The Fall of the Pound Is Good News for the United Kingdom
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Wednesday, 27 February 2013 05:37 |
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At least it is for those who want to see its economy grow. In a context where the government is cutting back spending in an already depressed economy, the boost in net exports that would be expected to be the result of a lower valued currency is pretty much the only plausible source for an increase in demand. It would have been useful to mention this fact in an article that implied the fall in the pound is bad news for the UK.
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Not long ago I was listening to a "free speech" Berkeley radio station when Dean Baker came on, and the host complained to him that the exchange rate wasn't right, because it cost him, the host, too much to travel in Europe. Dean was obliged to explain patiently that it wasn't just about the comfort of a fortunate few travelers, that the exchange rate also had implications for the viability of our manufacturing sector, and many jobs therein.
But such mistakes are standard fare at this Berkeley radio station, where they were also miffed at the thought of reducing some tax deductions, never mind the upwards transfer of wealth that our tax code produces.
How reactionary these Left opinion-makers have become, in their ignorance.