We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.

Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]

If access to the Single Market (aka customs union) is so important, then exporters should pay a fee

This a few months’ old, but I thought of this excellent point on the issue of Single Market access, made by Tim Worstall, when reading some bleatings from Remainers on the subject:

“We could in fact argue that a payment into the EU budget in return for Single Market access is illegal state aid. And thus not allowed under the usual rules of trade with the EU. Because it is state aid. Exporters will face tariffs if the payment is not made. The payment thus benefits exporters. But the payment is made by taxpayers, this is thus aid from taxpayers to exporters. It’s a subsidy for exports – something that isn’t allowed.”

And:

A reasonable guess at the amount the EU would demand for continued Single Market access is £8 billion a year or so. Around and about the current nett contribution and not far off the correct multiple they charge to the far smaller economies of Switzerland and Norway. And recall again, this is what they demand be paid by taxpayers to grant that profitable privilege to exporters.

What we should therefore do is charge that £8 billion to the exporters. This has two useful effects. Firstly, the charge for the privilege now falls precisely and exactly upon those who profit from the privilege. This is where costs are supposed to go, to those who gain the benefits.

And then this:

The crucial point is that the benefits, as far as the UK is concerned, of Single Market access lie with those making the exports. Thus those making the exports should be those paying the cost of Single Market access. If those who benefit think it not worth the cost then no one should be paying such bribesillegal state aid access fees. And simply by applying the costs, correctly, to those who benefit we find out which is the truth.

It’s very difficult indeed, nay impossible, to see the down side of this suggestion. If exporters want Single Market access then exporters can pay for it, not taxpayers. If they won’t pay it then it’s not worth it, is it?

Worstall rightly says that this sort of idea is politically difficult, precisely because it is so logical.

There is another issue. The Single Market, as envisaged by the late Margaret Thatcher, may have been about trade and economics, but as far as much of the EU political class is concerned, it was part of a wider architecture of a European superstate – hence the way debate is linked to its access being tied up with free movement. Even so, as Worstall says, if access to this market really is so important, and denial of entry is going to be “catastrophic” (to quote an excitable Facebook acquaintance of mine), then exporters should not mind paying a fee. It would be no different to, say, paying an annual membership fee, or “tithe” (Worstall’s neat term) to be a member of the London Stock Exchange, or some other market, such as the Tattersalls bloodstock market, etc.

As cannot be said too often, the Single Market is a customs union, surrounded by tariff and non-tariff walls that, for example, have significant costs on consumers. To be a member of such a protected zone ought to be a privilege that those who wish for its membership should pay for, and that payment should not come from the general taxpayer.

Worstall’s logic is impeccable.

 

Folk are saner on the Continent, apparently

If you think a lot of TV and live comedy shows have got tired recently, then I think this fellow, a columnist at Bloomberg, could stir things up a bit, albeit without realising it:

Voters in the major continental nations may get angry and disappointed — say, with French President Francois Hollande’s feckless leadership or with the recent inflow of refugees from the Middle East — but they don’t get desperate enough to vote in a Donald Trump or to inflict Brexit-style turmoil on their countries.

Leonid Bershidsky

Absolutely, Mr Bershidsky, voters in France, for example, continue to elect people who preside over the grandeur, nay, the stability, of double-digit unemployment, of all those jolly car-burning festivals that so enliven the outskirts of Paris or Marseilles. And they vote for the sort of structures that will admit a country such as Greece, or for that matter, Italy, into a single currency predicated on economic fundamentals that are for the fairies.

But hey, they don’t vote to leave a transnational progressive union with centralising intent, and they don’t vote for property developers from Queen’s. So I guess Europe’s okay then.

Where the hell does Bloomberg find these people?

A new recruit for the Bolivarian Alliance for the Peoples of Our America!

France.

That is, if French presidential candidate Jean-Luc Mélenchon wins the coming election. I would still call that unlikely, but he is rising in the polls. In case you’re wondering, Our France would qualify as part of Our America because of its overseas departments French Guiana and the French Antilles. Although I am not sure that the present members of ALBA – principally Venezuela, Cuba, Nicaragua, and Ecuador – will greet these parts of France Overseas with unmixed joy.

Quoting the article from Le Figaro linked to above:

The document [Mélenchon’s manifesto] proposes to leave the treaties of alliance that France belongs to now, like NATO on the military plane, or the WTO and the CETA on the economic level. Proposal 62 calls for the establishment of an alternative system and, for example, to join structures of “regional cooperation”, “in a process of ecological, social and human progress”. The program cites the ALBA (Bolivarian Alliance for the Peoples of our America) launched by Hugo Chavez and his allies as early as 2004. The links between the late South American president and the candidate are of long standing, and the latter never misses an opportunity to tell the story of their meeting. But the reference to the Bolivarian model has not yet been updated with regard to the drift of the regime of Maduro and the resulting economic collapse.

There is more on this story from Libération: What is the Bolivarian Alliance that Mélenchon wants to join?

That story links to a video showing a TV studio discussion in which an interviewer brought up Mr Mélenchon’s proposed change of direction for France with his spokesperson, Clémentine Autain, who “was obviously unaware of this point of her candidate’s program” – and could hardly keep a straight face when told about it.

As ever, the translations are a joint project between my French O-Level and Messieurs Google et Bing. Corrections are welcome.

Italy keeps up its traditional ways

…of backwardness, protectionism and cronyism. Sorry, Italy, I love you in so many ways but this is just Third World:

The International Business Times reports, “Italy court bans Uber across the country over unfair competition for traditional taxis”

An Italian court banned the Uber app across the country on Friday ruling that it contributed unfair competition to traditional taxis. In a court ruling, a Rome judge upheld a complaint filed by Italy’s major traditional taxi associations, preventing Uber from using its Black, Lux, Suv, XL, Select and Van services from operating within the country.

Samizdata quote of the day

The problem is that a lot of data suggests that countries with more robust welfare states tend to have stronger far-right movements. Providing white voters with higher levels of economic security does not tamp down their anxieties about race and immigration — or, more precisely, it doesn’t do it powerfully enough. For some, it frees them to worry less about what it’s in their wallet and more about who may be moving into their neighbourhoods or competing with them for jobs.

Zack Beauchamp, Vox.

(Yes, I am putting up a SQOTD from a lefty news service. If readers’ blood pressure rises, sorry. The article contains a few errors and arguments I don’t agree with, but I like to find signs, or glimmerings, of intelligence wherever I can. Maybe, just maybe it is dawning on some of the smarter souls in the Left that the identity politics game has been a catastrophe, and that some of the so-called solutions for our ills as advocated by socialists/Welfare Statists have been an abject failure. Politics/ideas are in ferment right now, and this article is a sort of suggestion of what the ferment is causing. I also commend the author for the amount of data here.)

I added this to the pushback in the comments:

Let’s consider: the article goes into considerable detail to point the fact that in those countries with high levels of Welfare State spending and the rest, support for the far right has increased often more than among those places with less of this, and the author concludes that one reason might be that citizens in those places feel their welfare frees them up to worry about non-economic issues, such as the allegedly malign impact of foreigners entering a country. That seems to be just as plausible a reading of the facts – and in some ways an original and perceptive one – as the standard line that high welfare has sucked in lots of foreign scroungers who have provoked a backlash. For a start, there is no clear evidence that immigrants in net terms consume more welfare than the indigenous population. Secondly, there is the point that the sort of people who want high welfare spending (paid for, they naively think, by other, richer people) tend to have a zero-sum, economically illiterate view of the world (hence their support for a Welfare State), and people who hold wrong-headed views about the State tend also to hold fearful views about immigrants “taking their jobs” or whatever. And the kind of folk who are turned on by the politics of identity tend, given their collectivist assumptions about life (bosses, workers, them, us, etc) to be the sort who like Big Government.

This article shows why it is no accident that Labour Party voters, who by and large aren’t the sharpest knives in the drawer, have switched to UKIP, or even further to the right, and why socialism often blends very easily with nationalism.

Like I said, what I hope (naively!) this article suggests is that there are people on the Left who are seeing this, and who realise there is a problem. At the very least, rather than simply criticise and pick holes, it is a good idea in my view to engage with these folk, to show where they are correct and draw them out. This is how intellectual shifts occur; smart advocates of liberal free markets and limited government should embrace anyone who seems honestly to be wrestling with what is going on.

 

On political ignorance

A commenter over at the Guido Fawkes blog, with the joyful name of “Rasta Pickles”, comments on the notion that the UK electorate is too thick to figure out the complexities of Brexit, and that such complex matters should be left to a political class that has done such a tremendous job down the years. He or she notes a flaw in this “argument”:

“99.9% of the UK electorate have no idea what they’re voting for every time they vote in a council election; they regard local elections as a popularity poll on what’s happening in Westminster. Your local Labour/Tory council might well be planning on a compulsory purchase order on your house and those around you in order to build a new mega-PoundLand store and you’d still have people voting for them out of sheer ignorance.”

Even so, there are libertarians/classical liberals who point out that democracy, unless hedged with checks and balances, isn’t compatible with liberty and can be harmful to it. Bryan Caplan’s The Myth of The Rational Voter is a good read, as is this recent effort by Jason Brennan. But my problem with the arguments they make is that what, realistically, can they propose other than the sort of return to oligarchy of “smart people” that, as history tends to show, descends into corruption pretty damn quick?

In Austria, perhaps they are only following orders….

Hitler lookalike arrested in Austria

A Hitler lookalike has been arrested in Austria on charges of glorifying the Nazi era, local officials say.
The 25-year-old man reportedly calls himself Harald Hitler.
The man, sporting a side parting and a trademark moustache, had been seen having his photograph taken outside the house in Braunau am Inn in which Adolf Hitler was born.
The lookalike had recently moved to the town on the German border, police spokesman David Furtner told the BBC.

Well if ever someone’s face didn’t fit… Best not be a Charlie Chaplin tribute act in Austria then, or go to a Sparks concert, that town ain’t big enough for the both of them.

What’s next, putting down cats with unfortunate colouring?

On a more serious note, how better to discredit freedom that to carry on like this? Perhaps that’s all socialists can think to do. Mocking a fool is better that locking a fool up. Hitler is, thanks to Downfall parodies (here’s one, oddly prescient on the EU referendum, about Gordon Brown’s fading Premiership), a laughing stock, and the one thing that discredits tyrants more than anything is being laughed at. After all, mass murder has not discredited any brand of socialism.

The Pope has staged a coup in ‘Malta’!

News reaches us from the Telegraph of rumblings in Rome, where an expansionist Pope appears to have burst the bonds set up by Mussolini and, setting his sights on the smallest ‘state’ within Rome, persuaded the British head of the International Sovereign Military Order of Malta, Grand Master Matthew Festing, to resign. Unlike a previous situation of Argentine aggression against a small group of islands sitting peacefully in a deep blue sea, this has passed off far more peacefully and entirely within Rome.

The background to this dispute is, we are told:

Mr Festing and the Vatican have been locked in a bitter dispute since one of the order’s top knights, Grand Chancellor Albrecht Freiherr von Boeselager, was sacked in December in the chivalric equivalent of a boardroom showdown – ostensibly because he allowed the use of condoms in a medical project for the poor.

Is the article hinting that the ‘condoms’ issue is a bit of a stretch?

When Festing fired von Boeselager, he accused the German of hiding the fact that he allowed the use of condoms when he ran Malteser International, the order’s humanitarian aid agency.

Von Boeselager and his supporters say the condom issue was an excuse by Festing and Cardinal Raymond Leo Burke, an arch-conservative who has accused the pope of being too liberal, to increase their power.

Well since neither the Swiss Guard nor the St John’s Ambulance have got involved, it all seems rather peaceful. But the Pope seems to brook no dissent, not even in his last satellite ‘state’.

Francis has said he wants the 1.2 billion-member church to avoid so-called “culture wars” over moral teachings and show mercy to those who cannot live by all its rules, especially the poor.

Perhaps this is the Pope’s version of the Brezhnev Doctrine?

When forces that are hostile to socialism try to turn the development of some socialist country towards capitalism, it becomes not only a problem of the country concerned, but a common problem and concern of all socialist countries.

When all else fails …

If all the approved policies fail, but a disapproved policy looks like it might work, then the disapproved policy is what might very well end up being done. Discuss.

While you’re discussing that, allow me to throw in this titbit of news, from the Czech Republic, which I encountered in the Washington Post:

Now the country’s interior ministry is pushing a constitutional change that would let citizens use guns against terrorists. Proponents say this could save lives if an attack occurs and police are delayed or unable to make their way to the scene. To become law, Parliament must approve the proposal; they’ll vote in the coming months.

From the bit linked to in that paragraph, this:

… it is not always possible for the police to guarantee a fast and effective intervention and fast action from a member of the public could prevent the loss of many lives.

Indeed.

Spotting Muslim terrorists is hard because so many Muslims behave like about-to-be-terrorists that it’s hard to know which ones to pick on and stop. And when one of them does strike, it could be anywhere, and the government can’t be everywhere. Only people can.

One of the bigger long term impacts of Muslim immigration into Europe could prove to be an armed European citizenry. Discuss some more.

Samizdata quote of the day

[Sweden] appear[s] to have stumbled on the concept that a low-tech economy in which consumers have fewer choices produces fewer greenhouse gases. Now they want to move to such an economy, which is in the precise opposite direction everyone else is moving. We have the developed world. We also have the developing world. Sweden wants to kick-start the undeveloping world.

Tim Newman

Trafalgar, 211 years ago today

May the Great God, whom I worship, grant to my country and for the benefit of Europe in general, a great and glorious Victory; and may no misconduct in any one tarnish it; and may humanity after Victory be the predominant feature of the British Fleet. For myself, individually, I commit my life to Him who made me, and may His blessing light upon my endeavors for serving my Country faithfully. To Him I resign myself and the just cause which is entrusted to me to defend. Amen. Amen. Amen.

The prayer of Horatio Nelson, commander of the British fleet, written on the eve of the Battle of Trafalgar, the following day. For those interested in this period of naval warfare, I strongly recommend this excellent book by Sam Willis.

Roger Knight’s excellent biography of Nelson, which I read about three years’ ago after it was published, is also a brilliant study of the man. (Being an East Anglian, as Nelson also was, I am somewhat biased.)

I leave it to Samizdata readers to elaborate on the potential parallels between Nelson’s destruction of the French/Spanish fleets on that day and the recent far less violent assertion of UK independence on 23 June, 2016.

Five Brexits

Ben Chu in the Independent describes 5 possible Brexit outcomes. The only interesting ones are 4 and 5.

Brexit 4 is, “Leave the single market and customs union with no free trade deal in place and trade with Europe under World Trade Organisation rules.” Brexit 5 is, “Leave the single market and customs union with no free trade deal – but unilaterally scrap all import tariffs.”

He thinks 4 will make us poor, and 5 is politically impossible because the exporters will make a fuss. I think we will end up with something between 4 and 5, with lots of bluster and threats but ultimately low-ish tariffs because British and EU politicians are not completely self-destructive. But I am a very optimistic person. Of course the tariff structures will be ridiculously complicated and riddled with special interest exceptions.

This is funny, from Brexit 3, which is a comprehensive free trade deal that will somehow require a strong customs border: “There would additionally have to be a customs border between Northern Ireland and the Republic, with potentially serious political consequences.” I think any such border would be for appearances only and eyes would be blind to any goods moving across it. This is because trade deals are not really there to improve anyone’s economic prospects. They are to win favour with voters, so only outward appearances matter. They do not need to be properly enforced. Nobody in charge actually cares about smuggling.

Incidental note: I was thinking of this song when I wrote the title.

Postscript: Further to that, and with apologies to anyone not familiar with the best Megadeth album:

Give me sov’renty, give me liberty,
True autonomy, unilat’rally,
Strong economy, Brexit if you please,
Master all of these, EU on its knees

I master five Brexits, I master five Brexits

I’ll get my coat.