As UK citizens prepare to vote next week on whether to remain part of the European Union, what impact will a potential “Brexit” have on the global economy?
In this week’s UpFront, we ask Angel Gurria, the secretary-general of the Organisation of Economic Cooperation and Development, about the EU referendum and the OECD’s 2016 Economic Survey on the US economy. This interview was recorded prior to the killing of British MP Jo Cox.
In the Reality Check, we look at how economic sanctions often cause more harm than good. And in the Arena, we debate the pros and cons of Universal Basic Income with Swiss Senator Andrea Caroni and expert Dylan Matthews.
OECD chief: Brexit is ‘bad from every single angle’
As Britons decide whether to stay or leave the European Union, those outside of the UK are asking what a potential “Brexit” would mean not only for the UK, but also the global economy.
The OECD has warned of the consequences of a potential British departure from the EU, saying the UK economy would suffer a “major negative shock”, resulting in an “economic fallout” for other countries within the OECD.
In this week’s Headliner, Mehdi Hasan speaks to OECD Secretary-General Angel Gurria about what a potential “Brexit” would mean for the world economy.
“Frankly, it’s bad from every single angle,” Gurria says, “Everybody’s looking at it from different angles and the one common thread is it’s negative, it’s negative, it’s negative, it’s negative.”
Gurria also believes that a Brexit would have a “knock-on effect in Europe and in the world”.
The OECD secretary-general also discusses inequality and a new economic survey on the US economy.
“The US is moving along, it should stay the course, but that it has a number of very important challenges, mostly having to do with productivity,” Gurria says.
Editor’s note: This interview was recorded prior to the tragic killing of British opposition MP Jo Cox.
Reality Check: Economic sanctions can kill too
As far back as ancient Greece, governments have tried to stop their enemies and bring about change via blockades, embargoes and even economic sanctions.
While there are times when such sanctions have worked and do work, studies have shown that the majority of sanctions are unsuccessful in their intended purpose and sometimes cause great harm to those affected.
In this week’s Reality Check, Mehdi Hasan looks at how most sanctions do more harm than good.
Is it time for Universal Basic Income?
What if the government gave every citizen a minimum cash payment, paid right to their bank account every month? That’s the premise behind Universal Basic Income, or UBI.
Earlier this month, voters in Switzerland overwhelmingly rejected a proposal that would have provided a universal basic income grant to all. However, other countries such as Canada, the UK and Namibia are considering similar measures.
Proponents of UBI say such income would help with rising unemployment and fight inequality and poverty, but opponents argue that the initiative would encourage people to quit their jobs and in turn, would have a negative impact on the economy.
In this week’s Arena, Andrea Caroni, senator and vice president of Switzerland’s Free Democratic Party who campaigned against Universal Basic Income, debates with Dylan Matthews, a journalist at Vox, who has written extensively in favour of UBI.