cav551:
Therein lies the much bigger problem of the EU and whether we remain in it or not, but which has been brought to a head by the intention of leaving. As has been mentioned British manufacturers have been either bought out, or their parent companies have exported production; and thus profits for reinvestment and taxes on those profits; to the new host country leaving GB with scarcely any manufacturing industry. This has led to a decline in our economy only partly counterbalanced by our financial services ‘industry’ and high technology industries. Little interest remains for investment in new plant unless an absolute killing is seen by the potential investor. The news about our proposed nuclear power stations illustrates the fact that the country has lost control of its destiny - leaving it in the hands of foreign conglomerates and the financial institutions.
The message about taking back control is the fundamental issue which underpins the future success of the UK. We have got ourselves into this mess by allowing this export of our economic control to big business and to EU control of our trading relationship. The ‘Plant’ needed to revitalise our economy is going to have to come from Government investment in our infrastructure and support for retaining and the resurgence of our essential industries. That is going to mean that the finance will have to come from tax receipts and government borrowing. This means a long term outlook and a less selfish attitude.
We hear a lot from remain supporters about the future of our young, which they say has to be with the EU - wrong, their vision is far too short term, we have to look far beyond the doom and gloom being prophesied for our future outside the EU to see where our prosperity lies. Our future is in rebuilding this country, not in hanging onto the coat tails of an external organisation in the hope of some scraps from its table. We are selling our youth and more importantly their grandchildren short if we are not prepared to suffer potentially some pain over the next probable five years, maybe even ten years, to regain control of our future. To do otherwise means stagnation, and ultimately a continued spiral to the bottom of the barrel under the burden of continued financial support for direction from a failing outside mandate over which we have no redress.
But the problem you accurately describe is not just the EU !
It is a global problem, isnt it? Globalization is affecting the USA too. Isn
t a lot of Trumps core support in the US
rust belt? Apple (as American as....apple pie!) manufacture much of their goods in China. Harley Davidson are moving out, even under Trump, indeed largely because of Trump
s trade war.
And thats the danger I see: recognising a problem isn
t the same as curing it.
Saying that the increasing globalisation, since weve been in the EU, can be cured by us leaving the EU is not sound. Germany and France haven
t shut down manufacturing to the same extent the UK has. Surely, they too have problems, but not as serious as our post Thatcher existence. It is not correct to say our problems are the EUs fault. Within the EU there is at least some attempt at a
level paying field. Not there yet agreed, but within it
s area there are rules to try discourage undercutting through dirty and dangerous practices. (“An interfering super-state stopping our freedom of action”, or a rule setter, preventing others from undercutting us by unfair means?)
To make any product a manufacturer needs a wide stable home market, surely? The EU is just that. Leaving will shrink the home market
and in a No Deal
could increase the cost of export under WTO tariffs. As you have pointed out business is international, and the simple sums dictate that factories will be built to minimise costs. They wont be built in a small place with trade and other barriers around it, with a bigger, more stable market right next door. Leaving will be worse for the future of manufacturing, not better. Major manufacturers, mostly, don
t start in garages and grow. And even if they do, when they get major investment, it won`t be from the Bank on the corner. Producers, to give themselves a fair go, must be prepared to move.
In the present day, a single country is hardly a viable entity. Why seek to leave the free market of the 2nd largest economy in the world? So global big business leaders can force us to accept lower wages and worse conditions (in a competitive Britain
) to make up for tariffs on our goods? That is the swash buckling
future the Leavers are after.
Leaving the EU is not regaining control of anything. Unless we are hunkering down and becoming hermits, we exist in a trading capitalistic world. We are stronger as part of a large group, than as a single country. We can exert more power in deals, with mega corps & countries, as part of a twenty trillion dollar economy than as a three trillion $ economy.
Outside of the EU we will still be subject their standards, if we wish to sell to them. And to refuse to sell to them is economic suicide. That is truly screwing the future of our kids. Inside we help set those rules, outside we merely accept them.
You mention another serious problem in short-termism.
Agreed. But that is surely an issue in all democracies with regular elections? Voters say they want long term investment, but vote for short term tax cuts! Short term thinking is part of our democratic condition. Long term investment is easier with no electorate.
If you accept a wry smile, and a tongue in my cheek, that is a good argument for the EU: with no annual election the much hated Commissioners can afford to take a long term view, and force us to accept the short term investment in cleaner tech for our futures! World class companies wanting to sell in the EU must obey. It may cost us more today, but is an investment in the future.
You say we need to see where our prosperity lies.
Well, look at this:
inet.ox.ac.uk/news/Brexit
As members of the EU we have outdone the US, Germany and France in per capita growth since 1973. We have done rather well compared to other developed economies. Not well enough for some, but in the real world, where we are now, with all its ups
ndowns, what can we expect? The world is changing. It isn
t the rapid growth of reconstruction after a war, with no thoughts of over population, and no concept of pollution. It isnt going to be so lively a world manufacturing economy again. Well, I feel the chill too. But I reckon we
ll be better grouped in the EU than out in cold alone.