August 29, 2016

AND WE'RE MORE LIKELY TO SIGN A TRADE DEAL WITH THEM THAN THE EU:

Brexit is actually boosting the UK economy (Nicole Gelinas, 8/29/16, NY Post)

Two months ago, the world's wise men were warning that if UK voters decided to "Brexit" from the European Union, they'd rain down economic crisis. Guess what? Today, Britain is fine -- and has even seen a boost from its "Leave" vote.

The International Monetary Fund, central bank chiefs, academic economists -- you know, the people who study the economy for a living -- said Brexit would be a disaster.

Then-Prime Minister David Cameron warned that Britons who voted to leave would risk their Social Security-style pensions. President Obama said Britons would have to "go to the back of the queue" to ink trade deals with the United States.

Now, though, Britain is showing how real free-market economics can correct political mistakes -- if, indeed, Brexit was a mistake.

After the vote, the British pound plummeted. Financial traders believed their government's warnings and ditched the currency.

Before Brexit, one British pound was worth $1.48. Today, it's worth $1.32. The pound has fallen against other currencies, too. That has meant record visitors to Britain this summer -- and tourists spending record amounts of money, too.

In the month before Brexit, airline reservations to Britain were down compared to the previous year, the Guardian reported. After the Brexit vote, they jumped 4.3 percent -- and wealthier tourists bought more jewelry and watches.

Other parts of the economy haven't suffered, either. Consumer confidence and domestic spending are both up. "Retail sales smashed expectations in August," the Daily Mail noted on Friday. Manufacturing and home-sales reports are well and good.

Posted by at August 29, 2016 2:00 PM

  

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