The vote to leave was an economically illiterate decision that will leave the UK poorer.
I keep hearing that, but nobody in the Remain campaign actually explained why, and as an economic illiterate I want to know. I am not willing to take it on trust. I have tried to find out but still haven't got a straight answer, so perhaps you can explain. What can your business do within the EU that you couldn't have done if it didn't exist?
The basic problem with the exit campaign can be easily understood without getting bogged down in detail. Virtually all independent studies by qualified economists found a serious detrimental impact to the UK economy from a UK exit from the EU. When challenged in TV debates the exit campaigners did the following things.
1) Tried to answer the question with an answer to a different question.
2) Claimed those doing the studies were biassed, or ignored the study discussed and made this point about another study.
3) Pointed out that economists and their models have got things wrong in the past.
4) Appealed to the unique and special nature of the British people.
Does this seem familiar? (Typical tactics of AGW deniers and other nuts)
For detail however take just one issue. They said we'd get a tariff free access to the Eurozone after leaving because we buy German cars. This argument not only neglects the need to avoid 'contagion' of leave referendums by making it easy for the UK. It neglects the fact that someone buying a BMW is going to be less put off by a 4% tariff barrier than a manufacturer buying engine parts. The equation is not equal both ways. I've just bought some pipettes that were about 25% more expensive than the cheaper ones, were I buying 1000 of them I'd not just have used a hunch that they looked better quality and a 4% price difference could swing my choice.
They also said that the USA would never consent to being part of something like a United States of Europe. Er... it's called the United States of America for a reason!
At every turn I was seeing gaping holes in their arguments that made me marvel at just who they were meant to be persuading, i.e. the uncritical and stupid, key ingredients of nationalism.
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Basically my business services the manufacturing sector (I don't want to give enough details to identify us because I have been indiscreet above, sorry). Anything that hits British manufacturing hits us. Directly or indirectly (Euro firms or suppliers to Euro supply chains) most of British industry depends on Europe. As I was saying yesterday to someone at work, and have posted in a reply to someone on my blog: If the EU gives the UK favourable terms a lot of Europe will think they can leave but keep the benefits. To combat this contagion of exit referenda the EU must play hard in the coming negotiations, that has already started (Jean-Claude Junke this morning).
How did I expect that? I am not psychic, it's what I have done before in the cut and thrust of business and it is exactly what I would do in Junke's position. In fact, I'd offer the UK the same terms as any other country outside the EU without a special agreement (3.7% import tariff +VAT) and word it so it was clear this was my first and final offer.
Laurent,
I agree, but imperfect doesn't mean you chuck it in. We (UK) should have voted in, then joined together with others across Europe, as happened with the scrapping of TTIP. Europe and the drive to a United States of Europe is a worthwhile idea, it rests upon the people to work for it.
Has anyone watched Russia Today? Their angle, direct from the Kremlin, is that this is the start of the collapse of Europe with other countries seeking referenda. My general rule of thumb - if the Kremlin wants it, I want the opposite. (They're still bloody communists)