Ok...so it's not exactly a fully-thought out plan, per se, but I wondered if this might work.
UK manufacturing is, quite frankly, a complete basket case. We simply cannot compete with overseas cheaper labour. That's a given.
However, with a strong domestic market to drive up sales, I wonder if this would help off-set our uncompetitiveness ? If we can make and shift volume here in the UK, would that underpin the industry domestically ?
To achieve this, I'm not proposing radical tax cuts, as to be honest, I don't see these as making a major difference to companies anyway. A company with a turnover of, say, 20 million, isn't exactly going to notice an extra 10% tax rebate of 2 million having any major impact on their business, apart from the Directors having an extra 2 million to spunk on fast cars and big houses, which although perhaps nice for them, doesn't help the business as a whole.
My proposal is that domestic workers are paid considerably less than they are now. Eg, instead of earning £5-6 hour, they earn £2-3 hour.
Now, before we all fall off our chairs, there is an element of payback to the UK workers of course.
The Deal is that for UK Nationals, they purchase product from UK manufacturers at a considerable discount. Enough of a discount to balance out the savings in labour cost the company made (and thus putting it ecoonomically back to the same point it was. Nothing lost, nothing gained...yet).
However, UK Nationals will be able to purchase domestically manufactured products at a discount, and hence increased sales. Eg, A Plasma TV which is sold (and STILL IS SOLD) to the EU for say £1000 (with a manufacture cost of say £200) only costs the UK Worker £300.
Thus, the domestic market still yields profit, and if balanced correctly, a higher increase in sales and volume. The overseas market yields higher profit, but at a reduced volume.
So, you are shifting high volume, low profit in the UK, and low volume high profit internationally. You are recreating a manufacturing industry in the UK again, on more labour-competitive costs compared to other countries. Although wages are less, there is a heavily subsidised discount for products manufactured in the UK, so you are encouraging people to buy domestically, which provides a stable and steady stream of turnover locally.
It's probably flawed and would be impossible to implement (unless you could somehow stop time, make a few tweaks, and then restart the clock on the way society works, which unfortunately there is no way to do these sort of things instantly).
However, is there any merit in such an idea ? Would it work ? Could it work ?
Right....off to the Orifice....
UK manufacturing is, quite frankly, a complete basket case. We simply cannot compete with overseas cheaper labour. That's a given.
However, with a strong domestic market to drive up sales, I wonder if this would help off-set our uncompetitiveness ? If we can make and shift volume here in the UK, would that underpin the industry domestically ?
To achieve this, I'm not proposing radical tax cuts, as to be honest, I don't see these as making a major difference to companies anyway. A company with a turnover of, say, 20 million, isn't exactly going to notice an extra 10% tax rebate of 2 million having any major impact on their business, apart from the Directors having an extra 2 million to spunk on fast cars and big houses, which although perhaps nice for them, doesn't help the business as a whole.
My proposal is that domestic workers are paid considerably less than they are now. Eg, instead of earning £5-6 hour, they earn £2-3 hour.
Now, before we all fall off our chairs, there is an element of payback to the UK workers of course.
The Deal is that for UK Nationals, they purchase product from UK manufacturers at a considerable discount. Enough of a discount to balance out the savings in labour cost the company made (and thus putting it ecoonomically back to the same point it was. Nothing lost, nothing gained...yet).
However, UK Nationals will be able to purchase domestically manufactured products at a discount, and hence increased sales. Eg, A Plasma TV which is sold (and STILL IS SOLD) to the EU for say £1000 (with a manufacture cost of say £200) only costs the UK Worker £300.
Thus, the domestic market still yields profit, and if balanced correctly, a higher increase in sales and volume. The overseas market yields higher profit, but at a reduced volume.
So, you are shifting high volume, low profit in the UK, and low volume high profit internationally. You are recreating a manufacturing industry in the UK again, on more labour-competitive costs compared to other countries. Although wages are less, there is a heavily subsidised discount for products manufactured in the UK, so you are encouraging people to buy domestically, which provides a stable and steady stream of turnover locally.
It's probably flawed and would be impossible to implement (unless you could somehow stop time, make a few tweaks, and then restart the clock on the way society works, which unfortunately there is no way to do these sort of things instantly).
However, is there any merit in such an idea ? Would it work ? Could it work ?
Right....off to the Orifice....
Comment