Britain and America have been adopting radically different fiscal strategies since the pandemic and it is increasingly clear who has been vindicated: America. America’s fiscal gamble with the Inflation Reduction Act (IRA), a 2022 package of tax cuts and government spending to encourage infrastructure investment and energy self-sufficiency, estimated by Goldman Sachs to have cost $1.2trn, appears to have paid off.
America’s debt-to-GDP ratio had fallen to 30% by the early 1980s, but had risen above 100% by the pandemic, according to Ed
