Viewing entries tagged
socialist

UK: The Potential for Productivity

HSBC has decided to keep its headquarters in London after Brexit. Given HSBC's historical ties to Hong Kong, that is no surprise.

Hong Kong shows that even a tiny island with slightly less government than its surroundings can become an economic powerhouse. Having less government than China turned this island into one of the dominant business, financial, cultural, and trade centers in the world.

Hong Kong's per capita income is around $35k a year. China's is recently UP to a laughable $7k a year.

Hong Kong is full of wealthy and productive entrepreneurs and businesses. The few wealthy in China are largely crony capitalists, skilled primarily at using political connections to get special favors.

HSBC knows this: It won't matter how easy the EU makes internal trade among European countries. It won't matter if the EU develops a single legal code, or a single "simplified" European language. Being absorbed into a single, monolithic, big government, overregulated, cronyist disaster will not help England. Being free to lower regulation, make independent trade agreements, and allow innovation and cultural development will.

China may succeed in reabsorbing Hong Kong, forcing Hong Kong to adopt China's inflationary currency and dumbed down language, in the hope that doing so will bring Hong Kong's skill and wealth into China. But the main advantage that Hong Kong has that China doesn't: less government. If you add Chinese cronyism, state propaganda as "education", and inexplicable central planning (e.g. ghost cities) to Hong Kong, you'll just lower Hong Kong to China's level. Or you might just empty it of talent, as all the productive people leave to seek opportunities where hard work and innovation pay off.

During the last decades, the EU has partially succeeded in doing just that with the UK. It turned one of human history's most vibrant centers of innovation into a backwater of welfare socialism and crony capitalism.

The UK has the incredible opportunity to become Europe's Hong Kong. It must first reject any bad trade deals with the EU. The EU's "free trade" is nonsense. It is, in fact, highly closed trade. It's free trade and movement of labor within Europe, in exchange for massive restrictions on trade and movement of labor from outside of Europe.

The UK should seek trade relationships with productive, capitalist(ish) economies like the U.S., not with Europe's hubs of laziness and socialism. Second, it must reduce its own regulation and taxes. It can become a place that attracts and keeps entrepreneurs and innovative businesses, instead of repelling them as it does now.

If the UK remains courageous, rejects restrictive trade deals with nonproductive countries, refuses to bail out foreign nations, and lowers its own taxes and regulations, it can become to Europe what Hong Kong became to China.

In Liberty,

Arvin Vohra
Vice Chair
Libertarian National Committee

Brexit: Truly Free Labor

Free flow of labor is great - but that's not what the EU provides.

The EU makes it easy to hire workers from within the EU. They make it nearly impossible to hire skilled workers from outside the EU. If you want to hire a skilled engineer from outside the EU...good luck.

In other words: you can hire anyone you like from 28 socialist factories of laziness. But it's much harder to hire anyone from anywhere else.

Dyson, for example, routinely needed to wait four months to hire the engineers it needed. Imagine the struggle of smaller companies!

Britain now has the option to continue that insane policy, if it wants. It can hamstring its own industries by preventing companies from hiring skilled and productive workers from outside the EU.

But it can also turn that policy around without any approval from Brussels.

While the rest of the EU prioritizes refugees, Britain can prioritize engineers. While the rest of the EU makes it easier for people to not work, Britain can make it easier to be productive. Britain can invite the best and brightest from the other 160+ countries. They can help grow industries and create more jobs for Britons.

Britain has its own socialist welfare and statist policies to fight. But if it can overcome them, it can become the center of growth and innovation in Europe.

In Liberty,

Arvin Vohra
Vice Chair
Libertarian National Committee