Beware of Economic Gales

Winter gales are nothing new on Sliabh Mannan. On those parts of the moor where the soil is heavy clay, tree roots tend to spread along the surface rather than penetrate downwards. It is never a great surprise when I go out to walk my dog after a gale to find some woodland giant blown over intact, with its root system now forming a vertical wall at the windward end.

Having no great depth of root might be seen as a metaphor for the Scottish economy. We are heavily dependent upon a fairly restricted range of industries, notably oil and finance. When times are good for these industries they can be very good. Basking in the glow of high employment and government revenues from profits taxes, it is tempting for non-economists to be seduced by propaganda assuring them that Scotland is one of the richest countries in the world and could be a Utopian society if only we were independent.

Following the financial crash of 2008 we now see the oil price crash of 2014-15 and the announcement of redundancies in the oil industry. Nevertheless the Scottish government continues to demand a form of Devo-Max under which we should become dependent upon our own highly volatile taxation resources rather than insulated from economic gales by a continuation of the present UK funding arrangements.

It seems to me that members of the Scottish government would benefit from taking a trip out to Sliabh Mannan and learning the lesson of our fallen trees.

Scottish Independence - A Dialogue of the Deaf

Recent triumphalism from separatists claiming to be winning the argument is frustrating to people actually trying to think through the problems of independence. Rational discussion has not even begun. To date the so-called debate has been an emotional pantomime in which every claimed disadvantage is met by cries of "Oh no it isn't!" and little else.

To stress the risk of losing what we already have is not negativism. We have obtained certain advantages through the union. It is for separatists to explain either why we shall not be putting these advantages at risk or why it is worth it. Yet all we hear is flat denial of troubling claims such as those made by:

1. The Chancellor of the Exchequer, the Chief Secretary to the Treasury and the economic spokesman of the Labour party, who say that there will be no sterling currency union because it isn't in the UK's interest;

2. The Governor of the Bank of England who says that a sterling zone would require some ceding of national sovereignty in order to avoid the sort of financial instability that has hurt the Eurozone;

3. The Prime Minister of Spain and the President of the EU Commission who say that Scotland will not be an automatic member of the EU and will have to apply;

4. Economists who suggest that a refusal by Scotland to accept its share of the National Debt would lead to downgrading of our credit rating and a rise in our interest and mortgage rates;

5. The Institute for Fiscal Studies which says that oil revenues have been overestimated and Scotland cannot afford even current levels of public spending;

6. Financial institutions which have indicated that they may have to move south because regulations require their headquarters to be in the same jurisdiction as their largest market;

7. The Defence Secretary who says there is no guarantee that future UK contracts for warships etc. will be placed with a foreign country;

8. The former Secretary General of NATO who doubts that Scotland will be enthusiastically welcomed into the organisation whilst evicting Trident, an important part of NATO's defence strategy;

9. The Institute of Chartered Accountants in Scotland which has warned of major uncertainties for pensions after independence;

10. The Home Secretary who says there will have to be border controls and passport checks because continued free travel is incompatible with Scotland encouraging immigration whilst the UK discourages it.

These are just ten examples of warnings to which the standard response has been denial and accusations of bluff or bullying but not facts.

Let evidence now be brought forward. Let us hear detailed reasons why all these well-informed people are wrong. Until such time we may reasonably doubt that a rational, unemotional argument for independence has even been made, let alone won.

Ask a Silly Question

It is annoying that the standard of the independence debate remains low.  Such an important issue deserves better.

For example, we are told that most people agree with the proposition "decisions about Scotland should be taken in Scotland". What a surprise. Surreptitiously sliding emotional bias into surveys is a standard method of distorting results.

Suppose we consider a few other questions formatted in a similar way. For example, do we agree that "decisions about banks should be taken in banks"? Is it purely a matter for bankers to determine whether our deposits should be invested wisely or repaid on demand? No? Thought not.

Perhaps the Northern Isles might care to claim that decisions about the Northern Isles should be taken in the Northern Isles? How would Edinburgh respond to the assertion that "It's Shetland's oil"?

Let us pursue the logic further. Can anyone think of any reason why decisions about me should be entrusted to anyone but myself? What's all this nonsense about having to obey laws?

It should be fairly obvious that it is almost impossible to take decisions affecting one part of a community that do not affect other parts of that community, sometimes very seriously. For any society to be viable, its members must sacrifice some of their individual freedom to the greater good. The real question is therefore whether the value of the greater good is more than the value of the sacrifice.

Now let's think. What would be a good example? How exactly did Scottish banking get bailed out during the financial crisis? Who is placing the warship orders that could keep the Clyde shipyards open? Who decided to give Scotland a bigger share of UK public spending per head than England?

Or perhaps these are the sort of decisions about Scotland that should be taken in Scotland?