“I think it would be a good idea” – Apocrypha attributed to M. Gandhi on his being asked what he thought of Western civilisation.
The UK Government’s handling of Brexit continues to be veer somewhere between being a shambles and a criminally negligent disaster.
From its position on customs which remains something like “We have no idea what we want and we’re damn sure we’re not going to lift a finger to plan for it.”
Through its tearing away from anything even remotely connected to the EU – including Euratom (which means good luck running a nuclear power plant or obtaining a medical radiological), the Gallileo satellite system (to which the British response was a petulant “We’ll build our own…somehow”) and fundamental human rights which protect us all from the whims of governments that act a bit like the current UK one does.
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.
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.
“A system of government as close to federalism as you can have in a nation where one part forms 85% of the population” – Gordon Brown, 2014
The “F-word” is rearing its head again in Scottish politics. Federalism. An idea sometimes presented as a “credible” alternative to Scottish independence and a way of granting Scotland greater autonomy over its own affairs whilst maintaining the unity of the United Kingdom. Unfortunately, it’s also an idea that is rarely presented in any greater detail than that previous sentence.
Both Scottish Labour and the Scottish Liberal Democrats have flirted with this idea throughout their history and have been doing so again recently. In an attempt to raise the level of debate about this subject, I have just co-authored my latest policy paper for Common Weal with long-time constitutional activist Isobel Lindsay which you can read here or by clicking the image below. Isobel also has an article in the Sunday Herald which you can read here.
Cutting the deficit by gutting our investments in innovation and education is like lightening an overloaded airplane by removing its engine. It may make you feel like you’re flying high at first, but it won’t take long before you feel the impact. – Barack Obama
Whenever we talk about national budgets, it doesn’t take long before someone mentions the “national deficit” and the “national debt”. Indeed, as I’ve noted in some of my commentary on GERS, sometimes it can seem like this is the only thing that makes it to the headlines at all. The almost unchallenged “wisdom” is that a government spending more than it raises in taxes is a terribly bad thing. It’ll leave future generations burdened with debt and, anyway, you wouldn’t run a household’s finances that way, would you?
This is a wisdom that has led us to Austerity and there is barely a politician out there who speaks for any other ideology. It’s not just the Tories. Corbyn’s team is at it, at least by degrees and even Nicola Sturgeon often speaks the same language when defending Scotland’s finances. (And, yes, I’ve used that same language in the past too. Life is about learning.)
Of course, the root of the obsession lies with the fact that the “national deficit” is something that seems quite close to the politicians and therefore it’s something that they should be “sorting out”. But maybe the economy is a bit less simple than this. Maybe, like the fable of the blind men appraising the elephant, one can get a false impression of the whole by getting too close to one detail.
“Sooner or later every war of trade becomes a war of blood.” – Eugene V Debs
This past week has been an interesting one in terms of international trade news. President Trump announced, via a Tweet, that he was slapping import tariffs on Chinese steel and that “trade wars are good, and easy to win“.
The ripples of this announcement are still spreading but already countries and trading blocs like Canada and the EU are considering retaliatory tariffs.
The thing is, China isn’t even a particularly major player in US steel imports. It barely factors on any of the top fives by specific products.
“Britain is not Great. Britain is Weird”
On the 4th of November I spoke at the Scottish Independence Convention’s Building Bridges to Independence conference. As with my SIC talk in January, it fell to me to be the one with the graphs and statistics – this time on the topic of public finances and the impact of independence on Scotland’s budget.
The livestream of my talk can be viewed thanks to Independence Live and is the first talk in this segment.
Below the fold are copies of my slides with comments drawn from my talk and references to the points made. The slides can also be downloaded here.
“The Treasury…may by order give the Bank directions with respect to monetary policy if they are satisfied that the directions are required in the public interest and by extreme economic circumstances” – Section 19, Bank of England Act 1998.
Theresa May is getting nervous. She’s seen the polls slip away from her. She’s seen the abject rejection of conservative politics first in Scotland and now in England too. She has just admitted that she jumped into her personal snap election whilst her party was completely unprepared to fight it. She is far from “strong and stable.
And now she’s getting worried by the growing pull towards the more interventionist economic policy advocated by Jeremy Corbyn and has responded with a speech defending Austerity and celebrating free market economics on the day of the 20th anniversary of the independence of the Bank of England. And so has begun fairly vapid tirades warning against the “dangers” of nationalism and populism.