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Brexit Commentary

 

brexit

Though I am generally quite positive towards freer trade, economic ties as a way to secure peace by making war too expensive for elites, and freer movement of people across borders, I think it’s a mistake to think Brexit will have catastrophic effects.

Some thoughts:

(1) If economic specialization is good, why isn’t political and cultural specialization also beneficial? Suppose Germany stays very open to immigration and the UK becomes more closed. Isn’t this a good experiment on the economic and cultural impact of more (or less) open borders? Shouldn’t we have a little humility about what we do and do not know with regards to the impact of freer movement of labor?

(2) I suspect the UK will become very focused on making trade deals with a number of trading partners besides the EU. Feels like competition–of a positive kind–to me.

(3) This may help those within the EU who want to focus more on trade and economics and less on political union to gain clout. The EU people are smart and will make adjustments.

It’s really out of my area of expertise, though. Here’s some commentary by people smarter than me:

Paul Krugman

Tyler Cowen

Brexit impact on China: , but see this from an unnamed APF stringer.

 

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Categories: International Trade
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