ChatterBank1 min ago
Why Post Bretix Would There Be Budget Cuts?
19 Answers
Surely the money given to the EU would be funnelled and used to pay any shortfall?
If we pay £350m in and get rebates and subsidies of £150m then surely we would be £200m better off? Not counting the other bailouts we have had to pay we would be quids in so why budget cuts and tax hikes?
If we pay £350m in and get rebates and subsidies of £150m then surely we would be £200m better off? Not counting the other bailouts we have had to pay we would be quids in so why budget cuts and tax hikes?
Answers
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imagine all those foreign workers undercutting Britsh wages are sent packing. That means wages rise. That means manufacturers have to put their prices up or sack staff (and rising prices also imply sales falling and people being sacked anyway). Fewer people paying tax, more on the dole.
In addition you could factor in foreign investment being withdrawn. This is already happening in the wake of the uncertainty (and the uncertainty will not end when the referendum is over). Already German government bonds are offering a negative yield. This means that investors are now paying the German government to store their money rather than keep it in Britain.
How long these effects will last and how deep they will cut is anyone's guess. But it sounds highly probable that Osborne is going to be correct. The whole tangle of economics is much more complex than "I'll be able to keep my money".
In addition you could factor in foreign investment being withdrawn. This is already happening in the wake of the uncertainty (and the uncertainty will not end when the referendum is over). Already German government bonds are offering a negative yield. This means that investors are now paying the German government to store their money rather than keep it in Britain.
How long these effects will last and how deep they will cut is anyone's guess. But it sounds highly probable that Osborne is going to be correct. The whole tangle of economics is much more complex than "I'll be able to keep my money".
No one is suggesting anyone gets sent packing. But if some go then all the more benefit to the UK from getting natives on welfare into work.
UK can not seriously compete on price anyway given the low cost/price countries in the world, it has to compete on quality, extra bells & whistles, and suchlike.
Folk unreasonably worrying about investments, or those hoping for a bear market killing, will eventually settle down. Those who gained will already have bought up UK investments, those who panicked will quickly realise the UK is as valuable after exit as before, and so sheepishly return.
It is the very fact that withdrawal will not be sudden that helps any disruption during the upgrade to be generally small and manageable.
UK can not seriously compete on price anyway given the low cost/price countries in the world, it has to compete on quality, extra bells & whistles, and suchlike.
Folk unreasonably worrying about investments, or those hoping for a bear market killing, will eventually settle down. Those who gained will already have bought up UK investments, those who panicked will quickly realise the UK is as valuable after exit as before, and so sheepishly return.
It is the very fact that withdrawal will not be sudden that helps any disruption during the upgrade to be generally small and manageable.
yeah wiv £350 in one hand and 150 in de other
that means we get £200 immediately
even the brexiters admit that the uncertainty in the short term will be such that there will be a fall in the standard of living and a contraction of 2% in the economy
(but hey then it will magically get better of course)
that means we get £200 immediately
even the brexiters admit that the uncertainty in the short term will be such that there will be a fall in the standard of living and a contraction of 2% in the economy
(but hey then it will magically get better of course)
jno
Hopkirk, I think the short term will be long. The new day will not dawn in two years. My guess is more than a decade.
What are your expertise that allow you to to come to this conclusion, jno?
George must have taken a leaf from the EU hierarchy ... do as I/we say or I/we will punish you. This is nothing more than a threat of a vengeance budget
Hopkirk, I think the short term will be long. The new day will not dawn in two years. My guess is more than a decade.
What are your expertise that allow you to to come to this conclusion, jno?
George must have taken a leaf from the EU hierarchy ... do as I/we say or I/we will punish you. This is nothing more than a threat of a vengeance budget
Talbot , Here is the forecast from the London School Of Economics , not an organisation known for exaggerated claims, post Brexit cost to the GDP of the UK £26 to £55 BILLION !!!! against a 'saving' of £350 million a year
( a billion is a thousand million, work it out)
http://
( a billion is a thousand million, work it out)
http://
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