What I’m about to say probably sums up the vapid nature of most Americans, but I didn’t hear about the EU referendum until today after looking at Ellie Goulding’s Instagram account and noticing she’d written that something “devastating” had happened to her country. Less attention to celebrities and more to world politics = a smarter me, I’m sure.
Because I was deeply concerned for
my true love Ellie Goulding England, I learned the bare bones basics about “Brexit,” Britain’s exit from the European Union, and the potentially terrible impact it will have on the economy.
From The Telegraph:
The European Union is an economic and political union of 28 countries. Each of the countries within the Union are independent but they agree to trade under the agreements made between the nations.
The European Union operates a single market which allows free movement of goods, capital, services and people between member states.
Now that we understand what the EU is, let’s learn the effects of leaving it.
Because the EU is a “single integrated economy” (like the US), experts predict that Brexit may result in major British businesses relocating their headquarters to countries that are still a part of the EU, which will cause job losses. Imported goods may become more expensive while mortgage rates and travel prices decrease.
What’s that word I’m thinking of? Oh yeah, RECESSION.
Brexit also has an immigration problem a.k.a racist undertones. Many who voted “yes” to exiting are motivated by hatred and are pretty much the British equivalent of Trump supporters who are tired of “sharing” their country. EU citizens do not require a visa to live and work in any of the 27 countries, including those with poorer economies like Bulgaria, Romania and Lithuania. Many EU migrants in the UK are currently unsure of what’s going to happen to them now that the shift is underway.
There are European countries, such as Norway, that have managed to stay out of the EU and still have decent economies. It’s the adjustment period — which could take more than two years — that has financial analysts worried.