The economy of an Independent Wales

                or.

Wales wealth, how to get it and how to use it,

Currency and the Federal Bank.

Before Currency and the Federal Bank, we need to look once again at Wales ‘ so called ‘ budget deficit, for they are connected.

Wales budget deficit. Does Wales have one, how much is it and does it really matter.

With regard to the first two, no one really knows.

As we have previously seen, but briefly repeat here, the data upon which Wales deficit is based is decidedly untrustworthy.

The deficit repeatedly cited is based on a financial report by the Wales Governance Centre.

That, in turn, uses the data of the Government Expenditure and Revenue Wales

[ GERW ]

The authors concede that very little financial data is collected on a Wales specific basis, but rather England/Wales, or UK wide.

GERW is not a conventional accountancy process, indeed it is argued that 90% of the figures used have no verifiable audit trail. 

Spending for Wales is generally allocated on a population share basis, whether or not that can be justified.

Revenue income is collected on a UK wide basis by HMRC. It is then disaggregated to get Wales figures by, in the words of HMRC, using estimates, assumptions and adjustments.

HMRC concedes that Wales revenue figures are an underestimate, as some taxes, mainly corporate taxes,of businesses in Wales, have been allocated to the HQs, many of whom are outside Wales.

They however have failed to estimate the loss to Wales revenues.

The government may argue that GERW is an approved system, but as Prof Murphy of Tax Research argues, if the figures used by the system are suspect, then the outcomes must be suspect.

In Wales' case, indeed they are.

The outcome frome Wales financial analysis, by these methods, find that Wales has a budget deficit of £13.7 billion.

In the same period the UK budget deficit was £39.7 billion.

This means that Wales, with 4.8% of the UK population, is responsible for 35% of the UK deficit.

It makes no sense.

The economy of an Independent Wales.

                       or

Wales wealth, how to get it, how to use it.

It's the economy stupid. So said James Cavelle, Bill Clinton's campaign manager, when asked what they should be stressing.

So it is with Wales in Independence

Wales punches above its weight in many areas.  It can point to world champion fighters,Olympic and world athletic medalists. cycling champions and grand slam rugby champions.

It offers to the world the very best in music, arts and culture

It has stunning scenery, beaches, mountains, rivers and lakes.

It has innovative and resourceful people. 

In spite of all that. Wales suffers economic and financial shortcomings.

Its people are suffering from poor public services, health and social care, education, housing and low wages.

Its businesses from lack of investment and poor productivity

The Welsh government is powerless to change this dire situation.

All the improvements Wales seek cannot be enacted in the present system

It needs more money. It needs to grow the economy..

Under the present system of devolution, the Welsh government cannot grow the economy, they can only manage it. [ The Silk Commission on Devolution ].

Devolution cannot grow the Welsh economy.

An Independent Wales can.

This will show you how.