Thursday 13 December 2018

No Deal Brexit: the REAL reason the EU fears it. In layman's terms.

1) The EU wishes to control and negotiate trade deals on behalf of national governments but EU businesses that wish to trade with the UK will seek to by-pass the EU and continue to trade with the UK.

2) Businessmen are in business to make a profit. Given the choice between adhering to EU diktats that may prevent lucrative trade with the UK, or ignoring them, the businesses will choose the latter option.

3) If the EU is seen as hitting their profits, as a result of lost trade with the UK, then EU businessmen affected will lose faith in the EU and provide financial support to Eurosceptics.

4) In this country, if there is a scarcity of certain products; if imports become more expensive due to EU tariffs, then a void will appear that needs filling. That's how private enterprise works - that's what the Tories always used to tell us....

Scarcity will lead to demand. That demand will be filled by British businesses producing local equivalents at a cheaper price (no internal tariffs). The banks will fund this due to guaranteed profits due to decreased competition. .

5) The needs for manufacturing in a "no deal" scenario will shift the economic focus away from services and finance, effectively killing the neoliberal model in the UK and increasing the power of the working class. As more people HAVE to "buy British" the demand will decrease UK unemployment too, meaning a sharp reduction in the amount of welfare assistance the government has to supply. That will release funds for investment.

6) A NO DEAL Brexit would mean no more money to the EU - which would finance the scrapping of VAT thus making UK goods cheaper, would allow a reduction in national debt and many other economy boosting measures - making a self-reliant Britain more likely.

7) And lastly, If the UK shows it can be more self-reliant, with home production, other nations will not fear leaving the EU. We could see the collapse of the EU.

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