Chief economist, Dan O’Brien, discussed the consequences of Great Britain's exit from the European Union. The talk was very informative and explained the many possible outcomes that would result from “Brexit”. Dan O’Brien did not only discuss Brexit, he also spoke about the state of employment in America and how it compares with the rest of Europe. The data was very surprising, it showed that in the last 10 years the United States has had the same decrease in employment as Greece. O’Brien discussed how capitalism does not bring the population closer but rather creates greater separation in the United States as businesses grow. Something else that was discussed was the shift in power that would occur if Great Britain left the EU. What would happen would be a much more German dominated European Union, which would drastically shift the political and economic landscape. In terms of economic landscape, Europe would be much less appealing as a foreign market for the United States. This would actually hurt the United States as Europe is one of the biggest and fastest growing markets in the world. Europe, especially Northern Europe, is also much better than the rest of the world for conducting business thus hurting the global economy. O’Brien also discussed how a Great Britain exit would severely hurt his homeland of Ireland. This would result due to the fact that 25% of Ireland's GDP as exports go to Great Britain. This would have catastrophic consequences for the country and create a recession that could begin a domino effect for other countries in the European Union.
O'Brien, Dan. "Brexit and it's Global Challenges." Ohio Wesleyan University. September 26th, 2016
This article is very interesting because it is so relevant to today and the world financial markets. This would have a huge impact on the world financial markets as well as the financial markets in Europe. I am concerned that them leaving the European Union is really going to hurt not just the United States, but also the entire global economy. It is going to be interesting to see if they actually end up leaving the European Union, and if they do, how it is going to effect Europe, as well as the rest of the world.
ReplyDeleteTrade partnerships are going to be greatly effected by Brexit and it seems like most of those are going to be negative. You mention that 25% of Ireland's GDP is made up of exports to Great Britain. Well I wonder how much that number would change, presumably shrink as Britain leaves the EU, they also lose all trade agreements pertaining to the rest of the EU. I think the biggest impact would be tariffs and shipping costs being increased to Ireland making exporting to Britain a lot less appealing, but I agree that this would begin a domino effect possibly with some terror to it. The U.S. seems like it will face much of the same effects as the other European countries and it's difficult to see the positives in this limelight, but Britain has its reasons for leaving the EU.
ReplyDeleteI am curious to see how Scotland reacts to Brexit over the next couple of years. They recently had a referendum of their own, exploring their own separation from the U.K. It will be interesting to see how Brexit impacts their place in Europe.
ReplyDeleteOne of the big impacts that seems to be one the minds of economists is how trade will be conducted. If Britian doesn't have the ear of the EU, then who does? The worry is trade regulations.
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