Discussion about this post

User's avatar
Stout Yeoman's avatar

International trade is good (so long as no-one cuts undersea internet cables). Supply chains that are competitive are good (so long as war does not disrupt them either pushing up prices such as for energy or severing them altogether).

We should encourage international trade (removing barriers such as the EU likes to impose) whilst preparing for its fracture. These two goals are not incompatible. The UK had to 'dig for Britain' during WW2 and if it has to do so again then it would help to have some farms left on which to plant. Digging up car parks would be pain.

John Bowman's avatar

The purpose of the Corn Laws was to protect vested interests, land owners and vicariously land workers by keeping out imports and thus keeping up prices and profits. (This is the modus operandi of the EU which some people think is an economic benefit - the impoverishment of consumers to protect profits and interests of producers.)

Bread and cereal based food was a staple and was not fungible. People had to spend a large proportion of their income on it, so could not spend elsewhere in the economy.

When the Corn Laws were repealed, it did affect land owners and workers, but the price of bread and cereals dropped significantly, people were better nourished and more industrious but also had more money to spend on things other than bread and cereal foods. The next decade saw an economic boom, and greater prosperity for all - from taking away import barriers on just one commodity.

EU obsessives - the EU being a protectionist Customs Union - might like to ponder that.

Trade is a two way process. If we are buying food from other Countries, they are being paid in £s. They then use those £s to buy manufactured goods and services we produce, and/or invest in our economy.

Pounds are like homing pigeons, they always come home to roost, either to pay for our produce, or as capital investment.

And finally. A Country and its people grow richer on imports not exports - which are a cost. As someone put it, imports are Christmas Day, exports are the January credit card bill.

The more we buy from others, the more they buy and invest in us.

4 more comments...

No posts

Ready for more?