Brexit: 1 good, 5 gazillion bad?????

brexit-and-trump

The worst double-act since Dick and Dom.

Ugh.

You know who I mean. I don’t want to think about them and I’m sure you don’t either.

Unfortunately, I have to. I’m an economics student.

Sorry folks but this ain’t gonna be pretty.

That’s the truth. Sure, Brexit might not be such a bad thing (maybe) but 4 years of President Trump??

Jeez; shoot me now.

Okay, things might not be so bad. It’s not like he wants to build a wall or start a trade war with China or spout the BBC is fake news or scrap Obamacare or… or…

Oh wait…

This is what happens when people like Trump get in power. Bad things happen. People lose faith. Bloggers like me start rambling in their posts.

Where will it stop?!?

Back to Brexit…

How?!

Some say it could be a fantastic opportunity for Britain. The majority, however, think it’s pretty bad.

I say the majority. Clearly this isn’t the case. The referendum vote was pretty much a 50-50 split.

Why did this happen?

There are a whole bunch of reasons. I can’t begin to list them and nor can I claim I know what they are.

Whatever they are, I’ve heard a lot of people blaming others for the outcome of the result. To my mind, this isn’t right.

We live in a democracy. If you’re not going to like the answer, you don’t ask the question.

The conservatives took a risk. They hoped the referendum would stop in-fighting within their own party.

It backfired.

There’s more to it than this though. For years, the poorest members of our society have lacked a voice. It started with the bashing of unions and has continued with stagnating wages.

Sure, employment in the UK might be at a record 11 year high. Have you seen the composition of these jobs though?

Shelf-stacking roles are hardly the most rewarding. Trust me – I’ve been there.

This isn’t to say only the poorest voted to leave.

Many people from all different backgrounds feel the EU in its current state doesn’t benefit Britain – either socially, economically or otherwise.

Immigration debates are likely to have played a role. However, more important issues like employment and a lack of social housing have been on the lips of the electorate for years.

Perhaps a vote for Brexit was a way of getting their story out?

It’s happened before. Lucas Goodwin did it in House of Cards (*SPOILER ALERT*).

But surely we’re better off than before? Open trade benefits everyone, right?

Money men in suits might think Brexit’s bad. After all, the UK’s ‘crown jewels’ – the finance district – may soon see a lot of business move to Frankfurt.

But what about that the people who have seen their towns change dramatically over the last 30 years? Maybe they were happy with how things were before?

There are, of course, potential flaws in such an argument. Times change. Things change. People can think the change as bad and perceive it as so. Equally, however, they could see the same change as a glorious opportunity to learn about new cultures.

Either way, a more open world benefits the top. But does it support the masses?

Believe it or not, I’m not a lefty. I just try to make sense of things without letting political ties cloud my judgement.

I’ve rambled about Trump. I’ve rambled about Brexit. Now for the nitty-gritty. What is a vote for Brexit likely to mean for you and me? Will it make us better off or are we about to see a meltdown of apocalyptic proportions???

Here are just some of the ways in which Brexit will affect your life.

A Vote for Brexit

Inflation

Many commentators have said UK inflation is set to rise.

We’ve already seen signs of this. Last month, many companies, including Lego, announced their prices will increase due to the impact of the pound falling in value.

How does it work?

Basically, because of the Brexit vote, investors got scared. They pulled their money out of the UK and have chosen to place it elsewhere. For whatever reasons, they perceive the UK as being a more risky home for their funds.

This outflow of money increased the supply of £s in currency markets. What do you know – the pound’s value fell to 31-year record low against the dollar.

With this, imports become more expensive. This is because people need to supply more pounds in order to buy the same value of goods and services.

As a country which imports a lot of goods, this is the main reason why we can expect inflation to bite in the coming months.

Will it bite for a long time? Only time will tell.

Higher costs of going abroad

It’s that bloody pound’s fault again.

Sorry.

It’ll be on the news. Constantly.

You can just picture the headlines:

“Will Brexit affect house prices?”

“Boy dies and officials say Brexit is to blame!”

“Brexit is so hard, one of my teeth has fallen out, cries London’s mayor!”

We’ll have to get use to cuddling up to Trump

Germany hates us. France hates us. The rest of Europe hates us.

Truth is, we probably hate us.

Britain doesn’t have many friends right now so don’t be surprised if Theresa May continues to hold President Trump’s hand.

Conclusion

For now, the jury’s out. Only time will tell if Brexit’s good or bad.

Personally, I think tough times are ahead.

But hey – what do I know? If you’d told me a year ago we’d have left the European Union and the ex-host of The Apprentice USA would be President, I’d have said some pretty unpleasant things.

Time for me to go bang my head against a wall.

 

3 comments

  1. Great post, I would say though that even getting close with Trump isn’t long term solution as Britain has struggled to get congress support for NAFTA since 1945 (largely because we only payed of WWII loans from the Marshal Plan in 2006 – it took 61 years)!

    Like

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