With the uncertainty of Brexit combined with the abrupt exit of Britain’s Prime Minister Theresa May, the threat of Brexit is much more severe than ever imagined before. Big manufacturing giants are slowing down production and closing manufacturing plants. The brunt is born by the middle class and small business owners. As the economy spins out of control in the downward direction the common man of the United Kingdom is faced with a ton of challenges which a few years ago seemed impossible to occur.
Unemployed individuals and youths are facing a shortage of money combined with the decline of the purchasing power of the Pound leading them to obtain guaranteed loans for unemployed provided by the private lenders. With the ongoing Syrian conflict resulting in the migrant crisis, the British economy is at its knees. The current need for financial institutions is to provide guaranteed to obtain loans to the unemployed sector of the economy. The upliftment of the unemployed middle-class individuals is a compulsory task for Britain’s Administration. If the task isn’t taken into consideration the whole middle-class society might collapse into bankruptcy and revival of such society is an uphill task.
Taxation
Another prominent reason is taxation if the middle-class society isn’t granted guaranteed to obtain loans for unemployed it might also result in a collapse into the tax collection system. More and more people will default on taxation and thus the administration will be forced into bankruptcy. Such an outcome isn’t deniable and shall result in a more severe economic crisis.
All the financial institutions shall be ordered by the government to provide low interest as well as long term obtain loans to the unemployed sectors of the society. Such a move might seem a bit over imagination or against the economic principles but in a true sense we need a strong economy and the base of the strong economy is a much stronger middle class who are securely employed and can pay the taxes on time as he is paid on time. A strong economy results in a stronger purchasing power of the currency.
Lessons to learn from Greece Crisis Fallout
Another scenario is that if the move isn’t taken quickly the whole middle class will collapse, there will be a steep increase in the unemployment rates. Inflation will be at its all-time high, the purchasing power of the Pound will be rock bottom. With an unemployed society and the economy in tatters, it’s a perfect recipe for disaster. Taking an example of a country not much far away is Greece. With having declared bankruptcy, matters took a worse turn when Greece threatened to leave the European Union in Mid-May of 2012. Only after a strong assurance by the European Union of a big Bailout Budget, Greece was reluctant not to leave and stay within the European Union.
Increase in Russian Influence
Another strong case is of possible Russian involvement in the Brexit. During the Greece crisis, Russian willfully paid some of Greece’s IMF (International Monetary Fund) obtain loans. There was a foreseen risk that if Greece’s economic crisis isn’t handled early there might be a risk that Greece side up with the Russians and such an outcome would be potentially disastrous considering the security concerns of the European Union.
With ex KGB spy Sergei Skripal assassinated in broad daylight and investigation reports linking to Russian Links in the involvement. The relations between the two countries are at a new low since the end of the Cold War Era. Around 130 Russian Diplomats have been expelled from Britain in the past few months.
Unemployment Crisis
With the current leadership failed to establish a clear guideline for Brexit the threat of Brexit looms over all over equally from the big corporation to the small ones. Traditional companies like the legendary auto manufacturer Jaguar and Land Rover have started to close manufacturing plants. Airplane giant Airbus announced that if the Brexit terms aren’t good for the business they might pull out all operations from Britain.
There is a strong need for obtain loans for bad credit. Such assistant loans are much needed in an economic crisis. Such actions might result in heavy job losses as subsidiary companies also might pull out the plug from Britain and shift their operations to other parts of Europe. With major companies pulling in the plug it would be hard for Britain to bring in new investments from overseas. With a strong assurance of obtain loans for bad credit no guarantor by the central European Bank, they can pave a new pathway for Foreign Direct Investment.
Trade Trap
With not much overseas investment the main source of foreign capital generation for Britain will be decapitated, resulting in a lower foreign exchange reserve. Thus increasing the overall load on the economy and the government. It’s high time the government needs to act. With the new president of The United States of America not so kind as seen in his actions and a staunch opposer of free bilateral trade, Great Britain is trapped in an even worse situation than ever imagined.
The situation can be solved with the strengthening the base of the economy that is the middle class. With guaranteed loans to the middle class, the backbone of the economy can be strengthened up thus the overall functioning of the administration can be smoothed and with an appointment of a dedicated governing body to scrutinize the whole procedure the after effects of Brexit can be surely adjusted with.
Leadership Struggles
Another need of the hour is strong leadership, a leadership that can handle the opposition blows and strives to provide reliable services to the middle class. With the resignation of David Cameroon and swearing in of Theresa May a strong hope, a new wave of optimism fill in but was quickly squashed by the abrupt by polls by Theresa May.
There was a strong comparison of Theresa May to Margaret Thatcher but sooner or later she fell out and couldn’t handle the pressure of Brexit. A strong middle class ensures a stronger economy and a stronger leadership ensures political stability and a combination of both present a strong nation.