Monday, 11 July 2016

The devaluation of devaluation

One of the reasons Greece is so fucked is because it's in the Euro it doesn't have a currency to devalue to make itself more competitive, draw in foreign investors etc., etc., So arguably, the post Brexit vote devaluation of Sterling is a good thing for the British economy ... ish.

British manufacturing has spent decades being restructured into a sector at a remove from immediate price senstitivties; you don't buy a Rolls Royce jet engine because it's the cheapest, you buy it because it's the best. Similarly, you don't buy Scottish whiskey because it's 37p cheaper than a Bulgarian equivalent.

Britain simply doesn't make much in the way of price sensitive goods anymore, but is reliant on imported materials to make things (and to eat) and imported things are now more expensive.

Similarly, devaluation might have attracted more foriegn investors, except their access to EU markets is now up for debate. So again, no win there.

True, it should boost tourism a bit, except will the tourists be asked when they're going to leave because we (by we, I mean Brexit voting fucktards not me) won the vote?

No comments:

Post a Comment