By Afolabi Thomas
The referendum row brings about many opinions, all of which boil down to two solid sides. Are you in, or out? Numerous events occurred over the past few weeks, and now almost everyday new steps are taken on each side of the argument, creating additional awareness. What we tend to see as a trend among major government related media outlets is the support for anything that keeps all things the way they are. Of course, why wouldn’t they considering all is going so well for them at this stage in the economy. With all this information dished out to the public we should ask, are we given enough to decide whether to remain in the EU or not?
The voters side for leaving the EU rarely receives enough attention, so here we state the facts the voting side has brought to the table and address the common issues.
Bank of England said the following would happen if Britain would leave the European Union:
- Increasing unemployment
- Push the pound lower “sharply”
- Prompt households and businesses to spend less
Will any of these events occur?
Well Britain certainly will not have a third World War! While these may seem like possibilities, let’s not jump in complete panic. For starters, each of these events would only occur in the short-run medium which is common for all major referendum/law/elections that happen in any country. In the long-run these will all cease to exist due to the adjustment of the British public. There is already austerity within the UK, staying in the EU drives prices with in Britain upward, making our lives more expensive. The agriculture industry had its fifteen seconds of fame with this debate, and what people don’t realize is the industry enjoys the high prices. High prices of food means the sellers keep profits high.
As for the pound continuing its decline, it should be noted that it was already in a recession and has been decreasing in value since last year.
The growth rate in the UK has sat at 0.5% which is relatively low. This can increase greatly if Britain were to leave the EU since more active members of society will have room to trade among each other, as well as open trade with other countries such as China and the United States. If not for the powerhouse of Germany in Europe, Euro zone would have a strong decline in growth. Some countries in the EU (take France, Spain, Italy for example), have low growth rates and relatively high unemployment rates that can range from 10% to 25%*. This additional stress on the EU is what negatively impacts Britain.
How much does the UK spend in the EU?
The statistics say that about £37 million pounds a day (you read that right a DAY) is given to EU. This makes Britain the second highest contributor to a Union, which doesn’t give much in return according to Leave supporters.
Does this greatly affect trade?
Many Stay voters, according to telegraph, believe that leaving the European Union will not affect access to the single markets as greatly as people suggest because they can still negotiate their access while still keeping some or all of the money that is spent in the EU. After all, Michael Howard could not have said it better, “we are the fifth largest economy in the world, the most important military power in Europe and the country with by far the most stable and deep-rooted institutions”. With a statement like that, there is almost no doubt the UK could stand alone.
What do the people want?
Well it is too early to decide, however people have made their opinions well-known and UKIP leader Nigel Farage has been rallying a lot of support for the Leave party. In fact, the Leave voters have raised more campaign money and apparently released a crowdfunded documentary with various inputs on why leaving the EU is a good decision. If that doesn’t turn people’s heads, maybe knowing how much Samantha Cameron’s father receives from EU farming subsidies will.
**Simply looking at people’s reactions gives us a census on how they feel about a Brexit:
What ever you decide, there is still enough time to find out more in debt details from both sides of the argument.
*Research determined from past published figures of growth rates from each country.
**Comments taken from Guardian Newspaper.