The Effects of Brexit on Great Britain
What is Brexit? Is it a city? A state? Or does it refer to something else? To better understand what Brexit is, one has to go back a few years to the formation of the European Committees. These committees were developed to allow for a single trade market and a standardization of systematic laws which would help bring prosperity and stability to the then non-united European region. Eventually, in the mid-1990’s, the European Committees developed into what is now known as the European Union which would eventually include 28-member states. The term Brexit refers to the 2016 invocation of Article 50 of the Lisbon Treaty by the United Kingdom. A topic of much debate and controversy, the people of the United …show more content…
One study in particular by The Center for Economic Performance at the London School of Economics states that leaving the EU will decrease the British Gross Domestic Product(GDP) by 9.5% On the other side, the United Kingdom Independent Party(UKIP) claims that using Article 50 and withdrawing from the EU will increase the British economy by almost 10%. There is a large variance between these two predictions of almost 20% which goes to show how difficult it is to predict the overall effect of such a decisive maneuver. Other studies done by the Confederation of British Industry and the National Institute of Economic and Social Research estimate that Brexit will lower British GDP anywhere from 2% to 5%. The biggest cause for worry is that leaving the European Union means that all of the UK will no longer have access to the EU single market. Leaving the single market means that free trade, as it was in the past, is highly unlikely. Thus opening the door to tariffs, different business practices, immigration challenges, and much more. This will prove to be a complex undertaking with countless demands to address.
Currently, Brexit negotiations between the EU and the UK are still underway. These negotiations are crucial because they will help to determine the type of access the UK has to the EU’s single market, to the world market, and …show more content…
Being independent of the EU holds that the UK is entirely responsible for its own borders, meaning that there will be a transition from the old EU rules and procedures to the new rules and regulation soon to be instated. The borders will, in a sense, become locked down and will be restricting the flow of persons over the border. Resources that would be otherwise allocated will be put towards this. The question arises, how does this impact the workforce in terms of labor? Essentially, this limits the flexibility of the labor force in its ability to live in a neighboring country and cross over to Britain, which is an economic hub, to work. Pre-Brexit, the immigration of the workforce contained more skilled labor vs unskilled to the point that the new arrivals to Britain were generally more educated than the British nationals. Yearly, there was .5% increase in the workforce prior to Brexit. This steady increase supported the ability of the British economy to have continued growth without pushing up inflation and keeping interest rates
What is Brexit? Is it a city? A state? Or does it refer to something else? To better understand what Brexit is, one has to go back a few years to the formation of the European Committees. These committees were developed to allow for a single trade market and a standardization of systematic laws which would help bring prosperity and stability to the then non-united European region. Eventually, in the mid-1990’s, the European Committees developed into what is now known as the European Union which would eventually include 28-member states. The term Brexit refers to the 2016 invocation of Article 50 of the Lisbon Treaty by the United Kingdom. A topic of much debate and controversy, the people of the United …show more content…
One study in particular by The Center for Economic Performance at the London School of Economics states that leaving the EU will decrease the British Gross Domestic Product(GDP) by 9.5% On the other side, the United Kingdom Independent Party(UKIP) claims that using Article 50 and withdrawing from the EU will increase the British economy by almost 10%. There is a large variance between these two predictions of almost 20% which goes to show how difficult it is to predict the overall effect of such a decisive maneuver. Other studies done by the Confederation of British Industry and the National Institute of Economic and Social Research estimate that Brexit will lower British GDP anywhere from 2% to 5%. The biggest cause for worry is that leaving the European Union means that all of the UK will no longer have access to the EU single market. Leaving the single market means that free trade, as it was in the past, is highly unlikely. Thus opening the door to tariffs, different business practices, immigration challenges, and much more. This will prove to be a complex undertaking with countless demands to address.
Currently, Brexit negotiations between the EU and the UK are still underway. These negotiations are crucial because they will help to determine the type of access the UK has to the EU’s single market, to the world market, and …show more content…
Being independent of the EU holds that the UK is entirely responsible for its own borders, meaning that there will be a transition from the old EU rules and procedures to the new rules and regulation soon to be instated. The borders will, in a sense, become locked down and will be restricting the flow of persons over the border. Resources that would be otherwise allocated will be put towards this. The question arises, how does this impact the workforce in terms of labor? Essentially, this limits the flexibility of the labor force in its ability to live in a neighboring country and cross over to Britain, which is an economic hub, to work. Pre-Brexit, the immigration of the workforce contained more skilled labor vs unskilled to the point that the new arrivals to Britain were generally more educated than the British nationals. Yearly, there was .5% increase in the workforce prior to Brexit. This steady increase supported the ability of the British economy to have continued growth without pushing up inflation and keeping interest rates