On Thursday, Britain voted to withdraw its membership in the European Union, effectively making one of the world’s largest economies an island unto itself.
While a lot of people in America may not be paying much attention to what goes on across the ocean, the historic decision is actually so big it will impact the United States.
Here are seven reasons that the ‘Brexit’ vote should matter to Americans.
1. The economy:
Since the historic vote was announced, the Dow Jones has plummeted. At the time of writing this article, it’s down 515 points:
However, such turmoil in the markets should be expected. According to Fortune, It’s likely that the turbulence in the stock market isn’t going to let up for several weeks.
2. Your 401k could take a hit.
If you have a 401k, the chances of it reacting poorly to ‘Brexit’ are pretty strong — but just for the short term.
According to ABC News:
As Wall Street joins the global market selloff today, your 401(k) will decrease in value temporarily. The good news is that these retirement funds are long-term investments and should be able to weather the storm in the long run.
3. Immigration policy:
When Britons went to the polls to vote in favor of leaving the EU, a stronger immigration policy was the one of the biggest issues on their minds. Some Britons have felt their jobs are being swept up by migrants. And as a member of the EU, the United Kingdom had a relaxed border policy.
The United States is echoing a similar sentiment, with 61% percent of Americans saying that mass immigration to their country ‘jeopardizes its future,’ via Bloomberg Businessweek.
4. Mortgage rates:
If you’ve been thinking of refinancing your home, according to CBS News, now is the time to do it:
With the U.S. markets roiled by the U.K.’s decision to leave the union, the downturn provides a good buying opportunity for investors, said Bankrate chief financial officer Greg McBride.
Americans may see some upside with lower interest rates, making the summer a prime time to refinance a mortgage, buy a house or car, or take out a loan.
5. We could see a state in the U.S. attempt its own ‘Brexit’:
There are numerous movements in the United States where small groups of people want to secede from the Union. Yet, none of them are as big as the one in Texas.
Daniel Miller is the leader of the Texas Nationalist Movement, which claims to have over 260,000 members. Miller wrote in a Facebook post:
His post reads:
From the looks of it, the British people have chosen to take control of their political and economic destiny.
The forces of fear have lost. It is now important for Texas to look to #Brexit as an inspiration and an example that Texans can also take control of our destiny. It is time for Texans to rally with us and fight for the right to become a self-governing nation.
6. If you planned to vacation in the U.K. this summer, it might cost you less:
Most of the time, traveling to the U.K. costs quite a bit of money.
Yet, ‘Brexit’ could make things easier on your wallet, via the Huffington Post:
In the wake of Thursday’s vote, the British pound hit a 30-year low. Currently it costs $1.37 American dollars to get one pound, down from $1.50 on Thursday. While this is terrible news for Britons, it’s good news for Americans if the dollar continues to surge.
7. The 2016 Presidential Election:
The United Kingdom’s majority vote for ‘Brexit’ could mean big things for the U.S. presidential election. As immigration was a key factor in the vote on Thursday, Trump could find himself with an edge over Hillary.
In an editorial for the Daily Mail, Piers Morgan explained why:
Regardless of what you think of Trump’s inflammatory rhetoric, and his uncompromising talk of walls and bans, does anybody really doubt after this shock Brexit result that he’s right about the levels of anger.
Donald Trump is currently behind Hillary Clinton in most presidency polls, betting odds and Wall Street opinion – but so was the Leave camp for much of the EU campaign.
But this bombshell Brexit result should send a shudder down the spine of Hillary Clinton and all U.S. Democrats.
Morgan added, “If it can happen in Britain, it can most definitely happen in America.”