And Eoin Clarke is trying to give us all economic advice

The Tory government is failing UK manufacturing.  Their fiscal policy has failed to strengthen the pound

Facepalm.

A strong pound is bad for UK manufacturing. It makes our manufactured exports more expensive and the import of foreign manufactures cheaper for UK consumers.

7 thoughts on “And Eoin Clarke is trying to give us all economic advice”

  1. To be honest, a strengthened pound may well be good for the UK economy (you can’t run financial services permanently on a low pound) but manufacturing, well, that’s another matter.

  2. If UK manufacturing is about adding value then a strong pound should help by decreasing input costs (imported – and hence domestic – raw materials, labour). So I don’t see this as a one-way street – weak=good and strong-bad.

    The absolute strength, provided it’s not wildly out of whack in terms of purchasing power, shouldn’t actually matter that much – but wild fluctuations (in either direction) will cause trouble.

  3. Oh dear fucking Lord. What a dick.

    (for posterity, at this point 3/4 of the comments slating Clarke for being a dick are from lefties and one is from a centrist. The one defending him is just wrong – UK manufacturing is a high-value-add operation where the costs are largely labour and IP; and the relationship between currency strength and labour costs is not what JamesV things it is).

  4. I can’t see how being poorer (ie a low pound) is a good thing.

    Proponents of this always fail to account how the germans ever managed to still be the largest exporters in the world, when the DM was forever appreciating. The euro has helped them (well, not that much really since all their surpluses are used to prop it up now), but they were doing very well before.

    If you sell crap (think back BL for example), you will always struggle, weak pound or not.

  5. @monoi: I don’t remember the Left having ever praised Mrs T for the helping UK manufacturing in the early 80s by keeping the pound nice and high……..

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