PoliticsAlistair DarlingScotland IndependenceBetter Together

No Campaign's Arguments About Scottish Independence 'Based On Fear', Economist Joseph Stiglitz Says

Scotland's No Campaigners' Arguments 'Based On Fear'
The Huffington Post UK/PA

Alex Salmond has found an ally in the bitter argument about his "plan B" for an independent Scotland's currency, with a leading economist saying the issue is "a lot to do about nothing" and intended to promote "fear".

Professor Joseph Stiglitz, an American Nobel Prize winner, said a currency union between an independent Scotland and the rest of the UK could work, as he dismissed the refusal of the main Westminster parties to agree to such a deal as "bluffs".

The expert, who is a member of the Scottish Government's council of economic advisers and its Fiscal Commission Working Group which has studied the economics of independence, spoke out as First Minister Alex Salmond and former chancellor Alistair Darling, the leader of the pro-UK Better Together campaign, prepare for tonight's live television debate.

Prof Stiglitz said: "One of the things as an outsider I've looked at the debate, particularly from the No side, I've been a little bit shocked how much of it is based on fear, trying to get anxiety levels up and how little of it has been based on vision.

"There is a vision on the Yes side that I see - what would an independent Scotland be like, what could it do that it can't do now."

Open Image Modal

Joseph Stiglitz

Regarding the rejection of a currency union by the Conservatives, Labour and the Liberal Democrats, he said: "For the most part these are bluffs."

The economics expert told the Edinburgh International Book festival that if there was a Yes vote on September 18, there would have to be talks between Scotland and the rest of the UK.

"People are going to be looking at what is in the best interests of the each of the two parties and there will be a negotiation," he said

"I think inevitably they are bluffing."

He argued currency union could work, saying: "Panama and Ecuador have adopted the dollar - it's worked for Panama for over 100 years. So the argument that England could decide I think is a little bit short-sighted."

He went on to state that countries such as Canada and some of the Northern European states used their own currency, saying: "There are many currency arrangements that can work, I think this is a lot of to do about nothing."

#INDYREF

He argued more fiscal stimulation was needed to boost the economy after recession, as he condemned the austerity politics of governments such as Westminster.

Prof Stiglitz said: "The austerity policies in Europe and in England have been an utter disaster. I have done a calculation of the cost of these policies, and we're talking about for Europe as a whole, trillions of dollars and the costs going forward are even larger because the young generation, who should be having productive jobs, are spending time in unemployment, not building up their skills, getting disaffected.

"That's the vision of Cameron, the vision of more unemployment."

He said: "There are risks always in any economic course, there's risks of doing something and risks of not doing something.

"So the risks of staying together is you could have a Conservative government that cuts back on government spending and that would force inevitably cutbacks here in areas of health and education.

"So there are risks either way. The difficult part is to assess those relative risks and there is no easy way of doing that. That's one of the judgments people as they go to the polls will have to make."

Tonight's debate is a rematch of the August 5 debate, after which both sides claimed victory but Mr Darling exceeded expectations with his performance, as Mr Salmond had been regarded as the better debater.

This time, the debate will be seen across the UK. The last debate was shown only in Scotland and broadcaster STV's online service crashed under the weight of people trying to stream it.

Before that debate, The Huffington Post UK posed five questions for each side to ask the other. As a primer for tonight, here they are again:

Salmond To Darling:

5 Questions Salmond Should Ask Darling In Tonight's STV Debate
Cameron agrees that Scotland can be a "successful, independent country", so why are you doing us down?(01 of05)
Open Image Modal
David Cameron said in 2007 that "it would be wrong to suggest that Scotland could not be another such successful, independent country".He added: “Supporters of independence will always be able to cite examples of small, independent and thriving economies across Europe such as Finland, Switzerland and Norway". (credit:Andrew Milligan/PA Archive)
Why won't you admit you're making empty threats about sharing the pound?(02 of05)
Open Image Modal
An unnamed government minister told the Guardian that "of course there would be a currency union" if Scotland breaks away. Meanwhile, the Edinburgh Agreement, signed by David Cameron and Salmond in 2012, states: "The two governments are committed to continue to work together constructively in the light of the outcome, whatever it is, in the best interests of the people of Scotland and of the rest of the United Kingdom." (credit:Gordon Terris/The Herald/PA Archive)
Why should Scottish voters be represented by governments they haven't voted for? (03 of05)
Open Image Modal
Scotland's voters have tended to vote more for Labour or for the SNP, even though the Conservatives have regularly governed the UK over the last few decades. Despite this, Alistair Darling insists "if you don’t like the Tory-Liberal government at the moment, there’s a general election happening next year and, you know, you can vote them out.” (credit:Wings Over Scotland)
Aren't you just scaremongering about Scotland's oil reserves running out?(04 of05)
Open Image Modal
Environment secretary Ed Davey recently said the UK should stay together as it can better manage the North Sea oil resserves, which "will remain an integral part of the mix for many decades to come". (credit:Colin Rennie/Aberdeen Press and/PA Archive)
Why should we trust you Alistair, the man at the helm when our economy fell off a cliff? (05 of05)
Open Image Modal
Alistair Darling was part of the UK government from 1997 and took over as chancellor from 2007, just as the financial crash hit Britain. (credit:ASSOCIATED PRESS)

Darling To Salmond:

5 Questions Darling Should Ask Salmond In Tonight's STV Debate
How can an independent Scotland stay in the EU and keep the pound? (01 of05)
Open Image Modal
Assuming no country like Spain blocked Scotland's entry into the European Union, how could they keep the pound? In order to join, Salmond will be forced to give up the pound as all new member states must sign up to join the euro. (credit:Jeff J Mitchell via Getty Images)
How can you want independence with an economy overseen by a foreign bank? (02 of05)
Open Image Modal
According to Salmond, England woud let Scotland use the pound, meaning interest rates would be set by the Bank of England, which would effectively be a foreign body. Bank governor Mark Carney himself warned that independence would require "some ceding of national sovereignty". (credit:David Cheskin/PA Archive)
How can an independent Scotland depend on "mostly depleted" oil reserves?(03 of05)
Open Image Modal
Scotland would benefit by nearly £7 billion in its first year of independence, according to Salmond's white paper. However one of his own advisers estimates the revenue would be £2 billion less, while the head of the Organisation of Petroleum Exporting Countries says the reserves are "mostly depleted". (credit:Colin Rennie/Aberdeen Press and/PA Archive)
How do you promise so much without public spending or welfare cuts? (04 of05)
Open Image Modal
Salmond has made “at least £670m” of unfunded commitments in his White Pape for independence, according to the Confederation of British Industry, “despite the Scottish government’s statement that it’s immediate policy plans are fiscally neutral”. (credit:Jeff J Mitchell via Getty Images)
Why do you you call us"negative" yet ignore the viciousness of your own supporters? (05 of05)
Open Image Modal
Salmond has labelled the Better Together pro-unionist campaign the "most negative campaign in modern times". But the first minister has overlooked the conduct of some of his supporters, who have reacted abusively to businesses who warn against independence like Barrhead Travel and pro-unionist supporters like JK Rowling. (credit:Jonathan Brady/PA Wire)
Suggest a correction
|
Submit a tip