26 December 2013

Britain Largest Economy

Chances of Britain ever becoming the largest economy in EU, in distant future, would mean that the banking industry in the country will gain more rights to do what they want at the expense of taxpayers. What it really means is that income divide will increase. The rich will get richer. More corporations will setup outsourcing to save costs. Loss of jobs in the long run for British people. Even shortage of housing as more foreigners take ownership of companies and houses. It means more investment into the country at the expense of the taxpayer. If China were to ever supersede America it can only mean at the level of many Chinese people who still struggle to live in the country. Top economy does not mean great things for everyone. Higher taxes and higher interest rates are inevitable. Inflation will be higher but it will never balance in salaries. Cost of living rises in top economy and yet the value and quality of life decreases for many. If America which is near close to a capitalist economy lags behind then this can only mean that Britain and China will move ahead at the expense of long term sustainability. However, the rise of the EU and the failure of many regions within, means that Britain has a surviving chance. The EU has not been good for either the struggling countries nor for the more stable ones. EU has also instigated many unnecessary trade restrictions which does not make it any easier for economic growth. As EU struggles it dissipates its effects into Britain, Asia, and the Americas. Even the emerging economies rely on the EU for much more than just trade. Globalization often means there will be volatility and fluctuations in economic returns from one region to the next. Often immigration of unskilled workers is detrimental for most economies as it digs into public services and means little to no productivity of the economy. One of the fastest ways towards sustainable economic growth is consumer spending. The power of the consumer and taxpayer is key to almost any economy even beyond businesses. It is ultimately the consumer that drives the market economy and that provides the distillation of supply and demand within any business provided products and services. And, it is that very cycle that provides for positive job growth. These days the consumer and taxpayer is ignored while policies and bureaucratic decisions are made under the covers of corporate greed and shareholder value to facilitate more control and less progress for the taxpayer. The balance of power between the taxpayer, governments, and businesses ultimately means the shift towards economic progress for all.