Friday 24 June 2016

Thoughts on Brexit

NOTE: For those of you who have been reading my sailing blog, first, thank you for following it. But, second, this is not a sailing post. This is more what I started the blog for in the first place, a place to write on miscellaneous, often political topics, to put into print things I've been going over in my head, with little expectation of anyone actually reading. But if you'd like to keep reading, please do. Finally, there are still a few wrap-up sailing posts coming, so stay tuned.

And with that out of the way....

I recently became a UK citizen. As soon as that became official, I registered to vote, so I was able participate in the Brexit referendum. Since registering, I've been working to figure out my opinion. And because a few people asked about my opinion, I decided to sketch out my decision and thinking here... too late to actually influence anyone else, as the vote is now closed and results are coming in.

Short answer: Remain.

Slightly longer answer: I think the best possible result would be to leave the EU and do it well, i.e. negotiating an agreement that would maintain most of the benefits of membership while getting rid of most of the burdens. I just think it's incredibly unlikely that it would happen that way. Not only is the uncertainty of leaving huge, I think the downside is more likely than the upside.

So let's get into a few specifics. To the extent the EU is a force for free trade in goods and services and for free movement of people, I think it's generally a good thing. There are some theoretical reasons why limited free-trade areas might be less efficient that a consistent set of tariffs on all trade (basically, you might divert trade from a lower-cost external producer to a higher-cost external producer within the free-trade area), but I don't think this is a significant practical issue. Partial free-trade is more of a stepping stone toward wider free trade.

There are, however, a lot of burdensome regulations that come from the EU. One famous example is regulations on the curvature of bananas/ While often exaggerated in the popular Eurosceptic imagination, the fact they exist at all is ridiculous enough. In one televised debate, an audience member credited EU regulation with ensuring minimum room size in rented accommodation. I don't know the details, but let's assume she's right. This just makes it harder for lower-paid people to afford housing. There are more regulations on working hours and conditions. EU banking regulation can sometimes be a poor fit for the UK market. Each of these examples is individually small, and it's hard to point to clearly identifiable negative impact from each, but they accumulate and reduce the efficiency of the economy. However, at the end of the day, I think the UK is all too capable of imposing burdensome regulation all on its own, so it's not at all clear to me how much there would be to be gained by leaving the EU.

Perhaps the biggest disaster of the European experiment is the euro. Fortunately, the UK has remained out of the single currency and there is no indication that we would ever join, so that's a non-issue here.

A lot of the most heated debate is around immigration. Nobody seems to worried about immigration from Western Europe. Illegal immigration from, say, Northern Africa is illegal anyway. The UK isn't part of the Schengen area, so it does check everyone coming in, who whatever issues there are with lax border control in some parts of the continent giving illegal immigrants access to other countries, it doesn't really impact things here. The biggest real question is around newer EU members, specifically those in Eastern Europe, plus the potential for Turkey. I'm not at all concerned about immigrants "coming here and taking our jobs". In many cases these immigrants are great workers. The Polish bricklayer or the Spanish waiter are stereotypes but also reality, and we're lucky to have them. Do some immigrants come here for more generous benefits? Maybe. But they seem to me to be substantially outnumbered by workers. And there are proposals to require a period of residency before someone is eligible for benefits, which addresses the issue much more directly. Finally, there is some concern over refugees, being welcomed warmly by some countries who are then looking to force others to do the same. This is a complex one for me. I'd like to see a decent alternative for those, e.g., fleeing the war in Syria. But at the same time, I think people are right to be worried about large numbers of refugees coming in,  becoming ghettoized (perhaps through self-segregation, perhaps through normal-segregation), not integrating into society, and becoming a disaffected permanent underclass. I don't have a good answer for this, but I'm not sure that leaving the EU provides that missing answer.

Finally, I think the anti-foreigner sentiment provides so much of the animating energy of the Leave campaign, that I like a Remain vote for its anti-anti-foreigner symbolism. I don't want to paint too broadly here. There are many sensible arguments for leaving, and many sensible people I know making them. But they are nearly drowned out by the objectionably ones. A lot of the Remain arguments are also bad. I actually find most of the arguments I hear from both sides to be pretty awful. But while the Leave side has most of the best arguments, it also has the worst. And the worst are much louder. And that counts for something.

Anyway, soon we'll know. Something.