The results are finally out, after a long awaited period the vote has been counted and the verdict has been announced, the United Kingdom has voted in the “Brexit” referendum on June 23rd to leave the European Union 51.9% to 48.1%. Many people view this as a disaster for the European Union. On the other hand, some British economists believe that it's more complicated than that. They view the creation and expansion of the EU over the past half-century as a great accomplishment with benefits for both Britain and continental Europe. But now believe it would now be better, for both Britain and the rest of the EU, for Britain to leave.
After the vote verdict directly, David Cameron has resigned as Prime Minister after Britain voted to leave the European Union. This would be a great opportunity to the leader of the exit campaign, Mr. Boris Johnson to lead the way for a better future for Britain.
British exit from the EU became inevitable as soon as soon as the UK refused to join Europe's common currency project. The euro has been an economic disaster, creating shockingly high unemployment rates in peripheral EU countries like Greece and Spain. British economists argue that the euro can only work well if the Eurozone becomes a single integrated “superstate”. And he argues that the UK's presence within the EU has become the most important obstacle to deeper European integration.
Stock markets crashed, oil prices tumbled and the pound fell to a 31-year low on Friday as Britain's unprecedented vote to leave the European Union shocked investors and dragged the region, the world's largest economic bloc, into a new era of uncertainty. The pound hit its lowest level since 1985, diving as much as 11% before recovering slightly to trade 6 percent lower at $1.3917.
A fall in Sterling is not necessarily a bad thing. It would make our exports cheaper, and if the EU imposed trade tariffs on British goods those could be partly offset by having a weaker currency.
Leaving the EU will release the UK from any bailout payment obligations they had to troubled EU countries, like Portugal and Ireland to name a few. This will provide more free cash flow towards helping the UK prosper.
Another benefit from leaving the EU is that The EU is strangling the UK in burdensome regulations. Many British conservatives look at the European bureaucracy in Brussels the same way American conservatives view the Washington bureaucracy. Some have argued that EU regulations cost the British economy '£600 million every week', but that number could be inflated.
The intellectual case for Brexit is mostly focused on economics, but the emotional case for Brexit is heavily influenced by immigration. EU law guarantees that citizens of one EU country have the right to travel, live, and take jobs in other EU countries. British people have increasingly felt the impact of this rule since the 2008 financial crisis. The Eurozone has struggled economically, and workers from Eurozone countries such as Ireland, Italy, and Lithuania (as well as EU countries like Poland and Romania that have not yet joined the common currency) have flocked to the UK in search of work. This has undercut the UK native working population and ethics. The UK absorbed 333,000 new people, on net, in 2015. That's a significant number for a country Britain's size. Anti-immigration campaigners like Nigel Farage, the leader of the far-right UK Independence Party, have argued that the flood of immigrants from Southern and Eastern Europe has depressed the wages of native-born British workers. Some voters were concerned about immigrants using scarce public services.
Now that the negotiations between the UK and EU have started after the outcome of the voting, UK, and to a lesser extent EU, will face a great deal of uncertainty in the upcoming weeks, maybe months. The Bank of England will have a huge task on hand to limit inflation and encourage investments in the UK.