Correlation of economic and trade cycle

Misconception/Lie 26

This is the last test in the Growth Commission Report six tests. Once again, it is asking a question that is irrelevant to a country issuing its own currency. The wording of the explanatory statement is as follows:

Correlation of economic and trade cycle: Is the economic cycle in Scotland significantly out of phase with that of the rest of the UK, or at least as well correlated with the cycles of other trading and investment partners, thus making an independent monetary policy feasible and desirable?

Should Scotland follow the Growth Commission recommendation, and adopt Sterling as its currency, there is no way that the nation’s economy can become significantly out of phase with that of the remaining UK economy. The concentration of investment in the South East of England and on the financial sector in particular, creates a micro-climate bubble economy that drives economic policy, with little regard to the needs of any other nation or region in the UK.

By retaining Sterling as its currency, Scotland will remain in phase with a large proportion of the UK regions, by being completely out of phase with the economy of the South East. This drives inequality, under-investment and community breakdown. It highlights the fact that a separate currency is feasible and desirable now, nevermind, after independence.

The only way to enable the policy changes to take place, required to mitigate the threats of climate change, wealth inequality and neoliberalism, is to break away from the current system entirely and begin anew.

This will require a significant shift in philosophy, driven by new goals based on the needs and desires of the population as a whole, rather than the greed and exploitation of big business. To enable this to happen, each of us, as individuals, must recognise that this involves personal psychological change.

It is important to recognise the competition inherent in today’s society based on a false precarity. We are led to believe we are in a battle with our neighbours to accrue finite resources to ensure health and happiness in a survival of the fittest based on strength and power. This mentality is self-defeating for society, as is plainly obvious from the living standards of those losing this fight.

This Growth Commission test, seems to be proposed, for no other reason than to ensure this mentality continues, preserving the status quo and the trickle-up effect of fiscal spending.

By adopting a mentality based on cooperation and reciprocity, society can build on its strengths. Humans are at their most productive when working as a team. The law sees everyone as equally divine, so why should the economy not recognise that fact too? Everyone has a role to play in contributing to the advancement of the community. Every person has something unique to offer.

From the minute independence is announced, Scotland must get out of phase with the economy of the UK. For fifty years, the economic policies dictated by Westminster have been to the detriment of Scottish society. To allow the optimal economy for the Scottish people, the Scottish Government must discard the neoliberal mindset and strike a new path.

Instead of following other ‘trading and investment partners’, let’s choose trading and investment partners based on who is willing to follow Scotland’s lead.