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]

The future will be Open Source… and it will probably be illegal

There is an interesting article in the Guardian titled US and UK spy agencies defeat privacy and security on the internet:

  • NSA and GCHQ unlock encryption used to protect emails, banking and medical records
  • $250m-a-year US program works covertly with tech companies to insert weaknesses into products
  • Security experts say programs ‘undermine the fabric of the internet’

The second point is to me the most interesting as it suggest that open source is really the only way to fight back against this and as a result, I fully expect Open Source to eventually become illegal in the more panoptic parts of the world.

The first point however will be the driver of effective and widespread counter measures. The internet is simply too important to too many economic interests to allow the US and UK governments to have the ability to embed what will be catastrophic weaknesses in its underpinning architecture

Discuss.

The World in 1913 – Part I

What follows is based on a talk I gave at the end of August at one of Brian’s Fridays. See also Parts II, III, IV, V & VI.

In modern popular culture there seem to be two distinct images of the period immediately before the First World War. The first, exemplified by Upstairs, Downstairs [I believe Downton Abbey is the modern-day equivalent] is of well-dressed people being nice to one another; and the second, one of a rigid class system with the ruling class fighting a desperate rearguard action to preserve the vast differences in wealth and privilege between them and the poorest.

Libertarians have a rather different image of the period before the First World War. They tend to think of as a Golden Age of freedom, low taxation and low regulation; an age of constant improvement, where entrepreneurs could do their thing with the minimum of interference. A time when the pound was linked to gold and people didn’t have to worry about inflation or asset bubbles; a world that was swept away by war, never to return. The question is, is this true?

One of the ways I try to answer the question is to read the Times from 100 years ago. I can do this because a company called Gale Group scanned in just about every copy there has ever been and indexed them. They then made these digitised copies available online to subscribers. I am lucky in that my local library is one of those subscribers.

When I started doing this I think the reason was partly because I thought it was a great age to be alive and partly because I wanted to see if there were things that modern historians weren’t picking up on – parts of the story that would have been familiar to people living at the time but have long since been forgotten.

Trying to make sense of the world via the pages of the Times is a little like trying to look at the world through a pinhole. Perhaps another way of looking at it would be to imagine trying to understand the modern world with the BBC as your only source of information. You’re going to miss a lot of the routine of life, a lot of the unspoken assumptions and receive a biased viewpoint into the bargain. At the time, the Times, along with the Daily Mail and (would you believe it) the Daily Mirror was part of the Northcliffe Press and as such a Conservative-supporting paper. [I say Conservative but at the time they called themselves Unionists.] The Times tends to favour trade protection and spending on the armed forces while being opposed to Irish Home Rule. It is generally sceptical of state intervention.

The Times itself is, as you would expect, very different from its modern counterpart – at least I assume so – it is a few years since I last read the print version. For starters it is very big. It is a proper broadsheet being slightly bigger than even the modern-day Daily Telegraph. It has no photographs and precious few diagrams. The front page is a bit of a shock. It is entirely filled with classified adverts. This seems a rather odd arrangement until you realise that the idea is that you open the paper in the middle where there is an index (as well as the editorials) and you work out where you want to go from there. Classified adverts remained on the front page until May 1966. The paper is usually about 24 pages long. There are no colour supplements although occasionally you will get the odd special and there is an engineering supplement every week. At this time, The Sunday Times is an entirely separate publication not becoming part of the same stable until the 1960s and is not available online.

Don't hold the front page.  The Times 4 September 1913.

Don’t hold the front page. The Times 4 September 1913.


There are some display adverts for many of the things you would expect: fashion, railways, buses, some cars, books and magazines. Any manufacturer of any product that you might put in your mouth: drinks, foods, compounds, medicines etc will make an outrageous claim for its disease-preventing and health-inducing abilities. For example an ad for Allinson wholemeal bread claims that:

it is a cure for constipation and its attendant evils and will do more to maintain health than all the medicines ever sold.

About the only people who don’t claim that their product will make you live forever are the tobacco manufacturers who simply claim that their product is less bad. One even sells his product on the basis that it produces less nicotine which I thought was the whole point. In the classifieds you will often find adverts for hospitals along with the rather depressing line: “Funds urgently needed.”

The writing is turgid. Writers can take an age to get to their point. And scanning doesn’t help. With a modern newspaper article you can usually extract the useful information without going to the hassle of reading the whole article. In the case of the Times from 1913 you have to read the whole bloody thing and even then you may find yourself none the wiser. I can only imagine that our ancestors had a lot of leisure time.

And they must have paid attention at school. Every so often you will find a quotation in French, Latin or Greek without translation. And, less commonly, German.

The city pages are every bit as boring as you might imagine. Much of it is given over to government debt which given the size of that market seems reasonable. There is comparatively little space given over to quoted companies largely because there are so few of them. The majority of those that do exist are in the railway, oil, rubber or tea industries. I can’t remember many of the others although the Aerated Bread Company does stick in the mind.

One curiosity is that in those days, every week, the train companies would report their receipts. The Times then faithfully reports these receipts along with those for the previous week and the equivalent week in the previous year. Incidentally, the size of the British rail network peaked in 1912.

The hardest section to read is the page and a half given over to Parliamentary proceedings. I like to think Parliament gets this much attention because this is where all the great debates of the day are taking place. And I have found the odd nugget. Samizdata readers may remember me blogging about the debate on the Lee Enfield rifle and how contemporary opinion regarded it as grossly inadequate. It went on to see service as the British Army’s principal infantry weapon in two world wars. But for the most part Parliamentary debates of 1913 are every bit as dull as they are nowadays.

A surprising amount of space is given over to sport. All the important games: cricket, racing, golf, tennis, sailing, shooting and polo are covered. Football is not entirely ignored. The Times faithfully reports the results from the league championship – a competition dominated by northern teams. The printing of league tables is a somewhat haphazard affair. At the end of the 1913 season they printed the 2nd Division table but not the First. Sunderland won in case you were wondering.

The Times also supplies match reports on the important fixtures. If you want to know what happened in the big game between Eton and Charterhouse or Harrow and Westminster there’s no better place to go.

A lot of the place names have changed since then. Üskub became Skopje, Servia: Serbia, Adrianople: Edirne, Salonika: Thessaloniki, St Petersburg is St Petersburg but for most of the last 100 years it wasn’t. Singapore is part of the Straits Settlements and there is something known as the Shanghai International Settlement.

Polly Toynbee might possibly be right

In most ways the Pollyverse is a place where the rules of our continuum do not apply. She worships strange gods and that which she fears causes Earth-humans to rejoice.

But could she be right to fear the new lobbying bill?

The National Council for Voluntary Organisations publishes a report from a human rights QC warning that the bill could breach the right to freedom of speech. Lawyers for many charities warn of a legal minefield for trustees: if they trip into electoral law they must send weekly reports of all their spending during the electoral period, when any slip risks criminal charges. The government denies the bill will silence campaigners, but a letter of protest representing swaths of charities – from the British Legion to Citizens Advice – crosses the political divide. The campaign group 38 Degrees says the “proposed gagging law would have a chilling effect on British democracy”. The Taxpayers’ Alliance agrees: “The bill is a serious threat to independent politics that will stifle free and open democratic debate.”

Ironically, the bill seems to my uneducated eye to resemble the attempt to stifle free speech in the US that was defeated by the Citizens United decision, a ruling demonized by the Left. That irony might be fun to point out but the consequences are not reassuring. We in the UK do not have the protection of the First Amendment.

Karl Marx was nearly right

The quick version of something the old plague-carrier said is that history repeats itself, the first time as tragedy, the second time as farce.

Second time as tragedy and farce would have been more accurate.

Top comment: “I did not set a red line, Bush did it and you are a racist”

Samizdata quote of the day

“I’d be seriously dubious about any “special relationship” with someone who habitually read all my emails, to be honest.”

– A quote I saw via Facebook.

Ronald Coase, 1910-2013

Quite rightly, Ronald H Coase, the Nobel Prize winner in economics, who died a few days ago at the remarkable age of 102, is being remembered as an exceptional thinker in economics. He is probably best known for this analysis – which seems obvious to us now – about why firms exist in the first place.

The University of Chicago Law School, with which he was associated for many years, has this nice appreciation of him. And here is the final paragraph:

Coase said in 2012 that his main scholarly talent was to identify solutions that were in plain sight. “I’ve never done anything that wasn’t obvious, and I didn’t know why other people didn’t do it,” he said. “I’ve never thought the things I did were so extraordinary.”

RIP.

Samizdata quote of the day

We need these government training schemes to produce skilled workers, they have not learnt any meaningful skills in, er, government schools

– Samizdata commenter Mr. Ed

Zero-sum thinking on immigration – and why it is wrong

As is now a familiar theme, many people oppose immigration into the UK because they fear the social and cultural effects (eg, from Muslim parts of the world) more than they do for the economic impact (supposed negative/positive effects on low-skilled wage rates, effects on productivity, and so on). In general, the classical liberal “open borders” approach states that the issue, in as much as it is an issue at all, is immigration+state welfare. The problem is the state welfare.

An argument that has got an airing today in the Daily Telegraph, via Jeremy Warner, is that immigration, of the “low-skilled” sort, hits productivity. The argument goes something like this: firms have less of an incentive to invest in improved methods of producing goods and services if they can hire cheap labour instead. This is a simple issue of factors of production (labour/capital) being substituted for one another depending on the relative costs of each. Now of course we want higher productivity in the medium to long run so that the whole pie expands; but that is not just a function of increasing output per hour by some restriction on the number of people in a workforce – there is also the increase in the division of labour that one can get with a larger number of people, at least potentially. And even if people are seeing wages for low-skilled labour hold steady rather than rise, it is better that people are in work rather than sitting idle. (Again, one has to consider the welfare impact here in shaping the incentives to take or not to take certain types of job.)

In any event, the supply of people able/willing to perform types of labour is not infinite (let’s not forget that a large number of people have also emigrated from the UK). History also does not seem to back up Warner’s fears: In the 19th Century, there was a population explosion in the industrialising West, for all sorts of reasons (lower infant mortality, better nutrition, health care, and so on), and yet by the turn of the century, real wages, when adjusted for inflation were higher than it was in 1800. (That is hardly a controversial statement. Data by the likes of Jeffrey Williamson and Peter Lindert, in “English Workers’ Living Standards During the Industrial Revolution: A New Look, The Economic History Review, 1978, clearly backs up this point.)

But what Warner seems to overlook is that if an influx of immigrants can be blamed for holding down productivity, cannot the same be said if, say, a significant number of British citizens move from one part of the country to another, as indeed happened in the early parts of the Industrial Revolution when people moved from farm-based jobs to factories and offices? Warner says he favours a sort of levy on employers who use “cheap labour”:

“No free market liberal would argue the case for preventing employers from hiring foreign labour but there are other forms of state intervention that might indeed be appropriate were it not for the fact that the European Union makes them unlawful – for instance, imposing levies on use of cheap foreign labour. By making low skill employment more expensive, the levy system would provide a powerful incentive for productivity gain in construction, retail, social care and other largely domestically bound industries. These levies could then be channelled back into tax incentives for training and other forms of business investment.”

Warner is damn right that no free market liberal would touch such regulation with a bargepole. The levy idea is also foolish, in my view, since how does Warner know how high/low to set it? What is the supposed ideal rate of productivity growth that he thinks should be the target, and in any event, should there be any target at all?

Ultimately, Warner’s analysis involves an unconscious assumption that there is a “UK plc” where we are all working towards a single, or fixed, set of ends, rather than an open society in which people transact and enter voluntary exchanges with others for things/services they wish to buy and sell. Of course, that leaves open other issues surrounding the proper role, if any, of a state, of welfare, of the need to protect borders against those who would enter this territory to do its inhabitants harm. But on the economic point of view, Warner’s argument makes no sense to me. He also ignores the rather basic fact that with a larger population entering an already advanced economy, that increases the potential division of labour, which increases overall productivity. If a person can now afford to hire a cleaner for his home, a child-minder to care for the children, or a gardener, or any other “low-skilled” job, that frees up that person to do something else, and possibly, increase the whole economic pie. And of course these “low-skilled” people can get more skills, develop a track record of reliability and diligence, and become more valuable and productive themselves than they would have been had they been forced to stay in presumably less favourable places where they moved from – since why did they move in the first place?

As a response to Warner’s kind of thinking, I can recommend this article from Daniel Kuehn.

Samizdata quote of the day

These proceedings are closed.

– General Douglas MacArthur, bringing World War II to an end as if it were a parish council meeting, sixty-eight years ago today.

Samizdata quote of the day

(The USA has) limited government? Joking right? The USA spends nearly half the entire world’s military spending (yes, that is more than Russia, China, UK, France and Germany combined) and locks up more of its population per capita than any other place on this planet. Yes, more that those ‘paragons of liberty’ Russia, Burma, Cuba, China etc. It applies its laws and taxes to its hapless citizens extra-territorially as if they were branded livestock who had strayed off the ranch, which only the African neo-Stalinist state of Eritrea does.

If that is what limited government looks like, I would hate to see what unlimited government looks like.

– Perry de Havilland