Here is why?
- Europe is political construct. It was a great vision, and it did a lot of good, especially pulling the eastern European countries in and preparing them for the open market. But it has served its purpose now. The only way for Europe to work is to keep intensifying The Project and imposing harmonisation, which is where the problems of sovereignty come in.
- Because it is a political construct, this has distorted the market. This is THE most important economic consideration we need to look at.
a) harmonisation and regulation impose large costs on European goods and reduce competitiveness. Because the EU is a political construct, the instinct is to regulate. The EU is ridiculously over regulated. MORE COSTS and INCREASED UNCOMPETETIVENESS.
b) EU tariffs are ridiculous, and designed to protect the industries of countries like France. They lock out markets like Africa, for instance, who are only allowed to sell raw materials to Europe but not value added finished goods (cocoa - chocolate/coffee, for example). More costs.
- The Euro is a huge problem. Another political decision that has completely distorted the market. It is artificially devalued for Germany and Holland, whose economies boomed and both have build up huge trade surpluses which they cannot get rid of, because of the 'one size fits all' Euro. If they still had the D-mark and the Guilder, these currencies would get stronger (more expensive) and the trade would balance out.
Conversely, the Euro has gutted the economies of Greece and Italy and they cannot DEVALUE their currencies to balance out.
The Euro is a hugely deflationary influence on the economies of the Eurozone, making it the slowest growing economy in the world. The Project has been a deflationary force for the last 20 years. By so many measures it has underperformed the other economies, and we are not even talking about China, but USA, Canada etc. Why be tied to it?
- The customs union. This is NOT a free market. It is an agreement that we can buy and sell to other members of the Eurozone - but not with the rest of the world - which gets tariffs that the UK really does not have to have, IF Brexit happened.
- Labour costs. Spain and France have very high youth unemployment, because of the costs of labour. They are only employed as 'temps' but not given permanent positions, because of the costs.
- Finally, the intransigence of the European elite, who seem incapable of reforming. This is understandable, because they have a project of ever closer union to carry out, and it is MARKETS that adapt and change. But a political construct deforms the market and the deflationary mechanism of the EU are actually making Europeans poorer (even the Germans). Can you see now, why there is a rise in populist parties? There is a democratic deficit between the people across Europe and the political elite, which we are watching being played out in our own parliament right now.
Why are people so emotionally tied to this cumbersome, uncompetitive, protectionist racket? Why are people so frightened?
Now, when we look at England, thank God for No! No! No! Margaret Thatcher. That woman had balls.
The British economy whatever Project Fear says, is outperforming Europe. Lowest unemployment, highest Foreign Direct Investment, the investment on tech (AI, robotics) is higher than Germany, France and Holland put together - BECAUSE the bureaucrats will regulate the 4th Industrial Revolution - to protect jobs.
Why? BECAUSE Britain is not in the Euro, and has its own monetary and fiscal policies.
Honestly, people, the evidence is staring you in the face. This is NOT about immigration (the population of Europe is falling so immigration is needed), it is NOT about nationalism, it is NOT about jingoism or little Englander or any other of the accusations.
We need to look at the booming markets of Asia who are not encumbered by bureaucratic political contraints, not get left behind, and get out there.
Europe is going to break apart. Italy is one economic shock away from default, they are also going to leave, even the Germans are getting restless.
Regarding point 5: as Douglas Murray said, when people do things that you don't like, consider that they might be telling you something. UKIP was the largest party in the EU, and they STILL ignored the signals! Understandable, but people then cannot be surprised that Brexit happened. The AfD surged in Germany. It is well worth listening to the speech that Dr Alice Weidel (an economist) gave in the Bundestag scolding Germany and the EU for treating Britain so badly, outlining the protectionism and warning of the economic danger to Germany.
Brexit actually makes sense economically; and shouting and screaming and refusing to listen to the economic signals out there, is both a mistake and hampers future economic growth.