Why The £1 Note Would Be Good For The Economy

Every now and again, I come across conversations that go by the sound of this:

“Wouldn’t it be great if the UK had a £1 note?”

As the US has a $1 note, although being worth less than the £1, it does make life for our American cousins easier. Then I thought how it would make our lives much easier and the first scenario where I imagined this was a strip club. In America, it’s known that that a stripper can make hundreds of dollars in one night from tips – largely because of the $1 note denomination. It’s all psychology; frequenters of a strip club would feel better tipping $1 notes than higher denominations. Dr. William Leonard Roberts II (check him out) of the University of Miami, School of Consumer Science said this in recent research:

“It’s unequivocally true, American consumers psychology will spend more when paying for purchases with $1 notes. With higher denominations, consumers are far more frugal with their expenditures.”

Recently I held a focus group with some men, all aged between the ages 18-30 earning between £10,000-20,000 per annum. In this session, I aimed to discover whether the move for a £1 note would make life and spending easier for them.

James, 25, Manchester felt that it would be a great idea but he fears that his spending would increase.

Phil, 19, London stated that it could possibly work, he said “if they could bring in a £2 coin, why not a £1 note?”

Nathan, 29, Nottingham felt that this idea would never get the backing from the people that make the decisions, however he would welcome it.

In regards to the strip clubs in the UK, it would make sense, for a number of reasons. Throwing a £1 coin at a stripper/dancer would likely harm her. We’ve seen what a £1 coin that was tossed did to Rio Ferdinand, it’s not pleasant at all. Secondly, if you were to throw a coin in a dark club, it could be difficult to find, especially if the girl earning her wage has a poor catch. I was able to a speak to a stripper friend of mine, who asked that I not mention her name, we’ll call her Lambrini (she’ll kill me for that). Here’s what she had to say:

“I’d definitely back the idea of a £1 note mainly because it’d mean I could potentially earn much more than I currently do in tips. In the place I work, it’s rare that we get men who use anything other than £5 notes to tip us with. So that means we earn much less than we could, a shame really.”

I fortunately have another friend, Jordan Michael Houston (check him out also), studying for a Masters at London School of Economics, who found the topic of this article interesting to say the least but nevertheless decided to give his much-credited tuppence:

“I was able to take a look at some figures released by the Bank of England and make some quick predictions based on those. If a £1 note was introduced in the first quarter of 2014, the UK’s GDP would grow by 0.43% by the end of the next financial year. Not a lot, but it would make a huge difference to an economy that has been struggling.”

Personally, I’d be all for this change, excuse the pun. Regarding which famous figure that should have the honour of having their face brandished on the back of the note against HRM, I do have a number of suggestions. I think it should be a toss up (excuse the pun again) between Sir Charlie Chaplin, pioneering classical musician, Robert Williams, and the poet Robert Kelly.

Do let me know your thoughts on this?

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