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by porker 520 days ago
Profit goes out of the country, reducing investment and rich UK people to invest in new UK companies. It's the same problem with many of our companies being sold to foreign investors: profits are taken outside the country (as we did to other countries in the 19th century and earlier) so our labour enriches other countries while our country gets poorer.
2 comments
chii 520 days ago
> labour enriches other countries while our country gets poorer.

in reality, the UK isn't poorer than before. It is about the same - no growth. It is only poorer when compared to the US's growth.

One's labour, when being paid market rates, does not make one's country poorer. And those profits from said labour was paid for by the acquitition of the capital - money was invested.

So in essense, the "poorness" that the UK feels right now is not a result of these companies getting foreign ownership, but the UK gov't lack of industrial policy and investment. Brexit is the last straw probably.

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eru 520 days ago
> [...] but the UK gov't lack of industrial policy and investment.

That's a weird conclusion to draw.

Governments aren't generally known for their ability to pick winners ahead of time. How about instead of trying industrial policy (again), the UK could try to remove roadblocks that keep them from having successful companies?

They could also try to leave more money in the hands of taxpayers, so they can invest.

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philipwhiuk 520 days ago
If the profits move out, the opportunity cost is that this money isn't spent in the UK which hits GDP which is how growth is calculated.
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eru 520 days ago
Remember: Google paid for Deepmind. Presumably the sellers aren't idiots.
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uncletammy 520 days ago
It is far poorer after you account for the brain drain and the opportunity cost of the brains that choose to remain.
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eru 520 days ago
> Profit goes out of the country, reducing investment and rich UK people to invest in new UK companies.

Rich foreigners are happy to invest in the UK. See eg Deepmind itself, which was bought by Google.

> [...] so our labour enriches other countries while our country gets poorer.

Foreign investment is usually seen as a good thing. Especially foreign direct investment.

And: why do you care so much what passports these rich people hold?

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