Why is the UK "rich" ?

JBod

JBod

JBod

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Sparked from that £5bil thread..

We don't produce anything, we don't make anything, we have no traditional industry. Economics isn't my *thing* (clearly).

Does all our money ultimately come from the big international businesses? (Banking, Tesco, BP.. etc) before disseminating to the rest of us via services that don't really cross international lines?

I was thinking the other day that if Labour (in its jealous rage on behalf of the folk who earn less) persist in screwing over the banking industry is that not going to lead us into our own demise?
 
Biohazard said:
The banks will lead us to our own demise eventially.

Either which way you look at it.

Interest is evil, so is perpetual growth.
Click to expand...

Banks is what we are as a capitalist democracy. Banks created our society as it is today.

Not all banks are bad and screwing us over.
 
JBod said:
Sparked from that £5bil thread..

We don't produce anything, we don't make anything, we have no traditional industry. Economics isn't my *thing* (clearly).
Click to expand...

We're the 7th biggest manufacturing economy in the world by monetary value :confused:

http://investing.curiouscatblog.net/2008/09/23/top-manufacturing-countries-in-2007/

Don't confuse us not having many people employed in manufacturing with us having no manufacturing industry.

Does all our money ultimately come from the big international businesses? (Banking, Tesco, BP.. etc) before disseminating to the rest of us via services that don't really cross international lines?

I was thinking the other day that if Labour (in its jealous rage on behalf of the folk who earn less) persist in screwing over the banking industry is that not going to lead us into our own demise?
Click to expand...

Finance is a big contributor to our economy, along with service industries, but there are many reasons why we are a 'rich' country.
 
Read: Niall Ferguson - The Ascent of Money

and if you have a taste for it: Adam Smith - The Wealth of Nations.
 
UK:

cia factbook said:
Industries:
machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, other consumer goods


Exports:
$351.3 billion (2009 est.)
country comparison to the world: 10
$466.3 billion (2008 est.)

Exports - commodities:
manufactured goods, fuels, chemicals; food, beverages, tobacco
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More general info about the UK economy from the cia world factbook:

The UK, a leading trading power and financial center, is one of the quintet of trillion dollar economies of Western Europe. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil resources, but its oil and natural gas reserves are declining and the UK became a net importer of energy in 2005. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. Since emerging from recession in 1992, Britain's economy enjoyed the longest period of expansion on record during which time growth outpaced most of Western Europe. In 2008, however, the the global financial crisis hit the economy particularly hard, due to the importance of its financial sector. Sharply declining home prices, high consumer debt, and the global economic slowdown compounded Britain's economic problems, pushing the economy into recession in the latter half of 2008 and prompting the BROWN government to implement a number of measures to stimulate the economy and stabilize the financial markets; these include nationalizing parts of the banking system, cutting taxes, suspending public sector borrowing rules, and moving forward public spending on capital projects. Public finances, weak before the economic slowdown, deteriorated markedly during 2009, as did employment. The Bank of England periodically coordinates interest rate moves with the European Central Bank, but Britain remains outside the European Economic and Monetary Union (EMU).
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I think it also has a lot to do with the industrial revolution and being ahead of the game so early on. We are now a country that is mainly involved in the services industry - such as consultancy, contracting, etc
 
If you need a decent bridge or skyscraper building, call in the British.

If you need to invest a few billion wisely and safely, call in the British.

If you need to sort out your management team, call in the British.

If your airforce wants fast planes, call in the British.

That about sums it up! Oh, also we are an educated people, and we have a strong work ethic.
 
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