Cameron's claims on Brexit 'risible' say economists
By Szu Ping Chan
22 May 2016 • 8:48pm
David Cameron's claim that prices will jump if Britain leaves the EU is “nonsense” and based on complete guesswork, critics have claimed.
The criticism by former MPs and economists comes as the Prime Minister and Chancellor George Osborne warn today that a vote to leave will push the economy into a year-long recession and “put hundreds of thousands of people out of work right across the country”.
Norman Lamont dismissed claims that a drop in the pound would increase shopping bills and leave Britons with less money in their pockets as “more scaremongering”.
The former Tory Chancellor said the EU’s Common Agricultural Policy (CAP) was distorting markets and keeping prices artificially high by limiting competition from outside the bloc.
“Of all the scares and alarmism, the suggestion that prices would go up by leaving the EU is the most bizarre,” he said.
“Every one knows that one of the purposes of the EU as founded was to keep the price of food high and the CAP does exactly that. Leaving the EU would cut food prices.”
Treasury analysis shows the food costs for a family of two adults and two children will climb by around £120 a year by 2018 if Britain votes for Brexit, while clothing and footwear prices will rise by around £100.
Patrick Minford, Margaret Thatcher’s former economic adviser also claimed prices would fall if Britain left the “protectionist” EU bloc, while Ruth Lea, economic adviser to the Arbuthnot Banking Group, described the Treasury analysis as “bizarre and risible”.
More:
http://www.telegraph.co.uk/business/2016/05/22/emb-midnight-camerons-claims-on-brexit-risible-say-economists/