Today's Brexit vote has been interesting to watch from afar. There is a lot of similarities between pro-Brexit voters and US Trump voters, a general willingness to give "the man" the finger. But is it in anyone's best interest?
I've seen concerns that a Brexit could trigger a world recession. I've heard it has potential to greatly impact US trade as Britain is our normal "in" to the EU. A lot of American corporations have built facilities in the UK to get them inside the EU. With the UK gone, that insider access is removed until the plants could be located elsewhere (obviously at some cost). But US firms hire 1 million Brits in an effort to get into the EU. If those jobs no longer provide us access, do US companies keep those jobs there or move them into the EU?
Is it much different though than Trump ripping up our trade deals? Don't we think that would send shock waves through the world economy? Are we going to be saying "Yippee, we taught the Chinese a lesson by ripping up the trade deal. My 401k is now worth half of what it was, but it is worth it"?
John Oliver had some good points. First, the numbers used by the pro-Brexit people are seriously inflated. If you haven't seen his commentary, the people wanting out of the EU have a commercial showing the number of EU laws in making pillows. Of course all they did was search an EU database for "pillow", many of the laws shown have nothing to do with the type of pillow one sleeps on.
But secondly, the UK would still be subject to the remaining regulations if they plan on exporting said pillows. And since the Continent is far and away Britain's largest trading partner any decent sized firm is going to have to continue following those laws. They really don't gain anything, except increased difficulties in travelling to the continent (a point Jeremy Clarkson made, and given how far right he is I am surprised the vote is this close).
But that point about needing to follow the regulations of the EU applies here as well. The EU as a whole is a huge trading partner of the US. Even if Washington tomorrow became a libertarian Utopia, businesses selling in Britain would still have to follow the EU manufacturing requirements to sell there. Not just that, anyone selling products in California would have to abide by their rules (such as carcinogen warnings).
I think everyone, left and right, loves the idea of fighting city hall. But I'm not sure I like the idea of pyrrhic victories. The UK leaving the EU, us electing Trump, both seem to fall into that category.
I've seen concerns that a Brexit could trigger a world recession. I've heard it has potential to greatly impact US trade as Britain is our normal "in" to the EU. A lot of American corporations have built facilities in the UK to get them inside the EU. With the UK gone, that insider access is removed until the plants could be located elsewhere (obviously at some cost). But US firms hire 1 million Brits in an effort to get into the EU. If those jobs no longer provide us access, do US companies keep those jobs there or move them into the EU?
Is it much different though than Trump ripping up our trade deals? Don't we think that would send shock waves through the world economy? Are we going to be saying "Yippee, we taught the Chinese a lesson by ripping up the trade deal. My 401k is now worth half of what it was, but it is worth it"?
John Oliver had some good points. First, the numbers used by the pro-Brexit people are seriously inflated. If you haven't seen his commentary, the people wanting out of the EU have a commercial showing the number of EU laws in making pillows. Of course all they did was search an EU database for "pillow", many of the laws shown have nothing to do with the type of pillow one sleeps on.
But secondly, the UK would still be subject to the remaining regulations if they plan on exporting said pillows. And since the Continent is far and away Britain's largest trading partner any decent sized firm is going to have to continue following those laws. They really don't gain anything, except increased difficulties in travelling to the continent (a point Jeremy Clarkson made, and given how far right he is I am surprised the vote is this close).
But that point about needing to follow the regulations of the EU applies here as well. The EU as a whole is a huge trading partner of the US. Even if Washington tomorrow became a libertarian Utopia, businesses selling in Britain would still have to follow the EU manufacturing requirements to sell there. Not just that, anyone selling products in California would have to abide by their rules (such as carcinogen warnings).
I think everyone, left and right, loves the idea of fighting city hall. But I'm not sure I like the idea of pyrrhic victories. The UK leaving the EU, us electing Trump, both seem to fall into that category.