Former SNP economist warns of ‘harm’ if Scots ever vote to leave the UK
SPLITTING from the UK would ‘hurt’ Scotland and could trigger a major financial crisis, a pro-independence economist has warned.
Mark Blyth, professor of international economics at Brown University in Rhode Island, launched a devastating attack on the financial impact of Scotland leaving the UK.
He highlighted the seeming paradox that many nationalists condemn the impact of Brexit but still support committing ‘the biggest Brexit of all time’ by leaving the Union.
The Dundee-born academic’s comments come as the SNP Government yesterday launched the latest in its series of taxpayer-funded papers on the case for independence.
Mr Blyth, who was previously a member of Nicola Sturgeon’s council of economic advisers and has claimed in the past that Brexit strengthened the case for Scottish independence, said: ‘On the one hand, I fully understand the desire to be separate but, you know, the idea that this isn’t going to hurt – ooh.
‘You can’t really say that Brexit is the worst thing ever and then commit the biggest Brexit of all time, which is literally what this is.
‘So if you’re going to think about being independent you have to think very sensibly about what that means and how are you going to generate income-generating assets to pay for stuff.
‘Why? Because as a small, open economy, which you then will be, you need to balance your imports and your exports over the long term or everyone thinks your curKeith
‘That is a flight into fantasy’
rency is s*** and at that point they dump it, prefer payments in British pounds and then you get a run on your foreign exchange and a mini Argentina on your hands.’
Mr Blyth, who was speaking virtually to the Scotonomics event on the economics of independence, said a ‘growth model’ needs to be set out showing where future incomes will come from, and added: ‘When you don’t even really know what that is and how it is going to work then that is a flight into fantasy, and I’m just too old to do fantasy economics.’
Scottish Conservative finance and economy spokesman Liz Smith said: ‘This is a devastating demolition of the economic case for independence by a former adviser to the SNP Government.’
However, SNP deputy leader Brown said: ‘The evidence is overwhelming that other independent countries in Europe like Ireland, Norway and Sweden are all fairer, wealthier and more productive than the UK – so, with all our advantages and talents, why not Scotland?’
SNP ministers have been urged to focus on ‘fixing the mess they’ve made of Scotland’s education system’ after publishing a series of policies for schools, colleges and universities after separation.
The paper, launched by Education Secretary Jenny Gilruth, claimed independence would help tackle child poverty, improve children’s rights, and allow Scotland to return to European Union exchange programmes.
Scottish Conservative chairman Craig Hoy said: ‘It is appalling that hard-pressed Scots are still footing the bill for SNP propaganda papers that lack any credibility and which nobody reads.’