With the arrival of Brexit day, there has been a stir of emotions with the nation’s decision to leave the European Union. Many view this as the beginning of economic mediocrity and geopolitical relevance for Britain, but there is still a lingering question amongst the minds of most - What if Brexit works? Brexit has been stated to be a moment of national renewal, supported by the fact that disruptive change can sometimes be good for a country.
Many believed that Britain can perform much better independent of the European Union, since its growth rate was much slower when it joined as compared to the preceding years. Growth has been concentrated in London and South-East England, so there is opportunity for further economic progression. Borris Johnson has stated that the U.K will be leaving the single market, and working to set up its own regulations and trade deals. Brexit supporters are optimistic that leaving the EU creates space for new and improved policies, and quite possibly establishing a comparative advantage in the realms of artificial intelligence. Brexiter’s believe that this is the best chance to fix Britain’s long term problems like large trade deficits, weak investments from the outside and lack of competitiveness. Do you believe that Brexit has more positive or negative outcomes involved for Britain’s economy in the years to follow?
4 comments:
I think Brexit has more of a negative impact on the UK's economy. There is huge uncertainty about what is going to happen, and there are no predictions that are optimistic. Of course, they will deal with some short-term issues while their economy settles down, and they have predicted a drop in income and GDP levels after Brexit. They will have a declining percentage of people participating in the labor force, and tariffs will be extremely high, especially to the EU. Therefore, there are more negative effects of Brexit on the economy.
I believe with stricter immigration laws, we can expect a decrease in labour force which might result in decrease in economic growth. To generate revenues, Britain will have to expand labour force by easing off immigration laws which is highly unlikely.
I most definitely believe that Brexit is going to turn out great for Britain both culturally, politically, and economically. Without having to be forced to basically live under a separate nation-state-like government, the UK will be free to forge its own new alliances and will be eager to upstart new growth after leaving the UK; an idea that can only positively affect the British. Using the Swiss as an example, they are surrounded by EU members, yet have been able to craft a great economy that has connections throughout Europe, without the need to listen to government officials that are not selected by their own citizens. In addition, Brexit may also help create new jobs throughout the EU, as UK companies begin to set up shop to conduct international business in the EU.
I think Brexit is overall a positive thing for the UK. Once everything is figured out economically for them, I believe that they will be able to make new alliances with other countries and be able to create many new opportunities for themselves. Saying this, I do think it will take a while for the UK to see positive effects from Brexit just because they will have to basically need to redo all legislation and basically start from the beginning.
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