Brexit Markets

Two Months After Brexit: The UK’s Economic Boom

Remember when the world’s leading economist, the IMF, and Central Bankers all predicted that if Great Britain pulled out of the European Union chaos who follow?

They assured everyone that Brexit would be a disaster, not only for the UK but the rest of the world.

Former Prime Minister David Cameron, who stepped down after the vote, even told British voters that an economic ripple effect would threaten their government pensions.

And President Obama, who never misses an opportunity to interject himself in others business, warned Britons that they would have to “go to the back of the queue” when it came to trade with the U.S.  Another red-line in the sand for a short-eyed man!

But those who love their freedom didn’t buy the doomsday chicken little predictions.  On voting day, Brexit passed.

Nicholas Gelinas, writing for the New York Post states, “After the vote, the British pound plummeted. Financial traders believed their government’s warnings and ditched the currency.” — NYPost.com

The pound was worth $1.48 before the vote and today is it valued at $1.32.

But then something strange happened.  With the decrease in the British pound, people worldwide saw it as an excellent opportunity to vacation in England.

In fact, before Brexit, airline reservations were down compared to the same time the year previous.  After the historic vote, airline reservations jumped 4.3%.

These tourists then spent record amounts of money as the toured the British Island.  They went to restaurants, antique stores, bought jewelry, watches, and other items to take home with them as souvenirs of their trip.

England’s blue collar workers, sales associates and mid-level managers saw manufacturing rise as spending rose.  The Daily Mail noted, “Retail sales smashed expectations in August.”

Consumer confidence and domestic spending are up as a result.  The wave has even had a positive effect on manufacturing and home sales.

Now this doesn’t mean that all is fine and dandy in the U.K.  They still have a long way to go.  Unwinding years of bad policy while a part of the blood-sucking EU will be a tough road.  “Things may get worse before they get better,” as one proponent of Brexit stated.

“…Britain still has problems. Like the United States, it still depends on cheap credit to get people to buy houses and spend money. This — not Brexit — will cause another recession someday.” — ibid.

However, it does appear that Great Britain has finally learned the lesson offered so many years ago by a young American Patriot name Patrick Henry.

Standing before the Virginia Convention on March 23, 1775, at St. John’s Church in Richmond, Henry encouraged his fellow citizens to pass a resolution and call up Virginia’s troops to support the Continental Congress and the War for Independence.

Henry ended his plea with the now famous words, “Give me liberty, or give me death!”

Patrick Henry’s immortal words were the essence of the Brexit vote.  Was this a vote for rebellion?  Perhaps better stated, it was a vote for independence.  And many see a vote for Donald Trump in much the same way.

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Jerry Johnson

Jerry Johnson was the former Director of the Apologetics Group and President of Nicene Council. He was the senior writer/researcher for numerous documentaries including the best-selling Amazing Grace: The History & Theology of Calvinism. In the 1990s he served as Executive Director of the Christian Coalition of Hillsborough County Florida. He currently holds an M.A. in Christian Studies and a M. Phil. in Christian Apologetics. He lives with his wife of nearly 30 years and has four children and four grandchildren.

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