Economics of Brexit and Personal Finance

[Laika]

As polling indicates that it is now likely that the UK may leave the EU it is probably worth discussing the likely economic impact and how people should respond financially. The remain campaign has been telling us that there would be a financial shock in the event the UK leaves the EU. given the uncertainty, are these expectations justified?

As this is intended to inform people's financial thinking it would be well worth providing sources if you can. Detail is very welcome.

 

[illykitty]

The company my husband works for has the EU as their main market and although it's a British company with a long legacy, it has gone through turbulent financial times... I know the company stated that they'd rather remain in the EU in a letter to their employees.

I don't know how that will impact the company, but it's so risky.

 

[SkylarHunter]

Have you guys seen this?

 

[Altfish]

Have you guys seen this?

I lasted about 2-minutes into the video then I realised it was so biased I may as well listen to Farage

 

[Altfish]

Finding unbiased 'Facts' about this referendum are hard. This is one website I do trust...

https://fullfact.org/

...it is by far the least biased site I've found and I notice that the BBC have been referencing them on occasions.

 

[Mindmaster]

EU doesn't want UK to leave for the simplest reason: UK is probably the largest contributor to their cash cow, and they can't do as many stupid things without you. They're happy to take your money while eroding your sovereignty. These bureaucratic organizations are just poison to the free market and whatever parties are involved.

I just would like to say that the USA is happy to trade with you, in the event that EU starts being a *****. There are plenty of anti-globalists on this side of the soup that are willing to help. The financial shock you will experience is a market reset -- the market will go back to being free and fair and you will get massive growth from the switch. Just think of it as a bump in the road. Good luck, and don't let the fear-mongering folks push you around. Most of the people speaking out for the "Remain" campaign are paid by sponsors.

http://www.breitbart.com/london/ is conservative, and anti-global. They're usually focused on the math, but the headlines are pretty sensational. Not a liberal friendly site though, you can't have everything.

 

[The Emperor of Mankind]

EU doesn't want UK to leave for the simplest reason: UK is probably the largest contributor to their cash cow,

The UK is actually the fourth largest contributor behind Germany, France & Italy.

and they can't do as many stupid things without you.

Like protecting peoples' rights and allowing people to live & work where they want, ensuring no nation catches as much fish without regard to either the needs of their neighbours or to the depletion of North Sea fish stocks etc.

They're happy to take your money while eroding your sovereignty.

If the UK's sovereignty is eroded by the EU then so is everyone else's. That's what happens when you become part of an organisation that needs to take into account the needs of other nations rather than just one's own - you compromise & negotiate. The EU is not singling out the UK to specifically **** all over it.

These bureaucratic organizations are just poison to the free market and whatever parties are involved.

There's no such thing as a free market anywhere in the world. The minute governments start putting in place things like:

• grants on things like fixed assets,
• tax allowances, tax avoidance or reductions in liabilities,
• corporate welfare,
• minimum wage & worker's rights legislation,
• anti-monopoly bodies

they're artificially influencing the market so it becomes a mixed market. A free market is one that exists without any government influence at all. And that would be terrible for employees.

I just would like to say that the USA is happy to trade with you, in the event that EU starts being a *****.

The U.S. already trades with the UK. What I think you mean is that the U.S. would be happy to see an increase in their influence over the British markets. And the U.S. already trades with the EU so apparently they're not that bad.

The financial shock you will experience is a market reset -- the market will go back to being free and fair and you will get massive growth from the switch.

I'm sure everyone affected by the decline in living standards and loss of jobs will be relieved to hear economists have come up with a name for it. And no, the market will not be free & fair because we have in place an unelected right-wing government who are doing their best to strip away worker's rights as is. Removal of the EU as a potential mitigating factor against this would see a race to the bottom in terms of working conditions in Britain. Additionally, America's economy is close to being monopolised by several mega-corporations - is this your idea of 'free & fair'?

 

[GoodbyeDave]

Have any economists ever seen trouble coming, from the 1929 crash (no, I don't go back that far!) to the 2008 crisis? Have they ever agreed on a solution after it arrived? Economics is a con trick. Every economist who warns us about the dire consequences of Brexit is one more reason for me to vote OUT!

I read an article the other day by a German commentator who called Brexit the only chance to get EU reform. He hoped it would discredit the Eurocrats and embolden the skeptics, leading to the re-formation of the EU as a free-trade association with no political structures, which the UK could then join.

 

[dust1n]

As polling indicates that it is now likely that the UK may leave the EU it is probably worth discussing the likely economic impact and how people should respond financially. The remain campaign has been telling us that there would be a financial shock in the event the UK leaves the EU. given the uncertainty, are these expectations justified?

As this is intended to inform people's financial thinking it would be well worth providing sources if you can. Detail is very welcome.

Well, how is it? Besides pissing off the Scots and the Irish, I hear it's not that bad. FTSE 100 has been down, but those are mostly international companies. FTSE 250 is still recovering, but it could be worse. Saw that consumer confidence was still up, although business confidence was down. I guess your money isn't worth very much now, so people are visiting. Then again, the dust is anywhere but settled.

 

[metis]

I think the main impact is in term of long term, not so much short term, investments and investment houses. I certainly don't expect all or most of these firms and investors so suddenly pull out of the market there just because of Brexit. IOW, time will tell.