A Truism Dies

Hitherto it has always been assumed that Britain’s business community would be a monolithic bloc arrayed against the possibility of the much-dreaded “Brexit”. It seems however that this is not entirely true. We have always thought that a British exit from the EU would be bad for the remaining EU, or rather, its citizens. This is so because a British exit means that a voice arguing in favor of the subsidiarity principle will be lost, which in turn is likely to hasten the erection of a socialist superstate in continental Europe.

 

BRFrom Grexit to Brexit…

Cartoon by Chappatte

 

However, we could never see why the UK business community in its entirety should be in favor of Britain staying with the EU. After all, the UK isn’t using the euro, so there will be no costs in terms of currency reconversion. If the UK were to simply become a member of EFTA (the European Free Trade Area), it would retain all the advantages of being a member of the common market, while getting rid of the absurd bureaucratic dictates emanating from Brussels. Why on Earth should UK businesses be happy with the flood of regulations spewing forth from the EU Commission every year?

As a rule, the only businesses in favor of an increase in regulations are very big established companies, mainly because they rightly expect that more regulations will destroy competition from upstarts. Moreover, since they can afford to employ lobbyists, they are also able to get regulations enacted that will directly fatten their bottom lines to the detriment of consumers (see e.g. the EU ban of incandescent light bulbs as a pertinent example; it isn’t going to “save the planet”, but it is definitely good for Osram and other lighting manufacturers).

As Reuters reports, the notion that the UK business community is united in its support of Mr. Cameron’s pro EU campaign has just expired – although “questions” have allegedly been raised about the list of exit supporters. Still, the argument forwarded by the exit support group is logical and perfectly congruent with what we have outlined above:

 

The campaign for Britain to leave the EU has been backed by 250 business leaders including the former chief executive of HSBC, the Vote Leave group said on Saturday, hoping to counter the view that UK businesses back staying in the bloc. The camps arguing for and against Britain staying in the European Union ahead of a referendum on British membership on June 23 have both made the economic impact of a ‘Brexit’ a cornerstone of their campaigns.

Last month, the bosses at more than a third of Britain’s biggest companies including major oil companies Shell RDSA.L and BP (BP.L) and its largest telecoms group BT (BT.L) said leaving the EU would put jobs and investment at risk.

On Saturday, Vote Leave, one of the groups supporting a British exit, unveiled its own list of backers including Michael Geoghegan, former Chief Executive of HSBC Group and Tim Martin, the boss of pubs group JD Wetherspoon (JDW.L).

“With our growing list of business supporters, Vote Leave will make that case that whilst the EU might be good for big multinationals, for smaller businesses it acts as a job destruction regulatory machine,” Matthew Elliott, Chief Executive of Vote Leave, said.

However, the Sunday Times newspaper reported that two of the well-known names on the list, John Caudwell, founder of Phones4U, and David Ross, the co-founder of Carphone Warehouse, had not signed up. “You have to question how this list has been compiled,” the paper quoted a spokesman for Caudwell as saying.

Vote Leave also said it was forming a Business Council to argue that EU membership was holding back business. That group will be headed by John Longworth, who quit as director general of the British Chambers of Commerce (BCC) lobbying group after he spoke out in favor of leaving the EU, accusing Prime Minister David Cameron of trying to scare voters into backing his case to stay in the bloc.

 

(emphasis added)

In addition we learn – as a small aside at the end of the article – that the exit campaign has so to speak received an ISIS boost:

 

The odds of a Brexit narrowed on Tuesday as the Brussels bombings were seen boosting the ‘Out’ campaign.

 

Judging from what we have read so far about the network of “homegrown” Islamist terrorists who were involved in the Paris and Brussels attacks, a number of the attackers did in fact make use of the wave of migrants to move around in Europe undetected. Given the deterioration in social mood we have discussed on previous occasions, the recent attacks would likely have boosted the UK exit campaign even if that were not the case.

 

eu_summit_and_the_brexit__marian_kamenskyHanging by a thread…

Cartoon by Marian Kamensky

 

Conclusion

The probability of a British exit from the EU keeps rising. We are not surprised to learn that the assumption that every UK businessman would automatically be in favor of staying with the EU is suddenly revealed as erroneous. Most small to mid-sized businesses are already barely able to cope with domestic regulations in modern regulatory democracies. Being subjected to an additional layer of regulations from a distant, faceless bureaucratic Leviathan hardly makes this situation any better.

To be fair, there have also been  instances in which EU regulations have overruled domestic cronyism in a number of European countries. Still, many probably recognize by now that the eagerness of EU bureaucrats to regulate everything from shower heads to toasters to death under dubious pretexts (see “Saving the Planet One Slice at a Time” for some of the gruesome details) represents a burden that it would be best to get rid of asap.

 

 

 

Emigrate While You Can... Learn More

 


 

 
 

Dear Readers!

You may have noticed that our so-called “semiannual” funding drive, which started sometime in the summer if memory serves, has seamlessly segued into the winter. In fact, the year is almost over! We assure you this is not merely evidence of our chutzpa; rather, it is indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Naturally, the traditional benefits that can be spontaneously triggered by donations to this site remain operative regardless of the season - ranging from a boost to general well-being/happiness (inter alia featuring improved sleep & appetite), children including you in their songs, up to the likely allotment of privileges in the afterlife, etc., etc., but the Christmas season is probably an especially propitious time to cross our palms with silver. A special thank you to all readers who have already chipped in, your generosity is greatly appreciated. Regardless of that, we are honored by everybody's readership and hope we have managed to add a little value to your life.

   

Bitcoin address: 12vB2LeWQNjWh59tyfWw23ySqJ9kTfJifA

   
 

One Response to “BREXIT Campaign Gets Unexpected Boost”

  • John Galt III:

    There will be more European attacks by mainstream Muslim groups and a big one in London if you believe the poll from the Islamic State saying their favorite target is the UK.

Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • The Capital Structure as a Mirror of the Bubble Era
      Effects of Monetary Pumping on the Real World As long time readers know, we are looking at the economy through the lens of Austrian capital and monetary theory (see here for a backgrounder on capital theory and the production structure). In a nutshell: Monetary pumping falsifies interest rate signals by pushing gross market rates below the rate that reflects society-wide time preferences; this distorts relative prices in the economy and sets a boom into motion – which is characterized by...
  • Full Faith and Credit in Counterfeit Money
      A Useful Public Service There are nooks and corners in every city where talk is cheap and scandal is honorable.  The Alley, in Downtown Los Angeles, is a magical place where shrewd entrepreneurs, shameless salesmen, and downright hucksters coexist in symbiotic disharmony.  Fakes, fugazis, and knock-offs galore, pack the roll-up storefronts with sparkle and shimmer.   The Alley in LA – in places such as this, consumers are as a rule well served by applying a little bit of...
  • How to Get Ahead in Today’s Economy
      “Literally On Fire” This week brought forward more evidence that we are living in a fabricated world. The popular story-line presents a world of pure awesomeness. The common experience, however,  falls grossly short.   There are many degrees of awesomeness, up to total awesomeness – which is where we are these days, in the age of total awesomeness, just a short skip away from the Nirvana era. What is Nirvana, you may wonder? We only know for sure that Nirvana is what...
  • US Money Supply Growth Jumps in March , Bank Credit Growth Stalls
      A Movie We Have Seen Before – Repatriation Effect? There was a sizable increase in the year-on-year growth rate of the true US money supply TMS-2 between February and March. Note that you would not notice this when looking at the official broad monetary aggregate M2, because the component of TMS-2 responsible for the jump is not included in M2. Let us begin by looking at a chart of the TMS-2 growth rate and its 12-month moving average.   The y/y growth rate of TMS-2...
  • Gold and Gold Stocks – Conundrum Alert
      Moribund Meandering Earlier this week, the USD gold price was pushed rather unceremoniously off its perch above the $1300 level, where it had been comfortably ensconced all year after its usual seasonal rally around the turn of the year. For a while it seemed as though the $1,300 level may actually hold, but persistent US dollar strength nixed that idea. Previously many observers (too many?) expected gold to finally break out from its lengthy consolidation pattern, but evidently the...
  • Fear and Longing - Precious Metals Supply and Demand
      Waiting for Permanent Backwardation  The price of gold dropped 9 bucks, while that of silver rose 3 cents. Readers often ask us if permanent backwardation (when gold withdraws its bid on the dollar) is still coming. We say it is certain (unless we can avert it by offering interest on gold at large scale). They ask is it imminent, and we think this is with a mixture of fear and longing for a higher gold price.   Lettuce hope this treasure is not cursed... but it probably is....
  • Scorn and Reverence - Precious Metals Supply and Demand
      Shill Alarm One well-known commentator this week opined about the US health care industry:   “...the system is designed the churn and burn... to push people through the clinics as quickly as possible. The standard of care now is to prescribe some medication (usually antibiotics) and send people on their way without taking the time to conduct a comprehensive examination.”   From the annals of modern health care... [PT]   Nope. That is not the standard...
  • Global Turn-of-the-Month Effect – An Update
      In Other Global Markets the “Turn-of-the-Month” Effect Generates Even Bigger Returns than in the US The “turn-of-the-month” effect is one of the most fascinating stock market phenomena. It describes the fact that price gains primarily tend to occur around the turn of the month. By contrast, the rest of the time around the middle of the month is typically far less profitable for investors.   Good vs. bad seasonal timing...   [PT]   The effect has been studied...
  • Tales from “The Master of Disaster”
      Tightening Credit Markets Daylight extends a little further into the evening with each passing day.  Moods ease.  Contentment rises.  These are some of the many delights the northern hemisphere has to offer this time of year. As summer approaches, and dispositions loosen, something less amiable is happening.  Credit markets are tightening.  The yield on the 10-Year Treasury note has exceeded 3.12 percent.   A change in pace: yields are actually going somewhere. There is...
  • Is Political Decentralization the Only Hope for Western Civilization?
      Voting with their Feet A couple of recent articles have once more made the case, at least implicitly, for political decentralization as the only viable path which will begin to solve the seemingly insurmountable political, economic, and social crises which the Western world now faces.   Fracture lines – tax and regulatory competition allows people to “vote with their feet” - and they certainly do. [PT]   In the last few months, over 3,000 millionaires have...
  • Why the Fundamental Gold Price Rose - Precious Metals Supply and Demand
      Gold Lending and Arbitrage There was no rise in the purchasing power of gold this week. The price of gold fell $22, and that of silver $0.19. One question that comes up is why is the fundamental price so far above the market price? Starting in January, the fundamental price began to move up sharply, and the move sustained through the end of April.   1-month LIBOR (London Interbank Offered Rate – the rate at which banks lend euro-dollars to each other). LIBOR and GOFO...

Support Acting Man

Item Guides

Top10BestPro
j9TJzzN

The Review Insider

Dog Blow

Austrian Theory and Investment

Archive

350x200

THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Realtime Charts

 

Gold in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Gold in EUR:

[Most Recent Quotes from www.kitco.com]

 


 

Silver in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Platinum in USD:

[Most Recent Quotes from www.kitco.com]

 


 

USD - Index:

[Most Recent USD from www.kitco.com]

 

Mish Talk

 
Buy Silver Now!
 
Buy Gold Now!
 

Oilprice.com

Diary of a Rogue Economist