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A Vision of Manufacturing in Post-Brexit Britain

by John Brian Shannon

post-Brexit British manufacturing model

McLaren celebrates their 5000th supercar on February 2, 2015. Image courtesy of compositestoday.com

Yes folks, it really does take that many people to build a McLaren supercar!

In fact, it takes many thousands of people combining forces to build any car, aircraft, or other modern and/or technologically advanced vehicle.

And the point of this blog post is to show that the UK can add one million manufacturing jobs in the automotive sector alone, just by adopting the right policies — policies that help foreign automakers become ‘part of the solution instead of part of the problem.’

So, please bear with me while I show you how the UK could emerge a winner in the post-Brexit timeframe, create millions of homegrown jobs, boost the economy like never before, and supercharge UK manufacturing exports.

If you like the sound of that, then you’re a British patriot and you want the best for your country. I salute you!

(If you’re a foreign car manufacturer, don’t panic, it’ll work out for you too in the post-Brexit era. Just keep reading ’til the end)


UK Slaps a £25,000 Tariff on any Car or Truck (New or Used) That’s Imported After Brexit

WOW! That got your attention, didn’t it?

It’s not as bad as it sounds, because every auto manufacturer would be invited to establish their headquarters for all Commonwealth of Nations countries (and this blogger suggests) that the UK government should provide brand-new, free-of-charge, turnkey factories to every auto manufacturer that wants to build cars and trucks in the UK and sell them to every Commonwealth of Nations country including the UK.

Remember, The Commonwealth comprises 53 countries with a combined population of 2.5 billion people by 2020 and a combined GDP that nearly matches the U.S.A.

The UK alone, is the 5th-largest economy in the world by GDP (6th by PPP) and India is the 6th-largest economy in the world by GDP (5th by PPP) and other countries in the Commonwealth include Canada (10th) Australia (13th) Nigeria (30th) South Africa (33rd) and Pakistan (40th) and many others whose economies are rocketing upwards in this young century.

Nigeria alone will have more citizens than the United States by 2060. Maybe sooner.

How many auto manufacturers want enhanced access to 2.5 billion consumers, most of whom live in rapidly growing economies with upward disposable income?

The Commonwealth consumers not living in those burgeoning economies live in developed nations with high per capita incomes like the UK, Canada, Australia, New Zealand and Singapore.

Brand-new, ‘build to suit’ factories, paid for and owned by the UK government, leased to each manufacturer for £1 per year — with the benefit of no UK or Commonwealth tariffs ever, and streamlined access to 2.5 billion Commonwealth of Nations consumers.

If you’re a global auto manufacturer, you can’t lose!


Why Would Commonwealth Nations Agree to This Plan?

The UK unemployment rate is low at present, and falling each year.

In 2019, the UK unemployment rate sits at 3.8% and you’ll remember from your economics class that 2.5% unemployment is functionally a 0% unemployment rate — as exactly that many people are in some kind of transitory employment state without being actually unemployed — such as workers who’ve quit one job and are taking 2-weeks off from any work before starting their new job, or workers who’ve retired recently and have yet to file the paperwork that indicates their new status to government statisticians.

Which means the UK is 1.3% away from zero functional unemployment even with all the Brexit uncertainty due to the overly-long negotiating period. (3.8% – 2.5% = 1.3%)

Q: In the immediate Post-Brexit era and assuming a (functional) 0% unemployment rate in the UK, who will the UK call-on to fill perhaps a million new manufacturing jobs?

A: The Commonwealth of Nations countries, that’s who.

And that’s the benefit of being a member of a large and diverse bloc such as the Commonwealth. For the UK, membership in that group means a huge pool of highly motivated workers ready to jump on a plane and begin working in the UK immediately.

For Commonwealth countries, it means hundreds of thousands of their young people will have good paying jobs waiting for them in the UK at the end of their schooling, and good kids will send some money home to Mom and Dad — who after all, probably paid for their child’s entire education and airfare to the UK.

Workers who show up on-time and do a good job will of course be invited to stay on where the manufacturing continues year ’round, or find themselves invited to return to the UK by their company at the beginning of the next production cycle.

For the UK, this plan would reduce UK unemployment to zero, then allow any additional labour to be sourced from Commonwealth of Nations countries.

For foreign auto manufacturers, this plan would provide a specially-built for them factory at a cost of £1 per year, and guarantee them no automotive tariffs in the UK and other Commonwealth of Nations countries.


Saving Money, Streamlining Production, Centralizing Administration

Let’s pretend at present that Ford Motor Company builds the F-150 pickup truck in different Commonwealth nations and earns low profit per vehicle because the sales numbers in each country don’t quite support one factory per country. And all of its vehicles are subject to a plethora of different tariffs and fees depending upon where those F-150’s are built and where Ford is shipping them. Very inefficient!

But if Ford Motor Company decides to build all of its UK and Commonwealth-destined F-150’s in the UK, it means that one humongous factory in Britain could build all of them. There are economies of scale in that approach! And to have the land and building built and paid for by the UK government guarantees the economics work for Ford.

All Ford must decide is where in the UK it wants the factory, which car lines or trucks to build in the factory, and pay an annual £1 rent payment to the UK government.

And no tariffs in any Commonwealth nation, including the UK. Ever.


But This is An Expensive Plan!

No, not really. Especially when you factor-in some of the possible alternatives.

Such as the entire auto manufacturing sector in the UK dying completely. Which is happening in slow-motion anyway. (Rolls-Royce, Bentley, JLR, Mini, Lotus, Triumph, MG, Rover cars, BSA motorcycles, etc. are almost gone, or already gone)

There go a million existing UK jobs! (For just one example of it going wrong) And there go the additional one million UK jobs I’ve proposed.

But if UK unemployment hits 0% in the UK as I expect AND if one million new auto manufacturing jobs are created via this proposal, that means (on average) each of those additional one million auto workers will pay an average £20,000. income tax annually, and thousands of pounds in other taxes on their discretionary spending because almost every time you buy something in the UK you pay some kind of tax on it. New house, new car, new baby pram, you get the idea.

What is one million times £20,000. anyway? That’s £20 billion annually in income tax revenue HM government isn’t presently earning.

It’s even better if those one million additional workers spend every pound sterling they earn on taxable items in the UK. Maybe twice as good as the calculation above shows.

Check the math: 1,000,000 x £20,000. = £20,000,000,000. annual income tax revenue alone.
Over 10-years, that equals ‭£200,000,000,000‬. in tax revenue alone.


Remember: This is Just One Example of Why Britons Shouldn’t be Shrinking Back from Brexit!

Whether we’re talking Volkswagen Golf, BMW 5 Series, Audi A8, or whatever car you want to buy in the UK — if they don’t build them in the UK after Brexit — each vehicle would be subject to a £25,000 tariff.

Because at present, those cars are built in the EU, by EU companies, by EU workers, in EU-subsidized factories — and the UK is getting no benefit whatsoever — other than UK drivers are encouraged by slick advertising to hand over their hard earned money to EU car manufacturers.

However, if they build them in the UK — a no automobile tariff regime would apply anywhere in the Commonwealth of Nations, under this proposal.

I posit that vehicles destined for the UK and Commonwealth market could and should be built in Britain, and by adopting better policies, UK manufacturing will succeed as never before!

After 3-years of Lollygagging, Now They Want an Article 50 Extension?

by John Brian Shannon

The best example of European ‘Low Ambition’ has arrived (in the UK of all places!) and British citizens should be enraged.

After piddling around for over 2 1/2 years, the UK government is now putting out ‘feelers’ about how the UK public would react to an Article 50 extension. Pathetic.

There are many valid reasons why citizens and the media should virtually veto this idea — and number one on the list is that it cynically works to strengthen the hand of Remainers many of whom still can’t accept the June 23, 2016 referendum result and are actively working to this day to subvert the will of the majority.

Is Theresa May actually trying to create the conditions necessary to start a civil war? Because without her feeding the anti-Brexit movement at irregular intervals over the past 30-months it would’ve died out of its own accord as it wasn’t that strong to begin with.

What kind of leader would work against the wishes of a majority of referendum voters to strengthen the losers of such an historic referendum? Sir Winston Churchill (who earned his title by the way) is rolling over in his grave at this very moment.

Again, Britain’s leaders must stop acting like they’re representing the 120th-largest economy in the world and begin acting like they’re representing the 6th-largest economy in the world. Yes, even if that is scary. Oh Winston, where are you?

Britons and the entire world are dying to hear Winston Churchill snarling, ‘This will be Britain’s finest owwwa!’ in full British bulldog mode.

And far less of;
‘IsItAlrightToSitHere?Oh,ItIsn’t?OK,Sorry,I’llSitRightOverHereThenIfThat’sOKWithYou. AndI’mWillingToPay£39BillionForThePrivilege,ButIfYouWantMoreThat’sOKToo. ButPleaseJustGiveMeSomeTimeToSellItToMyGovernmentFirst.
IfThat’sOKWithYou,Jean-Claude.Don’tBeMad,OK?’

Followed by the mandatory 5-minute round of air-kisses between the two. Sickening.


Let’s Look at the Pros and Cons of a Delayed Article 50

As there aren’t any ‘Pros’ let’s skip directly to the ‘Cons’ of an Article 50 extension:

  1. It might create a civil war in the UK: Or it might strengthen the present divisions which could lead to the kind of polarized society we see in the United States. Which is great if you’re a UK politician trying to make a name for yourself by using ‘Divide and Conquer’ tactics leftover from the feudal era, but it’s never good for a country. Yes, it might work for you but it will permanently damage the country. Anyone who uses such tactics to further their own career, prolong their premiership, or gain a fleeting advantage over their political opponents should be fired by their party for fomenting public strife.
  2. Adding even more uncertainty is bad for the economy: Keeping the fight going for whatever reason instead of getting on with the business of the country has had a deleterious effect on the UK economy. As long as a Remain vs. Leave fight continues business confidence within and outside the country is negatively affected. Leave won. Remain lost. Even Remainers in government must get over it, or do the honourable thing and resign their Parliamentary seat. This applies to the House of Lords as well. If you can’t accede to the will of The People you’re not a democrat, you’re a despot. And nobody wants you — except the losers of the 2016 referendum. Bye! We (the people who believe in democracy) won’t miss you. Don’t call. Don’t write. We don’t want to know.
  3. The UK looks weak in front of the entire world: As the world watches, the way Brexit has been handled on the British side makes Britain look disorganized, unsure of itself and led by a closet Remainer, that is at all times afraid of its own shadow… and this! this? is the UK that hopes to become a major exporting nation in a globalized world that (try not to laugh here) is supposed to be based on a meritocratic government and society according to Theresa May? Give us a break!
  4. There is nothing to be gained by extending Article 50. Nothing! The same (apparently intractable) problems will remain and nothing more can be said then, that hasn’t already been said between the two sides. If they can’t get it done in 3-years (!!!) what makes them think they can get it done in 3-years + 3-months? Ludicrous! The EU says the draft Withdrawal Agreement can’t be renegotiated (which is incorrect, as it’s only a ‘draft agreement’ or ‘proposal’) and if they want to sell cars, etc. to the UK they will sign a revised (no backstop) agreement at some time before the 11th-hour on March 29th. And I don’t blame the EU one bit for trying that bluff on a weak UK Prime Minister. I would too, as would any negotiator. But Theresa May will be a fool if she falls for that ol’ negotiating ploy. Everyone can see it for what it is. So why can’t Theresa May? Inexplicable!
  5. After the EU/EC elections in May 2019, the UK will be facing the ‘Hard Crew’ — not the ‘Soft Crew’ of jolly old (and powerful) Jean-Claude Juncker and businesslike (and powerful) Donald Tusk — both of whom almost like the British. The Hard Crew is most decidedly NOT going to be easier to negotiate with. The Hard Crew is NOT going to allow any better deal for the UK. The Hard Crew is NOT going to put up with some of the shenanigans we’ve seen from the British side. And the Hard Crew certainly won’t consider changes to the proposed backstop. And the Hard Crew (and this is important!) won’t be bound by any self-serving and pollyanna Political Declaration that has absolutely no force in law. Might as well tear that up right now Theresa because the Hard Crew isn’t going to entertain one word of that document unless some part of it happens to favour the EU side. If you think the EU aren’t your friends now (and they aren’t, they’re quite rightly negotiating and bluffing for their own side, not the UK side) just wait until you meet the new boss!

Finally, Theresa May has been getting better and better by the month. However, she’s failed to grasp some important points which may prove disastrous to Britain and to her legacy once she leaves office.

Her oft-repeated statement which she quoted on the Andrew Marr show on Sunday goes like this; “Don’t let the search for the perfect become the enemy of the good.”

Which is a nice thought but it misses the mark and she doesn’t see it. Brexiteers aren’t asking for “the perfect” — they’re asking for a “successful” Brexit. What Theresa May thinks is “the perfect” is what Brexiteers merely consider “the bare minimum” level of Brexit success.

Remember the four metrics of Brexit success?

  1. Take back control of the UK’s borders and immigration
  2. Take back control of the UK legal system
  3. Take back control of the UK economy
  4. Take back control of UK trade

And her draft Withdrawal Agreement as it presently sits (unloved by anyone in the world except Theresa May and Jean-Claude Juncker) satisfies only 3-out-of-4 of those metrics, but is otherwise an excellent document.

Which results in a failed grade for Theresa May as far as Brexit negotiations are concerned.

A ‘No Deal’ Brexit is far superior to the present draft Withdrawal Agreement as a No Deal Brexit WILL ALLOW THE UK to strike any trade deal it wants, post-Brexit.

Theresa May is living a fairy-tale if she thinks that allowing the backstop to remain in the draft agreement and then post-Brexit trying to negotiate her way out of the backstop with the Hard Crew is going to get the UK out of the backstop. (What???)

Sorry Theresa. I like you. But the EU is trying to steal Northern Ireland from the UK by stealth (If I were them, I’d try the same thing!) employing the backstop to arrive at the point in time where a UK Prime Minister’s choice would be narrowed down by events to only one of two choices; Either surrender Northern Ireland to the EU, or the UK becomes trapped in a worse deal.

Theresa May’s draft Withdrawal Agreement as it stands would’ve gotten her a 1-out-of-10 grade in Political Science class. That’s a 10% grade. Not even up to the D- mark that we all feared in high school.

Yet, with one change (dropping the backstop, or alternatively, putting a firm end-date on Customs Union membership) would turn that very same draft Withdrawal Agreement into an A+ agreement, or 95% if you prefer that measure.

Who wants an even worse deal than at present? Hands up! None? See Theresa, I’m right!

So choose to drop the backstop, or alternatively, get a firm end-date on Customs Union membership and you’ll be the hero of Brexit and live out your life in the House of Lords after your premiership ends! Or, choose to be reviled worse than Guy Fawkes — for being the Prime Minister who delivered the British people into the hands of the EU’s Hard Crew and concomitantly trap Britain in an even worse deal than it presently has.

There’s no other options left. Taking the path of least resistance with your EU pals is no longer an option. The time has come to show some mettle or get out-of-the-way and let someone who can get the job done, get it done.

And forget about cancelling Brexit. That should be a treasonable offence even for British MP’s including the Prime Minister. The People voted to Leave and you must follow their instructions.

Of course it’s nice to leave the EU with a Withdrawal Agreement that allows an easy Implementation Period so that no one has to work too hard at moving to a new way of doing things, and it’s nice to create fluffy and pretty Political Declarations that sound wonderful and sweet (but in reality will rank as nothing once the Hard Crew gets into power) and all the other sweet, flowery, diplomatic and fluffy things that the new relationship with the EU could and should be. But none of that is based in reality.

And unfortunately, no matter how we try to pretty it up, we live in reality, not in non legally binding documents. And no one wants to be trapped in a worse deal.

So, put on your big-girl pants and get the final and most important part of the job done, or get out-of-the-way and let someone else who can, get the job done.

You’ve been great, but obtaining a successful Brexit is bigger than any one Prime Minister (or two, or three!) and it must be done right.

Hurt feelings, being pushed aside for a more proactive and bolder Prime Minister, or not being able to build the legacy you want are far less important than the British people getting out of the EU (which is what they voted for) and either obtaining a better Withdrawal Agreement prior to March 29, 2019 or moving smartly along to a No Deal Brexit by the same date, are your only two options.

Any other paths are merely flights of fantasy that only serve to waste everyone’s time, including yours.

A Day in London: 2020

by John Brian Shannon

Welcome to London, 2020. You’re in the former Battersea Power Station where the British International Motor Show is being held this week!

Artist rendering of the renovated Battersea Power Station in London, UK that will be home to Apple Inc.

Artist rendering of the renovated Battersea Power Station in London, UK — Apple’s UK & Commonwealth HQ. Business Insider

Apple Inc’s new UK & Commonwealth HQ is full of Alan Turing-esqe brilliant people glad to be hosting the show in their auric new building — and for the first time anywhere, iDrive (Apple’s shiny new hydrogen powered car) is on public display.

Aside from its obviously stunning design, the best thing about this car is that it can’t be stolen because unless the owner of the car is within a few feet of the car with his/her iPhone on and logged-in to the iDrive app, it is just a piece of aluminum, glass and plastic that can’t go anywhere. There’s no computer or operating system to allow the car do anything at all, save for the iDrive app in your iPhone or iPad.

apple icar concept car in london, uk

Early Apple iCar concept.

No iPhone or iPad? Then you’re not the owner of the car. Because a matching serial number iPhone & iPad is provided with each Apple Car, with thumbprint security and as many passwords or login captchas as you want. It’s up to you.

Even if someone steals your iPhone and manages to locate your car, you can always “Log out of all devices and apps” remotely from any computer or smart phone on the planet — including the app that drives your beautiful new Apple Car. (Stolen car coasts to side of road, wholly inactive)

Now, that’s what I call a user-friendly car ownership experience.


And Brexit, You Ask? Pshaw!

Brexit came and went a long time ago. Neither Project Fear or the extreme Brexiteers were right; The UK coasted through 2019, Brexiting on March 29 as scheduled and other than a temporary blip in the markets things continued as normal. Yes, even the Sun rose in the sky the next day. Astonishing!

But not really. For all the hype, compared to other events taking place in the world Brexit turned out to be a sideshow. Only hyperventilating European politicians on both sides of the English Channel noticed Brexit.

After dipping to 1.2% GDP growth in 2019, the UK recovered and is now looking at 2% growth for 2021 — not due to Brexit — but due to the fact that Remainers are no longer sabotaging the UK economy hoping for it to fail so they could get their way.

Since the summer of 2019, the UK joined the USMCA (the new NAFTA agreement) and the CPTPP, and the new Commonwealth of Nations Free Trade Accord (CNFTA). In 2020, the UK has signed trade agreements with countries that have a combined population of 5 billion+ people.

A free trade deal with the EU (based on the excellent CETA agreement the EU has with Canada) is expected to be signed by the end of 2020 and go into effect on January 1, 2021.

Food shortages, rioting, family strife, civil war? Not a bit of it.

Every politician who tried to make a career out of Brexit is gone. Whether extreme Brexiteer, extreme Remainer, whether continental European or Briton; Every politician who held an extreme Brexit position was invited by their respective parties (and voters, hehehe) to leave politics.

Enjoy the day Britons, legal migrants to the UK, and visitors! You’ve earned it.

Oh, and the UK and the EU signed a modified Withdrawal Agreement on the 11th-hour of March 28th, 2019. But you knew that.