Rancid wrote:The UK economy will most likely shrink. The question is, who will it hurt the most when it shrinks? The working classes or the rich?
Historically speaking, the rich benefit when the economy expands, and the rich are impacted less when it shrinks.
Maybe the UK economy will shrink, maybe it won’t. Given the storm clouds on the horizon for the global economy as a whole, I’d expect shrink it will.
However, the UK looks better than the EU for investment. The EU has deep structural imbalances in labour markets and financial institutions. The majority of EU members must sacrifice domestic economic policy to serve the shared currency. As @Patrickov points out, the EU doesn’t have quite the level of accountability as is offered by the British legal system.
So I’d say the UK is a safer investment destination than the EU. Quite possibly the pound would be a better long term investment than the Euro, the later will become worthless if the EU collapses.
As regards who will suffer when the economy contracts, it is whoever lacks political power. In the UK at present, it looks like the supposed left, tertiary educated, urban elites are rapidly losing their previous lofty status, so I would expect that group and their retains to be the ones who cop it. One can but hope, anyway.
Of course, the last time the English persecuted a comparable group, the Puritans were forced to settle in the lands that would one day become the USA.