Choosing Brexit Is Choosing To Be Free
Pundits and “professionals” know a lot of things, but a lot of the time, they don’t know the true will of the people.
Examples are all over the place. The rise of outsider political candidates is one. The use of social media to select players for sports All-Star games is another. And the biggest is the way people choose to utilize and spend their finances.
These experts don’t like it when the proletariat prevail in the end.
Going back to politics, it’s no real secret that currently many voters think “the system” is rigged against them and perhaps America really isn’t a Democracy anymore. No matter what they do or who they choose, they feel the elite class is ultimately making key political decisions.
Normally, the best way to test this theory is to go against what the elites want.
But this isn’t just happening right now in the United States. The same thing is going on in Europe with the U.K.’s impending vote on leaving the European Union. Two recent polls show the British public favors exiting the EU, or “Brexit” for short.
It is obvious that those who consider themselves elites or experts want the British to stay. Leaders of the three largest parties in Parliament are in lockstep to remain, with the Bank of England warning of recession if Britain leaves. Tory member Boris Johnson has received scorn from former Tory Prime Minister John Major for his willingness to support Brexit.
Only days away from the vote, the noise is getting louder and anti-Brexit rhetoric is growing.
Nevertheless, the momentum seems to be on the side of those who want to leave.
People are fed up. The sovereign nation of Britain is full of people and they’re supposed to be able to make political decisions for themselves, via a democratic system. However, the way the system is set up now, decisions that are important for British citizens are made by unelected European bureaucrats. Transient parliamentary majorities are not supposed to be able to delegate decision-making authority to foreign capitals, just like they can’t install a dictator. This process, in and of itself negates democracy.
The crux is you don’t necessarily have to disagree with the EU on policy to take this position. It’s been proven that international trade is generally more free because of the EU, which is a good thing. But but one does not have to trade sovereignty for freer trade. Immigration and what welfare benefits immigrants can get, if any, are clearly sovereign decisions.
It boils down to this. Investors should ignore scary conjecture about what could happen if Brexit wins. Right now, Britain runs consistent trade deficits with the rest of Europe. No matter what foreign leaders say prior to the vote, if the Brits vote to leave, the rest of the EU quite possibly chase them to the ends of the earth because there is not a chance they allow one of their biggest export markets to become more distant. There is no doubt the EU would beg them to sign a free trade deal. This would actually be great economic news, allowing the U.K., and the U.S., to sign a free trade deal that the EU is currently sitting on.
Frankly, any market volatility would likely be very short-lived and any swing to the downside would be a buying opportunity for investors. In short, Brexit is not a reason to sell, because it’s a fact that freedom is a good thing!
* – All data and numbers courtesy Brian Westbury, http://bit.ly/1YnRI3L.