Can we Reduce Personal Debt if we Buy British

On April 1, 2011, in News, by Lewis Alexander

free credit report UK from ExperianOne great way of moving out of recession is to encourage increasing levels of trade within your own country.  As more goods and services are demanded, there are two choices for industry.

  • We can either (a) Increase the price, or (b) work a little bit harder to meet this increased demand.

Since the economy currently has recognisable ‘slack’ (as there are resources that are not being used or out of work) in most cases the decision made is likely to be to increase supply to meet this increased demand.

As in most things that relate to large scale finances, these things work in cycles.  Once demand starts to increase, and companies work harder or use more resources to meet this demand, it means that more money is spent and any staff employed would then receive increased wages and thus have more disposable income to spend on even more goods and services.

Once industry output is increased and sales start to improve, this often results in management teams looking to new markets to see where they can further expand sales – as they recognise that their business is on the up.  With the increasing trend towards a global economy, any plans to expand sales are likely to include thoughts about breaking into new markets abroad.

When these plans are put into practice, despite an initial outlay, any successes then mean that outside investment is then brought into the economy as foreign funds are spent on UK goods and services.  These funds are ‘new’ funds (rather than money that has been recycled in the UK economy) and as a result provide greater funds that are available for investment, or indeed create additional disposable income.

  • So does the encouragement of the slogan ‘Buy British’ have any real impact?

Well, if you agree with the above points, then you will certainly think it does! But beyond this, it makes a statement to the EU and our other trader partners or potential trade partners that we believe in the British made products and British provided services.  Such confidence in your own domestic output does radiate to other countries and helps create a perception of quality.  The success of BMW & Mercedes in the car industry, Sony & Panasonic in the electronics industry and single malt scotch all show that where locals truly believe in a product or brand, this is reflected in how a brand is perceived across borders.

  • So do you buy British?
  • Or are you influenced by price or indeed the latest magazine that talks about ‘top buys’ for that month?

To be perfectly honest, this blog writer must admit to making some brand substitutions in recent times.  As the cost of living rises, the tendency to move away from British brands (in favour of cheaper alternatives) increases.  Expensive fresh British cuts of meat have been replaced by the odd frozen meal here and there, and Cadburys has most definitely been sidelined in favour of any cheaper chocolate options.

If this financial climate is creating you difficulty and you think you need help with debt then call Lewis Alexander to see if we can help set you back on a sound personal financial path.  Our advisors are available on 0800 018 6868 and we can conduct a financial health check for you to understand why you are struggling to meet your existing commitments.

  • So call us today on 0800 018 6868
Tagged with:  
Find us on Google+
Find us on Google+