David Beckworth, economist and research fellow at the Mercatus Center, joined Federalist Radio to discuss Britain’s exit from the EU and how it will impact the global economy. Dr. Desmond Lachman, resident fellow at the American Enterprise Institute, also explained some of the reasons why the UK voted the way they did.
The “Brexit” decision, in some ways considered a populist uproar, comes as a shock to elites all over the world. “Globalization has been integrating our world more and more, really since the 1980’s it’s been accelerating, and I think its bringing some of this tension,” Beckworth said. “One of the biggest mistakes that the EU elites made was handling of the Eurozone crisis.”
We have already seen financial markets and currencies damaged since the vote last week. “I’m afraid that is very likely to continue because what’s also occurred is the UK’s politics has been turned into to turmoil,” Lachman said. “If we do have economic setbacks there and trouble in their financial markets, it’s difficult to see how that’s not going to impact the United States.”