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Thursday, March 10, 2016

Cameron Doesn't Understand Economics

In a speech at a car plant today, Prime Minister David Cameron will point out that some Brexit advocates have acknowledged that it will entail a short-term economic shock, and argue as per Open Europe:
Let’s just remember what a shock really means. 

- It means pressure on the pound sterling. 

- It means jobs being lost. 

- It means mortgage rates might rise. 

- It means businesses closing. 
- It means hardworking people losing their livelihoods.
In my humble opinion the above scenario is highly unlikely.

Sterling may temporarily "wobble", but that wobble will be short term and cause no damage to the economy. Interest rates will not rise, because we are close to zero inflation. Consequently, mortgages will not rise.

Regarding businesses closing and jobs being lost, that is happening now. I would also refer people to the recent EU youth unemployment statistics, the EU is not a job friendly institution!

Hence Cameron's scaremongering is simply wrong!

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