In the United States, the economy should be strong enough to navigate through the Brexit bump. Yet, the perception of the economy may be the economy’s biggest vulnerability, he said.
“We have been in an economic recovery that doesn’t feel like an economic recovery. So we have been waiting for some other shoe to fall. This gives us an excuse to think the worst. We can handle a little freak-out, but we are on a razor’s edge here.”
Smith called his perspective, tempered pessimism
And with only slightly more emphasis on the second element, was Marcus Marktanner, an economics professor at Kennesaw State University’s Coles College of Business.
To predict a Brexit outcome would mean knowing the answer to so many questions, he said: What happens to the exchange rate — up or down and how much? Will London remain a financial hub? What will happen to the movement of workers, goods, services and capital?
And ultimately, how will all the other players – individuals, companies and countries – respond to what Britain is doing?
“I cannot imagine that trade and investment activity between the UK and the rest of the world, including Georgia, will not be negatively affected,” he said. “Economic crises are like the flu, they are contagious.”