Any American who doesn’t think that Brexit could affect the States should pay attention to the stock market. On Monday, many noticed that their own stocks and investments looked a bit smaller, all of this was directly in response to the sharp fall in the British pound due to the UK leaving the EU.
This is only one effect of what will be a months-long, if not a years-long process of creating a new normal for the Brits. Here are some others.
Travel to the UK is about to get a whole lot cheaper due to the drop in the pound. In addition, there will be a major reduction to travelers from the EU due to the hassles of entering the country because of long lines due to the extra processing of travel visas that will be going into place.
Recession on the horizon: the UK is the world's 5th largest economy.
With the British economy in freefall since the Brexit vote, the U.S. is also going down. While the U.S. economy will eventually straighten out again, British-based companies that the U.S. currently invests in, like Rolls Royce, have warned of the great potential of impending layoffs. The approaching layoffs could send the UK into a recession, leading to the U.S. pushing their investments to more economically stable countries, such as Germany and France. A UK recession could mean bad news for the US economy.
The strain on the US/UK relationship: due to the U.S./EU trade deal, the U.S. has been going into overdrive working on its relationship with Europe. The UK now leaving the EU puts the UK at the end of a very long list of priority countries to maintain.
Grand exit: a heavy hitter like the UK leaving the EU may trigger other countries, such as Greece, to follow in suit. This could lead to greater instability in Europe. Instability in Europe means global instability.
Shut door on refugees: one of the reasons the UK left the EU was due to the free flow of immigrants and political refugees flooding the EU escaping from groups such as Islamic State.
These refugees, already in desperate need of help, may be locked out of the countries that could help them the most; countries with opportunities and room all for fear that among the hundreds of thousand of people escaping Islamic State violence, a handful of those people could be terrorists.
Trump's approval: Republican frontrunner Donald Trump sees all of this as a great platform for immigration reform here in the U.S., and by immigration reform, he mainly means building the wall between Mexico and the United States and the Muslim ban.