A brilliant book written by Angus Hanton, explains how the American takeover of the British economy hasn’t been as beneficial as presumed. In fact, American corporations and private equity funds own most of the day-to-day consumer multinational businesses where British consumer spend, payments technology, software, internet and logistics distribution companies such as Amazon, do extract hundreds of billions of profits that then are shifted back to the United States and American shareholders, while the same multinationals pay a very low tax rate of 7% to 8% contributing very little to the British economy and the Welfare State, while extracting Billions of dollars in revenue every year. The takeover from American Private equity funds and multinationals has also impoverished the average British person and family, with the extraction of profits, the lower taxation contributions and the demeaning of jobs available in the British economy to mere delivery jobs, taking the average British household GDP to level and GDP per capita to levels similar to Mississippi’s GDP per capita, comparably among the poorest States in the United States.

The increasing presence of American corporations in the UK, often through acquisitions and buyouts, has sparked concerns about the impact on ordinary British people. Here are several reasons why this trend can be detrimental:

Loss of National Control Over Key Assets

When American corporations buy up British businesses, vital assets and industries are transferred to foreign ownership. This can mean that decisions about jobs, investment, and corporate strategy are increasingly made in boardrooms far from the UK. Essential sectors like healthcare, transportation, and utilities might be subject to decisions that prioritize profits over public welfare.

Job Losses and Wage Suppression

Large multinational corporations often seek to maximize efficiency, and that can lead to restructuring, job cuts, or automation in acquired companies. American corporations might also introduce wage-suppression tactics by leveraging their global scale, reducing pay and benefits for British workers. The long-term result could be fewer employment opportunities and lower wages, particularly in lower-skill industries.

Profit Shifting and tax evasion

When American corporations own British businesses, a significant portion of profits may be repatriated to the US. Instead of being reinvested into the UK economy—through expansion, innovation, or wages—profits flow out of the country. This outflow reduces the economic multiplier effect, where money earned within the country is spent and recirculated locally.

Erosion of Consumer Choice and Small Business Strain

Large corporations often have the power to crowd out small businesses and reduce consumer choice. As American firms expand their market share, they may push smaller, local British companies out of business, reducing diversity in the marketplace. Consumers may face fewer alternatives and increasingly find themselves beholden to corporate giants that dominate certain sectors.

Shifting Business Culture

American corporate culture, often driven by shareholder value and short-term gains, may not align with the traditional values of British companies, which have historically been more community-oriented or long-term in focus. This shift can erode the relationship between businesses and their local communities, replacing them with profit-driven models that may exploit labor or resources more aggressively.

Pressure on Public Services

American-style privatization, particularly in areas like healthcare and education, could lead to the commercialization of public services in the UK. This could increase costs for ordinary people and reduce access to affordable, high-quality services. American healthcare and pharmaceutical companies, in particular, have shown an interest in the UK’s National Health Service (NHS), sparking fears that the NHS could be undermined by corporate interests.

Potential Regulatory and Legal Loopholes

American corporations may attempt to lobby for deregulation or seek to exploit existing legal loopholes to reduce their tax burden or environmental obligations. This can lead to increased pollution, diminished labor rights, or reduced corporate taxation, all of which disproportionately affect ordinary British citizens.

Political Influence

With their immense financial resources, American corporations can exert significant political influence. They may lobby for policies favourable to them but harmful to local industries or labor markets. This shift in power dynamics can undermine democratic processes and make it harder for ordinary citizens to have a say in economic decisions that affect their lives.

The growing dominance of American corporations in the UK presents challenges, particularly for workers, consumers, and smaller businesses. While foreign investment can bring benefits, the costs—such as reduced local control, job losses, and economic inequality—are increasingly being felt by ordinary British people. If this trend continues unchecked, it could have long-lasting consequences on the UK’s economic sovereignty and social fabric.