My
comment to someone on reddit regarding Brexit, which is relevant:
You mention George Osborne, and his claim that Brexit will "damage" the UK economy. You'll have noticed that after the vote George Osborne was nowhere to be seen, his claim that harsher austerity measures would take place immediately upon Brexit, was simply a lie. George Osborne also claimed that leaving the European Union would entail higher taxes, too - this was a lie. George Osborne, like many politicians during the campaign used a tactic called "scaremongering", we all know that it entails the use of scare tactics to sway public opinion, it did not work. It was clear after we voted Leave, that there would be
no 'Brexit Budget' of the sort.
You go onto give a link of the United Kingdom's growth rate, though it doesn't entail any new information, as we are not fully through the second quarter, therefore the initial impact of leaving the European Union is yet to be seen, though, I see that you have given me a link to previous growth, which you say is a link to "shrinking export and direct investment" - that is not the truth, as there are no forecasts currently for the Q2. It is a fact though that the UK is one of the largest importers in the world, we import
£600 billion worth of goods annually in 2015, a large proportion of what the UK imports comes from Germany, this means that Germany will want to ensure any deal with the UK runs smoothly. The United Kingdom means a lot to the EU, trade wise, we are extremely important. The United Kingdom runs a trade deficit, we import more than we export. The United Kingdom is a integrally vital artery for the EU, this means we will get a free-trade agreement, we may even join an EEA > EFTA type agreement, this benefits the EU and the UK. Though, mostly importantly the UK will get to set its own trade deals, which is what I'll cover shorty.
Here is a blog outlining a transition from the EU to an EEA > EFTA agreement. This will ensure the UK has open-access to the single market, though without the EU bureaucracy that tangles the UK.
Furthermore, it is quite apparent that some of the most successful countries in Europe are not within the EU. The European Union hasn't stopped Norway or Switzerland from developing economic ties with the EU via EFTA or EEA. These countries have tactfully made sure that their sovereignty is in tact, yet have access to the free-market and still have FDI. In fact,
Switzerland is in the top ten of countries with Foreign Direct Investment stock - it is not in the EU. My direct rebuttal to your point on FDI is simple, if Switzerland can retain FDI, the UK will, I can reinforce this point with two examples: Recently the UK has seen
investment from Santander and the
UK has seen a £3 billion investment from Boeing after brexit - this illustrates these companies have confidence to invest within the United Kingdom, they see that the UK is resilient and will be stronger after Brexit. The EU isn't the foundations of the UK economy, the United Kingdom is.
As you'll know with your economics degree, market volatility during political turbulence is normal, these unprecedented times of the UK leaving the EU will make the pound slump, though The pound
reached a post Brexit high of 1.3480, it looks like the pound will continue to recover. Political uncertainty not good, though to suggest that this will have a long term detrimental impact on GBP and the UK economy is wrong, as knee-jerk forecasts will assume the worst, though clearly the UK will forge a new relationship with the EU and the world, in the long-term it will prosper as it isn't strangled by EU regulation, which means it can adopt trade agreements with countries like
Canadaor
Australia - in fact, numerous countries are lining up to divulge in a market of over 65 million people.
Evidently, it is clear that the
number of EU nationals in the United Kingdom is far greater than UK citizens in the EU - in fact there are as the source states, 3 million EU nationals living in the United Kingdom, and 1.2 UK citizens in the EU. This means that we hold the cards, it is basic politics, they have more to lose than we do. The regulations and rules surrounding immigration will be for the EU and UK to decide, though clearly with the UK holding a far greater proportion of EU nationals that UK citizens in the EU - it is quite apparent that the UK will find itself with a good deal on immigration, while having access to the free market, and at the same time gaining regulations on EU immigration. If there us an influx of EU migration to the UK, then this could also entail emergency legislation, as the
Secretary of state for Exiting the European Union has mentioned.
Also, you claim that the UK will somehow diverge from its Human Rights, the UK has a long tradition of Human Rights and is a signatory to the European Convention on Human Rights, this is not going to change. The UK has Human Rights legislation dating back before the EU existed. You also claim that the UK is "alone", the UK has opted to leave a mass bureaucratic political union, it is now going to join the rest of the world. Your view that the UK us going it alone is quite absurd, the UK is going global. This country founded parliamentary democracy, it will never turns its back on giving people their rights. The Human Rights Act 1998 is another matter.
In conclusion, you have gave no real argument to suggest the UK will decline, in fact I have argued the opposite and set out numerous examples. In that the United Kingdom is traditionally a strong exporting nation, it shares culture and links throughout the world. Foreign investors have done deals after brexit, they will continue long into the future. As the terms of our exit comes clear, the UK will lead a successful withdrawal, from a corrupt EU that the UK has never really been part of. The UK will remain a vast financial centre, strong import and exporter to the world - exiting the EU will not hamper its trade, as proven the EU has more to lose than the UK does, in terms of a Brexit.