Brexit — A case of Large-scale Imprudence (taking over Sanity)!

Democracy does have certain cons, and it can’t be more evident than now!

What’s the deal anyways?

Britain has been a part of EU since 1973. However, a series of economic crisis (adversities post 2008 financial meltdown and inability of EU Central Bank to handle the situation in Spain & Greece) did shake Britain’s confidence in being a member of the Union. Further the concern over immigration (as per the right wing of the government) which puts strain over job markets turned the debate ugly. Syrian crisis further strengthened the support of Anti-EU cause where the right wing leader stated —

“Breaking Point: The EU has failed us all. We must break free of the EU and take control of our borders.”

Then why are people opposing the referendum on British exit from the European Union?

EU is the largest free-trade zone which helps it members to save on the import/export costs. A free-trade zone fosters business environment and employment as any EU citizen can live and work in any member nation. It creates a perfect environment for startups and Britain (especially Technology Startups) did saw an up-count in recent years.

Leaving EU would create an economic turmoil that not only impact Britain and other EU members but indirectly the economy of other countries too (US, Canada, India..well the list can go on). The increased trade costs would hit the Britain consumers hard and its GDP harder.

Following are few curated headlines, opinions and tweets that shows how the world reacted.

featured in Quartz
Credits — Techcrunch & CBInsights (respectively)

Then why to vote for it!?

Simple, because you’ve to respect the rules of democracy (saying this does not mean I’m against it).

So who voted for it?

So, as stated by an article on The Huffington Post —

Young ‘Screwed By Older Generations’

Credits — Financial Times
Search Interest Indexes for Great Britain (Google Trends)

What does all this means?

  1. The poll results is a grim reminder of how the power is still held by the older generation. The young Britons just lost its future. They lost to the older Brits who voted for the exit from the EU out of the disbelief that doing so might reduce immigration or make them better off.

2. The markets (especially bond markets) around the world tells you the implication of the results: UK facing recession, quite possibly taking Europe too in its grim and nasty spill-overs faced by the rest of world’s economies. One look at the report pulled by Financial Times illustrating the region wise vote — one gets to know how people who might be sitting away from prime economic centres (and led by misplaced beliefs) veil the power to change the fate of all. As stated in an article featured in Inc

The small-minded burghers of rural England have managed to destroy trillions of dollars of value globally, including to their own investments, pension plans, and housing values.

3. Off late, we have seen many instances of narrow-minded nationalism winning over sense and rationale. Further, the Brexit episode proves how this mentality plagues not just the developing countries like India but developed world too.

Are we entering a conservative rather than a progressive world? A world full of mutual distrust, rudimentary nationalism approach rather than a global prospect augmented by progressive views.

Let’s just hope this atrocious chapter does not repeat itself when US goes for voting in Nov’ 2016.