Why wont the UK drop the pound and use its brain?

Question

We cant export even our dumps because they are too expensive since they would be in pounds. Everything is going to h**l because simply there is no money coming in but all the money is going out. Why? The pound is too strong so we cant sell and get things in. Many people like UK education, food, beer BUT the underlying comment is always "its too expensive". So why not get the Euro? Free up our industries and it will keep strong but down just enough to make it affordable. Which is better 200 people buying at 150 pound a time or 1,000,000 buying at 50 pounds a time? Simple economics don't you think?

Answer 1

I'd rather que for soup than be run by them fcuking foreigners in Europe who all hate us and think that we think we're superior to everyone else !!

Answer 2

What the h**l...There's only two reason why! First, It's been with the U.K for over centuries...Too proud, I guess?

Second, The main reason is because it will lower their economy. If British people change to Euro, then their economy will go down. It's very complicated. It's like bringing dollars into U.k. Different countries have different value. Euro are lower compare to pounds. You can't simply switch just like that...It takes time

Answer 3

This is a very complex issue, far to complicated to answer in a few lines. However, just one thought. By having its own currency, the British government retains much more control over the British economy. For example, it can set its own interest rates rather than having the European Central Bank set them. This will have an effect on the exchange rate, balance of payments, inflation, oil prices and so on. Politicians rarely want to give up control once they've got it.

But if the Euro is good enough for France, Germany, Italy and the rest, it should be good enough for us too. We're not such a special case as we'd like to think.

Answer 4

The pound and the Euro and stable currencies with relatively strong values, but the people of britain want their Pound Sterling, so why not keep it?  

Introducing the Euro caused many problems for nations that adopted it: in hit the netherlands hard, overnight with both inflation and falling asset values.  We British watched and decided not to follow, and with good cause.  If you live in the UK, you have benefitted, despite you little tirade about costs.

Marih A: Mate, take some drugs to calm down!

Answer 5

Because the British don't want to lose the Queen head  on its currency.

Answer 6

Nothing is ever simple...

Excel its a bit more complicated than that. If britian accepts the Euro then everything would be worth less, the government would loose out money on taxes etc etc etc.

Answer 7

How is changing to a different currency going to make anything cheaper to export ?

You think it'd be better for things to cost Eur 1.27 than GBP1.00 do you ?

That's still US$1.99/A$2.07/INR83.5.... how's that going to make any difference ?

For things to be cheaper to overseas buyers you need to devalue a currency not just change it... different point, different question, different answer and if the UK did devalue the pound I dare say then you'd be posting about why imports (inc oil) and going abroad had become so expensive !

Simple economics my ar....foot.

Answer 8

Because genius the UK is an old and proud nation! Why should be give up our centuries old currency? We are still one of the richest countries in the world - not bad for a small island!

The French and Germans have sold their national identities down the pan - who want's a Euro? Give me a great British pound anyday!

Answer 9

So, it's better economics to ditch the pound, the most stable and secure currency in the world (which is why it's so "expensive"), in favor of the Euro, whose stability rests in developing (former eastern block) countries, such as Romania and Latvia?

Do you realize, that there a Germans losing their jobs right now because new member countries such as Romania and Albania are undermining their financial stability.

Further, the pound is so expensive because UK's economy is so good, being unburdened by unnecessary bureaucracy, making it the envy of the world, especially here in the states and in Asia as well.

Answer 10

Do you have a corner shop?

Answer 11

The main reason is OIL . if UK drop the pound then pay more for OIL , when you pay more for OIL ., then everything price go up again.

Have a good day and Happyness ,

www.bakarani.blogspot.com

Answer 12

I'm certainly in no position to remotely comment on economics as they pertain to currency, and frankly I see zero flaw in your logic.  The only conceivable explanation may be that there are issues beyond simple economics in determining why the UK doesn't espouse the Euro instead of the British Pound, but again, I have no formal training in economics.

Answer 13

It's also a political decision as well as an economic decision.

Also, the UK prefers to be more flexible with its currency and since only the UK uses the GBP, it can follow policies to deal with its individual business cycle since it is the only country that uses the currency. For example, Ireland might be in a

recession but Greece might be in a boom. However, since both countries use the same currency, there are limitations to the steps Ireland can take to deal with the recession.

Also, it has been found that the UK follows a somewhat different business cycle to that of countries that use the Euro.

However, you are right in saying that the strength of the GBP does affect Britain's exports, and having a single currency is certainly not without its disadvantages.