scotland deficit myth Navigation

I want to put this in context. But luckily, Myth 10 is that there’s no way to fix this problem… i) The current Scottish deficit: The answer to your question is that the Scottish Government does not have a deficit: the Budget (Scotland) Act for each year, and subsequent in-year revisions, deliver a balanced budget. With this new “lens”, Kelton says, we can undergo a “Copernican shift” in how we view the economy. How do I know that? He is standing on the Lothian list for the Conservative Party in May’s Scottish Parliament election. A Scottish deficit is adding net financial assets to the economy. The Scottish Government balances the books to the penny, and even had surplus funds left over at the end of the last financial year. The reality is that Scotland has had 4,193 Covid-related deaths to England’s 46,736, which on a per capita basis puts Scotland at 767 per million to England’s 830. The only reason that it looks like Scotland runs a deficit for much of the time period is that the UK debt was removed from our block grant as a cost, if it was left in we would have a massive surplus now even after accounting for the bank bail out costs and making same cost decisions on nuclear weapons etc which of course we wouldn’t have but I left them in to make my figures conservative. Let’s look at Estonia first of all. taxation, and Scotland’s spending. On oil, there are some frankly incredible myths being put forward by the nationalists. The Scottish Government are discussing the idea of releasing an alternative to the Government Expenditure and Revenue Scotland figures, detailing how the finances of an independent Scotland could compare, to the current financial state of Scotland's place in the union. ... Deconstructing the Unionist myth of an independent Scotland’s deficit . Scotland does not have a deficit since by law we must balance our budget. The latest figures available from the Government Expenditure and Revenue in Scotland (GERS) are from 2003-4 and show a Scottish deficit of £11.2bn, or 12.9 per cent of … The nationalist logic here is ridiculous: if Scottish public spending were decimated, Scotland’s deficit would come into line with the UK average and, so … By Colin Dunn. If Scotland joined the EU today, it would instantly rank as one of the most Eurosceptic countries in the entire Union. Myth: Remaining North Sea oil and gas is worth £1.5 trillion - and at least £6.8 billion in Scottish tax … The Scottish Government balances the books to the penny, and even had surplus funds left over at the end of the last financial year. ScotGov had £450 million pounds left over last year, so far from having a deficit, the Scottish Government spends money very wisely, and very much within budget. Scotland would be "significantly worse off" under independence, with its deficit growing by an average of £1,000 per person, according to economists. Subsequently, the established narrative on deficits is becoming translated into justifying yet more austerity, otherwise "our grandchildren will have to pay, but is this true?Modern Money Scotland argues that deficits matter, but … Thomas Edison on Government Created Debt-Free Money “But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The UK for this period had a deficit of £23.5 billion. This is the data on UK net regional (and you'll have to excuse m,e calling Scotland, Wales and Northern Ireland regions when they aren't) to 31 December 2018, which is what the Office for National Statistics, in their usual massively unhelpful way, issue: The data is not consistent with GERS: the overall deficit is £41.8 billion. This oft repeated myth of Scotland being massively pro EU has to die it’s death. Now oil is cheap and Scotland is running a big deficit. A huge sea cave on the uninhabited island of Staffa in the Inner Hebrides, the cave is … Figures explode subsidy myth: Scotland gave £27bn more than was received ... and Tories in Scotland fell back on trying to question one key figure – Scotland’s share of the UK deficit. The 3% target is that set by the EU’s Stability & Growth Pact (SGP) aka Maastricht criteria. It is important that an independent Scotland break free from the financial shackles of Westminster Treasury decisions and it … RP Book Club: The Deficit Myth. ADHD symptoms were described by a German doctor, Heinrich Hoffman, in 1845 and by a British doctor, George Still, in 1902. Because Scotland would not have chosen to spend some of the cost charged to it by the UK government. The accounts also show that the Scottish economic deficit of £12.6 billion has now risen to 7.2% of GDP, when it was previously 7%. A former senior economic adviser to Bernie Sanders, Kelton is also a senior fellow at the Schwartz Centre for Economic Policy Analysis think tank. In contrast, England’s international trade deficit in goods is massive. The Deficit Myth. Read more…. The Scottish Deficit myth, the mandate and causes for a second Scottish independence referendum. The Scottish government subsequently estimated Scotland’s deficit to be 8.3 per cent of GDP in 2016-17, at the same time as UK borrowing fell. Well over half of Scotland’s wind generation between January 12, 2018 and the present was exported to England and not consumed in Scotland. A very quick post to clear up the latest "the statisticians are hiding Scotland's true wealth" myth. Scotland’s notional deficit stood at £12.6bn or 7% of GDP, including North Sea oil revenues, compared with the UK’s total £23.5bn deficit, which … Euan Mearns reached substantially the same conclusion in his review of January and February 2016 data. The creationof a post-rouble economy was well underway. 1 million people. An independent Scotland would examine decriminalising personal drug use, encouraging immigration and imposing a wealth tax on an1yone with assets worth more than £500,000, an SNP blueprint has said. image caption Danny Alexander said the "myths" of Scottish independence needed to be exposed. This book is a triumph, writes Professor Hans G. Despain, shifting normative grounds of government … (In reality, it’s much more.) On 26 August, the release of new spending (GERS) figures from the Scottish government showed the Scottish deficit is approaching 30% of Scottish GDP. The same broken “logic” then says they are British not Scottish figures and that any deficit belongs to the rUK. Excluding revenue and spending from the North Sea the Scottish deficit has been larger than the UK’s as a proportion of GDP for at least the last 20 years. The Scottish economy suffered a financial deficit that was 40% higher than the rest of the UK last year, after falling tax revenues helped push Scotland’s overall deficit to £12.4bn. Geissler then asked where defence would come in the priority list of an independent Scotland - citing Scotland’s deficit and suggesting there might be “lean years” ahead. A new report says the government’s central message that reducing the budget deficit and debt levels will enhance economic growth is a “myth”. One pound in five earned in London subsidises the rest of the UK – Northern Ireland, Wales and North East receive more than a fifth of their income as subsidies from outside the region. What GERS is asking us to believe is that with 8.2% of the UK population Scotland created between 54% and 60% of the UK deficit last year, depending on the basis used. Post author. She is a professor at Stony Brook University and a Senior Fellow at the Schwartz Center for Economic Policy Analysis at the New School for Social Research. Scotland receives no net subsidy as oil revenues offset impact of Barnett formula. Yet the entire annual deficit for the whole of the UK is £67 billion. 54% of independence supporters agree “Scottish tax revenues are understated because of Scottish exports leaving via English ports. The budget deficit only comes from the accounting that Westminster controls. What the statement suggests is that Scotland ran a deficit on government income and expenditure of £12.6 billion (including North Sea revenue) and £14.0 billion without that revenue to 31 March 2019. Scotland doesn’t run a debt. Soon after the onset of the Covid-19 lockdown, the mainstream media became increasingly exercised about the ballooning UK government deficit. There is an article from this week’s Spectator by Malcolm Offord,who is the founder and chairman of Badenoch & Co (an investment company). Surplus. A deficit is the norm. Common Weal head of policy Ben Wray explains why it’s vital the Yes campaign gets its head around Scotland’s deficit and kills the myths. Scotland’s onshore economy grew by £3bn. It can’t. Stephanie Kelton, a professor of economics and public policy at Stony Brook University, is the author of “The Deficit Myth,” from which this essay was adapted. In fact, and as the name suggests, it only covers Scotland’s exports and does not cover imports. Finally, Mr Lakin repeats the myth of a Scottish deficit. It says: “An independent Scotland would need tight public spending rules to bring the country’s deficit down from around 6% in 2021-22 to below 3% over a period of 10 years”. There is an article from this week’s Spectator by Malcolm Offord,who is the founder and chairman of Badenoch & Co (an investment company). There is an idea that when people eat after fasting, they will most likely overindulge, but the research doesn’t support this claim, says LaMantia. And let’s not forget almost 40% of Scotland voted to leave the EU. In an effort that is both ambitious and potentially very useful, the folks at Real Progressives (@RealProgressUS) have launched a Book Club webinar on Tuesdays at 5:30 pm pacific, 8:30pm eastern. This article will explain the definition of fiscal balance and, using the 2018-19 ONS Country & Regional statistics, explain how the constituent nations and regions of the UK contribute to this overall figure. There is a myth that these figures are nothing to do with Scotland and do not represent what an independent Scotland would look like. The following year, on 1 st January 1990, Eesti Pank (the Bank of Estonia) was re-established. The myth of North Sea oil: Scots face £1K deficit growth per person under independence. It found that 57% of independence supporters agreed with the statement 'the figures used to calculate Scotland's deficit - the GERS figures - are made up by Westminster to hide Scotland's true wealth'. People who believe this myth do not know the history of ADHD. Any deficit which does exist is based on our share of money the UK government spends. She was formerly a professor at the University of Missouri–Kansas City. He highlighted oil and gas, and the national deficit, as "the more dangerous economic myths… https://www.ft.com/content/ff6c0f6b-2d65-4a4e-bbba-878e2260cf3e To name but one extremely significant example, an independent Scotland’s balance sheet would be massively affected – to the tune of billions of pounds a year, a huge chunk of the deficit – by the details of the independence settlement and in particular how much UK debt Scotland … Scotland’s ‘onshore economy’, which excludes North Sea revenues, increased by £3 billion between 2018-19. Scotland is the only UK nation to have exported more goods internationally than it has imported every year since records began. Scotland has fiscal controls over certain aspects of its economy, of which they have had a budget surplus in recent years. Although the deficit reflects Scotland’s current position within the Union, it is a key issue in the debate over independence. The First Minister knows this and has publicly, on many occasions, confirmed we do have a deficit, she acknowledges that at 9% of GDP it is three times the aggregate UK deficit level of 3%. In The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy, Stephanie Kelton dispels six key myths that have shaped the conventional understanding of deficits as inherently bad, instead arguing that deficits can strengthen economies and lead to faster growth. It’s the complete opposite of austerity. For instance, UK debt in 1980 was 100 billion pounds and since 2013 Scotland has run a deficit of approximately 42 billion pounds according to the GERs figures. The UK deficit is 1.1% of GDP. Where has the rest of the 20 billion pounds been allocated? “Ben Wallace is on very shaky ground when it comes to both jobs in Scotland and defence, and on deficits, he’s got a £17.4 billion deficit in his procurement plan. Another myth surrounding ESS is that it provides a comprehensive picture of Scotland’s trade. In 2013, the UK government released a document stating that the oil and gas industry reduced their balance of payments by almost 50 billion pounds. On the back of rising onshore revenues, Scotland’s notional deficit fell by £1.1 billion. Myth#8 Intermittent fasting makes you overindulge. So, even if you give Scotland a population share of 1980’s debt and subtract the deficit of the last 3 … The equivalent figures for Wales and Northern Ireland allocate deficits of £14.7 billion and £9.16 billion respectively. The deficit lie. England – Scotland border (from Map of UK) The December 2019 general election result, and the SNP’s response to it, has brought the question of a future border between the UK and a separate Scotland back into focus. Even in 2014-15, its share of North Sea tax receipts was £1.8 billion. The survey sought attitudes on the Government Expenditure and Revenue Scotland (GERS) figures published by the Scottish Government. Fingal's Cave. The 3% target is that set by the EU’s Stability & Growth Pact (SGP) aka Maastricht criteria. Myth 1 is that the government owes “only” $20 trillion. “Remember the Scottish Government actually runs a balanced budget. FACT: The UK traded at a surplus with the ‘six’ prior to EEC entry, which paved the way for a structural deficit and de-industrialisation. MMT, the author informs readers, “is a nonpartisan lens that describes how our monetary system actually works”. So when Conservatives like Boris Johnson, and sadly some SNP and Labour figures, talk about reducing the deficit and national debt, what they’re really saying is they want to drain ordinary people of net financial assets. And those around the national deficit. Though the rhetoric suggested that there was a ‘democratic deficit’, the real problem was one of legitimacy. January 1, 2021 January 20, 2021. How can a country that is only allowed by Westminster to spend barely half of its own revenue have a deficit? In its regular Economic Commentary for November, the Fraser Allander Institute at Strathclyde University concludes (page 13): According to the GERS figures, Scotland has a deficit of £14.8 billion a year. SCOTLAND has the highest public spending deficit in the European Union beating Greece to take top spot - and taxpayers in the rest of the UK are having to help plug the economic gaps. Pointless sophistry. READ MORE: WATCH: Yes supporters bust myths about Scottish independence. While … The myth of the Westminster model and the Nirvana fallacy. This is the fastest onshore growth since 2010-11. He is standing on the Lothian list for the Conservative Party in May’s Scottish Parliament election. The Outer Hebrides (/ ˈ h ɛ b r ɪ d iː z /) or Western Isles (Scottish Gaelic: Na h-Eileanan Siar [nə ˈhelanən ˈʃiəɾ] or Na h-Eileanan an Iar [nə ˈhelanən əˈɲiəɾ] (); Scots: Waster Isles), sometimes known as Na h-Innse Gall ("islands of the strangers") or the Long Isle/Long Island (Scottish Gaelic: An t-Eilean Fada), is an island chain off the west coast of mainland Scotland. And my answer is very simple: no it did not. Yet again, Mary Thomas claims that Scotland's deficit of £15 billion is a myth (Letters, 16 December). The deficit is a crucial in Ms Sturgeon’s demands for an independent Scotland to rejoin the EU, as it would need to more than half to three percent for the country to qualify. As a proportion of GDP the Scottish deficit was more than three times that of the UK as a whole. Myth: There would be tax cuts and more spending in an independent Scotland. Fact: Scotland spent £12 billion more than it raised in taxes last year (that’s from the Scottish Government’s own figures, including North Sea revenues). Labour and the Tories have attacked claims made by a senior Nationalist that an independent Scotland could slash its fiscal deficit to three per cent within just two years of a Yes vote. ... " in HMRC regional export stats must be hiding the true extent of Scottish GDP and/or by implication exaggerating our deficit. Government Expenditure and Revenue Scotland (GERS) statistics published today show that Scottish fiscal deficit fell from £13.8bn to £12.6bn … She will now act as adviser to the Scottish Currency Group. It can’t. ii) How the Scottish government would reduce the deficit if it became independent. Scotland spends 20% more per head on public services than England. The first is the Scottish Government’s claim. 3 November 2017. Why we need to debunk the ‘deficit myth’ — Stephanie Kelton BBC Reel June 29, 2020 (05:09). The deficit in Scotland was 8% including the North Sea, and excluding it was 9%. Included in Tim and John’s article were four issues that have to be continually brought to the fore to combat the same old potatoes being brought out ad nauseam by Unionist pundits and politicians – currency, national debt, deficit and pensions. The cause is the oil price: Four years ago, Scotland’s share of oil revenues topped £11 billion. 57% of Scottish independence supporters agree with the statement “The figures used to calculate Scotland’s deficit (the GERS figures) are made up by Westminster to hide Scotland’s true wealth. “So ill begoes him to lecture Scotland on the notional deficit that he thinks we will have after independence . 5. In her new book, The Deficit Myth, Kelton outlines the fundamental tenets of MMT, attempting to provide suggestions on “how to build a better economy” in the process. ScotGov had £450 million pounds left over last year, so far from having a deficit, the Scottish Government spends money very wisely, and very much within budget. So yet again let me point out the SNP government’s own financial figures. England Subsidy to Scotland a myth according to CEBR. A third of Scotland’s fictional deficit is a £4.5 billion interest charge for a UK debt that amounts to £130 billion over the last 40 years. Professor Stephanie Kelton, author of bestselling book The Deficit Myth and a member of staff at New York’s Stony Brook University. SCOTLAND'S SHARE OF THE UK DEFICIT. Scotland’s fiscal deficit has narrowed but it is still more than three times the scale of the UK as a whole. It says: “An independent Scotland would need tight public spending rules to bring the country’s deficit down from around 6% in 2021-22 to below 3% over a period of 10 years”. In terms of exports per head, Scotland outperforms the UK: Scotland exports £17,455 per head per year, while the UK exports £8,626. Stephanie A Kelton (née Bell; born October 10, 1969) is an American economist and academic. We explore economics, government statistics and claims made by politicians, commentators and bloggers from all sides of the debate. It is not. An increasing proportion of the Scottish government’s budget comes from taxes raised in Scotland, rather than the block grant. Further improvement in Scotland's public finances. EVERY DAY the No side fumes over an independent Scotland’s hypothetical government deficit – the difference between what the government spends and what it collects in revenue each year. Scotland has no deficit. As early as 1987, prominent democracy-minded Estonians had devised a Self-Managing Estonia project for Soviet Estonia and this was accepted into law in 1989. Post date. MYTH SIX – ACCESS TO THE SINGLE MARKET IS IMPORTANT FOR THE UK ECONOMY. This downward revision moves Scotland further away from the European Union’s requirement that to join the EU, a state’s deficit must be no more than 3%. Far from remedying Scotland’s democratic deficit, devolution has deepened it. Three comments chosen almost at random make the point: from Philip Sim, political reporter on the BBC… I WAS pleased to read Tim Rideout and John Robson’s, “We need to bust the myth that a deficit is a bad thing” (Letters, February 17). Rather, we send £65.1 billion to … Scotland’s wind exports to England and the myth of a 100% renewable Scotland. 28th February 2021. ‘The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy’ by Stephanie Kelton The national debt is either a big scary number you believe is going to burden future generations if we don’t get our spending under control — or you don’t think about it very much. Scotland's public spending deficit has fallen by a further £1.2bn over the past year, according to Scottish government statistics. This was 17.9% in 1994-95, almost double the per capita share, and disputed by the SNP. Even with these issues having a drag effect on the Scottish economy, GERS has shown that for 38 years in a row Scotland had higher GDP per head and a lower illustrative deficit as a percentage of GDP.361 The last four years, where the GERS illustrative deficit has been higher than the UK’s, relate to the UK Government’s decision to lower taxes on oil extraction and thus lower Scottish revenues. Holyrood does have borrowing powers, extended through the Scotland Acts 2012 and 2016, but the overall deficit that is laid out in GERS is the gap between Scotland’s public revenue, i.e. This compares to a deficit of 2.3% for the UK as a whole. Predictably it was Brexit that was blamed for these figures by Forbes even though few other parts of the UK enjoy weaker trading ties with the EU than Scotland does. Since 2001 Scotland has sent £937bn to UK Treasury, and got back just £511bn to spend on itself. And two-thirds of them agree that Scottish tax revenues are ‘understated’ because taxes generated by the whisky industry are ‘not properly allocated to Scotland’. It is , The National.Scott . 66 per cent agree that ‘Scottish tax revenues are understated because taxes generated by the whisky industry are not properly allocated to Scotland’ 55 per cent agree that ‘Scotland is only seen to be running a deficit because some costs outside of Scotland, like HS2 and infrastructure spending in the South East, are charged to Scotland’ Indeed, as illustrated above, it has become the defining characteristic of contemporary Scottish political life. In the single most important category of UK/EU trade, motor vehicles, we still have not reached the export levels of 1972. Scotfact is a collated resource for facts and figures complete with source links and data visualisations, We cut through myths and mistruths surrounding the Scottish Independence debate. If it went for independence, on the basis of the deal agreed in 2014, it would have to pay 10% of the covid-19 bill. She also served as an advisor to Bernie Sanders's 2016 presidential campaign. In 1798, long before there were any drugs for ADHD, Alexander Crichton, a Scottish doctor described a “disease of attention,” which we would not call ADHD. With Scotland's deficit only being reduced by 1.43 billion pounds (Scotland has 96% share of oil and gas, and 63% of natural gas).