Quite remarkable finding by Spudda

Scotland is the only part of the UK running a consistent trade surplus

Natural resource producer runs goods trade surplus.

Quite remarkable, don’t know how they do it.

…..but for those with an interest in Scottish economics the implication is at least interesting. The persistent claim that Scotland has a weak economy and is unable to sustain itself is not supported by this data. The chance that it may now and certainly did, support the UK economy as a whole, is, however supported.

Whut? A goods trade surplus indicates a strong economy? Err, but, the US had a massive trade surplus during the Depression…….

16 comments on “Quite remarkable finding by Spudda

  1. Oh, and this from him too, on twitter:

    proof – if proof were needed – that Murphy hasn’t the first fucking clue about GERS (as with so many of the subjects on which he opines)

  2. It might just depend on what the surplus is applied to and who are the actual beneficiaries of the financial surplus. If they are not actually Scottish, the trickle down may be going south to The City and the traders buying up the shooting rights.

  3. Is trade with the rUK counted in this calculation? Its entirely possible for Scotland to be in surplus with direct imports and exports to and from foreign climes, but be in massive deficit with the rUK.

    Anyway the argument that ‘trade surplus’ = ‘ability to sustain itself’ is a bit of a misnomer – Scotland can certainly sustain itself, its just a question of at what level of per capita income that would be. Certainly not the one they enjoy today, thats for sure.

    Incidentally would payments sent from Westminster count as ‘exports’ for the purposes of calculating a balance of payments?

  4. If they had gone independent when they had the referendum they would have had major problems when oil price dropped.
    They would have had problems with military bases closing and companies moving to where the markets are.

    Nothing much has changed since the referendum they had, except oil prices down.

  5. So if a trade surplus is not a good thing , especially , than can we surmise that the fact we have a trade deficit with, let us say Germany, is not necessarily bad thing?

    I find that hard to believe Tim , surely that would mean that this neutral information has been wheeled our relentlessly to persuade the gullible and xenophobic that in some dim way we have been ripped off by the Germans ?
    Next you will be telling me that all we will achieve by blocking German imports is to reallocate resources to things we are bad at ?
    Nah …that can`t be right can it …gosh think of all the lies that people who should know better would have told …I cannot believe it .I have too much respect for Brexit !

  6. Free trade is the thing that is good. Lots of it. Goods, services, labour. Surpluses, deficits not really important to well-being

  7. Newmainia seems to read some really dodgy sites.

    The EU is us being ripped off by the Germans?

    The Greeks are being ripped off by the Germans but, for us and as usual, it’s mostly the French.

  8. Bugger. I thought I’d read somewhere in the Murphy mumblings that all wealth was created by the State running a deficit.

    Does this mean that everyone living in Scotland is broke?

  9. She’s going to get thrown out of the Guardian SJWs Guild; A whole carping article without once blaming Trump, Thatcher or Brexit.

  10. Stumbled upon this that was interesting. So whatever happened to the great entreprenurial (*) Trivial Pursuit licensing floated company that Ritchie was FD of from 1985-1991 and a consultant thereafter?

    http://www.independent.co.uk/news/business/shares-fallen-stars-rise-again-two-small-companies-that-rode-the-eighties-rollercoaster-are-clawing-1539366.html

    Oh, it went down the shitter at the time Ritchie left. (**)

    (*) tax dodging licensor and tax dodging Irish factory
    (**) left, or was pushed out in the “The response has been board changes” bit.

  11. A state can have a surplus on the capital account and/or a surplus on the current (trade) account. It can’t have a deficit on both, or its people will be getting rapidly poorer. The capital account surplus keeps the UK afloat: in effect, the UK ‘exports’ businesses and investment opportunities.

  12. “in effect, the UK ‘exports’ businesses and investment opportunities.”

    Or ‘neo-liberalism” as the Left calls it.

  13. Tim

    Have you seen his piece on Charlottesville – disgraceful even by his low standards. Apparently the ASI was the type of organisation the march was in favour of?

  14. “Scotland is the only part of the UK running a consistent trade surplus”

    Depends what you mean by a “part”. London is probably a net exporter, as is the North Sea and the BAe factory at Fulton, which are all parts of the UK.

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