The EU referendum in the UK, which resulted in a vote in favour of the Brexit, sent a shockwave across the business and political world. The market reacted by wiping $2 trillion worth of assets after Moody's downgraded the UK's rating, and the GBP fell at its lowest level against the USD in 30 years. All media are talking about it as a catastrophe, and some EU leaders (Juncker, Schulz) are already requesting that the UK for submit its exit plan as soon as possible. During that time the Scots are planning a new referendum for their independence from the UK so that they can remain in the EU.
But why such extreme reaction on all parts? Are none of these politicians and economists aware that the referendum is not legally binding? In other words, David Cameron has the right to ignore the results of the referendum. Why wouldn't he since he has already decided to resign in October anyway. He's got nothing more to lose, and that is the only rational way of saving the country from actual disaster. There is no reason to listen to a bunch of lower-class nincompoops who had no idea what they were really voting for. The vast majority of educated Britons and of the top business people and politicians in the EU and the USA are strongly against Brexit, because it really will damage the UK and EU economy and reduce people's freedom of movement and political rights.
David Cameron could easily circumvent the decision of leaving the EU by asking parliament to vote on the issue. And since a majority of British MPs do not support Brexit, they will reject the referendum's results and that's the end of it. If British politicians had any common sense that is what they would do.
As usual The Economist summarises the situation brilliantly:
One of the drawbacks of democracy is that the uneducated masses usually have no idea of what is good for them as they do not understand how the economy works. The reality of Brexit would mean that many companies in the UK would relocated elsewhere in the EU or fire a large number of people. Personal taxes would have to increase to replace the lost corporate taxes. The lower pound would result in an increase of prices for most imported products, including food and clothes, and in more expensive holidays abroad. The lower and middle classes, those who voted in favour of Brexit, would be the hardest hit as they have the smallest disposable income and are the first to be laid off in case of recession. Some analysts warned that voting Brexit would equate to shooting oneself in the foot. But for ordinary people who do not have savings or investments in a variety of foreign currencies, and that is much worse than that. Brexit could push middle-class people into poverty.
One of the stupidest reason to vote for Brexit was the mistaken belief that it would limit undesirable immigration (e.g. of Syrian refugees) and lower the risk of terrorism. Haven't they noticed that the UK is not in the Schengen Area and that passport checks are already in place between the UK and the rest of the EU? And as Britain is an island, illegal immigrants cannot easily flock into the country anyway, unless anywhere in continental Europe (mind you, some Syrians even walked through Russia to get to Scandinavia). If anything, Brexit could push Britain to join Schengen, as Norway and Switzerland did, in order to keep freedom of movement with the EU, thus removing all of today's border controls. Anti-terrorism also works better when the police and secret services of different countries can work closely together, and that would work more efficiently within the EU.
I think that the main purpose of the referendum (from the political elite's point of view) was to have the opportunity to explain to the masses how overwhelmingly positive it is for the UK to remain in the EU (and for investors to profit from market volatility, but that's the cynical side of it). Unfortunately dimwits are and will always be dimwits. I know from experience that some people are incapable of understanding rational arguments presented to them, even when they are explained as plainly as possible and repeated again and again. I am convinced from having personally tried for years to instill knowledge and reason into less educated people that some people are too stupid for their own good. That 52% of Britons voted for Brexit just confirms one more time that most people have no idea of how the world works.
I suppose that all the media reaction we are witnessing now is just another show to scare the wannabe Brexiters into regretting their action by warning of the consequences. I expect that either the referendum's results will be rejected by the political class, or that a second referendum will be held.
But why such extreme reaction on all parts? Are none of these politicians and economists aware that the referendum is not legally binding? In other words, David Cameron has the right to ignore the results of the referendum. Why wouldn't he since he has already decided to resign in October anyway. He's got nothing more to lose, and that is the only rational way of saving the country from actual disaster. There is no reason to listen to a bunch of lower-class nincompoops who had no idea what they were really voting for. The vast majority of educated Britons and of the top business people and politicians in the EU and the USA are strongly against Brexit, because it really will damage the UK and EU economy and reduce people's freedom of movement and political rights.
David Cameron could easily circumvent the decision of leaving the EU by asking parliament to vote on the issue. And since a majority of British MPs do not support Brexit, they will reject the referendum's results and that's the end of it. If British politicians had any common sense that is what they would do.
As usual The Economist summarises the situation brilliantly:
The Economist said:The vote to Leave amounts to an outpouring of fury against the “establishment”. Everyone from Barack Obama to the heads of NATO and the IMF urged Britons to embrace the EU. Their entreaties were spurned by voters who rejected not just their arguments but the value of “experts” in general.
One of the drawbacks of democracy is that the uneducated masses usually have no idea of what is good for them as they do not understand how the economy works. The reality of Brexit would mean that many companies in the UK would relocated elsewhere in the EU or fire a large number of people. Personal taxes would have to increase to replace the lost corporate taxes. The lower pound would result in an increase of prices for most imported products, including food and clothes, and in more expensive holidays abroad. The lower and middle classes, those who voted in favour of Brexit, would be the hardest hit as they have the smallest disposable income and are the first to be laid off in case of recession. Some analysts warned that voting Brexit would equate to shooting oneself in the foot. But for ordinary people who do not have savings or investments in a variety of foreign currencies, and that is much worse than that. Brexit could push middle-class people into poverty.
One of the stupidest reason to vote for Brexit was the mistaken belief that it would limit undesirable immigration (e.g. of Syrian refugees) and lower the risk of terrorism. Haven't they noticed that the UK is not in the Schengen Area and that passport checks are already in place between the UK and the rest of the EU? And as Britain is an island, illegal immigrants cannot easily flock into the country anyway, unless anywhere in continental Europe (mind you, some Syrians even walked through Russia to get to Scandinavia). If anything, Brexit could push Britain to join Schengen, as Norway and Switzerland did, in order to keep freedom of movement with the EU, thus removing all of today's border controls. Anti-terrorism also works better when the police and secret services of different countries can work closely together, and that would work more efficiently within the EU.
I think that the main purpose of the referendum (from the political elite's point of view) was to have the opportunity to explain to the masses how overwhelmingly positive it is for the UK to remain in the EU (and for investors to profit from market volatility, but that's the cynical side of it). Unfortunately dimwits are and will always be dimwits. I know from experience that some people are incapable of understanding rational arguments presented to them, even when they are explained as plainly as possible and repeated again and again. I am convinced from having personally tried for years to instill knowledge and reason into less educated people that some people are too stupid for their own good. That 52% of Britons voted for Brexit just confirms one more time that most people have no idea of how the world works.
I suppose that all the media reaction we are witnessing now is just another show to scare the wannabe Brexiters into regretting their action by warning of the consequences. I expect that either the referendum's results will be rejected by the political class, or that a second referendum will be held.
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