The UK taking its chances in the big bad world is a UK that's not within the confines and rules of the club. So they could drop their tax rates, for example, and attract a flood of businesses out of the EU and into the UK! A UK that's striking out on its own could, possibly, see huge success at the expense of the EU.
Another cringe-worthy economic fallacy, along with so many others (trickle-down effect, lump of labour, the saving fallacy and on and on . . . ) and here we have the ever-popular zero-sum fallacy.
This piece of muddled thinking is enjoyed by The Left and The Right in equal measure.
Wealth is not a zero-sum gain. If I am wealthy, my neighbour does not have to be poor as a consequence. If I attract trade, that does not mean that trade has to be taken away from others. Taxing the rich does not automatically benefit the poor. If VW builds a better car, that does not mean that Toyota has to build a less good car.
If wealth were a zero sum calculation, why then has international trade made the West so wealthy?
The answer is of course TRADE. Reducing taxes for large international companies does not increase trade. The Bahamas may have almost no taxes, but they trade with practically nobody.
If we reduce corporation tax to zero, it does nothing for trade. It might mean that Microsoft moves its European headquarters to a garage outside Scunthorpe, but that does nothing for their turnover in Germany.
Why do you think there are biotech companies in Cambridge and Scotland? Why are there thousands employed in hi-res display technology in Berlin? Why are there so many dot-com and software start-ups in San Francisco? Why are nearly all the World's auto-racing industry based in the Midlands? Why is the international movie industry based in LA, NY and London? Why is Bollywood in Mumbai and Nollywood in Lagos?
Why (difficult one, this one!) doesn't 'Inverness Medical' up-sticks and move to Luxembourg or the Bahamas? Why has German audio-tech giant The Music Group moved all its R&D to Kidderminster? Why his the entire audio software division of Yamaha in Berlin? Why did they open a new music notation division in London?
Because the taxes are so low????
No, of course not!
Companies are where they are, because that is where the people are. That is where the know-how and the relevant infrastructure is located.
Inverness Medical is in Inverness because there was a small group of people with deep knowledge in the speciality of testing for diabetes - and they lived in (wait for it!) Inverness. Movies are made where they are, because of the people - not the taxes! If I want mathematicians with a deep knowledge of data compression and the use of extreme hi-res display technology, Scunthorpe would be a rotten choice - but it would be a perfect choice for finding engineers who understand the making high-grade steels.
This is not a given, of course, but it's a possibility ... and the EU is keenly aware of this.
Joke? Seriously?
Daimler-Benz is going to relocate from Stuttgart to Sheffield? Renault will move production of Dacia cars from Roumania to Rotherham? Deutsche Bank will up-sticks in Frankfurt and settle in Felixstowe?
The EU is 30% of the World's economy. The UK is 3% of the World's economy. Now let's see if you can work this one out! Which one is bigger?
Which one of those two trading areas is more important to a company?
(You may like to take your time about this question and additional marks will be awarded for showing your workings in the margin.)