The Jacob Shapiro Podcast Renegade Scottish Economics
Mar 23, 2026
Laurie McFarlane, economist and co-director of Future Economy Scotland, explains Scotland's constrained economic agency and the lost promise of North Sea oil. He explores the renewable transition, risks of repeating past mistakes, regional pricing tied to gas, and strategies to keep wealth and jobs local. Short, sharp takes on deindustrialization risks and how Scotland might wield energy and water as bargaining chips.
AI Snips
Chapters
Transcript
Episode notes
Why Future Economy Scotland Was Founded
- Future Economy Scotland focuses on transforming Scotland's economic system rather than incremental fixes to address social and environmental crises.
- Laurie McFarlane left London think tanks to build a Scottish policy shop that raises ambition, strengthens evidence, and holds the Scottish government to account.
Scotland Has Policy Space But Not Full Macroeconomic Control
- Scotland has significant devolved powers (health, education, income tax) but key macroeconomic levers like monetary policy and major fiscal decisions remain reserved to Westminster.
- That institutional split enables microeconomic innovation but constrains Scotland's ability to set a divergent macroeconomic trajectory without UK consent.
Scotland's Oil Compared To Norway's Fund
- The lost opportunity of North Sea oil shaped Scotland's political economy: revenues were spent by Westminster rather than saved as Norway did.
- Laurie contrasts Norway's sovereign wealth fund with the UK's squandering of comparable oil rents.