Wednesday, October 3, 2012
Trade deficit is very serious
The UK trade deficit is very serious but practically ignored. " A solution that is staring the Government in the face is to use unemployed people to make some of the things we currently import" DOH! Elsewhere you may read that the end game to balanced trade at the current level of UK imports is a natural rate of unemployment at 8% to stop external purchasing. Perversely, immigration, by increasing unavoidably food and later on oil imports, has the consequence of increasing the natural rate of unemployment in the UK.