Nourishment for Independent Minds

demystifying Our Economy

We continue our journey to discover how the economy really works

Our podcast, Events, Videos and blog Posts are essential for anyone interested in Scottish politics and the Scottish economy.

Scotonomics delves into the details of our modern economy

We all know that something is wrong with the way that the economy is currently working, and we will find out why.

Throughout 2025, we will demystify the Scottish Economy.

We will challenge the Scottish Government to explain its current plans and proposals for a post-independence Scotland.

We wiil challenge the austerity message at the heart of the UK establishment.

Podcast Episodes and videos

Scotonomics Podcast Episodes and videos are essential viewing for anyone interested in Scottish politics and the Scottish economy. Featuring real-world economists from all over the world.

YouTube Video VVVCRGFZQnBBTDFib2pxTS15em5FY2VBLlFhM0RYeEVIMnU4

The literature review focuses on articles that address macroeconomic issues related to climate change. All reviewed literature was published after the COVID-19 pandemic began in early 2020.

The broad sweep and focus on post-COVID articles help analyse the 'orthodox economic view' that underpins the climate movement's view of climate action.

The findings serve as a guide to prevailing winds in the climate movement regarding fiscal space for monetary sovereign governments.

Join us live to discuss the climate movement's 'learned helplessness'.

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SCOTONOMICS 1.2K

SCOTONOMICS EP 136: Does the climate movement believe that governments must find the money?

SCOTONOMICS January 29, 2026 9:28 am

SCOTONOMICS EP 136: Does the climate movement believe that governments must find the money?

YouTube Video VVVCRGFZQnBBTDFib2pxTS15em5FY2VBLlFhM0RYeEVIMnU4

Danny Dorling joins William Thomson to discuss his latest book, "The Next Crisis."

Covering inequality, the threat of violence and war, the climate and ecological crisis (among others), they discuss the role of economists and economics in measuring, influencing, and perhaps even creating our crises.

Danny's brilliant book 'The Next Crisis' is available from:

https://www.versobooks.com/en-gb/products/3175-the-next-crisis?srsltid=AfmBOorskq86u76g4MYn-RMOiV-1WTXhPAV1j1-8QOBaDBEed7AUP6n8

🎙️ New to streaming or looking to level up? Check out StreamYard and get $10 discount! 😍 https://streamyard.com/pal/d/6615864377081856

SCOTONOMICS EP 135: With Professor Danny Dorling

YouTube Video VVVCRGFZQnBBTDFib2pxTS15em5FY2VBLm1KeHdhN0oxbThr

In this episode of Scotonomics, William Thomson is joined by Nick Sherrard to unpack an uncomfortable question:

How can Scotland host the biggest arts festival in the world and still fail to turn it into long-term economic value for its own creative sector?

Drawing on Nick’s recent research into the Edinburgh Festivals, the discussion reveals a striking imbalance. Global artists, producers, and investors flood into the city each August, yet Scottish creative firms often struggle to secure visibility, influence, or lasting commercial benefit. Major decisions are made elsewhere. There is no Scotland House to promote national talent. Even festival infrastructure and digital platforms are increasingly sourced from abroad.

The conversation broadens to innovation more widely. Nick challenges the way Scotland talks about “ecosystems” without being clear about the mechanisms involved. He outlines the four stages of innovation, arguing that Scotland currently behaves like a stage-four economy: good at assembling ideas developed elsewhere, but weak at owning and scaling original innovation.

The episode also explores how innovation is too often treated as an unquestioned good, disconnected from purpose, wellbeing, sustainability, or community wealth. Big tech, empire-building, and loss-leader disruption models like Uber are contrasted with what a genuinely public-interest innovation strategy might look like.

Finally, the discussion turns to policy and power. From the role of the enterprise agencies and the Scottish National Investment Bank (SNIB) to the deeper limits imposed by currency control and foreign ownership, William and Nick argue that Scotland’s economic institutions lack accountability, clarity of purpose, and ambition in the right places. Instead of endlessly chasing unicorns or inward investment, they suggest a far more radical shift. One that directly backs people, enables experimentation, and links innovation to real social and economic outcomes at home. The episode closes with a call to stop abstract talk and start focusing on the practical mechanics of how Scotland actually builds, owns, and benefits from its own economy.

🎙️ New to streaming or looking to level up? Check out StreamYard and get $10 discount! 😍 https://streamyard.com/pal/d/6615864377081856

Episode: 134 Edinburgh: Innovation and the Festival Economy

YouTube Video VVVCRGFZQnBBTDFib2pxTS15em5FY2VBLlpfTlMzTVFGNHAw

Soon, the Scottish government will issue its own bonds. As outlined in the Scottish Government announcement, it is the first step for Scotland to demonstrate to international markets that it is a stable destination for more foreign investment.

In this live Q&A, William and Jim will cover every aspect of the decision by the SNP-led administration (assuming they are returned to lead the government in 2026) to borrow £1.5 billion from money markets rather than from the UK Treasury - via the National Loans Fund.

There has been significant coverage in the mainstream media and many social media comments.

We aim to give the definitive answers to questions about the decision. We will no doubt cover:

- The background and limitations on Scottish Government borrowing
- Why has this decision been made now?
- Who advised the Scottish Government to go down this route?
- Will this cost more than borrowing from the NLF?
- Were there any other options available?
- How have the bonds been rated?
- What does this tell us about the Scottish Government's view of credit agencies?
- What can we learn about the plan for independence?

And much, much more.

Join us live. And submit your questions in the comments now.

Background reading:
William's article: https://scotonomics.org/scottish-government-new-bonds/

Jim's article:
https://bylines.scot/news/economics/the-scottish-government-kilts-progress-or-false-dawn/

🎙️ New to streaming or looking to level up? Check out StreamYard and get $10 discount! 😍 https://streamyard.com/pal/d/6615864377081856

LIVE Q&A On Scottish Government Bonds

YouTube Video VVVCRGFZQnBBTDFib2pxTS15em5FY2VBLkVQS1UxanpyNlkw

Upon independence, the current Scottish government's plan risks undermining the very purpose of independence: the ability to design institutions tailored to Scotland’s needs.

Assuming Scotland becomes independent within the next few years, it would likely take at least a decade before it could formally join the EU. Aligning institutions too readily with EU frameworks from the outset would mean forfeiting the flexibility to create institutions that serve Scotland’s best interests in the early years of independence. An independent Scotland requires fiscal flexibility, not self-imposed rules from a bloc it does not yet belong to.

The Scottish Government argues that independence will allow Scotland to “tailor policy to Scotland’s needs; build greater equality and wellbeing; and become more resilient” (Scottish Government 2022, p. 6). We fully agree—this is the fundamental case for independence. An independent Scotland has all of the necessary resources, skills, and institutional capacity to enable its citizens to prosper.

This paper, on which this presentation is based, demonstrates the value of rigorous, independent research into how economic choices, especially those made in the early years of independence, will influence Scotland’s long-term prosperity.

We argue throughout the paper that, as part of the United Kingdom, Scotland’s economy is poorly served, but our principal concern is the current economic vision for independence as outlined by the Scottish government.

Presentation delivered at the 2025 Scottish Currency Group conference.

Download the full paper and the summary paper here, plus further information here: https://scotonomics.org/the-sgp-in-an-independent-scotland/

Other sessions from the SGC conference are available here:
https://www.youtube.com/@UCbTZJrFgbalSJTNMfrb0N6A

The Economic impact of Adopting the EU's SGP in an independent Scotland

YouTube Video VVVCRGFZQnBBTDFib2pxTS15em5FY2VBLllTTUNDa1laQy1F

Beyond the Union?

Many voters in both Scotland and Wales seek to gain independence from the same Union. But the similarities don't end there.

Some thoughts from William!

History of Colonial Conquest and Resource Extraction: Both nations share a history of colonial conquest and resource extraction.

Progressive Ideals: Progressive ideals underpin both independence movements.
Social Movements: In both Scotland and Wales, independence is a social movement.

Aim for a Prosperous, Fair, and Just Society: By becoming independent, both movements aim to create a more prosperous, fair, and just society.

Need for Significant Public Expenditure: Both nations are in desperate need of significant public expenditure, especially in transportation, telecommunications, housing stock, and infrastructure to support electrification.

Potential for Monetary Sovereignty: Both nations can be empowered by insights from Modern Monetary Theory (MMT) to become monetary sovereign governments, issuing their own currency on the day of independence.

Regulation of Financial Services: After independence, both governments will regulate their own financial services sectors, which can be designed for public purpose rather than profit.

Challenges Ahead: Both new nations will face challenges, including building self-sufficiency, withstanding price swings in international commodity markets, and building energy, food, and technological sovereignty.

Join William, Kairin, and guest Mark Hooper.

Scotonomics Ep 133: The Economy in an independent Wales

YouTube Video VVVCRGFZQnBBTDFib2pxTS15em5FY2VBLnVRcDQ0TXdvSjQw

WPI Economics was commissioned by the Scottish Land Commission to explore how land and property are valued for taxation purposes internationally.

This follows the Scottish Government’s 2025-26 Budget and Scotland’s Tax Strategy committed to working with the Scottish Land Commission to consider the role of taxation and fiscal interventions in supporting land reform and reducing greenhouse gas emissions from land.

A robust valuation system is a prerequisite for fair and effective taxation of land or property. Taxation of land is central to supporting land reform, encourages more productive land use, and supports both a just transition to net zero and a more equitable economy.

Four case study countries – Denmark, the Netherlands, Australia, and South Africa were selected for this analysis.

In this episode, we cover what the Scottish Land Commission has learned from this work and what direction the Scottish Government may take on taxing land.

Ep 132: How Other Countries Tax Land

YouTube Video VVVCRGFZQnBBTDFib2pxTS15em5FY2VBLktYRmFVRi1nVGxR

The final episode in our series covering William and Dirk's paper on the EU's fiscal rules.

In the model, some variables grow at rates set outside the model. In the standard configuration of the model, these include consumption, private investment, government expenditure, exports, and imports.

Tax revenues, GDP, and sectoral balances are derived from the macroeconomic model. The model categorizes the economy into three sectors: private, public, and external.

The main variables are consumption, private investment, government expenditure, tax revenue, exports, and imports. GDP is derived from these variables. Consumption, tax revenues, and imports depend solely on national income/GDP and therefore play a passive role in the economy. Secondary variables include the sectoral balances, which are the changes in net financial saving (deficit or surplus) of the private, public, and external sectors. The growth rates of the variables could also diverge so that some grow faster than others.

The growth rates could also be adjusted over time to account for long-term developments and economic ‘shocks.’

Obviously, growth rates are the main input to the macroeconomic model and, therefore, drive the results. To expect otherwise would not make much sense, as GDP and output are the sum of goods and services produced and sold for consumption and private investment to the private and public sectors and to the rest of the world (external sector). The model's equations and the scenario analysis calculation are presented in the appendix.

The model is, therefore, suitable for scenario analysis. In this case, the important variables to discuss are the government deficit and GDP. It is essential to note that we do not subscribe to the notion that GDP is a reliable proxy for wellbeing. Furthermore, GDP is an entirely inappropriate measure/goal for an independent Scotland

This is a detailed explainer.

Ep 131: A Macroeconomic Model of Scotland’s Economy

YouTube Video VVVCRGFZQnBBTDFib2pxTS15em5FY2VBLkVLOGl1YVVaMWZr

The concept of sectoral balances, developed by British economist Wynne Godley, has long been a well-established tool in macroeconomic analysis. Sectoral balances provide a vital framework for understanding the interconnected dynamics of modern economies. The St. Louis Fed tracks the US sectoral balances. The private bank J.P. Morgan used sectoral balances to ask, “Is the deficit threat being overhyped?”. The European Central Bank) used the approach to analyse imbalances in the euro area.

At their core, sectoral balances reflect a simple but fundamental principle: one sector's surplus must necessarily be matched by a deficit in another, as all financial transactions balance across the economy. This concept, rooted in the rules of accounting, divides the economy into three sectors: the private sector (households and businesses), the government sector (which normally includes the issuer of currency, regional and local government, in Scotland’s case Westminster, Holyrood and Local Authorities), and the foreign sector (representing trade and financial transactions with the rest of the world). By examining the financial flows between these sectors, sectoral balances offer a comprehensive view of how economic activity is distributed and sustained. Insights from sectoral balances underscore the crucial interplay between government deficits and private sector balances, providing a powerful lens to assess the impact of fiscal policy decisions and trade dynamics on a nation's economy.

In this episode, we introduce, for the first time, Scotland’s sectoral balances.

Episode 130: Introducing Scotland's sectoral balances

YouTube Video VVVCRGFZQnBBTDFib2pxTS15em5FY2VBLjJVRlI3ZEswdGg0

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