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The National
2 days ago
- Business
- The National
Why does Scottish Government think a UK wellbeing economy is possible?
OVER the weekend, the independence movement will begin to address an issue that the Scottish Government has so far been unwilling to confront: the need to get practical about a wellbeing economy. On Saturday, I will deliver a session on the principles of the wellbeing economy in an independent Scotland as part of the IFS Summer Convention taking place in Perth, which will bring together representatives from across the independence movement. The desire for the independence movement to take the lead on the wellbeing economy reflects many of the conversations I've had this year. But before we can define a 'wellbeing economy', we need to examine its principles. What does a wellbeing economy look like? To do that, we must ask: What does a society built around wellbeing actually look like? Not just in theory – but how will it function, what will its values be, and what choices must it make? Within the independence movement, people don't struggle with the idea of a wellbeing economy, but their vision is often rather hazy. The conversation which starts on Saturday presents a unique opportunity to solidify the vision for a wellbeing economy in an independent Scotland. To ground the conversation, I offer three simple statements on which all of the readers, I hope, can agree. We do not have a wellbeing economy right now. A true wellbeing economy will look very different from today's economy. A wellbeing economy (whatever that looks like in the UK) seems further away each year. A wellbeing economy stands at the forefront of a progressive, independent Scotland. The concept of a wellbeing economy was one of the five key policy areas underpinning the Scottish Government's most recent economic prospectus (as part of the UK), the 2022 National Strategy for Economic Transformation. The report aimed to set out 'the priorities for Scotland's economy as well as the actions needed to maximise the opportunities of the next decade to achieve our vision of a wellbeing economy'. The strategy suggested that a wellbeing economy would deliver higher employment and wage growth rates and significantly reduce structural poverty. It would also improve health, cultural, and social outcomes for disadvantaged families and communities while part of the UK. In sum, the paper states that a wellbeing economy is possible in Scotland as part of the UK, a statement that I would strongly oppose. A Stronger Economy with Independence, released later in 2022, was the Scottish Government's vision for Scotland's economy once independent. It remains the most recent version. It opens with the line: 'We will use the full powers of independence to build an inclusive, fair, wellbeing economy that works for everyone in Scotland.' It is therefore easy to claim that the wellbeing economy is the destination for a better Scotland, whether as part of the UK or as an independent nation. However, as Aileen McLeod, director of WEAll Scotland, highlighted, a major concern for many in the wellbeing movement is that we can not deliver a wellbeing economy within the current economic system. READ MORE: John Swinney and Anas Sarwar clash over reports SNP figures plotting to oust FM McLeod said recently: 'While some progress has been made, there are concerns that the Government is retreating and falling back on an outdated economic model that cannot deliver the transformative change that people and communities across Scotland urgently need.' Like many general economic frameworks, a wellbeing economy is a contested term. Even in a relatively small group of activists and policymakers in Scotland, those engaged with the concept have differing views on the details or extent of the change required to create one. Is it a slow transition or a rapid transformation? Can we keep the best bits of capitalism and refocus our growth efforts? Do we simply need to de-prioritise the role of markets? Or do we require a new paradigm? The fork in the road To move the meeting on Saturday forward (and the movement as a whole), attendees will consider one question: Can our current economic system (or more precisely, the one in which we will begin our life as an independent nation again) deliver a wellbeing economy? It will be very interesting to see where the meeting lands. I believe that the Scottish Government is attempting to establish a wellbeing economy on economic foundations that will ultimately undermine its wellbeing policies. The IFS Summer Convention marks an opportunity for the movement to take the lead. If we accept that wellbeing is not part of the economic system at the moment, we open up space to think more radically – and more honestly – about what's needed. We can only assess that economic system if we understand it. READ MORE: UK economy sees biggest drop since October 2023 in blow for Rachel Reeves Since the late 1970s, we've been governed by a growth-first framework. Under neoliberalism, that system prizes an increase in GDP, productivity, and profit. There is little space for wellbeing. I have termed this the growth paradigm, and it views wellbeing policies – such as job guarantees, shorter workweeks, or community ownership – as non-essential. I would argue, in fact, that it views them as luxuries that we can not afford, or perhaps even as threats. But what does the independence movement think? Well, hopefully we will get a good idea of that over the weekend. The challenge is clear. How do we get from where we are now to a very different economy? Do we need to compromise? And if so, what social beliefs, ethical values and standards do we choose to include and which ones do we leave out? How will the economy we are likely to inherit when we are independent again support wellbeing policies? And the big one: How do we create the political and economic space in an independent Scotland to make that happen?
The National
23-05-2025
- Business
- The National
This policy makes wellbeing possible – it isn't the one you think
Here is this week's Scotonomics, we hope you will enjoy. This week the newsletter comes from William Thomson (follow me on X/Twitter!) LATER this year, the WEAll Alliance Scotland will release its wellbeing manifesto. Scotonomics will be proposing that a government job guarantee scheme forms part of the manifesto. WEAll Scotland gathered contributors for a wellbeing workshop in Glasgow last week. If there is to be a wellbeing economy (there certainly isn't one now) in Scotland after the next Holyrood election, then WEAll wants to suggest some policies. This marks a different, and in my opinion, a much-needed change of direction from WEAll. Up until now, it has been keen to sketch the idea of wellbeing and to let others decide on those policies. The need to get practical about a wellbeing economy reflects many of the conversations I've had over the past year. People don't struggle with the idea but very often their vision is rather hazy. With WEAll producing a 'wellbeing manifesto' for the next parliament, we may all be in a better position to action a wellbeing economy. READ MORE: David Lammy can call us 'clickbait' all he wants. He can't change the facts Aileen McLeod, director of WEAll Scotland, in her opening notes summarised the need for a wellbeing economy. She said: 'Delivering the wellbeing economy agenda has been a political commitment of the Scottish Government for a number of years. While some progress has been made, there are concerns that the Government is retreating and falling back on an outdated economic model that cannot deliver the transformative change that people and communities across Scotland urgently need. 'The crisis and day-to-day difficulties we all face are being compounded by the combination of short-termism and populism. The very things that we need – more immigration, shorter working week and genuine green and just transition – are being portrayed as the problem. "We are seeing a doubling down of the relentless focus on GDP growth at all costs, short-term profit maximisation over long-term societal wellbeing, where the power and control of the economy increasingly now lies in the hands of the wealthiest few. Rather than improving our lives, this logic is tearing societies and our planet apart and taking us down a very dangerous road. 'The challenge for us is how to sustain political effort in difficult times. We can take people with us by helping them to see and understand the connection between the economy and their everyday lives and we must also give politicians and policymakers policy solutions that are relevant, practicable, doable and deliverable.' One such solution is a government job guarantee (GJG). A GOVERNMENT JOB GUARANTEE I HAVE suggested that a GJG should form the central plank of an independence campaign. I listed wellbeing policies in a Scotonomics discussion paper (job guarantee was included) but to be honest, this policy is unlikely to appear on anyone else's 'wellbeing' list. And here is the evidence from the wellbeing workshop. People voted for their favourite 'fairness' wellbeing policy. The one vote for the government job guarantee was mine. Image: Author's The job guarantee scheme is the policy most closely linked to Modern Monetary Theory (MMT) and in a sense it is when that theory becomes practical. It has always been at the centre of MMT as a stabilising policy for the economy. If everyone who wants a job is given one by the government, it stabilises the business cycle – it expands during a recession and contracts during a boom. By setting a floor for wages, it also sets the price level for labour. And from there you can theorise that this in turn sets the price for everything that can be purchased in the issuer's currency. So, it's a three-for-one macro policy. It softens recessions, controls inflations and leads to full employment. Those facets should be enough for it to be on the table as a policy in every country in the world. I support the policy at a macro level and I want to expand it into the wellbeing economy. Surely if everyone who wants a job has one there would be no better wellbeing policy than that? A WELLBEING JOB GUARANTEE TO make the case, specifically in a wellbeing context, I want to highlight the other policies offered up at the workshop last week. The five wellbeing needs as identified by WEAll are dignity, purpose, nature, participation, and fairness. We have already seen the three policies we discussed on our table (image above) but it was interesting to see how seamlessly a job guarantee supported the ideas from the other groups. Here they are: Invest long-term in learning to respect nature at all stages of life Mass participation via citizen assemblies Structural approach to participation, e.g. built in at local level Ethical consumerism campaigns Restructuring of the economy to support more local/ethical businesses etc – with social and environmental focus Participatory budgeting with more control passed to local communities Investment in multi-use community spaces Repair hubs and link to circular economy Presumption in favour of community ownership Mass participation with cultural events Leverage and regulate public and private investment into nature-based solutions to support human and nature and wellbeing. So, what do you think – is this a good list of wellbeing policies? I certainly think so. One question that most people would ask is: where does the money come from for all of these policies? That's an easy one for an MMT economist. Finding the money is not the problem if Scotland has its own government that can create currency and purchase everything that is available in Scottish pounds. The same goes if the UK Government supports these policies. The question I want to ask is, who is it that does all the work? Once you come to the profound realisation that it is not the job of the private sector to give everyone a job (they tend to minimise costs including labour costs) then a government job guarantee becomes a sensible response. Look at that list again. Who trains and educates us all to keep our lifelong connection to nature? Who organises, manages and reports from the citizen assemblies? Who runs the campaigns? Who works for businesses that aren't profit motivated? Who provides resources, support and guidance to the volunteers on community councils? Who paints, fixes up and manages the community spaces? Who works in the repair hubs? If more community ownership is the target, who ensures those people have the necessary skills? Who organises and runs the cultural programmes? And finally, who is it that develops and supports all those nature-based solutions – tree planting, floor damage repairs, peat restoration? A job guarantee is the glue that makes all of this possible. READ MORE: Anas Sarwar responds to claim by-election candidate 'can't string sentence together' A final thought. Attendees also included a 'universal basic income' (UBI) on their list and there was general agreement on this policy in the group. A basic income is part of a job guarantee scheme, with an income paid to anyone unwilling or unable to work. So why isn't a job guarantee scheme as popular as a UBI in a wellbeing discussion? My response is that very few people know about the policy. I hope that once more people engage with the idea, they will see why it should top any list of wellbeing policies. Final works from Aileen: 'The wellbeing economy is the most important and relevant agenda of our times for responding to the interlinked crises and challenges we face and for delivering lasting change with security for all. 'We all have a role to play in ensuring the wellbeing economy approach is high on the political agenda and getting Scotland on track'. I believe that a government job guarantee scheme should be central to that vision and will be working over the coming months to raise the profile of a policy that should be at the heart of a wellbeing policy.
