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A post Brexit vote recession could cost the Tories the next election

May 15th, 2016

Brexiteers are in danger of being blamed for the next recession even if it has nothing do with Brexit

On one side we have, inter alia, the Prime Minister, the Chancellor, and the great and the good, from the IMF, the OECD, NIESR, The Bank of England, and their Governor, Mark Carney, who the polls suggest is political Kryptonite against Leave, forecasting Brexit as being somewhere from very bad to a visit from the Four Horsemen for the UK economy.

On the other side you have Leavers like Tory Priti Patel who said “The EU-funded IMF should not interfere in our democratic debate … It appears the chancellor is cashing in favours to [Christine] Lagarde in order to encourage the IMF to bully the British people.” Some Leavers say the Treasury’s figure that every household would lose £4,300 was a bargain, another said the ‘insecurity [of Brexit] is fantastic’, whilst another prominent Leaver said publicly he would would welcome the economic apocalypse of Brexit, and would be delighted to provide free accommodation to the Four Horsemen whilst they visited the UK*.

So the meme that Brexit is bad for the economy has been effectively seeded, and a stand alone UK recession in the short term after a Brexit vote could see that meme germinate in a way that is not optimal for the Tories, especially if a Leaver succeeds David Cameron.

In various polls, the voters generally sees Brexit as the worst option for the economy, and for them personally, than remaining in the EU, even in the polls that have Leave ahead, so it is easy to see that seed has been planted in the minds of voters.

At the last general election two of the Tory Party’s strongest assets were David Cameron and their stewardship of the economy, they will be fighting the next election without the former. A post Brexit vote recession means they could be fighting without the latter asset too. 

Sometimes perceptions matter more than the facts, Leavers shouldn’t complain, we saw it how badly the ONS report on National Insurance figures was reported this week, as this tweet  and this article show.

The events of Black Wednesday helped in part to keep the Tory Party out of power for thirteen years, and the legacy of the 2008 credit crunch has the contributed to Labour losing the last two general elections.

When the voters can blame the government for an avoidable economic disaster, they don’t forget it. They know politicians don’t have the ability to abolish boom and bust, that’s why for example the Tories didn’t lose the 1983 and 1992 general elections, which came shortly after/during recessions. 

As the mantra goes, oppositions don’t win elections, governments lose them. Labour could say a post Brexit vote recession was foretold, and the Leavers ignored their warnings, even if the recession is a normal cyclical recession. 

Inadvertently the Tory Party may have salted their own electoral ground during this referendum campaign, it’s almost like if after The Third Punic War, The Roman Republic had accidentally salted Rome instead of Carthage.

TSE

*That last one isn’t true, but with the way this campaign is going with talk of armed conflict if we leave and the EU being like Hitler, it is entirely possible for someone to say something that outlandish in the remaining forty days of this campaign.