'IGNORE THEM!' Chief economist TEARS APART Brexit fear-mongers in STEP-BY-STEP take-down
TODAY, we see the efforts of supposedly neutral civil servants issuing anti-Brexit propaganda, still hoping to reverse the referendum decision.
Economist: Brexit won't 'DISRUPT' UK economy
We have had the Treasury and ‘Cross-Whitehall’ report, arguing that any Brexit at all, including the government’s proposed deal, would be worse than Remaining. Then the Bank released its ‘Brexit crisis scenario’, an implied forecast of how bad No Deal would be. It has since reiterated that No Deal would likely cause a recession. These are deceitful propaganda efforts and terrible economics.
Contrary to Project Fear, Brexit means big gains for the economy, from:
Free trade with rest of the world, reducing prices and boosting competition
Better regulation, in technology, energy, and financial services – all key to our future growth prospects
An end to subsidised unskilled immigration which costs £3500 pa for each unskilled worker
Ending paying large amounts into the EU budget
Together, these will add about 0.5 percent a year to our growth rate, totalling a 7 percent boost to GDP by 2035.
The Project Fear reports make the following absurd assumptions:
There will be tiny gains from Free Trade with the Non-EU World
Nonsense! Australia alone disproves this claim. Free trade gained them over 5 percent on GDP, according to our Treasury’s own trade model. If Australia can do it, so can we.There will be a ‘Border War’ with the EU
Both the UK and EU would increase inspections, slow traffic down and query whether exports comply with standards. The Treasury assumes this is the equivalent of imposing 25 percent tariffs each way.
Again, pure nonsense! This is illegal under WTO law and would land any port in court.We will make no gains from post-Brexit tariffs
Under No Deal tariffs would favour the UK - we would receive £13 billion in tariff revenue from EU exporters versus the EU Commission receiving £5 billion from EU importers.
Moreover, the Treasury claims there would be no gain from fully controlling our regulatory system.
This is a ridiculous notion, we would put our interests first, unlike the EU.Our immigration policy will keep out skilled workers
The Treasury assumes we will pursue a masochistic policy of stopping the skilled immigration that is essential to our economy – a pure fantasy that no politician supports.
Turn now to the claims of recession.
Since the referendum the UK economy has grown steadily, with record low unemployment and record high employment.
Hardly the recession that Whitehall predicted would happen immediately after a Leave vote.
My advice to the British people is to ignore the terrible economics of the ongoing Project Fear as you got it right and our public ‘servants’ have got it all wrong.