Thursday, Britain voted to withdraw its membership in the European Union, effectively making one of the largest economies in the world an island itself.
While a lot of people in America may not be paying a lot of attention to what goes on across the ocean, this historic decision actually impacts the United States in quite a few ways.
Here are seven ways the ‘Brexit’ vote will affect you and other Americans
The the vote was announced, the Dow Jones has plummeted. At the time of writing this piece, it is down 515 points:
However, this should be expected. according to Fortune, this turbulence in the stock market is going to last for several weeks.
Your 401K might take a hit.
If you have a 401k, the chances of it reacting poorly to ‘Brexit’ is strong, but only for a short amount of time.
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.
One of the biggest reasons for Brexit was for a stronger immigration policy was one of the biggest issues on their minds. Some Britons feel their jobs are being taken away by migrants. As a member of the EU, the United Kingdom was forced to relax its border policy.
The United States has similar sentiments with 61% of Americans saying that mass immigration to the country ‘jeopardizes its future,’ says Bloomberg Businessweek.
If you’ve been planning to refinance your home, CBS News says that 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.
We could see a state in the U.S. attempt its own ‘Brexit.’
There are quite a few movements in the United States where small groups of people want to secede from the Union, but none of them are as large 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 the following in a Facebook post:
His post says the following:
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.
If you planned to vacation in the U.K. this summer, it might cost you less.
Traveling to the U.K. usually costs quite a bit of money.
Yet, ‘Brexit’ could make things a bit easier on your wallet, says 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.
The 2016 Presidential Election.
The United Kingdom’s majority vote for ‘Brexit’ could mean big things for the U.S. presidential election. Immigration was a key factor in the vote on Thursday, Trump could find himself with an edge over Hillary.
An editorial for the Daily Mail written by Piers Morgan explains 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.”