Britain as an independent nation
Forty three months after the Brexit referendum, Britain finally left the European Union & started to move towards independence.
Nearly forty three months have passed since the Brexit referendum was held. Britain finally left the EU on the 31st of January this year under Boris Johnson’s leadership. Britain has now entered the transition period and will leave the EU Single Market after the period.
Britain’s withdrawal from the EU is an important milestone in the history of Britain on the road to true independence and economic prosperity.
Independence from the EU is freedom from political control by the political bloc: no budget contribution to the EU; freedom from the European Court of Justice rulings; abolishing taxes on sanitary products (eg tampon tax); and exiting the Stability and Growth Pact (SGP).
Abolishing VATs on women’s sanitary products
Despite the fact that it is unfair that women have to pay more taxes, under the EU rules Britain has to impose VATs on sanitary products. It is also morally wrong that a government imposes VATs on basic necessities, because the poor people are the hardest hit by the VATs.
Now the British government should abolish those VATs as David Davis, then Brexit secretary, said in March 2017:
The moment we leave I’m sure its one of the first things I’m going to have on the agenda for talking to the Chancellor.
No free movement of labour
Britain will take back control of its borders and make stricter immigration laws as an independent nation has the ability to strengthen its borders. Immigration is a matter of serious concern to British working class families, because open borders leads to job losses and drives down domestic workers’ wages. Under open borders, domestic workers are forced to compete with migrant workers from low-wage countries, and therefore they are forced to either accept lower salaries or lose their jobs.
Rejecting free trade
Similarly, free trade disproportionately hits low-paid workers, because under free trade, where relocation costs are lower (especially for multinational corporations), and therefore employers move to low-wage countries to exploit workers, low-wage workers are always threatened by their employers with factory relocation. They are forced to accept lower salaries or lose their jobs — they are vulnerable to outsourcing effects. Free trade is a rigged system which benefits only rich elites and big corporations at the expense of ordinary people.
Leaving the EU opens up a tremendous opportunity for Britain to end free trade and start to set protective tariffs on imports from low-wage countries in order to protect British people.
Made in Britain and Buy British
Also, independence is about standing alone, which means that an independent country is strong and does not rely on foreign countries for its defence and economy, and it can do anything that it wants to do. (I’ve been arguing for a long time that protectionist policies increases wealth.)
An independent nation is basically self-sufficient and not reliant on foreign producers — it can produce everything by it self, ranging from foods, clothes, houses to vehicles, laptops, space explorers, robots and so on. Accordingly it is not threatened by foreign countries with shortages of food, clothes, shelter, etc. Thus, it can never cave in to political pressures from foreign countries.
The mainstream media and economists say that free trade makes everything cheaper. However, from a consumer point of view, it’s bad to consume cheap products which are imported, under free trade, from foreign countries especially low-wage countries, because cheap products are, in general, cheap and nasty. Indeed, they are produced under dubious conditions where producers want to maximise their profits and so they cut costs to ensure good hygiene in kitchen areas, to implement safety measurements in the workplace, and to protect the environment.
Thus, buying cheap and nasty products leads to helping foreign producers to exploit their workers.
Instead, if British people buy products which are made in Britain, they support British businesses. Even if they are more expensive, they are good products as long as they are produced under good conditions.
Also, it’s worthwhile to point out that people’s quality of life is improved not by consuming cheap and nasty products but by enjoying luxury. And everybody has a right to enjoy luxury.
Fiscal and Monetary policies
Actually this is the most important point that I make. After exiting the SGP, Britain will be free from the EU straitjacket, and Britain will be able to invest tremendous amounts of money in what its needs: STEM, Energy, Agriculture, Infrastructure, Education & Research and so on. Tremendous investment will strongly stimulate the UK economic growth and be the nation’s backbone to thrive, because GDP is defined by the following equation:
Hence, increasing Government Spending will definitely make the economy expand.
Needless to say, Britain has its own sovereign currency, and a currency-issuing government can never go bankrupt. The British government can print money to finance projects which are set up and will be carried out by the government.
In addition to this, Britain should adopt unconventional monetary measures to help its economy to grow faster. Boris Johnson’s government should order Bank of England to set a 6 per cent nominal GDP target which is much more effective than a 2 per cent inflation target. The main reason why the UK government should commit itself to making GDP grow rather than to controlling inflation is because GDP is directly related to people’s wages. Roughly speaking, if GDP grows 5 percent, people’s wages increase by 5 percent. If a wage rise of 6 percent continues for 12 years, people’s wages will be doubled.
Progressive perspective on independence
Independence is about originality: an independent nation is unique and has things that other countries do not have, and thus it is valuable and deserves respect.
I hope that Britain will adopt the policies that I have presented here, and in fact these policies are included in a credible Brexit plan.