De-industrialisation is a one-way street – to national bankruptcy

Sunday-Monday blog

I imagine that every time they hear of a company, especially a manufacturing company, going bankrupt due to Rachel ‘never-been-an-economist’ Reeves’s massive tax hikes on employee National insurance, Angela ‘Lenin’ Rayners’ workers’ rights lunacy and mad Ed ‘been-a-failure-all-his-life’ Miliband giving us the highest energy prices in the world, there’s probably a massive celebration at Labour HQ. After all, for the Labour student politics politicians who now ruin our country, private businesses are ruthless exploiters of working people and so the fewer private businesses there are, the better it is for Britain. In fact, for the dolts now running our government, the more people work for the unproductive, self-serving, overpaid, over-pensioned, parasitic public sector, the greater will be the country’s economic growth.

When she supposedly studied economics, Reeves, if she actually attended any lectures and wasn’t skiving off to work as a Labour activist, would have learnt all about things like supply and demand curves and price elasticity of demand and suchlike:

But there’s a not insignificant problem – what is taught in theoretical economics is nothing like what actually happens in the real world.

In Rachel ‘chess-champion’ Reeves’s genius brain, if demand for a product falls, then supply will fall. Similarly if demand increases, supply will increase. Simples, as a meerkat (who is probably much better at economics than Rachel Reeves) might say.

But let’s take the case of a theoretical UK factory. Reeves’s national insurance increases, Rayners’ new employee rights and crazed Ed ‘lifelong failure’ Miliband’s world-beating energy costs cause that factory to raise its prices. Due to price elasticity of demand, demand for that factory’s products falls as foreign competitors, not burdened by Labour’s assault on business, can supply the same product cheaper. What happens then? The factory closes, hundreds of the working people Labour claim to represent lose their jobs and the work that factory did moves to China or some other country with much cheaper workers and much lower energy costs. But if demand for that product increases, the UK factory doesn’t magically re-open again. The factory is gone, the skilled workers are gone and the factory’s customers are now going to new suppliers and will never return.

And that in a nutshell is the small problem with Labour’s vengeful strategy of wrecking what little is left of British manufacturing to punish business and to force most of the population to either work in the public sector or else be dependent on goverment handouts to survive. Real economics, what is apparently called ‘behavioural economics’ doesn’t follow the same pattern as the depressingly little theoretical economics Rachel ‘congenital liar’ Reeves might have learnt at Oxford.

In the real world, de-industrialisation is a one-way street leading to national bankruptcy. The problem for us is, if we can ever get rid of this bunch of charlatans, liars and incompetents, will there be anything left of Britain’s economy on which to rebuild.