Brexit: Did anyone consider anything beyond Ego?

I am one of those nerds who follows breaking news on Sky TV and twitter while I work. Another bad habit.

So for the last month I have been captivated by every twist and turn in the Brexit saga. And even though Theresa May has made it to 10 Downing Street and Boris Johnson has gone from hero to zero, there must be much more to come.

My mother would have said of the whole Brexit saga ‘This is sad. Everyone has lost their style and no good will come of it!’

If I hear those words again ‘ I am honoured and humbled…’ I think I am going to puke. The Brexit referendum wouldn’t  have happened if Cameron hadn’t been on an ego trip and certain that Remain would win. Boris Johnson would never have got on the Brexit bus if he wasn’t out to become Prime Minister. Then Mrs Gove’s ego got in the way.

Only Mother Theresa  kept her ego out of it and walked off with the prize. She was a Remainer but has immediately changed her tune to ‘ Brexit will happen!’ Surely the world has progressed beyond wanting a clone of Margaret Thatcher.

If this was all about migration lets just say that it is a sad reflection that the majority of Poms have not yet evolved beyond believing that  civilisation starts and stops at Dover.

In the medium-to-long term Boris Johnson will probably be right. The UK will ultimately be better off. The FTSE is already reflecting the start of a bull run. Sterling will probably rebound in weeks to come. So what if a few speculators got busted for believing opinion poles?

If all that does not happen the UK will drop its corporate tax rate and restore it’s status as the ultimate tax jurisdiction for international headquarter companies. They can afford it as corporate tax makes up less than ten percent of the UK tax collections. A lower value on sterling could help that as well.

I am not generally a fan of laureate economist Milton Friedman but perhaps these words from Capital and Freedom, 1962, hit the spot.

As the most effective way to help people is to create a market that is an accurate reflection of people’s interests…

The best economic climate in which a business can exist is a privatised, deregulated one…

As this increases competition which increases quality and reduces prices…

Free of the constraints of the European Union perhaps the UK will come out tops and achieve these ideals. Again.

But what about the collateral damage that starts at Calais and ends at the Southern tip of Africa.

Post Brexit, with the world going into ‘wait and see mode’ the SA Medium Term Budget Framework Speech (Mini Budget) in October 2016 is probably going to be a miserable affair.

The inevitable tax increases already scheduled for the National Budgeted Speech 2017 may hurt even more.

The collateral damage from Brexit could be the final straw in SA’s fight against junk status with the inevitable decline in exchange rates and resultant increase in fuel prices.

How one explains the potential effects of Brexit to 55 million South Africans with a Gini Co-efficient of 59 is beyond me!

Perhaps the blame should not be solely attached to Pom ego. Perhaps the world should be looking at the likes of Jean-Claude Juncker’s ego and the denial that much is wrong in the European Union.

 

 

 


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