Justin Welby told The Guardian that he is “deeply sceptical” of Liz Truss’ use of the economic policy as Brits tackle the cost-of-living crisis.
While on a visit to Australia, the Archbishop said that the economic policy would see the wealthy save their money while the those in need continue to struggle without sufficient Government help.
The Most Rev Justin Welby stated that the better option would be giving more money to those who need it in order to create spending.
Speaking to The Guardian, he said: “I’m not going to make a party political point because both parties are deeply divided and I’m not going to talk about Australia because I just don’t know the situation.
“But in the UK, the priority is the cost of living, the poorest. And from an economics point of view, I’m deeply sceptical about trickle-down theory.”
He continued: “You know, if you cut money for the rich, ever since Keynes wrote his general theory in 1936, whenever it was, he showed very clearly that the rich save if they’ve got enough to live on.
“So, if you want to generate spending in the economy, you put more money into the hands of those who need the money to buy food, to buy goods, to buy basic necessitates.”
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The Most Rev Welby previously spoke out about the economic policy in 2020 during a sermon in Southwark cathedral.
He said that Jesus Christ “commands a bias to the poor, not the trickle-down theory of economics”.
In 2017 he added that trickle-down economics “fails” to effectively redistribute wealth and said that a system is needed which “spreads the goods of wealth more evenly across society”.
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