Brexit shows how globalization can rip apart alliances. That’s The Price of Prosperity! Even though the UK’s economy is growing, an increasing number of Brits resent losing control over their country, amid bigger bureaucracies and waves of immigration. Polls and betting markets were fooled because closet Brexiteers thought it was impolite to admit their support while dining in polite company. The Trump campaign should be happy; closet Trumpists don’t talk to pollsters either.
For now, traders are pounding pound sterling and attacking stock markets across the world. However, the Establishment overstates the negative impact on the world’s fifth largest economy. Remember, a country’s worth comes from the hard work and ingenuity of its people. Ask yourself: Will tennis fans stop coming to Wimbledon? Will People magazine stop putting the Queen’s grandsons on the cover to sell copies? Will jet-makers avoid Rolls-Royce engines? Heck, the British musical CATS is coming back to Broadway (for better or worse)! The UK runs a trade deficit with the EU. Therefore, the EU will be delighted to keep the trade flows open.
The UK’s new prime minister should consider 2 attractive options:
First, join Switzerland, Norway, Iceland and Lichtenstein in their free trade zone (I call it SNIL). SNIL’s average income is about 50 percent higher than the EU’s. The new acronym can be SNILUK.
Second, join NAFTA. Canada, the U.S., and Mexico make up the strongest economic zone in the world. Sure, it’s a stretch to put the UK in North America. But as long as there’s a Rolls Royce dealer on the west side of Manhattan and on the east side of Beverly Hills, that counts as UK terra firma.