Lately I have become more active on the Social Media site Quora. Some of my answers are like mini blogs, so I’ll star sharing the best of them here on IdentitySpace.
After a no-deal Brexit Boris Johnson will try to pump up the UK economy with more hot air.
The British like to say they are special and have a ‘Services’ based economy, but what does that actually mean?
With a Masters in Business Administration, of course I have a good idea what goes on in those shiny skyscrapers in the City of London and how that brings in revenue from all over the world.
As an avid TV and movie watcher, I can also see how the BBC and other UK production companies produce brilliant content, music, film, drama, games and documentaries and how that copyrighted content is syndicated around the world and also brings in foreign revenues, not to be sneered at.
Where it all gets a bit hazy and incestuous is all these businesses where basically one UK citizen scratches another UK citizen’s back and they invoice each other. Again this total gets added to their GDP and makes the UK look big in nominal terms.
But how ‘real’ is this part of the UK’s GDP?
When I use a ‘Just Eat’ app on my iPhone to order a takeaway, that also adds to the ‘Services’ part of the UK economy and the Small and Medium sized Enterprises (SME) Sector is growing fast in numbers, but it doesn’t earn much foreign currency for UK plc. like the media industry, which is truly global. The ingredients of a typical UK pizza are probably mostly imported, so actually this activity worsens the UK trade deficit.
What we see with people like Boris Johnson and many Brexit voters is that they don’t distinguish between core economic activities that create wealth, like car manufacturing and farming, and secondary services sector activities that just multiply by recycling and distributing wealth other industries generate.
The Conservatives have no Industrial or trade policy. All they care about is their chums in the City of London.
With Brexit hitting the primary wealth generating industries of the UK first, there will be a huge knock-on effect for the secondary services industry in the UK. It will tumble like a house of cards, when British people tighten their belt in the Dunkirk spirit and stop spending.
All those Deliveroo and Uber drivers out of work! All the hair and nail salons. All the unaffordable childcare facilities closed.
To put it in simple terms, when the car plant shuts down, the hamburger van at the factory gate closes with it.
Because Johnson says “fuck industry” he will also deal a deadly blow to the Services sector, which now represents 80% of the UK’s GDP.
While in the EU, Britain was well placed to exploit their advantage in ‘Services’ with the advent of the Songle Market for digital services. Sadly with Brexit, that’s another sector where they’ll lose out.
There is no amount of hot air that can stop that. Brexit UK is heading for a catastrophic disaster. Most folk with half a brain can see this coming from miles away.
But some will make money out of this chaos.
Jacob Rees Mogg’s father even wrote a book about it!
Some enterprising Brits will even find a new pitch for their hamburger vans!