Atlantis wrote:John is right, companies have deliberately kept a low profile in the Brexit campaign so as not to provoke a knee-jerk reaction against the "big bad capitalists". Some are even now being accused of not having given sufficient warning before the vote about the damage Brexit would cause. As to the reasons given for the closures, most CEOs who want to continue doing business in the UK know better than to get on the wrong side of the government. Whatever other reasons there may be, Brexit quite clearly is a principle reason for the drastic reduction in car manufacturing.
John is right that the EU Japan trade deal is probably the main cause for Japanese auto makers. I've heard too many warnings and complaints by UK companies to give the rest of the argument much credit, especially since the government has had incentive to encourage this behaviour.
Atlantis wrote:The UK needs to attract the inflow of capital to offset the double deficit (budget and trade). As the BoE chairman said "the UK lives by the kindness of strangers." In other words, the government is forced to continue deregulating until it has sold the last of its table silver so as to keep the house of cards from collapsing. Moreover, much of that money is probably linked to the empire of British tax havens that is managed by the City of London. That money channeled via the tax havens is probably several times the size of the real UK economy.
I might have missed it, but I haven't seen anything significant in terms of deregulation since the referendum. Considering that there are countries such as Germany which get paid to borrow money, it shouldn't really surprise anybody that the UK still gets a decent amount of inward investment. The idea that its attractiveness is almost entirely dependent on its EU membership always seemed odd and somewhat removed from reality. It's probably true for Ireland but not so much for the UK.
Atlantis wrote:Following Brexit, that flow has been reduced and more money goes to the continent. But I understand why the Brexitters you cite need to give it a different spin.
It's reduced across Europe:
Year 2005–2007 (avg) 2015 2016 2017 2018
UK 169,046 39,186 196,132 101,238 64,487
France 40,685 45,347 23,061 29,802 37,294
Germany 61,106 41,444 23,500 36,931 25,706
EU 613,484 635,840 556,119 340,570 277,640
Europe 650,919 715,017 611,694 384,023 171,877