The Conservative Party

Manc in London said:
You think investment in the UK by international companies will increase? That's blown my mind.
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If an international company or a wealth fund has an investment choice between countries, development cost is a major factor. So yes a weak pound will help sway that decision somewhat towards the UK. Its not the only factor obviously. Its not economic rocket science.
 
The reduction in the value of the £ has been tried before, many times, and it is a failed policy.

We have to import many, many raw materials (to say nothing of fuel which is priced in dollars.) These increasing in cost means that output prices increase in cost very soon after, and bang goes your advantage.

Another issue is that UK assets - such as houses - become cheaper for foreign buyers. So speculators (like the Chinese) buy up more houses and flats to rent out. And people wonder why house prices and rents keep soaring.

This budget is a huge, reckless gamble. That it is perpetrated by an alleged 'Conservative' government - who have always claimed to be the party of fiscal responsibility - is fucking mind-blowing.

It isn't quite on the scale of Adolf wanting to destroy Germany's infrastructure when he realised defeat was inevitable, but it is in the same ballpark.

If the UK public has any sense, the Tories will be smashed at the next GE.
 
Churchlawtonblue said:
If an international company or a wealth fund has an investment choice between countries, development cost is a major factor. So yes a weak pound will help sway that decision somewhat towards the UK. Its not the only factor obviously. Its not economic rocket science.
Click to expand...

Thanks for the economic lesson. It's been a while since I spent 5 years studying the subject.

I'll return the favour.....you are naive to think that and marginalise the plethora of other issues: likely squeeze on public sector funding (including transport infrastructure), land is overpriced (even accounting for favourable FOREX), low productivity, poorly skilled workforce, labour supply issues, uncertainty about what trade markets can be accessed, likely future squeeze on incomes etc.. There are more obvious issues, as well as the seemingly back of a fag packet analysis of the impact of fiscal, and wider economic, policies. We are a basket case.
 
They are telling us that these extremely expensive and risky measures are to attract business and important workers into the UK. So why the fuck did they force a hard brexit that drove business and important workers out of the UK?
 
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