If a Jeremy Corbyn led government was to gain power, the exodus of wealth creators from the UK will be less of a ‘brain drain’ from this country and more of a lobotomy.
A resurgent and marauding Labour Party would return the power to the unions, dragging us back to the darkest days of the 70s. It would re-introduce secondary picketing, impose penal corporation taxes, with punitive increases in Death Duties, Income and Capital Gains Tax, at the same time. In the post Brexit era this would be suicidal.
Severe Austerity Programme
We have just been through a severe austerity programme, in order to bring down the Budget deficit from a banana republic level of £160 billion (12%) to the present £20 billion (2%). The reason for this is that the great innumerate, former Labour Chancellor, Gordon Brown, was spending too much in 2007, when the tax receipts were at their maximum and didn’t anticipate the 2008 Credit Crunch, when he had to re-inflate the Economy to stop it tipping into recession/depression. Instead, he should have had a balance budget at the peak of the cycle, in readiness for a possible recession and the UK wouldn’t have been in the parlous state that we were in when the Tories returned with a coalition government in 2010.
This reckless spending instinct is symptomatic of the Labour Party, the difference being that Gordon Brown represented a moderate, centralist, Labour view, whilst Corbyn is an extreme left-wing version, with all the increased dangers that this represents for economic mis-management.
It is perfectly true that as the febrile Brexit negotiations reach the watershed date of October 31st, if there is a No Deal Brexit, the new Chancellor Sajid Javid, will need to open the sluice gates of spending in his first radical budget, in respect of subsidies for farmers, industry, increase spending on social welfare and defence forces amongst other ministries, which will be necessary to boost any negative effect on the economy in the post Brexit era.
Wealth Creators ‘Leaving in Droves’
Corbyn’s Labour Party does not care that there will be a ‘flight of capital’ from the UK, with wealth creators ‘leaving in droves’, since it holds the benign belief that nationalisation cures everything.
In my view, if Mr. Corbyn becomes PM, the Pound will sink to 80 cents on the Dollar (and the Euro) and the Residential Property Market will be in free fall, with 30 sellers to one buyer (who will be a thief). Inflation will go berserk, which will need much higher interest rates to bear down upon it, with the unfortunate impact on rising mortgage rates. Exchange controls will be powerless to stop the capital outflows.
One of Mr. Corbyn’s great heroes was Hugo Chavez, who transformed Venezuela from being one of the wealthiest South American countries, with huge natural resources, into a ‘basket-case’ nation, which can’t feed itself and where, presently, there is a stampede of its people trying to escape the poverty trap, with 10,000,000% inflation, by fleeing to Colombia.
Social fairness is being transformed in the UK and this is illustrated by the fact that in Callaghan’s day, 1% of the nation paid 11% of the total tax take and now today, 1% pay 20% of all UK taxes. So effectively, this means that the tax burden of the many is paid for by the few. Given the incorrigibly anti-Semitic instincts of the present Labour Party, if you are Jewish and they gain power, you will be as welcome ‘as a pork chop at a Bar Mitzvah’!
After Mr. Corbyn’s destruction of this great country of ours, it will take decades to repair the damage that he and his cohorts will undoubtedly create.
As the Brexit negotiations reach their crescendo, is not the spectre of an extreme Labour government and its legendary economic incompetence, the antithesis of what this country needs today? As we try and make headway in the World, confidence is so vital to maintain, allowing us the opportunity to shape our future and destiny for subsequent generations.
About The Author
Trevor Abrahmsohn is the founder and CEO of Glentree international, which sells some of the most important residential landmark properties in London. He has been called an ‘unapologetic parable of Thatcherite enterprise’ and is considered both a media spokesperson for his industry and a champion amongst his peers, for the benefits of agent’s collective ventures. He is the founder of OnTheMarket.com and is the joint founder of Fabric Magazine. He is the ‘go to man’ for trophy properties in London.