Has Brexit Damaged the UK Economy? | A-Level & IB Economics

Описание: Nearly eight years since the 2016 Brexit Referendum, Geoff explores some of the economic effects and argues that, whilst there are some upsides to Brexit, overall it is linked to weaker macroeconomic performance. Is it now time to make the case for the UK to rejoin the EU single market and customs union?

#tutor2ueconomics #brexit #brexitbritain

VIDEO CHAPTERS

00:00 Introduction
02:15 Potential benefits of Brexit
04:07 Worsened labour shortages
08:21 UK trade hit
15:38 Higher living costs
16:25 Lower business investment & productivity
19:11 Conclusions

VIDEO SUMMARY

This video is about the impact of Brexit on the UK economy. Geoff argues that Brexit has been damaging to the UK economy. He acknowledges that there were some potential economic opportunities from Brexit, such as the ability to strike new trade deals with other countries and more policy flexibility. However, he argues that these benefits are outweighed by the negative consequences.

Geoff suggests four ways that Brexit has damaged the UK economy:

WORSENED LABOUR SHORTAGES

After the referendum, there was a sharp decline in net migration from the EU. While net migration from outside the EU has increased, this increase has largely been driven by non-economically active students and humanitarian immigration. This has led to a shortage of skilled workers in the UK.

HIT UK TRADE

Leaving the single market has increased trade barriers between the UK and the EU. This has made it more difficult and expensive for UK businesses to trade with the EU.

HIGHER LIVING COSTS

Brexit has contributed to higher living costs in the UK. This is partly due to the increased cost of goods and services from the EU, as well as labor shortages which have put upward pressure on wages.

WEAKENED INVESTMENT AND PRODUCTIVITY

Brexit has created uncertainty for businesses, which has discouraged investment. This has in turn led to lower productivity growth.

Geoff concludes by arguing that the UK should rejoin the European single market. He acknowledges that this is a controversial topic, but believes that the negative effects of Brexit outweigh the positives.