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Why attack the people for their spending on vices when you could just outlaw the vices. If you care so much about people’s morals, then the government should just outlaw alcohol, gambling and anything else deemed an ill use of this money. It’s the exact same thing, except you only want the government to police people who you think don’t deserve freedom because you consider them lesser.
I think it’s both. Alex has the idea that Harriet is too tired to continue in her post, and Harriet becomes increasingly paranoid because she is constantly wondering what the Doctor said, and how it was going to end her political career. Since she’s paranoid, she starts acting more and more erratically, which feeds into the ‘too tired’ narrative, and eventually destroys her career.