In the event that Scotland disregards my feelings and votes for independence, what currency would you recommend it use?
Opinions on this matter do not split neatly between Left and Right. Here are two of today’s articles on the subject; one from the Adam Smith Institute and one from the Guardian. A few days ago the pro-independence, pro-market campaign group “Wealthy Nation” republished this article from the Institute of Economic Affairs, recommending that Sterling be kept for the time being. It looks a serious piece, but it was written before the recent interventions by George Osborne and Manuel Barroso.
Commenters wishing to use words like “seignorage” are requested to give me warning first so that I can hide behind the sofa.
There is a theory that suggests to be good at business you must be hard nosed, ruthless, dishonest and fight for everything. It essentially suggests that business is a form of warfare carried out by individuals against each other where the winner takes all. It states that if you’re not tough enough you shouldn’t get involved in ‘business’.
This I have learnt is complete bollocks. Yes, there are bastards out there – lots of them. But the essence of good business is cooperation and honesty. It’s about finding and working with decent and honourable people. Men and women who value what you do, pay you on time, go that extra mile for you and want to achieve the same things as you.
You can, if you desire, swim with the sharks. You may even become the biggest shark. But most of the time you will end up swimming round in circles wasting time, money, resources and energy on people who simply don’t deserve that time. And certainly aren’t paying you a fair rate for it. These people will stop you achieving your goals and add no value to your life or your business.
My advice is simple. Be the good guy or gal, fight clean and keep away from the time wasters, charlatans and arseholes.
- Rob Waller
Be warned that this is not one of those “now read the whole thing” postings. That is the whole thing, apart from the title (“On Swimming with Sharks”) and the words “end of sermon” at the very end. And now you have those words here also.
The paper money of the Soviet Republic supported the Soviet Government in its most difficult moments, when there was no possibility of paying for the civil war out of direct tax receipts. Glory to the printing press! To be sure, its days are numbered now but it has accomplished three-quarters of the task. In the archives of the great proletarian revolution, alongside the modern guns, rifles, and machine guns which mowed down the enemies of the proletariat, an honorary place will be occupied by that machine gun of the People’s Commissariat of Finance which attacked the bourgeois regime in its rear – its monetary system – by converting the bourgeois economic law of money circulation into a means of destruction of that same regime and into a source of financing the revolution.
- Bolshevik economist Evgeny A. Preobrazhensky, in his booklet entitled Paper Money during the Proletarian Dictatorship, published in 1920.
Quoted by Dominic Frisby in Life After The State (p. 92).
Just quoted at Instapundit, from this report:
According to the study, there is “widespread concern” about the negative impact Bitcoin could have on national currencies and how it could be used to fund criminal operations and tax fraud.
The first half of that is presumably what they are really worried about, and the second half is how they are already selling the story.
Whenever you hear of businesses or others carping about the lack of financing for this or that preferred cause, and demand that the State (ie, you, the taxpayer) steps in to fill the gap, it is worth bearing in mind that one of the glories of capitalism is in coming up with ever more inventive ways of putting those who want capital in touch with those who have it. This is the thrust of an article in the magazine Reason by Greg Beato (February 2014 edition):
Traditionally, the wealthiest members of society have had little trouble leveraging their resources. Those resources are highly concentrated and thus easy to strategically deploy when necessary. For the 99 percent, government provided a way to accomplish this too. Everyone pays taxes, and as a result, we get streetlights and Yellowstone National Park.
But taxation is a pretty crude form of crowdfunding. You don’t get to choose the size of your contribution. You can’t directly specify its intended use. And even though our tax system lacks the functionality of Kickstarter, participation is mandatory. When some senator-of-a-friend-of-a-friend decides he wants to follow his bliss and finally build that $2.2 billion dream dam he’s been talking about all these years, you’ve got to chip in whether you like it or not.
Crowdfunding, in contrast, privileges hands-on, voluntary democracy. If you think the United States needs more solar infrastructure sooner rather than later, crowdfund it. If you think that service-sector jobs that pay livable wages are the key to widespread prosperity, crowdfund businesses that pay such wages.
For the allegedly disenfranchised 99 percent, it has never been easier to seek common cause with like-minded souls, to pool your resources, and to exert influence in strategic and tangible ways. You might even call this a shining age of middle-class empowerment. If anyone ever decides to make a documentary about it, the financing should be fairly easy to swing.
As I sometimes note, while Hollywood, for instance, often produces films that slag off capitalism, (Michael Moore being the most egregious case) or smaller independent film producers do the same, the irony is that they make use of the innovation in fund-raising that modern capitalism constantly throws up.
A related area of capital provision that bypasses banks – and their current, often stringent capital rules – is what is known as “peer-to-peer” lending. And needless to say, the UK financial regulator is getting concerned about this, fearful that people who lend money might make mistakes or, horrors, those who borrow might not fully understand the risks. Rob Fisher of this blog wrote on the topic last year.
All this flowering of capital-raising is not really all that new, if you think about it. The idea of equities and other securities has been around for a long time; what is new is that the internet has put both sides to the transaction in touch much more easily, reducing barriers and the frictional costs associated with it. That’s surely an example of the “long tail” effect at work.
I keep saying that if you care about poor people, you should be a libertarian.
The Institute for Fiscal Studies is pointing out that while poorer people are paying more for food and fuel, richer people are enjoying low interest rates. So government spending and borrowing and the artificially low interest rates that go along with that are harmful to poor people, as are taxes on fuel, and income tax on minimum wage earners, and countless other instances of state meddling.
Real money and a small state lead to high growth which makes everyone richer.
“With legal property, the advanced nations of the West had the key to modern development; their citizens now had the means to discover, with great facility and on an ongoing basis, the most potentially productive qualities of their resources. As Aristotle discovered 2,3000 years ago, what you can do with things increases infinitely when you focus your thinking on their potential.”
- Hernando de Soto, The Mystery of Capital, page 50.
I just wished the readers of my personal blog (and these people do exist) a Merry Christmas by sticking up photos of local tradesmen’s signs saying Merry Christmas.
But I saved this sign for here:
There is also a website. I particularly like this bit of it.
One of the intellectual highlights of my year has been hearing Anton Howes (whom I first noticed while noticing the Liberty League) expound the idea that the British industrial revolution was, at heart, an ideological event. The industrial revolution happened when it did and where it did because certain people in that place and at that time started thinking differently. To put it in Samizdata-speak, the metacontext changed. Particular people changed it, not just with the industrial stuff that they did, but with what they said and wrote.
I first heard Howes give this talk at my last Friday of the month meeting in July of this year. Happily, Simon Gibbs of Libertarian Home also heard Howes speak that night, and immediately signed him up to do a repeat performance, this time with a video camera running, for Libertarian Home at the Rose and Crown.
And the good news is that the video of this Howes talk at the Rose and Crown is now up and viewable at Libertarian Home. If spending half an hour watching a video does not suit, then you might prefer to read Simon’s extended summary of the talk. The same video is also up at YouTube.
I wrote a bit at my personal blog about that subsequent evening, and there is lots else I want to say about what Howes is saying. But one of the rules of blogging is not to let hard-to-write and consequently not-yet-actually-written pieces interrupt you putting up easier-to-write pieces that you actually can write and do write.
So: Anton Howes is a clever guy. Watch the video. And watch out for him and his work in the future.
“You think minimum height restrictions make children taller?”
- Luke McCormick, who I think has finally found the minimal summary of minimum wage laws.
Recently I’ve been getting emails from the Cato Institute plugging their new website, HumanProgress.org.
Personally, I find the way that this website works to be annoying and confusing and just generally off-putting in a way I can’t quite pin down. I can find stuff, but every time I try to make progress through it, I am assaulted by what feels to me like mild-to-severe waves of user hostility. The screen, for instance, frequently covers itself in grey, in a manner which feels to me like it’s not working properly. But it could easily be that it is just me that is now semi-permanently annoyed, confused and hostile. I’d be slightly interested in whether anyone else shares my annoyed, confused and hostile reaction to the way this website works.
But I am really far more interested in the message that the website is trying to put across. It could be that there is just so much good news about human progress to be navigated through, such an abundance of data choice when it comes to learning about how well the human species is doing just now, that any website devoted to such matters is bound to overwhelm and confuse someone like me, whose brain is rooted in the twentieth century, when news like this was so much harder to come by and when websites were only being dreamed of. (The multiplication of genuinely useful websites seems to be a story that HumanProgress.org doesn’t seem to provide data about, but maybe they do and I just haven’t spotted it yet.)
This message, of relentless human betterment, will surely remind many readers of Steven Pinker’s recent book, The Better Angels of Our Nature, which I wrote about here (where there are links to other and earlier postings on the same subject).
The headline above Allister Heath’s latest over at City A.M. reads as follows:
America is slashing spending – but its economy is still growing
By “spending” Heath, or Heath’s headline writer in the event that it’s not Heath, means government spending.
We’ll know we’re really winning when headlines like that one replace the “but” with an “and”.