Other than catchy proposals, Brexit is more than an escape path. The recent decision to leave the European Union has altered the course of European politics. The EU originated in 1958 following World War II as an effort to unify nations in Europe. Hoping to have greater teeth to prevent war once more, the 26 nations aligned to restore their past control. Economically, the small European states -Belgium, Denmark, Luxembourg, and other lowland countries- could not compete with the new global powers in the US and Asia. Their post-war economic miracle was at the expense of the West, where the production within the US and Japan skyrocketed as Europe struggled to regain stability. To emerge and stand a chance against the other nations, the coalition was to assist their restoration. Because of Greece once threatening the structure of the EU when they declared bankruptcy in 2015, nations have realized that their collective work was not working to its full capacity in terms of employment. Their socialist system desensitizes workers motivations and made their economy less productive.
The European Union has struggled in the past and continually face issues because they are not all in the same economic standings. Several nations, like Denmark or the Netherlands, are vastly successful and essentially support the entire group. Those countries are dragged down by the underperforming countries. Bound by a single market, the EU has struggled through it’s devaluing currency. As a result of a referendum on June 23, 2016, the United Kingdom successfully voted to leave the Union. The official voting percentage for the referendum was 51.9%. This slim margin was enough to show a majority, however shows how divided the UK was over the decision. While the majority ruled for the departure, the unintended consequences led to major discontent from Scotland. The country’s First Minister Nicola Sturgeon called the leave as “democratically unacceptable,” and made it likely for a second referendum on behalf of Scotland and Northern Ireland for reunification with the EU, because they are separate countries but a part of the United Kingdom.
Other consequences of Britain’s departure from the European Union included the shock in currency, as it fell drastically in the hours after the vote. The deflation is dangerous in terms of employment and the overall health of the economy. The devaluing currency will allow foreign nations to buy more in Britain because of the lowering foreign exchange rate. This will reverse the balance of trade, thus benefiting other nations. In addition, Britain’s Prime Minister, David Cameron, resigned his position and called for a replacement leader for the Conservative Party.
However, in the wake of all the changes, the House of Commons and Bank of England have worked out plans to balance the economy to an equilibrium. If facing inflation, they can cut interest rates to raise aggregate demand as economic easing. In the midst of deflation, the bank could raise interest rates, thus making debt more expensive to pay off, still ensuring marginal propensity of savings.
Those opposing Brexit consider the loss in foreign investments as a result of the degrading economy. However, this shift may not look as unattractive to investors who can pay less for businesses and shares. Regardless of the outlook, the decision to leave was one of great importance, signifying the many restrictions on business the countries face in terms of business regulation and economic control. The UK also wanted control over immigration, especially in the wake of the Syrian refugee crisis. Due to the instability within the conflicting interests in Syria, many citizens have been trying to leave the nation in a state of emergency. Mostly migrating to Western Europe, nations have dealt with housing and protecting the civilians however costly it may be. Immigration control has tightened with time due to the increased demand.
After the post-World War II trend of alliances with the United States and the Soviet Union, North Atlantic Treaty Organization (NATO), League of Nations, and European Union included, the world has found strength in numbers. But through modern trends, it is apparent that the world is drifting apart from their cognitive boundaries. Will the routine follow until the world is completely isolated, or will this separation mark and beginning to the second wave of neo-colonial dissolutions.
