Beware percentages use ... Paul Newman in his letter of November 23 says that the UK will be losing 8% of its Gross Domestic Product (GDP) compared with the European Union losing 1.5% of its GDP when we leave the European Union, so ‘of course we get a bad deal’.
Referring to Maria Caulfield he indicates that she does not understand the basic mathematics of the situation. Apparently the European Union GDP is 17,277 billion US dollars and the UK GDP is 2,622 billion US dollars in 2017.
Well 8% of 2,622 is 210 billion US dollars so that is what the UK loses. 1.5 % of 17,277-2622 is 210 billion US dollars which is what the EU loses.
This as far as I can see is exactly the same sum of money, which makes sense. Beware of percentages being used for support and not illumination. Does anyone remember ‘project fear’?
One problem the UK has is with the balance of trade between the EU and the UK which means we are subsidising European manufacturers by borrowing money as we import more goods than we sell (so Buy British as the saying goes).
Try looking at the Customs and Excise web site if you have a computer.
Recently we have commemorated the end of the First World War. Often it is said that the reason the Second World War occurred was that after the First World War the victors took too much from the German economy so resentment built up and we know what happened next.
Perhaps the Third World War will be started by the UK? We have the means.
I work with a lot of ‘Eastern Europeans’, basically Russians. They all speak the language. Is the deal from Europe the only one on offer? Perhaps the UK should be talking to Russia to see if they would be interested in ruling Europe with the UK. Perhaps we would then get a better deal!
Anyway back to reality. I was reading Motor Cycle News this week and there is an article in it from a head of BMW motorcycles Marcus Schramm.
He is very positive leaving the EU will not be a problem for his business: “In terms of logistics, in the case of a no-deal scenario there will be no impact.
“We have it completely under control.”
Further “As usual in every market supply and demand defines the prices and if the whole industry decides to hold their prices we cannot step out of this.”
He would rather the UK remained in the EU but in terms of trade he has done his planning and will just get on with business.