Brexit realized that the United Kingdom has steadily weakened the wealth of most of the Empire since last year’s World War II – the exchange rate in the United States remained at between 1.60 and 1.40 euros during the year prior to the 2016 referendum. In the 1950s Pound sterling 4 US dollars, the pound in 1992 for 2 pounds, it is too poor.
Manufacturers are not able to make high-value currencies cheaply, reliably or efficiently, forcing many to give up. In the 1980s, economies that made up 20% of their manufacturing revenue found that in the early part of the decade, the economy had only 10% of its revenue.
The 70-year post-war rise in gross domestic product can be attributed to (this brief list makes the point brutal) to periods of low raw material and energy costs; or population growth; or foreign ownership of key industries And management; or remove a large number of countries and shared assets; or cheap borrowing. Without these measures to improve Britain’s performance, the decline in exchange rates is inevitable.
Some British Brexit players have created a cheaper currency for their explicit goals, believing that while short-term British wealth and world status will decline, the breathing space for manufacturers will allow them to sell at a lower price To foreign countries, and then use the funds to invest and obtain the required efficiency, to meet the resumption of higher exchange rates at some point in the next decade.
This argument has a lot of logic, but like many revolutionary goals it relies on the many, competing forces in the economy, exactly as their supporters hope.
For example, manufacturers with a few exceptions also refuse to invest more than the minimum for decades, even when the exchange rate helps them. When the currency falls, there will be unexpected profits: But these huge profits have been dragged down by shareholders, and no input.
Banks are also barriers to growth, mainly requiring drugs that get out of the possessions. This is why Shadow Minister John McDonnell strongly advocates that regional banks bypass existing high street lenders.
Again, this looks like a New World solution to the ancient problems. What is more far-sighted than this, leading to more diversification, more diverse than a new financial lender who supports an entrepreneur who is responsible for finding success?
But the risks are enormous – not just lending to people who have lost their business plans, but also creating an institution caught in the quagmire of Britain’s best management. Without a revolution in the way companies and public sector agencies are managed, self-reliance is hopeless. This is why the auto industry is now owned and operated by foreign investors.
Brexit is also considered the answer to a UK pay raise. With fewer immigrants, the argument is that the labor market will tighten, and too long before workers find themselves in the bidding salaries.
Not so fast The six-year economic recovery has seen so much growth in the low-income services sector that businesses that face angry employees are more likely to close without reporting. They provide cap-and-trade services: for more, clients will choose to do other things. This applies to hotels and coffee bars. They all may suffer huge pain.
So does the solution to a more balanced and faster-growing economy provide incentives for existing institutions (a lower pound for exporters) or bypass institutions like today’s commercial banks, domestic production Total dialing will not be guaranteed. If all this means that the jobs they are working in are gone, then there is no difference in the power to migrate from lower levels to workers.
Brexit is just one thing – even if you accept the socialist premise of a country or accept the free market wealth on paper. This is a clear issue when so much of the British dependence on growth is drying up.
Not too much state assets left for whipping. Raw materials and energy costs are rising, while foreign ownership and management capacity in key industries may decline as Brexit cut off contact with the world’s largest free-trade group.
This quarter, the fourth quarter of 2017 GDP data will show the economic trend of the economy on Christmas Eve. If only modest growth can be achieved as long as borrowing is still cheap. Without cheap borrowing, the prediction of a downturn will come true.