THROUGHOUT our series of articles for The National we have been arguing that a written democratic constitution which enshrines fundamental rights of all citizens is crucial for Scottish independence. Those fundamental rights include rights to food, energy, clean air and water, housing, health, education, work, a pension and other human rights enshrined in the European Convention on Human Rights.
It is remarkable to witness the British state failing to honour those rights as the UK finds itself in the grip of simultaneous crises in food, energy, housing, public health and pensions. The UK is also likely to face a water crisis as a result of climate change.
It further faces a crisis of employment – not just the quantity of jobs, but the quality of them and working conditions. The education system is failing to equip the younger generation with the skills and knowledge to lead fulfilling lives and become fully engaged citizens.
Scotland is struggling to escape the grip of these ongoing crises. The means to address these issues properly requires Scotland to have full access to and control over the allocation of our national resources. There is no more powerful case for independence than the failure of the British state to provide for the needs of all its citizens.
Establishing our own currency is an essential pre-condition for gaining control over the allocation of resources so that Scotland can deliver the priorities of the people who live and work here. It is the allocation of money that governs the allocation of resources.
READ MORE: These are the tax reforms that could transform an independent Scotland
Our series of articles has been discussing how the reform of our banking and financial system and a new understanding of the role of the government, the central bank and public finance are key to the delivery of a “wellbeing economy” and a “fairer and more equal society”.
Even Unionist think tanks, such as the Institute for Government and These Islands, have concluded Scotland’s best currency option is to establish a free-floating currency.
Having come to this conclusion, however, they seek to undermine the case for independence by spreading fears that the currency will be weak and will be vulnerable to currency speculation on global money markets.
In his National Extra on September 23 (“Why Scotland does not need the international money markets”) Professor Richard Murphy explains why there is nothing to fear and why the economics of these think tanks and other unionist commentators are flawed.
With our own currency, the Scottish Government will have no need to borrow money on global money markets. By working with the central bank the government will be able to create the money that is needed to allocate the resources to our national priorities. That money will be created in the very act of government spending on the provision of public services and infrastructure. It is not the supply of money that limits what we can do, it is the limits to our resources; labour, skills, technology, and physical resources.
Once we have reached our resource limits, no amount of money can magic more into existence. Throwing more money at an economy at full capacity is a recipe for inflation and for the loss of value of our currency. If nothing more can be produced, creating more money just results in those goods and services which are available costing more to acquire.
The role of our government will be to oversee the allocation of money in our economy so that our resources are put to good use. This is how Scotland will be able to provide the things we all need to live well and in harmony with nature; building a “wellbeing” economy where the rights of every citizen to food, energy, housing, health, education, are honoured.
READ MORE: How to ensure people don’t need to rely on debt to get by in independent Scotland
This naturally includes the right to a real living income, whether that comes from work or in retirement or from state support when unable to work.
As with every other country on Earth, our resources are limited and we also have to live within planetary limits. This means we must use our resources wisely. We should aim to be as self-sufficient as possible, especially with respect to food and energy, but there are limits to our natural resources.
We will therefore trade with other countries and, where appropriate, will call upon expertise and resources that we lack through trade and international co-operation. This will require carefully considered economic management.
The long-term UK economic focus has been to rely heavily on importing technology, neglecting innovation, and allowing markets and financial engineering to determine the direction of the economy.
We will need to have an industrial strategy that changes this, supporting the delivery of our priorities, taking into account the limits of our national resources, but utilising them fully and appropriately in pursuance of a fairer and more equal society.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here