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]
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As briefly mentioned in a post below, people – a lot of them who seemed to be classical liberal stirrers like yours truly – gathered in the sun-lit gardens in front of the US Embassy, Grosvenor Square, to witness the unveiling of a statue of Ronald Reagan. I like this editorial in CityAM by Allister Heath, who signs off with these two paragraphs. His comment about JF Kennedy is very much on point:
“In fact, Reagan wasn’t even that original. The best exposition of how tax cuts can reinvigorate an economy remains Democratic president John F Kennedy’s spectacular 1964 reforms, which reduced the top rate from 94 per cent to 70 per cent (Kennedy was assassinated in 1963, of course, but his tax cuts were agreed prior to his death). Two years later, the federal tax haul was 11 per cent higher than forecast: more people made more money and their taxable efforts more than compensated for the reduced tax rate. Kennedy had been proved spectacularly right when he had argued that “an economy hampered by restrictive tax rates will never produce enough revenues to balance our budget just as it will never produce enough jobs or enough profits… In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.”
“In 1981, Reagan reduced the top rate of income tax to 50 per cent. In 1986, he cut it again to 28 per cent. Of course, this benefited the richest disproportionately – but they nevertheless ended up shouldering a greater tax burden and paying for a greater proportion of public spending. The share of tax raised from the best-paid 1 per cent jumped from 19 per cent in 1980 to 25.6 per cent in 1990. The moral: to squeeze more tax out of the rich, lower the top tax thresholds. We learnt that in Britain starting in 1979 – but with top earners now taxed at 52 per cent and millions paying 42 per cent, the lessons have been forgotten again. Britain needs to discover its very own Ronald Reagan, a hopeful, optimistic, pro-individual liberty, pro-growth politician with an uncanny ability to communicate. Any takers?”
Well said. In a spirit of fairness, though, I link to an interview with Reagan’s former budget director, David Stockman, who is a fierce critic of the deficits (he also strikes me as somewhat embittered). I am not sure if his call for tax rises in the absence of any serious spending cuts is going to find any welcoming audience. I also think Stockman is far too dismissive of the fact that because of the Reagan supply-side tax cuts, revenues boomed.
As Heath says, hero-worship is something any genuine liberal should avoid. The list of heroes in public affairs is, as far as I can judge, short. Reagan is one of them.
It bemuses me that a certain type of commentator will often – sometimes rightly – be angered at the over-reach of Western powers’ foreign policy but be quieter about other, less obvious, intrusions if they happen when a more leftist government happens to be in power. And a lot of this sort of double-standard occurs with the United States.
Such critics appear to have been silent on the following issue: under the current Democrat presidency of Mr Obama, the US last year passed a stunningly badly crafted piece of legislation, known as FATCA (Foreign Account Tax Compliance Act). The law was passed at a time of what can best be described as hysteria about the amount of money that Americans were allegedly stashing abroad in places such as Switzerland, the Bahamas, the Caymans, and so forth. The major governments of the world, such as the US, Germany and UK, fondly imagine that there is, so to speak, a huge pot of gold that got lost down the back of the sofa.
What FATCA does is require any financial institution that is believed to deal with expat US citizens and Green Card holders to provide a great deal of information to the Internal Revenue Service. In other words, all manner of financial institutions, ranging from big banks to small investment boutiques, must prove to the Internal Revenue Service’s satisfaction that they have not got US citizens/GC holders on their books if they want to be unmolested by the IRS’s powers. If they have such clients or invest into the US stock market, etc, they must provide huge amounts of additional reporting data to the US. “Foreign Financial Institutions” must report investors who are taxable in the US to the US tax authorities. If they fail to do so, they pay a 30 per cent withholding tax. And proving that someone is, or might be, a US citizen might be hard, particularly if that person has been living outside the US for decades, and there is not much paperwork going back, say, 30 years.
This is a quite stunning extension of the IRS’s power around the world, affecting European, Asian, African, Latin American and other regions’ banks, who may have been blissfully unaware that some of their clients had, at any point, a US “taint”. And I am frankly astonished that not more has been said by non-US governments about this; however, given that governments such as those of Germany have resorted to the dubious practice of paying for data stolen from Swiss banks, I have no great hopes that respect for sovereignty or the rule of law applies.
The net effect of this law will be to make it even less likely that banks and other firms will want to touch Americans living outside the US due to the heavy compliance cost. The law will be a blow against globalisation and business growth, as this article at Forbes makes clear. It will be even less profitable for firms to deal with Americans if they live abroad. Those US nationals working in the City of London, for example, will find it is harder to open a bank account, manage a mutual fund or get insurance. A former US colleague of mine is in a nasty predicament. When I called the US Embassy here about the matter, I received nothing but blank ignorance.
FATCA is yet another blow against the free movement of people around the world, and will be particularly tough on the middle class, hard-working professionals who don’t have access to the flashiest lawyers and advisors. The super-rich and well-connected will, of course, be okay. I doubt that someone like the US Ambassador or military types serving abroad have even heard of it. (The US military tends not to be affected by such legislation anyway, although you can never be sure. If any serving personnel do get hit, it would be good to know the details).
It is sometimes said, by a certain type of sneering European or self-hating international travelling American, at how bad it is that all those ghastly, ignorant hicks don’t hold passports. Well, part of the reason is that getting a passport is a bureaucratic nightmare in the US. Another is that the US is a big and beautiful place with so much to see that why would any sane American want to leave for any extended period of time? But another reason is that the IRS, which is out of control, is making the process of being an expat a waking nightmare.
As for whether politicians of any kind, including the Tea Party crowd, give a flying f**k about this issue, is unclear. There may be few votes in it, but I would have more respect for supposedly libertarian-leaning GOP members such as Ron Paul, his son, or one or two others, if they could be persuaded to lobby for wholesale repeal of this atrocious piece of legislation.
“Now who is the Forgotten Man? He is the simple, honest laborer, willing to earn his living by productive work. We pass him by because he is independent, self-supporting, and asks no favors. He does not appeal to the emotions or excite the sentiments. He only wants to make a contract and fulfil it, with respect to both sides and favor on neither side. He must get his living out of the capital of the country. The larger the capital is, the better living he can get. Every particle of capital which is wasted on the vicious, the idle, and the shiftless is so much taken from the capital available to reward the independent and productive laborer. But we stand with our backs to the independent and productive laborer all the time. We do not remember him because he makes no clamor; but appeal to you whether he is not the man who ought to be remembered first of all, and whether, on any sound social theory, we ought not to protect him against the burdens of the good-for-nothing.”
– The Forgotten Man, page 209 from On Liberty, Society and Politics. The Essential Writings of William Graham Sumner, Edited by Robert C. Bannister.
His idea that a large swathe of people who asked for no favours – nor received many – has its echoes, however imperfect, in such expressions as Richard Nixon’s “Great Silent Majority” or, in the UK perspective, “Middle England”, or perhaps, “the coping classes”. Sumner is a useful reminder that the great classical liberal thinkers of the 19th Century and before acutely understood the issues of class and the difference between the self-reliant and others, but without the tedious animosity and simple-mindedness of the Marxians or the patronising dreams of High Tories a la Disraeli or, god help us, David Cameron or the late Harold Macmillan.
I strongly recommend this book, although these reprints of old classics by Liberty Fund are not exactly cheap.
Brian Micklethwait of this blog has linked to a series of nice take-downs of the work of the “documentary” maker, Adam Curtis. I link to one rather nice video at that man’s expense. One of Curtis’ recent efforts was about Alan Greenspan and the dangers of giant computers or something. He’s a sort of posh conspiracy theorist for people who would otherwise scoff at the sort of guy who rants that Man never really landed on the Moon, Jews bombed the WTC, etc.
It is arguable that the whole phenomenon of the “documentary” as an impartial piece of good journalism has been more or less hammered in recent years. After all, we have had the various efforts of Michael Moore, which, like Curtis’s efforts, are not really designed to inform or ask difficult questions, but a form of propaganda, and a form that plays well to the smug complacency of fashionable opinion. But let’s be fair, even a programme which said things with which I agreed, such as this Channel 4 Martin Durkin one about explosive government debt, used techniques to pull on our heartstrings, although I thought in that programme, it did make an argument – an extremely good one. With the Curtis stuff, it is more like taking a sort of drug.
Maybe the whole idea of a non-biased documentary needs to be junked. Perhaps the honest truth is that these programmes don’t really lend themselves to a sort of “on the one hand and on the other” sort of fairness; in truth, a guiding narrative, with a punchline at the end, is what makes these things work. But then this is clearly advocacy journalism and a form that does not square with it being paid for by a state-privileged broadcast network such as the British Broadcasting Corporation.
Then again, the whole idea of a broadcaster financed via a tax needs to be ditched, so that Curtis will have to make such rubbish without my having to pay for it. I wonder if Curtis wants to do one of his documentaries on the idea of governments using state broadcasters to shape opinion? No, I did not think so.
Another zinger of a piece by Detlev Schlichter. If you are not reading his stuff regularly, you need to deal with that oversight. He’s indispensable:
One frequently gets the impression from reading the mainstream media that Greece has a monetary policy problem and not a fiscal problem. This is incorrect. Yet many commentators seem to argue along the following lines: This crisis is due to the straitjacket of the single currency with its one-size-fits-all monetary policy, or at least aggravated by the constraints of this system. Greece would have more “policy options” in dealing with its troubles if it had control of its own national currency.
Then there is, connected to this, an underlying – and not very flattering – notion that the Greeks are somewhat unfit to live and work in a ‘hard money system’, which presumably the euro is. The Greeks, this seems to be the allegation, like borrowing and spending too much. I am paraphrasing here but this is certainly the underlying tone of the narrative. The Germans and Dutch and French can live without the constant aid of conveniently cheap national money – but the Greeks can’t.
And he signs off with this:
I have no doubt that the most important economic event of the coming decade will be the demise of the global paper money system. We live in the twilight of the fiat money era. A return to apolitical, international, commodity-based media of exchange is inevitable. Why not start with Greece? The transition would be painful but there are no painless options available anyway.
I am convinced this would be a sensible strategy but I also think it is unlikely. The state and the banks benefitted from the paper money franchise, and they are now addicted to cheap credit and unwillingly to check into rehab. The establishment will continue to fight a return to sound money.
With some honourable exceptions, I find it hard to think of many even supposedly “private” banks in the world as proper, capitalist institutions in any sense. Their reliance on the crack cocaine of cheap credit has become too entrenched.
I am not entirely happy about an article, which is fine as far as it goes in defending libertarians from the idea that we are all callous brutes who would rather walk by the other side of the road, so to speak. I agree that that is wrong. Of course, there are one or two so-called libertarians who might not give a damn about anyone else but themselves, and they are happily avoided. In my experience, however, the vast majority of libertarians are not just right-thinking, they are fine individuals: generous, creative and benevolent to their fellows. But this is a rationally selfish thing. Think about it: if you believe freedom is a good thing because of the wealth and opportunities that it leads to, you will realise pretty fast that it is inconsistent to want freedom for yourself but not for anyone else. Not just inconsistent, but dumb.
However, for all that the article does make that sort of point, citing fine groups such as the Institute for Justice, the article is somewhat spoiled by this rather silly paragraph:
“There are a lot of libertarians working on issues that could be construed as self-interested – lowering taxes is the obvious example. There are even some hard core Ayn Rand sycophants who embrace little more than themselves. Find that repugnant? Have at ’em! But you’re just misinformed if you think that libertarians as a whole care for nothing more than their self-interest. Countless libertarians are working to advance the freedom and fair-treatment of people other than themselves. Often they do so more consistently than some of the liberals who sneer at them.”
He’s making a fairly basic mistake here. The pursuit of rational, long term self interest – the words “rational” and “long-term” are crucial – is totally congruent with spending time and money to support the genuine freedoms of others. After all, as any Rand “sycophant” would argue, if we do not defend freedoms with a bit of effort, and go into bat to defend causes that are important, even if they are unpopular, or appear weird, then they will find themselves in a very lonely place if their own freedoms are attacked. A genuinely selfish person, who holds his own life and flourishing as his ultimate value and cultivates the virtues to achieve it fully (reason, independence, honesty, pride, productiveness, justice and integrity), will want to see freedom expand. The cost of spending a bit of time lobbying, arguing and campaigning is, for such a person, outweighed by the long term benefits. The individual benefits if the total sum of liberty is increased, in obvious and not-so-obvious ways. For the Rand “sycophant”, the real stupidity would be to ignore the wider world and its problems. By the same token, libertarians understand the Law of Unintended Consequences: a lot of supposedly “altruistic” government interventions, for example (I use the word altruist in the usual, not Randian sense) make many real or imaginary problems far worse (examples: the War on Drugs, Prohibition, state education, etc).
One example of “selfish activism” might illustrate the point. For a long time I have been going along to events hosted by FOREST, the UK-based pressure group that defends the rights of people to smoke in privately owned places such as pubs. I don’t smoke, in fact I dislike the stink of tobacco and ask people not to spark up in my apartment. But I defend the libertarian line on smoking because I realise that if such freedoms get eroded without protest, then things I want to do could be banned next. For similar reasons, I’ll defend the right of people to publish hateful remarks (so long as they don’t demand I have to republish them), or practice non-conventional lifestyles I might abhor (so long it is consensual), and so on. For me, the long-term payoff – more freedom – is the point. I don’t see campaigning for justice or freedom as intrinsically good. It is much more important than that – it benefits me.
Another way of putting it is that life is not a zero-sum game. I obviously cannot spend all my time trying to defend freedoms or other issues; I have my own business and personal life and various interests to pursue. (My golf swing needs a lot of attention). But if I can, by my advocacy of hopefully good ideas and opposition to bad ones, make the world a marginally better place for myself and others, then I cannot think of a more truly selfish objective than that. In other words, I am not a classical liberal because it is an unchosen duty. I enjoy it and see the benefits.
And let’s not forget, another reason why libertarians defend the causes they do is that, despite the odd glitch, we get to meet some excellent people and make good friends. Some of my greatest mates are those I have encountered through such networks.
London mayor and newspaper pundit Boris Johnson has a good article in his usual Daily Telegraph redoubt and it is getting a lot of attention, as it should:
“The Greek debt crisis is deepening, in other words; and there are only two options. We could continue down the road we are on, in which the euro shambles becomes an invisible and surreptitious engine for the creation of an economic government of Europe. Indeed, there is a sense in which the slow-motion disaster of the PIGS – Portugal, Ireland, Greece, Spain – has been terrific for the federalist cause. Bit by bit we seem to be creating a fiscal as well as a monetary union, in which huge sums – including about £20 billion of UK bail-out cash – are being transferred from the richer to the poorer parts of the EU. The idea is that Germany, France and others should “socialise” the debts of the periphery – take them on, in other words – so as to keep the eurozone together and to stop the domino effect, with all the attendant damage it is feared that would do to the European banking system.”
“These profligate and improvident countries would be obliged, in return, to submit to a kind of economic supervision that is now proposed for Greece. Taxes, spending, benefits – all the panoply of economic independence – would then be subject to agreement with Berlin and Brussels. I sometimes think Kohl, Mitterrand, Delors and co instinctively knew that this would happen.”
Oh, they knew. They wanted this to happen – maybe not in the wrenching, embarrassing way that has manifested itself in the case of Greece, Ireland the rest, but they surely wanted economics to be melded to the service of politics.
“They probably calculated that if only they could achieve monetary union, the euro would create such strains that the de facto creation of a United States of Europe would be impossible to resist. The trouble is that there is just no democratic mandate for anything of the kind.”
Democracy, schemocracy, as Mel Brooks might have put it.
An interesting item about how economists influenced by the teachings of the late JM Keynes are falling out with one another.
Here is a quote worth pondering from Henry Hazlitt: “Keynes constantly deplored saving while praising investment, persistently forgetting that the second was impossible without the first.” Page 203, The Wisdom of Henry Hazlitt.
“The fundamental story about consumer taste, in modern times, is not one of dumbing down or of producers seeking to satisfy a homogenous least common denominator at the expense of quality. Rather, the basic trend is of increasing variety and diversity, at all levels of quality, high and low.”
– Tyler Cowen, Creative Destruction: How Globalization is Changing The World’s Cultures. Page 127. First published in 2002.
I am very sad to hear the news that a libertarian acquaintance of mine, Richard Garner, has died at a young age. I don’t know any more details. Richard used to write a fair number of excellent comments over at this blog’s comment threads. I used to like chatting to him at conferences and other gatherings; I remember getting a cheery invite from him to join him and others at the recent “rally against debt” in central London.
My condolences to his family and many friends. He will be missed.
Our own Michael Jennings does his bit to stave off a new Ice Age by his almost obsessive amounts of globe-trotting, and I cannot compete with that, but I did my little bit at the weekend, as did a lot of other crazy people, by attending this event in France.
Ever since I watched the Steve McQueen film about the extraordinary 24-hour race in this part of France, I have wanted to go to Le Mans. I was not disappointed. The sight and sound of the cars setting off for the race, and then thundering down the Mulsanne Straight, or twisting around the S-bends after shooting down the track under the Dunlop Bridge, was unforgettable.
There is, I suppose, something very elemental about getting excited about the sight of such things, and of course, there is the satisfaction in how Man, by mastering technology, can produce cars able to go flat out for 24 hours and drive at such speeds, competitively, and live to tell the tale.
I shall definitely be going back.
“Auction houses and auction websites make markets out of common objects that would be trash except for a celebrity having owned or used or once touched it. A set of golf clubs or a box of golf balls is worth far more in a pro shop if the brand name “Tiger Woods” is on the label, because by affixing the name of the golf legend the buyer is being told that Tiger Woods had personal input into the quality of the products. Anyone who copies that box of golf balls with the Tiger Woods label on it — without proper authorization — is committing an act of forgery.”
J. Neil Schulman.
He certainly has an unusual way of looking at IP. This issue is messing with my head. A few weeks ago, I read Tim Sandefur’s lucid take on the matter, and took the view that whatever else can be said about it, it is hard to see how I could make a “natural rights” claim for IP in the same way as some classical liberals can do with physical property. But a few days later, talking to an old friend who is a professional arbitrator, my view swung more favourably to this sort of argument, as presented in favour by the late, great Lysander Spooner.
I fear that with IP, this is going to be one of those “I haven’t really made up my mind yet” positions. I suspect I am not alone.
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Who Are We? The Samizdata people are a bunch of sinister and heavily armed globalist illuminati who seek to infect the entire world with the values of personal liberty and several property. Amongst our many crimes is a sense of humour and the intermittent use of British spelling.
We are also a varied group made up of social individualists, classical liberals, whigs, libertarians, extropians, futurists, ‘Porcupines’, Karl Popper fetishists, recovering neo-conservatives, crazed Ayn Rand worshipers, over-caffeinated Virginia Postrel devotees, witty Frédéric Bastiat wannabes, cypherpunks, minarchists, kritarchists and wild-eyed anarcho-capitalists from Britain, North America, Australia and Europe.
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