My answer to What should the UK do to shore up its economy following the Brexit vote?
Answer by Desmond Last:
The U.K needs a new Economic system to match the new World it is about to enter.
It cannot rely on historic alliances and an expectation of Colonial Endeavour to provide its future.
The E.U is a system and the U.K is about to leave it. When you leave a system you are no longer in ’cause and effect’. Nobody in the E.U is caused to trade with you and effect your ‘Export Import Ratio’
Having an E.U Trade Agreement does not mean that companies are forced to deal with you or invest in your country. Trade follows friendship and respect. Something that the U.K is not attracting.
Similarly the U.K Government has a historic fixation with Trade Economics based on influence and Power. We no longer have either of those.
I do not know what reality bubble the people and Government of the U.K are in but they need to burst out of it.
The U.K is not a major manufacturer and everything the U.K makes can be bought elsewhere. Its service industry is hardly unique.
The Trade deal with the U.S has faltered why would ours do better?
There is a need for the U.K to use ‘New Economics’. The Economic advice it receives is totally flawed. An example is putting drugs and prostitution into the GDP. How does the U.K tax these inputs?
Are they serious? Drugs and crime have no residual capital mutplier and are a cost. Whoever put that idea forward must have been on drugs.
In the 3~ years I have been back in the U.K I have not seen one good economic idea come out of 10 Downing Street.
I and I am sure other Economists in the U.K have ‘New Economics’ which would reform the U.K economy.
But we have a Prime Minister who like Cameron will not listen to new ideas outside of her Inner Circle.
If the U.K wants to survive Brexit it will need ‘New Economics’.