Insight With Beth Ruyak

Hosted By Beth Ruyak

Insight creates conversation to build community, exploring issues and events that connect people in our region. Insight covers breaking news and big ideas, music, arts & culture with responsible journalism, civil discussion and diverse voices.


Monday – Friday, 9 a.m. – 10 a.m. and 7 p.m. – 8 p.m.
on News Station

 We Get Support From:
Become a Supporter 
 We Get Support From:
Become a Supporter 

Travel Prospers, Exporters Suffer In CA Following 'Brexit' Vote

Elliott Brown / Flickr

Elliott Brown / Flickr

The state of California could move from the world’s sixth largest economy to fifth largest following Britain’s referendum to leave the European Union last week.

Sacramento-based economist Jock O’Connell says this bump up would come with a cost. The pound dropped in value from $1.48 to $1.32 against the U.S. dollar and the euro has also been gradually declining.

O’Connell says the exchange rate makes it less favorable for European tourists to come to the U.S.

“California’s a major tourist destination,” O’Connell says. “It’s going to cost a typical European visitor much more to visit California or elsewhere in the United States this summer. So we’re likely to see a substantial impact on our tourist trade coming out of both the UK and the EU.”

Meanwhile, the exchange rate favors U.S. tourists going to Europe. O’Connell says people could get more out of their dollar if they were to head to Europe this summer.

While cheaper trips to Europe are a bonus, California exporters are not likely to have the same luck. Britain essentially has to pay more for their goods, which means California exporters won't make as much.

O’Connell says the state racked in about $5.1 billion last year from exporting.

He agrees with other financial experts stating that California’s economy will need transition but will remain secure despite the “Brexit" referendum.

“It’s not the end of western civilization as we know it, it’s the end of a version of the story of western civilization," O'Connell says. "I don’t think this is something that merits draconian reactions.”

Jonathan Ayestas

Assistant Producer

Jonathan Ayestas is an assistant producer for Insight. He will be a senior at Sacramento State this fall.  Read Full Bio 

More From Insight With Beth Ruyak

Sign up for ReCap

and never miss the top stories

Delivered to your inbox every Wednesday.

Check out a sample ReCap newsletter.