Our resident Emeritus Professor of Economics, Roger Sandilands explains the virtuous AGR cycle that would bring prosperity to Scotland:
“Reduce taxes and rents will rise. Collect those rents as public revenue and, as
Adam Smith explained, current economic distortions and disincentives disappear. This leads to exponential growth of GDP (the magic of compound interest) and AGR. The increased AGRs finance increased public expenditure, which in turn sustains and increases socially-generated AGR in a self-sustaining, expansionary, virtuous economic cycle.”
Once you get to the point where harmful taxes and their disincentive and distorting effects are reduced to zero, those elements can be removed from the diagram. AGR continues to work at maximum capacity boosting progress and shared prosperity.
The favourable outcomes can be seen in Hong Kong and Singapore, whose economies blast the UK into the weeds.
