Brexit could cut wages by 30% over next two decades

[Tennis]

One of the most high profile names in finance has said that Brexit is going to lead to dramatic economic upheaval which will be bad for most people but good for his multi billion-pound private equity firm.

Guy Hands, chairman of Terra Firma, one of Europe's largest private equity groups, warned that the country will have to get rid of much of its social safety net and may see a 30 per cent decline in wages in real terms in the next 20 years to enable it to compete outside of Europe.

Debt will command higher interest rates as more risk is ascribed to an independent UK, and immigrants from Europe will be replaced with workers from the Indian subcontinent and Africa, who may be willing to accept “substantially” lower pay, he said.

Optimism in financial services sector slumps to 2008 low on Brexit

Still, ultimately, the exit will be a good thing for the economy, Hands said.

“The slightly sad thing is the people who voted for Brexit aren’t the people who are going to have to make these sacrifices,” Hands said. “That’s not unusual for big, political decisions when people don’t fully analyse what the economic consequences are.”

Prime Minister Theresa May said this month that the country would leave the European Union’s single market, pursuing a so-called hard Brexit and severing the bloc’s influence over the UK’s immigration and laws. She’s aiming to preserve tariff-free trade between Britain and the continent while securing the liberty to make new deals with other countries.

Brexit will also present opportunities for buyout funds, Hands said. As interest rates go up, some businesses will go bankrupt, leading to buying opportunities, he said.

“Sadly, and this is always one of the strange things about business, I think it’s probably a bad thing for the majority of people and bad for the country, but I think, for my business, it’s probably going to be good,” he said.

http://www.independent.co.uk/news/bu...-a7540986.html

What's crazy is that they're not going to stagnate but drop. Most countries in general will see a rise in wages.

No wonder it seems like the U.K. government is dragging its feet on this.

[thealmightymoo]

“The slightly sad thing is the people who voted for Brexit aren’t the people who are going to have to make these sacrifices,” Hands said. “That’s not unusual for big, political decisions when people don’t fully analyse what the economic consequences are.”

so the average joe who doesn't own an equity firm voted for brexit?

mind=blown

[Wyrt]

All the more reason for Scotland to gain independence. No reason to go down with a sinking ship just because the English are dumb.

[Deleted]

I somewhat unsure of such a dramatic drop, resulting purely from the Brexit.

[Shadowmelded]

Business as usual then.

[Tennis]

Business as usual then.

Yet U.K. is hardly ever mentioned in the same sentence as Greece.

[Shadowmelded]

Yet U.K. is hardly ever mentioned in the same sentence as Greece.

Because we're not on the brink of default. Although I do take your point that it's pretty surprising that a country that's not in serious economic decline can see an identical reduction in real-wages as one that is and no one mentions it. Chalk that up to the media abdicating their responsibilities.

[Kalis]

Yet U.K. is hardly ever mentioned in the same sentence as Greece.

Probably because we aren't a piss poor nation that needs bailouts to function.

[Manabomb]

Probably because we aren't a piss poor nation that needs bailouts to function.

Yes, you're a "rich" nation with a lot of "rich" people only becoming more wealthy off of blind nationalists voting decisions.

Money and politics are funny.

[Independent voter]

Looks like we'll be getting a bunch of British immigrants, better get my racist jokes ready.

[Kalis]

Yes, you're a "rich" nation with a lot of "rich" people only becoming more wealthy off of blind nationalists voting decisions.

Money and politics are funny.

We are a rich nation, we do have a lot of rich people, there is no need to put either in quotation marks.

[Kalis]

It's not going to be easy, but do you have to gloat at every given opportunity?

They put a thumbs up symbol on a thread saying that wages might go down by 30%, Tennisace clearly likes people to suffer.

[Radaney]

We are a rich nation, we do have a lot of rich people, there is no need to put either in quotation marks.

We also have a lot of people that work their asses off and still can't even afford accommodation and food and must live with their parents doing so.

The gap is ridiculous.

[Shadowmelded]

We also have a lot of people that work their asses off and still can't even afford accommodation and food and must live with their parents doing so.

That's Conservative Governments for you.

[the game]

It's not going to be easy, but do you have to gloat at every given opportunity?

Only when the bad news isn't about Canada.

[Tennis]

All the more reason for Scotland to gain independence. No reason to go down with a sinking ship just because the English are dumb.

I hope so. It was great that Andy Murray got behind the independent movement last time.

[Kalis]

We also have a lot of people that work their asses off and still can't even afford accommodation and food and must live with their parents doing so.

The gap is ridiculous.

House ownership is not a right.

We have a very high average standard of living, 13th by inequality-adjusted HDI, 11th by Social Progress Index. In comparison Greece is 30th and 34th respectively.

[THE Bigzoman]

I wouldn't take any forecasts that far off seriously.

[Kalis]

I hope so. It was great that Andy Murray got behind the independent movement last time.

Why would anyone outside of Andy Murray's family give a fuck what he thinks of politics? His talent is hitting balls over a net, his opinion on tennis is relevant, on other things not so much.

[Pengekaer]

Aye, didn't that shower of clowns launch a nuke at the USA a few months back.

Uhm what? I am sure we would all be dead or at least horribly irradiated by now if that happened.