{"id":969,"date":"2008-11-19T23:23:39","date_gmt":"2008-11-19T22:23:39","guid":{"rendered":"http:\/\/blog.widmann.org.uk\/?p=969"},"modified":"2008-11-19T23:23:39","modified_gmt":"2008-11-19T22:23:39","slug":"the-effect-of-devaluation","status":"publish","type":"post","link":"https:\/\/widmanniana.org\/blog\/the-effect-of-devaluation\/","title":{"rendered":"The effect of devaluation"},"content":{"rendered":"<p>The pound has been falling against the euro throughout the millennium.<\/p>\n<p>This means that it&#8217;s becoming less and less attractive for foreigners to work here, and more and more attractive for British people to emigrate to the continent.<\/p>\n<p>To show the effect, I&#8217;ve taken a hypothetical worker, earning \u00a321k in the UK eight years ago, and the equivalent, \u20ac35k in the Eurozone.  I&#8217;ve then increased the salary by 3% each year:<\/p>\n<table>\n<tr>\n<th bgcolor=\"yellow\">Year<\/th>\n<th>Exch. rate<\/th>\n<th bgcolor=\"yellow\" colspan=\"2\">Worker in the UK<\/th>\n<th colspan=\"2\">Worker in Eurozone<\/th>\n<th bgcolor=\"yellow\">Percentage<\/th>\n<\/tr>\n<tr>\n<td bgcolor=\"yellow\">2000<\/td>\n<td>0.60<\/td>\n<td bgcolor=\"yellow\">\u00a321000<\/td>\n<td bgcolor=\"yellow\">\u20ac35000<\/td>\n<td>\u00a321000<\/td>\n<td>\u20ac35000<\/td>\n<td bgcolor=\"yellow\">100%<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"yellow\">2001<\/td>\n<td>0.62<\/td>\n<td bgcolor=\"yellow\">\u00a321630<\/td>\n<td bgcolor=\"yellow\">\u20ac34887<\/td>\n<td>\u00a322351<\/td>\n<td>\u20ac36050<\/td>\n<td bgcolor=\"yellow\">97%<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"yellow\">2002<\/td>\n<td>0.64<\/td>\n<td bgcolor=\"yellow\">\u00a322279<\/td>\n<td bgcolor=\"yellow\">\u20ac34811<\/td>\n<td>\u00a323764<\/td>\n<td>\u20ac37132<\/td>\n<td bgcolor=\"yellow\">94%<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"yellow\">2003<\/td>\n<td>0.70<\/td>\n<td bgcolor=\"yellow\">\u00a322947<\/td>\n<td bgcolor=\"yellow\">\u20ac32782<\/td>\n<td>\u00a326772<\/td>\n<td>\u20ac38245<\/td>\n<td bgcolor=\"yellow\">86%<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"yellow\">2004<\/td>\n<td>0.70<\/td>\n<td bgcolor=\"yellow\">\u00a323636<\/td>\n<td bgcolor=\"yellow\">\u20ac33765<\/td>\n<td>\u00a327575<\/td>\n<td>\u20ac39393<\/td>\n<td bgcolor=\"yellow\">86%<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"yellow\">2005<\/td>\n<td>0.69<\/td>\n<td bgcolor=\"yellow\">\u00a324345<\/td>\n<td bgcolor=\"yellow\">\u20ac35282<\/td>\n<td>\u00a327996<\/td>\n<td>\u20ac40575<\/td>\n<td bgcolor=\"yellow\">87%<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"yellow\">2006<\/td>\n<td>0.68<\/td>\n<td bgcolor=\"yellow\">\u00a325075<\/td>\n<td bgcolor=\"yellow\">\u20ac36875<\/td>\n<td>\u00a328418<\/td>\n<td>\u20ac41792<\/td>\n<td bgcolor=\"yellow\">88%<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"yellow\">2007<\/td>\n<td>0.71<\/td>\n<td bgcolor=\"yellow\">\u00a325827<\/td>\n<td bgcolor=\"yellow\">\u20ac36377<\/td>\n<td>\u00a330562<\/td>\n<td>\u20ac43046<\/td>\n<td bgcolor=\"yellow\">85%<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"yellow\">2008<\/td>\n<td>0.84<\/td>\n<td bgcolor=\"yellow\">\u00a326602<\/td>\n<td bgcolor=\"yellow\">\u20ac31669<\/td>\n<td>\u00a337243<\/td>\n<td>\u20ac44337<\/td>\n<td bgcolor=\"yellow\">71%<\/td>\n<\/tr>\n<\/table>\n<p>This is a dramatic change.  In other words, seen from the continent, British people are now earning only 71% of what they did eight years ago.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pound has been falling against the euro throughout the millennium. This means that it&#8217;s becoming less and less attractive for foreigners to work here, and more and more attractive for British people to emigrate to the continent. To show the effect, I&#8217;ve taken a hypothetical worker, earning \u00a321k in the UK eight years ago, and the equivalent, \u20ac35k in the Eurozone. I&#8217;ve then increased the salary by 3% each year: Year Exch. rate Worker in the UK Worker in Eurozone Percentage 2000 0.60 \u00a321000 \u20ac35000 \u00a321000 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[159,130],"tags":[],"class_list":["post-969","post","type-post","status-publish","format-standard","hentry","category-en","category-politics"],"_links":{"self":[{"href":"https:\/\/widmanniana.org\/blog\/wp-json\/wp\/v2\/posts\/969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/widmanniana.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/widmanniana.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/widmanniana.org\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/widmanniana.org\/blog\/wp-json\/wp\/v2\/comments?post=969"}],"version-history":[{"count":0,"href":"https:\/\/widmanniana.org\/blog\/wp-json\/wp\/v2\/posts\/969\/revisions"}],"wp:attachment":[{"href":"https:\/\/widmanniana.org\/blog\/wp-json\/wp\/v2\/media?parent=969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/widmanniana.org\/blog\/wp-json\/wp\/v2\/categories?post=969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/widmanniana.org\/blog\/wp-json\/wp\/v2\/tags?post=969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}