Today, thousands of people
with scant regard for democracy are marching through London to protest against the democratically
voted for referendum decision to leave the EU. Putting aside the issue of
valuing democracy, the people who voted Remain, and the people who voted Leave that
are now regretting it, are worried about the future post-Brexit. They should
not be, particularly once they get a handle on the bigger picture that extends
several decades henceforward.
Sometimes a little bit of
pain is required to prevent even more pain. If your young child comes to you
with a splinter in his thumb, you know the best way to deal with it is to get
it out from the under his skin straight away by pressing down on it with your
fingernail.
Your young boy may resist
the added pain, but you know that what is causing him that extra pain is
actually reliving him from worse pain, soreness and possible infection in the
long run. This is what is happening with our leaving the EU - we are getting
out at a time when very few people understand that it is a gradually crumbling
empire, and that in its current state it is going to have to eventually die
before its constituent nation states can live.
Brexit will almost
certainly set off a domino effect of other nations joining us with their own
exit in the next few decades. It will be a slow dismantlement of the EU, but it
is almost inevitable that it will happen, for reasons I talk about in greater
detail in other Brexit-related blog posts.
Don't misunderstand, I
have no time for all the anti-immigration bile going around, and I'd hope that
when the other nations follow suit and join us outside the EU that they'd do so
because they can see how even more prosperous our nation becomes with
independence, not under the influence of the plethora of extreme right-wing
parties gathering momentum in the north-western European countries. But for the good of the
continent, individual nation states need to save the EU from itself: it is
stagnating, it is unsustainable by being inimical to growth, and no nation past
or present that has copied its model has seen anything other than economic
disaster.
Playing the long
percentage game, with the exception of Germany ,
France and possibly Belgium and the
Netherlands
if things go their way, the majority of the EU countries are almost certainly
going to trail behind the world's emerging nations in the next few decades, and
it's for five main reasons.
Firstly, in a wider global
market with most countries more actively involved than ever before, cross
national competition is going hinder set-ups like the EU that impose tariffs
against imports from non-EU countries.
Secondly, the market for
consumable goods is steadily shifting away from Europe towards Asia , which will give them the advantage in the market
for future consumables too.
Thirdly, the single currency
(the Euro) ultimately works far better for Europe's big players - but it is in
many ways a hindrance for the rest, which means Germany (in particular) is
going to be involved in a lot more Greece-like scenarios as the predominance of
the market shifts Eastward.
Fourthly, and this is a
development of the second and third points, as the market predominance shifts
Eastward, the quantities of advanced engineering products that Germany, Belgium
and the Netherlands sell to China are going to diminish as China becomes the
leading player in advanced engineering in the next two or three decades. And this
won't necessarily be the case, but the yuan is the only realistic trading
currency in the world that could become a gold standard.
Fifthly, the whole
continent of Europe has a serious fiscal
crisis in that it is catastrophically failing to restrain the pressures of
increasing government spending with an ever-aging population. The tax burden
necessary for a society of this kind is going to be severely detrimental to the
economy even if it were a free trade area with the removal of barriers.
However, given that it's
not a free trade area, it's a customs area under the thumb of a political superstructure
that erects a common tariff bloc around its member nations and robs them of
open trade with the rest of the world, I think we can replace the word
'detrimental' with the word 'ruinous' economy.
Forget for a moment about
the world we do actually live in - the one where politicians, bureaucracy and
establishment-interference is ingrained in our expectations - and consider this
question. Why should the UK
leaving the EU cause any market instability at all? To answer honestly is to
admit that, it shouldn't, and that what's causing the bulk of the problems is
the size of the interference in free trade of the politicians, bureaucracy and
establishment-interference in the first place.
The moment we decided to
leave the EU, nothing about the UK 's
productivity or its businesses' ability to create value changed. It's as not as
though there was a national flood that drowned out the UK 's commercial
activity. When everyone awoke the following day they woke to the same physical UK . The big
thing that changed, however, was that the EU, which regulates countless details
of our exchanges became, in potentia
at least, a different kind of obstacle for buyers and sellers to trade freely.
Moreover, the attitude of
Eurocrats since Brexit was announced gives exhibition to the very reasons it
was good to leave them in the first place. The reaction to the prospect of
their not having such a big say in our lives, plus their threats of even bigger
impediments to our free trade by further taxes, tariffs and social restrictions,
demonstrates not just why we're better off out, it also gives a future hint of
the fragility of the foundations on which its structure of constraint is built.
As long as each domestic
government oversees the basic necessities of light regulation to protect
consumers from any of the undesirable things that might affect a mutually
voluntary transaction (trades description issues, health and safety breaches, quality
of product, and so forth) - basically all the things that we as consumers
wouldn't wish to be victims of due to asymmetry of information - there is
absolutely nothing that prohibits mutually voluntary and beneficial trade
between two people or two nations except the unhelpful constraints imposed upon
them by politicians, bureaucracy and establishment-interference.
What we are in danger of is
a self-fulfilling prophecy of doom, whereby pontificating about how troubled
economy is going to be creates an insidious social instability which affects
business and outside investment, which precipitates the more troubled economy for
which everyone was blaming the opposition.
What we need, however, is
to be smart and resolute, and understand that the freer we can be in becoming
even more of a global trade power, the less turbulence we'll see in our economy,
and the more other EU nations will begin to see how, in extricating ourselves
from the union, and enjoying more mutually beneficial trade relations and increasing
our status as dominant global economy, they too can follow suit and help signal
the beginning of the end of many of the ways that politicians, bureaucracy and
establishment-interference place unnecessary constraints on our lives.
Mark my words, here is
what's going to happen - and I probably will be quoting this in a few years'
time. After the expected volatility and instability over what people seem to be
referring to as 'uncertainty', England (possibly without the union of Scotland,
Wales and Northern Ireland, although they'd be mad to divorce us to become
wedded to the crumbling EU) will be thriving with their improved global trade
relationships, and perhaps (if our leaders are wise) a healthy attitude in not
restricting the movement of people, goods and services in Europe.
Then, bit by bit, as the
EU political union becomes ever-more precarious, and as more and more countries
start to desire autonomy and obtain the domestic economic stability to break
away*, the EU as we know it will fold in on itself, as Europe's nation states
gradually claw back their ability to play to its market strengths outside the EU bloc, and
as everyone gets wiser and wiser to the fact that models like the EU model just
won't be sustained for longer than a brief-ish passage in humans' trajectory of
gradual progression, less involvement by the establishment in their lives, and
increased freedom and liberty.
* No one could have failed to notice what the Eurozone
crisis has done to the likes of Greece ,
Italy and Spain .