Over at the Corner an inquiry about Scotland. My view is drawn by my old mate, Iain Murray, currently thinking in a tank in Washington DC.
Plaid Attitude [Jonah Goldberg]
Iain - Maybe you could explain something to me, What's up with Scotland? I was there for the first time last summer on the NR Cruise. My lovely bride and I loved the place, at first. We thought Edinburgh — despite some of the usual Euro-grime — was just fantastic and we immediately hatched a fantasy of spending a year there someday. Then, it was slowly revealed to us that Scotland is becoming the land of kilt-wearing Marxists and environmentalists (hence, I suppose, all the green and red in their plaids). Fireplaces have been banned in Edinburgh and there's a legalized heroin vibe coming off many a park bench and back alley. It's the frickn' birthplace of the good enlightenment for Pete's sake! And yet, the Irish are going all free market while Adam Smith's ancestral home is becoming haggis-soaked kibbutz. Okay, I exaggerate, a little. But seriously, what's the deal?
Rush of blood to the head - and my reply to Jonah is below. Anyone care to throw in their tuppence worth?
Jonah
My old uni pal Iain Murray has drawn my attention to your recent comment on Scotland. You are in broad terms right about Scotland's current political situation.
Scotland is in a quandary - since devolution Scottish politicians have talked about enhancing Scotland's economy, but have delivered little. Most regulatory and fiscal levers remain with the UK Treasury. Scottish Ministers can alter the rate of property taxes paid by businesses located here and have oversight of our regional development agency (Scottish Enterprise) but that is about it. The Scottish government is quite timid about stepping outside its devolved powers; a recent attempt by the "First Minister" (how Soviet is that?) of Scotland to adopt different procedures for the expulsion of illegal immigrants (no dawn raids, please) was squashed by the UK Home Office.
However, if Scottish ministers wanted to be more aggressive about making Scotland more business friendly they could do so without getting tangled up with London. Unfortunately, London, in the shape of the Chancellor, Gordon Brown (a Scot) has poured so much UK tax money into Scotland that over 55% of GDP is now taken up by the public sector - stifling private sector competition, and driving out entrepreneurialism. With so many people employed by government there are few family or peer role models for young entrepreneurs. It is a vicious circle.
But - and it is a big but - Scotland remains part of the UK. London drives the UK economy. There are 9m people living in London now; 4m more than in the whole of Scotland. London continues to suck bright and talented Scots, as well as Welsh, Irish and English people into well paid and interesting jobs. It is a truly international city, and you cannot look at Scotland in isolation from the London effect. In every walk of life in London - from the City, through the creative industries to government you will find Scots in every position from Chairman to caretaker.
Many Scots - having worked in London till their 30s, married and blessed with kids, start to look around for a better quality of life. Then the old sentiments of hearth and home rear their head. It's only 1hour by plane from Glasgow or Edinburgh to London; Scotland's financial sector motors along (the Royal Bank of Scotland [Citizens' Bank ( and others) in the US] is now the 2nd largest bank in the EU), and thanks to the UK government our schools and other public infrastructure is well-funded. You can walk to work, be close to friends and family, and still spend 3 days a week in London. The same is true for most countries in northern Europe - Scandinavia and now the new EU member states in east and central Europe export their young to London. Many stay, but most return home with increased capital.
Scotland's essential dilemma is that it wants to be both a successful small country while enjoying all the benefits that accrue from being downstream of London (as it were).
I am currently working in a company which has its HQ in Dublin. Ireland has grown like topsy over the last 10 years, and for the first time in generations there are more immigrants to than emigrants from the Republic. However, it is only a country of 4m people, and its economic reach is limited. The UK is a huge market for Ireland, and our business - having grown as much as it can at home is now expanding in London, Glasgow and Dallas, Texas.
Much as she would like to be distinct, Scotland cannot escape London's gravitational pull; it can, however, escape the downward spiral of the current UK government. Hopefully, another British government will reduce the tax burden, lift the dead hand of state regulation and just be a bit more competent about its business - then we will all benefit, whether we live in Edinburgh or Eastbourne.
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