Well, I learned something that I have been hitherto unaware of this morning, next week Dr Fox is bringing a bill to Parliament to enable the UK to have zero tariffs on all imports from anywhere post Brexit. Note that this does not involve other countries having no tariffs on our exports, it’s a unilateral decision.
They had a bloke from the Adam Smith Institute, the free market capitalism think tank, on the wireless to sing the praises of this idea. I bet Dr Fox wishes that this chap hadn’t turned up, as he graphically and enthusiastically put the case in terms of how brilliant it would be for consumers to flood the country with cheap imports, cheerfully agreeing that British manufacturing and agriculture would suffer and jobs would be lost unless they get ‘more efficient and competitive’, but it doesn’t matter because the consumer wins and anyway we are a service based economy (2.7 million people are employed in UK manufacturing, 500,000 in agriculture), and the sooner we can do trade treaties with other countries so we can recognise their standards and regulations (which would be the only things stemming the deluge of incoming crap) the better.
Let’s just pause to ponder this for a moment.
- it will be good for consumers - if they have a job and want cheap stuff
- it will decrease tax revenue, both from tariffs, VAT and income tax from the newly unemployed
- simultaneously welfare and health costs, the inevitable follow on from unemployment, will rise
- it will be bad for the environment, as more useless crap is transported around the world
- to compete with low cost foreign firms British firms will have to cut costs and quality, unless they bank on their ‘superior’ quality attracting customers
- it has absolutely zero reciprocal benefit to exports
This is the Fox, Mogg, Johnson true agenda. It’s nothing to do with sovereignty or borders or immigration, and everything to do with red in tooth and claw capitalism, unfettered competition where the uncompetitive die along with plenty of collateral damage. It’s an ideological position of the most extreme type, economic fundamentalists, the type who don’t care that the one thing this government can justifiably boast of, employment levels, could be thrown under the bus.
Call me a protectionist, but I like protecting things.