Economics

Nowhere Left To Grow

/ Dr Craig Dalzell / 2 Comments

“Perhaps the answer is that it is necessary to slow down, finally giving up on economistic fanaticism and collectively rethink the true meaning of the word “wealth.” Wealth does not mean a person who owns a lot, but refers to someone who has enough time to enjoy what nature and human collaboration place within everyone’s reach.” – Franco Bifo Berardi

This weekend will see the SNP conference and the long awaited vote on whether or not to adopt the Sustainable Growth Commission’s report as the party’s main economic strategy for an independent Scotland. After almost a year of discussing this document, the party will have their final say on whether or not to adopt it as party policy.

I have written tens of thousands of words of critique, commentary and policy work on this topic. There will be more to come between the time that this blog is published and the vote on Saturday afternoon. Much of it has been centred around currency and the macroeconomic policies. Here, I’d like to look at things from a slightly different lens. How does the Growth Commission reflect upon Nicola Sturgeon’s plan to introduce a Scottish Green New Deal?

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Book Review: The Economics of Arrival

/ Dr Craig Dalzell / 1 Comment

“In the industrialised world, the great challenge is not to remain competitive, or to increase efficiency or production. It is to slow down without derailing, to reimagine progress beyond more of the same. The challenge is to make ourselves at home in the world.” – Katherine Trebeck and Jeremy Williams, The Economics of Arrival

It has been a very long while since I’ve written a book review for this blog but I have one that’s worth that wait. A wee while ago, the CommonSpace team received an advance copy of a book I have been eagerly awaiting. I “volunteered” to give it a read through instead – by which I mean that I nabbed it before anyone else could.

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Those who’ve followed me for a while now know the distain I hold for those who still somehow believe that infinite economic growth is possible on a finite (and dying) planet.

The economics that brought us to this point have very clearly hit their limits and we really need to look where we go next. Trebeck and Williams have thrown their hats into the ring with this effort to lay out the scale of the problem and where we go from here.

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Exporting Scotland

/ Dr Craig Dalzell / 3 Comments

“Trade negotiations are exercises in mutual self-interest. They are not power plays, or coercions” – David Davis. Former Brexit Secretary.

The annual ESS report came out last week and – as is traditional in Scottish politics – it was pounced on by those eager to make a quick headline out of the numbers. When statistical reports like this come out it’s always better to take a bit of time to dive a little deeper into them and to discuss the details that can often be far more interesting than those initial headlines.

The Carta Marina showing some of Scotland’s important trading partners in the 1500s.

First though, we should talk a little about what ESS is and what it measures (as well as what it doesn’t measure). Continue reading →

Fishing Lines

/ Dr Craig Dalzell / 5 Comments

“Teach all men to fish, but first teach all men to be fair. Take less, give more. Give more of yourself, take less from the world. Nobody owes you anything, you owe the world everything.” – Suzy Kassem

A political declaration has been published jointly by the UK Government and EU which aims to take the first small steps along the very long road between where we are right now with the Brexit Withdrawal Agreement out to the final trade deal and future relationship between the UK and EU beyond the expected transition period post March 2019.

Others will go through the whole thing in detail with far more competence than I can manage. I particularly recommend Ian Dunt’s Twitter thread here.

I do want to comment on one are in particular because it has already caused more than a bit of a fight up here in Scotland and as it does a good job of highlighting the political divisions involved in Brexit in certain interesting ways. Let’s discuss fishing.

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The UK/Iceland “Cod Wars”: The UK is no stranger to getting into a fight over fish

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Excluding Growth

/ Dr Craig Dalzell / 3 Comments

“Anyone who thinks that you can have infinite growth on a finite planet is either a madman or an economist” – David Attenborough

I have a bit of a bugbear about the way many of us approach economics and the future potential of things like an independent Scotland. We focus rather too much on chasing after “growth”.

This focus permeates much of our thinking about the economy and what we should do to improve it. It frames our analysis of policy to the point where we can sometimes struggle to imagine any kind of alternative. “Growth is good”…even when it’s not.

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But we live in an economy where we have experienced near-constant growth for decades. We have not all been equal participants in that growth. Of the nearly $4.5 trillion added to global GDP between 2016 and 2017, 82% of it was captured by the richest 1% of people. The poorest 50% of people saw no increase in their wealth at all.

Faced with such rampantly growing inequality, there have been steps taken to try to, if not solve the problem, at least make a it more palatable to voters.

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We Need To Talk About: GERS (2017-18 Edition)

/ Dr Craig Dalzell / 10 Comments

“Facts are stubborn things, but statistics are pliable.” – Mark Twain

There’s no day that’s guaranteed to set the heather alight amongst Scottish political social media sects like the release day of the annual Government Expenditure and Revenue Scotland report – also known as GERS.

GERS

I want to make one thing clear up front. No serious commentator now suggests that GERS can be used as is as a projection of the finances of an independent Scotland. My 2016 paper “Beyond GERS” shows some of the changes that would need to be made for this to be the case. But as a set of accounts for Scotland, the region of the UK, I’m content to use GERS as it is. Maybe improvements can and should still be made, but this is true for all statistical publications and the team behind the report do the best they can within their remit.

So what does this year’s publication tell us about Scotland, the region? Continue reading →

It’s Beginning To Look A Lot Like GERSmas

/ Dr Craig Dalzell / 6 Comments

A photo of the Scottish countryside. The sky is split between the moon and the night on the left and the sunset on the right.

It’s beginning to look a lot like GERSmas
It’s on the news, you know.
The size of the deficit, is all that matters to it
No deeper in shall the headlines go.

It’s beginning to look a lot like GERSmas
What will the numbers have in store?
To the rest of the UK, we compare ourselves today
It becomes a chore.

If a tax here is tweaked and everyone is freaked
imagine if they tried something more.
To reform all the land, make sure fracking stays banned
tax the rich till they’re sore.
But till we can then GERS we have and here it comes again.

It’s beginning to look a lot like GERSmas
Here, again, we go.
The fight about all the stats, the guesstimates and the facts
Where we stand I doubt we’ll ever know.

It’s beginning to look a lot like GERSmas
For calm, I shall now say.
Why don’t we have a truce, and not let Twitter run a loose
This GERSmas day….

Just this GERS-mas day.

Merry GERSmas everybody.

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Demanding Supplies – Supplying Demand

/ Dr Craig Dalzell / 7 Comments

“There will be no downside to Brexit, only a considerable upside” – David Davis, October 2016

“Qu’ils mangent de la brioche” – Apocrypha, commonly attributed to Marie Antoinette

I hesitated to write this article. Why, shall become clear in the reading but the short version of it is that this is not just a sensitive topic but the mere act of talking or writing about it may provoke the negative effects discussed.

The artifact warehouse from Raiders of the Lost Ark.

I am talking about the recent stories that as we enter the “kinetic phase” of Brexit, beyond which any meaningful control of the course can be made, it is looking increasingly likely that the negotiations will conclude without a deal. The UK’s own red lines are insurmountable and are themselves incompatible with the EU’s red lines.

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We Need To Talk About: The Growth Commission Report

/ Dr Craig Dalzell / 7 Comments

If this is a discussion document – It’s time to start discussing it.

The Growth Commission’s long-awaited report is finally out and will surely take some time to fully digest. It has been described as a discussion document and a starting point for the revitalised case for independence; not the final word on SNP policy or national trajectory.

In many ways, the report covers ground now very familiar to campaigners in the independence debate. We’re all now quite familiar with the deep and systemic flaws of the UK’s economic system especially its regional inequality which, quite frankly, is embarrassing when compared to neighbouring countries in Europe.

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(Source: Eurostat)

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We Need To Talk About: Hypothecated Taxes

/ Dr Craig Dalzell / 1 Comment

Hypothecated taxes are designed to undermine the NHS – Prof. Richard Murphy

There’s been an idea floating around recently – mostly pushed by the Lib Dems but floated elsewhere too – that the solution to NHS England’s current, catastrophic crisis is an additional income-linked tax (either a new tax or an addition to income tax or National Insurance) which would raise money specifically for health spending.

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Queuing for bedspace in an English hospital

Other schemes have been suggested, like an addition to income tax to be spent on education. This idea of having a dedicated tax which raises revenue for a specific purpose is known as ‘hypothecation‘ and here is why it is a terrible idea.

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