A song and a dance deficit

Whilst barriers to export monies had been removed a long time ago and the UK concentrates on education and arts, it is absolutely no wonder that the widening trade deficit starts to hit us. We allow more and more housing per square meter available and close down manufacturing and business to allow that to happen.

Of course any UK based rich person can invest their money in an overseas country to produce cheap goods, which are then imported to the UK. Taxes are not paid to the UK but to the manufacturing country and the rich person themselves has changed residence to cheaper tax heavens.

Of course the international drive to exploit cheap labour markets to make more profits cannot be stopped as it is only the nature of business to make as much profit as possible. Business does not have an ethics built in, the ethics come with understanding and promotion of them, sometimes by individuals and sometimes by governments.

It’s only the biggest trade deficit since September 2011, when we already had a big deficit at that time but no remedial action was taken. Our imports from EU countries remain unchanged at £17.1 billion, which explains that we only import the absolutely necessary from relatively expensive labour markets, in European countries.

But there is hope because as soon as living standards rise in the currently cheap labour markets, we won’t be able to afford their goods and services any longer and have to seriously consider making goods ourselves once more. Just wonder where that would take place, when all space available gets increasingly occupied by housing.

Maybe we will also see a general reduction in manufacturing worldwide because increasing earth warming will remind us that it is exactly the manufacture and use of machines and goods, produced using natural resources that makes our temperatures soar.  Some Chinese residents recently dared to complain that their river is in danger of pollution if a factory is allowed to spew out waste into it, whilst previously those residents just died quietly from poisoned waters.

The other question is do we really want to be on the top of the manufacturing table? Just prior to World War I and World War II Germany was much superior in a low trade deficit and high manufacturing output, whilst Britain lagged behind.

During these Olympic games Britain has shown the world that this relatively small country cares a lot about health and fitness of its inhabitants, see the medal table to proof it.

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