Brexit, the E.U. and the "Special Relationship" of the U.S./U.K.
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Brexit can be constructively viewed as a systemic step towards solving existing
scarcities.
In the conventional narrative, Brexit is about immigration, escaping the EU's
bureaucrats of Brussels, class war or political theater. It may be about all of these,
but beneath these surface issues lies a deeper dynamic: a recognition that the
entire system is broken and a new arrangement of power, responsibility and risk is
required.
In this view, Brexit is a positive step in the right direction, away from
centralization and central planning and towards decentralized arrangements that
enable more dynamic, localized solutions.
Longtime readers know that I focus on scarcity as the source of value creation:
what's scarce generates value, profits and high wages, and what's abundant declines in
value due to supply and demand.
Correspondent Ron G. views Brexit as a systemic step towards solving existing
scarcities. Scarcity is not limited to goods and services; agency and autonomy
can be scarce; responsibility that connects risk and return can be scarce; level playing
fields can be scarce; rule of law can be scarce; opportunity can be scarce; entrepreneurial
drive can be scarce; self-reliance can be scarce; social innovation can be scarce;
social capital can be scarce, and the willingness to accept losses
and the risks required to change the power structure can be scarce.
Political expediency can be over-abundant, as can protected privilege.
Ron submitted this photo and commentary on Brexit and scarcity:
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