Brexit, the People have been ignored. The divisions are clear it’s the people versus their elected representatives. In a Democracy this is unacceptable.
Would we be having this Brexit discussion if our Government had done its job?
Manufacturing imbalances irrelevant or a problem?
For too long our government has been of the opinion that our decline in manufacturing is somewhat irrelevant to the overall well-being of the UK economy that decline is inevitable to a mature western society such as ours. Neither of these conclusions are true, given the demographic, and ethnic mix that our economy is today. As, I said in a previous post, we cannot all be bankers.
Donald Trump and his concern for America!
From this table, you start to see the picture emerging of a very sick economy not just here in the UK but also in the US. The difference between the US and the UK is stark, the US a leader who has recognized the imbalances in their economy and how it has disenfranchised millions of Americans. The UK continues to cling to the status quo with its government protecting vested interests, whilst all the time plots to overcome the will of the people. There is no doubt, to call the referendum was a political own goal for it meant they had to now do something, and as we can see they neither have the ability nor the desire, their lives are too comfortable, their expense accounts too big. Like Donald Trump or not, Americans in general need him to improve middle America. In all honesty he only offends the self-sufficient group, and there are fewer of those as a percentage than under the Reagan years. The UK Inside or outside of the EU unless a Thatcher, Lloyd George or a Churchill take control we are doomed to oblivion with few assets left to speak of.
The UK must repair the Economy
The issue here is around productivity. A manufacturing economy has the ability to benefit from productivity improvements by their investments in mechanization, technology. Whereas a services’ economy it is not so easy to achieve better productivity, if you compare Germany, whose economy leans more to manufacturing they are able to achieve far greater productivity, therefore greater returns on their investments, our returns barely cover our loan costs, hence the fire sale of our assets. Look around the UK the problems are stark, our de-industrialization has not brought equal benefits to many regions. For example, London, over ten years they have enjoyed a 22% growth, the North East a mere 4%. Wages show an even worse story; London salaries have held on perhaps even increased above inflation. Conversely, Wales and the North East has dropped over the last 10 years wages have fallen by 10%. This is with the dominance of a labour government under the Brown Blair years, really quite a shocking indictment on our politics generally but, Labour in particular. It is right for the UK political class to be shaken! The system is failing us and it is doing this in the worst way possible. Stay or leave a strong leader with vision and direction, who is able to wrest control back from Europe and put the UK first is now needed. Not to take this opportunity and elect a country first leader, in the words of Clinton we will be a cultural theme park.
We have an opportunity but it takes Leadership in the UK Government, none are visible within the current bunch!
To re-balance, the solution to some extent is easy, our services sector enjoys a good return which means we do not need to emulate Germany or Singapore we just need to increase our investment in Manufacturing from the current 10% to 15%. Of course productivity is easier to achieve outside of the EU. Currently, only 10% of our exports head to the EU yet 100% are subject to EU regulation. You see, our situation is really dire, change is urgently required. It concerns me that we have a party for change who advocate no change! This is not the time to play games with the public genuine change is what we are in need of. They’re not the answer as these individuals fail to see how our membership of the EU has disenfranchised rafts of voters up, and down the country. Change UK just advocates the status quo.
In answer to many comments. The UK has indeed the best economy in Europe, but this is not the measure we should be basing our well-being on. My reference with this blog was to highlight why we left. The disparities that caused the rift. The evidence since the vote has been one of confirmation that the decision was correct. Record employment, record Foreign Direct Investment 2nd best in the world, beating the US. But, as we are seeing; vested parties are trying to scupper Brexit, my point is we must see it for what it is, and not allow it to be squashed. Project fear and smear campaigns continue.