Only if we try to compete in markets where labour costs dominate.And it's not like we export a lot to make up for that, as we will always be undercut by another county who doesn't have minimum wage rights.
Only if we try to compete in markets where labour costs dominate.And it's not like we export a lot to make up for that, as we will always be undercut by another county who doesn't have minimum wage rights.
It dominates everywhere, because people will always buy cheaper.Only if we try to compete in markets where labour costs dominate.
But labour costs are only one factor in price. As an example, Germany has higher average labour costs than the UK (source: TradingEconomics.com) yet their automotive industry is one of the world's biggest - simply because they've largely designed labour costs out of their production chain.It dominates everywhere, because people will always buy cheaper.
Unemployment isn’t a huge problem in the UK, our rate is around 5% whereas the EU average is more like 8%. Hence all the complaints around Brexit where employers said they were unable to find staff.But everything imported is a job going elsewhere, and unemployment is a big problem in the UK. And it's not like we export a lot to make up for that, as we will always be undercut by another county who doesn't have minimum wage rights.
I think each country plays to its strengths. We are good at high tech, pharmaceuticals, services, innovation, R&D, etc, so that's what we do. Low value, low tech is for someone else, unless it has a strategic importance, such as energy or arms.It dominates everywhere, because people will always buy cheaper.
In particular moments these things can come unstuck. The question is whether over the long term more people benefit from the normal low prices than suffer from these blips.I know what you saying, and agree with most of it. However, it comes unstuck when what you think are reliable trading relations turn sour - I'm looking at French electricity, Russian gas etc. Even though contracts or agreements are in place, if the supplying country has a shortage of its own, it will obviously look after themselves first and foremost.
I think each country plays to its strengths. We are good at high tech, pharmaceuticals, services, innovation, R&D, etc, so that's what we do. Low value, low tech is for someone else, unless it has a strategic importance, such as energy or arms.
In particular moments these things can come unstuck. The question is whether over the long term more people benefit from the normal low prices than suffer from these blips.