So what you're saying is, despite being in the EU, we still exploit all the worlds markets. Great! So... why can we not also exploit the Single Market when we're out of the EU, as if it were just another world market? Because the EU did the bargaining for us, is that it? Or because the EU is protectionist?
Ah, so you don't know how trade deals work, OK then, here's a quick summary from an certain Oxford Professor:
"
Some countries can go it alone. The USA has such a big market (and firepower) that it can practically dictate the terms of its trade agreements with other countries. North Korea doesn't need them since it's closed to most of the world. But Britain is (and has been for centuries) an open trading economy. It attracts jobs and investors drawn to this English-speaking doorway to the EU and all its trading partners.
If Britain leaves the EU, it will suffer three consequences. First, it will lose foreign investment and jobs because new trade deals take an average of 28 months to negotiate - and that's too much uncertainty, for too long, for most investors. Second, the U.K. will become a rule-taker in trade negotiations. Like Switzerland in its recent deal with China, Britain will have to accept what larger partners have to offer. Third, the U.K. will lose its special access to the 60+ countries with whom the EU has agreements. In a slowing and intensely competitive global economy, these are serious handicaps to creating the jobs Britain needs."
Yep. And why is that? And why does it matter? Is it better to base your GDP on FS than on manufacturing?
We have both, last time I checked, but we couldn't compete with developing countries such as China, for low value/commodity products. Our manufacturing is actually bigger now than in the 1960s in terms of value, but we employ less people to do it. We can't go back to the 1960s, because the world has moved on. Technology and the world's systems have moved on. If you want more manufacturing, you need to be able to access those markets that will buy from you, and in our case, that is largely wealthy nations, as we make high value products, because that is what we can compete on. And we just happen to have 100s of millions of people living nearby that will buy those products, so being in the EU makes sense. Not being in the EU does not.
If you'd told the Brits of the 1960s that within a generation manufacturing would be decimated, don't you think they'd make the same argument?
How would they have prevented such decimation?
What matters more, tax or employment? High-profit financial services concentrated in London are great... for London. I don't live in London.
I don't live in London either. I work in manufacturing, but I know we need access to the world's markets. As a member of the EU, we stand the best chance of being a rule maker rather than a rule taker, as its so big.
Did you miss the bit where I pointed out the tax we get from FS? That goes into the Government's coffers, and goes towards things like the NHS, social care etc. With a projected lowering of GDP, comes a lowering of tax income for the Government. But also, such sectors are high paying, which means they spend on high value goods, which can benefit the rest of the UK.
When banks start to move out of the UK (eg. Deutsche Bank has announced it will go from 15 sites in the UK to one, with many jobs moving to the EU, and Goldman Sachs are moving jobs to the EU).
-High paying jobs moving out the UK.
Yes, about as much as Nostradamus...
You don't need Nosty, but the IFS is quite clear:
"
However, there is an overwhelming consensus among those who have made estimates of the consequences of Brexit for national income that it would reduce national income in both the short and long runs. The economic reasons for this – increased uncertainty, higher costs of trade and reduced FDI – are clear. "
https://www.ifs.org.uk/uploads/publications/comms/r116.pdf
Then there's the additional costs that the UK will incur. Here is an informal list I have compiled from other forums:
The £122bn budget shortfall
Additional funding for the NHS
Maintaining farming subsidies
Maintaining fishing subsidies
Indemnifying manufacturers against negative impacts of Brexit
£2bn a year for science and innovation
Replace EU investment for our poorest regions
Pay our EEA subscriptions
Pay for the department of Brexiting
Pay for the department of International Trade
Pay for bodies to set and enforce rules currently handled by the EU
Further examples:
Invest in waste projects to reduce landfill (eg. waste to energy)
The direct and consequential costs, arising from any changes to the free travel area between the UK and ROI
£800m per annum extra to meet our 0.7% international development commitment, since a portion of our present EU contribution counts towards that goal.
€40-€60bn exit bill to cover pension liabilities, unpaid commitments and loan guarantees.
Many shared resources, such as the European Medicines Agency which is responsible for scientific evaluation, supervision and safety monitoring of medicines for use in the EU; and the European Environment Agency, which provides independent information for policy makers and the public, to name but two... All such agencies, with the cost currently shared across the EU and EEA, will need to be set up from scratch in the UK, if we are to uphold our global regulatory and policy obligations.
European social funding planned would be honoured
Extra help in sports programs
A whole infrastructure of inventory units at uk ports and airport's to handle and check all goods coming to and from the EU because we are not in the customs union. And increased cost to business, with the delays and expense of goods having to go through those checks.
Employing lots more civil servants to manage the above?
Reduced taxation incomes from big business to encourage them to come here, but I suspect that will be offset by cutting benefits and increasing personal taxation or National Insurance.
The economic loss from signing a rushed 'distress' trade deal with the USA.
The reduction in economic productivity, due to being unable to attract talented people from overseas, either through outright controls, unworkable bureaucracy, or simply that they don't see the UK as a desirable place to live.
The recruitment of hundreds of border staff
And...
Helping to fund (presumably) some new court for handling trade disputes with the EU,