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Brexit: Breaking up the Cartel

Monopolies are bad for consumers, because they increase price, decrease quality, and reduce choice. Cartels do the same. When a group of businesses work together to reduce consumer choice, it hurts consumers by lowering quality, raising price, and restricting choice.

That's equally true for countries. A large number of small countries, all competing with each other, is great for individuals. Individuals (and businesses) can choose where to go, based on the regulation, taxes, etc. of the country.

The EU is functioning as a cartel. High, uniform regulations and massive fees apply to everyone in the EU. And businesses and entrepreneurs cannot simply go to a neighboring competing country, because that country has the same restrictions.

Brexit is the first step to breaking that cartel, and eventually creating more choice. As the EU breaks apart, countries will engage in regulatory competition. That means that they will compete to have better, more attractive laws to attract the most productive people.

A single European cartel is good for large, politically powerful businesses that seek to politically and unfairly control the marketplace. It is good for politically powerful unions, who increase costs and hamper productivity. But is is bad for everyone else. The rest of us benefit from regulatory competition.

When countries compete for productive citizens, all productive citizens win. It gives us better options and more choices.

Imagine if governments had to compete for productive citizens by lowering taxes and reducing regulations on entrepreneurs. There would be more jobs and a better quality of life. Brexit is the first step in that process. I encourage productive individuals in all other EU nations to push for referendums, and to vote to leave.

In Liberty,

Arvin Vohra
Vice Chair
Libertarian National Committee