Friday, January 04, 2013

Increase manufacturing jobs in UK by depreciating the Pound Stering

Britain suffered from high unemployment through most of the 1920s, leading Keynes to recommend the depreciation of sterling to boost jobs by making British exports more affordable.
Because of the unusually high overseas profits of UK financial service businesses, the UK pound is perpetually overvalued and this results in a permanent deficit on our manufactured trade with other countries, and permanent mass unemployment in areas where there is no alternative employment to that of manufacturing.

....the World Bank and International Monetary Fund (IMF), were founded as a compromise that primarily reflected the American vision. There would be no incentives for states to avoid a large trade surplus; instead, the burden for correcting a trade imbalance would continue to fall only on the deficit countries, which Keynes had argued were least able to address the problem without inflicting economic hardship on their populations. John Maynard Keynes 

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