Lloyds Banking Share Discussion Threads

[xxxxxy] 10/12/2019 20:41

The economic damage done by our membership of the EU


By JOHNREDWOOD | Published: MARCH 26, 2019


Too many in the media just accept the assumption that we have done well out of being in the EU and will lose when we leave. There is little evidence to support either of these contentions.

We joined in 1972. We were made to remove all tariffs on products the rest of the EU was good at, whilst they maintained many barriers to service exports which we were good at. As a result there was a predictable deterioration in our goods trade balance with the EU, and closure or slimming of many of our factories. Our car industry suffered heavily from the tariff free competition of VW, BMW, Mercedes, Renault, Fiat and the others. BLMC in particular had to slim and close plants. Our Lancashire cotton industry and Yorkshire woollen industry was hit by Italian and German textiles. Our ceramic tile industry was damaged by Italian competition and later by Spanish. In the 1970s we lost a lot of manufacturing capacity. The nationalised steel industry had to start closing its five new large scale plants for lack of demand as steel using industries fell away in the EEC.

We also saw a further deterioration in our balance of payments as a result of high financial contributions we had to make to the EEC, as all those charges were negative flows across the exchanges. Soon after we joined there was a deep western slump which hit the UK particularly badly. Whilst this was not mainly the result of EEC membership, it exacerbated the bad trends EEC membership was causing.

In the late 1980s and early 1990s we saw another recession brought on by the UK’s membership of the European Exchange Rate Mechanism. These job losses and factory closures were entirely the result of EU membership, and very damaging.

More recently we have seen a lot of factories shift elsewhere in Europe thanks in part to EU grants tempting businesses away. When I was a business Minister one of the regular complaints from UK companies was unfair competition from the rest of the EU where companies in favoured locations got special EU grants and financial assistance on favourable terms or free.

The UK growth rate has been slower since 1972 than it was 1945 to 1972. Some try to say the war disrupts the picture, but it is difficult to see why. Whilst the war was a terrible thing, it gave us very full employment with the diversion of many people into the armed services. All their efforts did under standard accounting count as national output. There were also big increases in manufacturing output domestically as we had to produce most of our planes, vehicles and bombs nationally. There was a also a surge in home food production. Of course there was also a fall in non military output as factories were diverted to war work. Imports from the continent obviously stopped as it was under German control, and imports from the rest of the world were restrained by German military action to prevent or destroy them.

An EU study has showed practically no gain from EU membership for the UK economy, but it is on optimistic assumptions. To me there has clearly been a modest net overall loss of output compared to what would have happened if we had stayed out, though of course output is up over our time in the EU as you would expect. The headwind of big financial contributions to the EU has been damaging. Margaret Thatcher’s renegotiation helped a bit by cutting the burden.

[k38] 10/12/2019 20:41

BBC must apologise to Boris and the voters in general !!!

[k38] 10/12/2019 20:40

bob, Nicola finds hard to make her case.. people ignoring her....;))

[psychochopper] 10/12/2019 20:37

... and it’s possibly going to get a whole lot worse for Germany. No tariffs have yet been imposed on any German exports and yet its economy is suffering. And even before Trump has targeted the EU for what he sees as unfair trading practises. (effect of trade war on German GDP regarded as minor up to now).

Not a good place to be until it rebalances its economy. It has dined out too long on its car industry and near-zero financing rates. Even M2 might have a 3-series.

[k38] 10/12/2019 20:36

Two excellent goals from Chelsea so far.

[xxxxxy] 10/12/2019 20:35

CORBYN is a STALINIST
MOMENTUM is STALINIST
LABOUR is STALINIST.

And they will destroy the economy. A destroyed economy will not support a modern society. Labour will take us to the North Korean model.

Vote Labour and get Hell.

Support BORIS for BREXIT and Progress and Freedom.

LEAVE and WTO

[k38] 10/12/2019 20:34

Thanks to BBC news and the lies of the opposition we are experience the worst ever election in history. How low yet...

[k38] 10/12/2019 20:30

I agree x....And the nurse, if this was true picture at the time which allow the boy to lie down on the floor must be sent home. BUT..Look at the photo.. empty chair and a bed next to the boy... evidence of fake news.

[diku] 10/12/2019 20:29

Bojo said...they are arguing about arguing...they are arguing for the sake of arguing...so lets get this thing done...

[m5] 10/12/2019 20:28

Min, what are you today, a racing driver or an astronaut?

[xxxxxy] 10/12/2019 20:17

Social workers should intervene.

[k38] 10/12/2019 20:07

BBC Scotland leaders debate is on & Chelsea vs. Lille..I try do my best to watch both at thesame time.

[minerve 2] 10/12/2019 20:05

"Big money waiting to be invested after Boris win, not just in London but all over UK. "

Just think, it wouldn't have been waiting at all if the Little Englanders hadn't got this idea that they think they know better.

Little Englanders need to know their place in life. At the bottom of the pecking order.

[k38] 10/12/2019 20:01

What's the difference between BBC and CNN When comes to politics, both misleading the public and reporting face news.

[utrickytrees] 10/12/2019 20:00

Send her to Scotland.

[jl5006] 10/12/2019 19:52

K38 824
Both have their heads stuck in the sand - wont see reason - just blind obduracy - nothing to do with acting like a representative of the electorate EH?

[utrickytrees] 10/12/2019 19:42

Except Scotland K38, the fkwits will do everything possible to discourage investment, look how the ungracious xxxt's have treated Trump & his plans to lift western scotland out of poverty, & drug dependency.
Top post Jacko!

[k38] 10/12/2019 19:41

What's the connection between the USA Democrats and the UK mp's remainers..


Both are losers and you can't be trusted!

[k38] 10/12/2019 19:36

"Been hit.." and slow down it's totally different!!

[k38] 10/12/2019 19:32

Ian King Live (sky)Big money waiting to be invested after Boris win, not just in London but all over UK. CHIEF EXECUTIVE, PALACE CAPITAL NEIL SINCLAIR.