In an unexpected and unprecedented turn of events British citizens voted “Yes” on the Brexit yesterday, choosing to leave European Union, and the aftermath of the Brexit vote could have an impact on every American. While many American citizens think of the Brexit as purely a British issue, or perhaps something that’s between the U.K. and the EU, the implications of the decision will ultimately resound around the world, reports CNN. Here are five ways that the Brexit vote will have an impact on virtually every American.
The Brexit Could Destabilize The American Economy
We live in an increasingly globalized world, and when the world’s fifth-largest economy decides to jump ship and go it solo, that impacts almost everyone. In addition to having one of the biggest economies in the planet, the U.K. is a key American trading partner. Following the news that the Brexit vote was leaning toward “leave,” market futures started tumbling. On Friday morning, when it was official that the Brexit vote had favored leaving the EU, American stocks (and stock around the world) went into a free fall. As Bloomberg reports, going into the final trading hours of the week, the Dow Jones had fallen 550 points.
Indeed, the American Brexit impact was so profound that in a single trading session, the gains of the entire year were wiped away.
As a direct result of the Brexit vote, many American citizens have found that their 401ks are a little bit smaller today, and many companies (including JPMorgan, Rolls Royce, and others) have threatened to move their operations out of the U.K. following the Brexit vote.
The Brexit Vote Could Stress The American Relationship With The U.K.
The United States and the U.K. have long had a “special bond,” and our current presidency has promised that the relationship between the American government and the U.K. will continue after the Brexit. However, it will never be the same.
In April, while discussing the Brexit, President Obama publicly said that if Britain voted to exit the EU, it would be at the “back of the queue” with regard to making American trade agreements. In a nutshell, the American government already makes collective trade deals with the EU, and now that Britain has voted to leave the EU, the U.K. will have to wait until agreements are secured with the rest of the EU.
It’s also possible, now that the U.K. has voted for the Brexit, American influence on the EU will dwindle (the U.K. has always been a strong American voice and ally among EU member nations); this could mean that the U.S. is forced to do more to cement diplomatic ties with other members of the EU to retain its European influence.
The Brexit Could Result In A Destabilized Europe
Europe has already been dealing with some once-in-a-generation crisis’, but the Brexit could make matters much worse, possibly even resulting in a domino effect of EU exits across the continent. While the U.K. is the first nation to officially vote to exit the EU with the historic Brexit vote, American leadership worries that other nations may soon follow suit.
Right-wing extremist politicians in both France and the Netherlands have responded to the Brexit vote by talking about exit referendum votes in their own nations. Greece has wanted out of the EU for years. If enough countries want out of the EU as a result of the Brexit vote, the entire EU could crumble. And, a crumbling EU will impact all Americans in one way or another.
Donald Trump Is Using Brexit To Target American Immigration
As a result of the Brexit vote, American presidential candidate Donald Trump is already using the situation to promote his own anti-immigration agenda for America. Immigration concerns in the U.K. added a lot of fuel to the Brexit fire, and Trump is betting on American immigration fears to help him secure the White House in November.
On Friday, The Donald was in the U.K., at his Turnberry golf course in Scotland. He pounced on the shocking Brexit vote to capitalize on his campaign agenda during his visit.
“Americans will have a chance to vote for trade, immigration and foreign policies that put our citizens first.”
Trump also took to Twitter, one of his favorite social media outlets, to use the Brexit vote to sway Americans in his direction.
Trips To The U.K. May Be Less Expensive For Americans
Travel to the U.K. is expected to get a lot cheaper, which is a good deal for Americans at the expense of the British economy. The British pound responded to the Brexit vote by falling to its lowest level against the American dollar in decades. The trend is expected to continue well into the future, so pack your bags.
You can expect tourist attractions to feature a lot fewer visitors following the Brexit, too. This is because travel to the U.K. will soon be much more trouble for citizens of the EU following the Brexit; American citizens already had to deal with passports to visit.
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