Economics Where people Matter
Natural, finite resources cannot be treated as income, but as a priceless asset, to be used wisely and sustainably. We need to improve the quality of life for all but recognise the limits of the resources on which our economy is built.
Growth, GDP and Quality of Life
The reliance on gross domestic product GDP as a key measure of economic activity is flawed and unsustainable. The more we buy and the more we throw away, the “richer” we are supposed to be. As a measure of progress, this is absurd.
In 2005, the Federation of Small Business produced a well-being index that showed Scotland at the bottom of the league of small, developed nations. So much for GDP.
We need to measure and make progress on our overall well-being using more sophisticated tools such as the Index of Sustainable Economic Welfare (ISEW) and the New Economics Foundation’s Measure of Domestic Progress (MDP).
Green MPs will work to:
- replace GDP with a genuine progress indicator based on quality of life, distribution of income and protection of environmental resources;
- require government and industry to report on capital investment into our national infrastructure, non-renewable resource consumption and the environmental costs of development;
- decrease funding to the road construction, nuclear energy and fossil fuel industries, and reduce arms and defence spending;
- introduce a Sustainability Diversification Agency, to support the redeployment of workers’ skills and contributions in a socially just and sustainable economy.
Taxation
The Greens will implement a tax system to encourage environmental sustainability and the reduction of material inequality. This will deliver real economic security. Taxation can and should be used to discourage social and environmental harm and promote equity between individuals.
Green MPs will work to:
- replace VAT with eco-taxes on pollution and waste;
- scrap the Council Tax and Uniform Business Rate, introducing a Land Value Tax to encourage more efficient use of land and accelerate urban renewal;
- increase taxation on corporate profits and reduce tax breaks for the rich.
Local Not Global
Greens want more economic self-reliance. We oppose the unfair globalisation of resources and markets dominated by transnational corporations and unaccountable financial institutions.
We want to minimise transport of imported goods and reverse the control of capital falling into ever fewer hands.
We will support small, local and community businesses, whose needs are too often ignored.
We will promote the social enterprise sector, where companies are committed to generating economic, social and environmental profit.
Green MPs will work to:
- set up democratically accountable community banks to encourage local people to invest in their own communities;
- reform banking law to give banks greater community responsibility;
- provide tax incentives for sustainable small businesses, co-operatives and worker-owned businesses;
- support local finance initiatives, such as credit unions and local exchange trading schemes;
- increase support to the voluntary sector, recognising its social and environmental benefits;
- phase out Public-Private Partnerships (PPPs) and Private Finance Initiatives (PFIs).