- Original Poster
- #9,681
Funny how countries like Singapore manage.
Singapore is a city-state tax haven. It has significant geographical advantage in the Asian market which allows it to make large amounts of income via its cargo ports. Combine that with its large manufacturing and financial services sectors, and it's capable of comfortably supporting its 5m residents despite the lack of traditional tax revenues.
It's a completely different ballgame to support a country of 65m. We don't have the sea port, and our financial services and manufacturing sectors wouldn't come close no matter what we do given our x12 larger population. Even on the tax front, it would be very hard to sell that politically, nor could we afford to do anything as extreme as Singapore, as that wouldn't suddenly magic up alternative forms of revenue to replace what we lose.
If it was that easy for a large country to emulate Singapore, Monaco or whatever other country that seems like a bastion of wealth, it would have been done already.
Most of Asia seems to have done better than Europe without any EU like trading blocs (things like ASEAN are not even vaguely comparable - its more like the deal we have with the EU now).
Some of them are rapidly outgrowing the USA too, which is a country I suspect a lot of Brexiteers wish to implement in a range of ways. I say some of course, as many Asian countries remain nowhere near as wealthy as us or Europe as a whole.
There are also greater gains (Riccardian style) from trade with countries further away - its hugely misleading to just look at the value of goods and services traded rather than the economic benefit of that trade.
I wouldn't call it misleading. There's a pretty tight correlation between value of goods/services and how that translates into wealth that benefits normal people (jobs, wages etc).
Europe has always been our largest trading partner, and it always will be. Tariffs or no tariffs, there's simply very little further afield that's easier or more lucrative compared to what we can find closer to home when everything is factored in.
Again, I point to South Korea, which is one of the top 10 largest economies in the world. Where's all the trade despite an agreement being in place?
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