Wednesday, 29 May 2019

What does Brexit really mean to the UK population?

Britain is about to leave the European Union in October, British people want to know how Brexit will affect their lives. There have been many economists predicting that Brexit will cost the UK many jobs and economic opportunities. My opinion is almost the same. However, I think that what people may care more if how their individual lives will be affected rather than how the entire economy will be affected.
Different groups of people will be affected differently. Pensioners are almost unaffected in terms of their incomes; however, their asset valuations will be affected by Brexit. People who are in senior positions in their companies or organisations will be less affected, as their jobs are much more secure than their junior colleagues, because their experiences make them less replaceable. For the UK students, Brexit might be good. At the moment, the EU students enjoy the same level of tuition fees at UK universities as the local students; after the UK leaves the EU, the EU students may need to pay the overseas student tuition fees, this could reduce the demand from the EU students for the UK education, which means less competition for the UK students. For those who depend on benefits, their lives are very challenging at the moment and will stay challenging after Brexit.
The most immediate change brought by Brexit is the consumer goods in stores. The prices will be increased when the UK leaves the common market, since the UK imports lots of goods from the continent, for example, the UK imports lots of fruits from Spain. Anything imported from the EU will become more expensive. This will significantly affect many ordinary people's lives in the UK. Moreover, some British people may take back some low paid jobs from other EU nationals in the UK, the labour cost will be higher, so some services will cost more after the UK leaves the EU.
Overall, there are some jobs at risk; however, such risk is relatively limited, especially in the short term. I think that the major immediate impact of Brexit is an inflation driven by costs.

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