Brexit Horror: Liberated British Might De-prioritise Climate Change
Ignore the EU. Britain needs to move to a zero tariff import scheme which will allow Britain to maximize its trade mainly the valuable imports. If the EU decides to tariff Britain, so be it. What drives me mad is that it has long been settled that trade benefits both parties and tariffs only reduce the benefits. Why would any nation impose duties?
Politicians have found that there is a massive vein of corruption they can mine by clamouring for trade restrictions to protect (the children) the mammoth businesses like steel which do not need them and which do not transfer any significant amount of the largesse to the workers. The way tariffs work is like a tax on consumers, in this example steel consumers. Steel consumers pay more, and the mammoth steel companies make more profit because they can charge more for their products. Exactly why would I want steel companies to be able to charge me more when the competitive market does not support this price?
Britain's best strategy is to negotiate for the best trade deal it can with both the EU and America, then open its borders to free zero-tariff trade. If the EU wants anything more than a parting kiss, Britain should tell them to F∞ç£ off. The EU is in decline, without Britain it will quickly enter economic free fall, it is per Stiglitz in a depression. While I think Stiglitz an authoritarian progressive leftist Keynesian, he is right on the EU.
Britain is better off letting the EU cut its throat by tariffing British imports and shifting its trade focus to the USA while reducing its import tariffs to zero. It would also be a wise move for Britain to cut its corporate tax to below that of the Irish, and the US (which will soon fall to 20%). The correct corporate tax rate is zero unless you have a strong desire to tax the middle class without their understanding, you know like a hidden VAT.
We sit at the end of the progressive era, and still, we cannot put the mercantilist/colonial period behind us. Within a decade Blockchain will eliminate the trust issues in international shipping transactions, and reduce the peer-to-peer trust issues dramatically. This will cut the middlemen in most of these transactions (more likely eliminate nearly all middlemen) and increase the profitability of all trade. By removing all tariffs, Britain will be creating an environment where its companies and people can prosper. This arrangement is highly unlikely in the People's Democratic Republic of the EU. This is the only way Britain can begin to claw back some of the economic growth gap which now exists between the UK and the USA.
Until our politicians are willing to forego the current high corruption progressive model and begin moving to the new model we will continue to bumble along economically. The first few nations to make the shift will mold the new model and drive the pent up economic expansion. Where to Britain?