Rational Perspective

As the UK lurches ever-closer to a no-deal Brexit, the view from the ground in the UK is depressing. Business investment has slowed as companies consider their long-term future. Many are setting up shop offshore in Europe to avoid potential disruptions and maintain their European market share. Many others are simply adopting a wait-and-see policy, holding off on acquisitions, new hires, and investment. And many of the foreigners who live and work in the UK have decided to abandon ship. Many Leavers will be glad to hear that foreigners are leaving – anti-immigrant sentiment was a big part of the Leave campaign. But in the years to come, the UK may miss the skills those foreigners brought to British shores. If the UK achieves an orderly Brexit – a big if at this point – the economy won’t collapse. But Brexit will act as a slow puncture, gradually letting air out of the British economy. The UK may survive (assuming Scotland and Northern Ireland don’t opt for their own Exits), but it will be diminished in many im