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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