The Economics of Brexit is not so clear cut, says one economics professor and proponent of Britain leaving the European Union. Speaking to Bloomberg Friday, Patrick Minford, professor of applied economics at Cardiff Business School, countered reports that highlight significant economic risks if the nation votes to leave the EU. According to the London School of Economics Centre for Economic Performance, said that UK incomes could fall between 1.3% and 2.6%, a loss of up to €1,700.
In the long-run, the organization said in the face of a Brexit, consumers could see income losses of up to €6,400 because of lower productivity as trade weakens.
However Minford asserted that the centre’s research is skewed and a Brexit would be good for consumers, which would ultimately drive growth.
He explained that the LSE’s outlook highlights risk to exports but downplays the benefits to importers. He agreed that exporters will have a difficult time as they would face EU trade barriers; however he would expect the UK to drop all its trade barriers, which would be positive for the consumer.
“We would move from regional protectionism and enter a global world with global prices,” he said. “That is good for consumers,” he said. “First year economist students know that free trade is good for consumers and society.”
Polls show that the referendum is still close with the “remain” side holding a slight advantage. The Financial Times Brexit poll tracker shows 46% of Britons want to remain in the EU and 41% want to leave.
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