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]

California dreaming

Now that the US mid-term elections are over and the Republicans have scored a decisive victory in the House, and won seats in the Senate, the thought must occur that California, which has stuck to its socialistic politics, is ever closer to going bust. The GOP in Congress is unlikely to tolerate a bailout for a state run by delusional, mostly Democratic, fools. But if California does go bust and defaults on its debt, what happens then? Maybe this would be a good thing in the long run. Several South American states have defaulted in the past, but they did recover, eventually.

I guess one not-so-difficult thing to predict is that businesses and people will continue to flee California. It is so sad: the last time I was there, the place appeared – maybe only on the surface – to be booming.

Rand Simberg has thoughts.

Those fuddy-duddy, 19th Century values

“But his [Peel’s] chosen remedy for widespread poverty was already apparent. It did not lie in changing the Poor Law, or reducing factory hours through a Ten Hour Bill, or in accepting the irrelevant political demands of the Chartists. Still less did it consist in commissioning that engine of public welfare and State guidance of the economy to which we became accustomed in the twentieth century. Peel and most of his contemporaries would have regarded our giant complex of State machinery as a destructive restraint on individual freedom.”

Robert Peel, page 243, by Douglas Hurd.

Indeed they would have so regarded the modern state of the late 20th and 21st centuries. And with good reason. Somehow, I doubt that even the founder of the Metropolitan Police would have liked the idea of the modern Surveillance State. I am not too sure that he’d have been all that keen on top tax rates of 50 per cent and more, compulsory schooling to the age of 18, or the hideously regulated labour market of today.

And this historical shift, I think, can explain to a certain extent why, to a British audience dulled by decades of socialism, the sight of Americans protesting against Big Government and the like is so odd. Last night, on the BBC, the broadcaster and one-time Sunday Times (of London) editor, Andrew Neil, was looking at the Tea Party movement. It was not all bad as a documentary – he had a great short interview with the son of Barry Goldwater – but in the main, the general idea that the viewer was meant to draw was that the Tea Party movement was comprised mainly of cranks, bigots and fools. The problem, I think, is that Britain has not really had a genuine, tax-cutting protest movement since the anti-Corn Law League of the 1830s and early 1840s, which is why I was so struck by that passage about the Peel administration. We have to go back to the early years of the Industrial Revolution to find anything remotely like such a protest for government retrenchment and tax cuts. No doubt Mr Neil would regard Cobden, Bright, or indeed Peel himself, as a bunch of nutters.

And that, of course, is why the accurate teaching of history, such as around such episodes as the Industrial Revolution, is so important.

Samizdata quote of the day

“Not for to hide in a hedge,
Not for a train attendant,
But for the glorious privilege
Of being independent.”

Robert Burns.

As quoted in The Constitution of Liberty, FA Hayek, page 118.

Rolling back the state

Great essay by Sean Gabb on the UK government and supposed plans to reduce public spending. The article contains a lovely line in relation to Peter Mandelson, the disgraced former Cabinet minister.

Along with Sean and others, I will be at the two-day Libertarian Alliance annual conference tomorrow, held at that ancestral seat of 19th Century liberal politics, the National Liberal Club.

Desert according to whom?

Chris Dillow, over at his Stumbling and Mumbling blog, writes this:

“A few days ago, the great Paul Sagar noted an asymmetry in the Tory attitude to “fairness” – that whereas they are keen to point to the “undeserving poor”, they are silent about the undeserving rich. I was reminded of this by listening to Nick Clegg on Desert Island Discs.This provoked the question: why do the undeserving rich not recognise their undeservingness?”

The reason why they do not “recognise their undeservingness” is that they are not asking that the state, with its violence-backed power to tax, should give them something, only that they should be left alone to enjoy their wealth, whether it be undeserved or not. On the other hand, if we are going to have a state with these powers to make transfer payments, then it follows that people are more likely to support such coercive transfers if they are made to people who are considered, by some measure, to “deserve” these transfers. Seems a fairly simple argument to me.

More broadly, though, the idea of “deserving” poor or “underserving” rich is, in my view, loaded with ideological significance, depending on who is using the term. Clearly, people feel a lot more relaxed about handing out money – either from a charity or from a government department – to people who are down on their luck but of good character, than they are about handing it out to the feckless. Similarly, it follows that there is more support for taxing supposedly “undeserved” wealth than “earned” wealth. The trouble with such words, of course, as has been shown by FA Hayek in his famous demolition of payment-by-merit in The Constitution of Liberty, is who gets to decide whether our circumstances came about due to “desert” or not. Such a person would have to have the foresight of a god. It is, as Hayek argued, impossible to do this without some omipotent authority being able to weigh up a person’s potential, and then being able to measure whether that person, in the face of a vast array of alternatives, made the most of that potential.

Another point for redistributionists of all kinds to remember is this: if person A does not, according to some yardstick, “deserve” his or her wealth, then neither does anyone else “deserve” that wealth, either, since why should they presume to grab the benefits of such unearned luck? The logical result, surely, would be to destroy that wealth, so that no-one receives it at all.

Of course, whether Nick Clegg or David Cameron would give such a comment is unlikely; I guess they’d go on about how their good fortune means they have an “obligation” to “society” in some form. That seems to be the view of a lot of those who come into the world with a lot of good advantages. It is by no means a fake or ignoble motive, at all; there is some sense, after all, that a lot of people are dealt a shitty hand by natture or Providence and that there ought to be a way that those down on their luck can get something better. But such a point of view in no ways sanctions state thieving (tax), in my view.

Early 19th Century thoughts on crime and punishment

It may be surprising to present-day readers to think that it was once thought a “soft option” to transport a convicted criminal to a colony such as Australia’s Botany Bay. But as this letter shows, that is what some influential people thought at the time:

“the sentence of the Court is that you shall no longer be burdened with the support of your wife and family. You shall be immediately removed from a very bad climate and a country over burdened with people to one of the finest regions of the earth, where the demand for human labour is every hour increasing, and where it is highly probable you may ultimate regain your character and improve your future. The Court has been induced to pass the sentence upon you in consequence of the many aggravating circumstances of your case, and they hope your fate will be a warning to others.”

Sydney Smith, Whig clergyman and wit, as quoted in Robert Peel, by Douglas Hurd, page 78.

As an aside, Peel was involved in two issues – re-connecting bank notes to bullion, and the 1844 Bank Charter Act – that have enduring relevance to our own time. Hurd’s biography is very readable and has a nice tone to it; in my view, however, Norman Gash’s study remains the definitive one.

Israel’s oil reserves

Surfing on the blogs, I came across this item that I have not seen anywhere else. Israel has, potentially, some pretty handy oil resources.

Wow, better tell Halliburton & all those nasty right-wing neocons and advise them to cook up some fake reason for invading the place…

This article has more.

Liquids on aircraft

This news story, if it turns out to be accurate, should cheer up the retailers of booze at airports.

Samizdata quote of the day

“Of course Peregrine Worsthorne is sane. He is just a typical example of the sort of châteaux bottled shit that floats at certain rarefied levels of British society exuding a miasma of highly articulate ignorance from every orifice.”

– Our own Perry de Havilland, writing in response to my less-than-awestruck view of Worsthorne, an ageing Tory paternalist.

The peasants are revolting

Initially, when I saw the article, I wondered what on earth the editorial honchos at the Spectator Coffee House blog were doing in allowing this piece of invective to be published about the Tea Party movement in the US. But maybe those guys are actually being very smart, since the article is so bad, so unhinged, that it bears out the truth of what this Daily Telegraph columnist argues, which is that a large chunk of liberal (in the US sense) opinion is in total denial about what the Tea Party movement is about. It is just not within their mental frame of reference to comprehend ordinary voters rebelling about having to pay higher taxes for higher spending. (“But darling, how can the little people be so ungrateful?”).

The Coffee House article tries to dismiss the TP movement is nothing more than a front for religious extremism. Now I don’t particularly care for religion and as regulars will know, I tend to regard the separation of church and state as being one of the good things about the US, although the idea of such separation is not explicitly called for in the US Constitution.

But what the author of the Spectator Coffee House piece does not ask is this: if some of the Tea Partiers are playing fast and loose with American history, then are not the supporters of Mr Obama, and the bailouts, and the money printing of the Fed, also taking liberties with the intentions of the Founders? And that, surely, is what this is all about. The anger that is felt across the US among ordinary people is that their country is being bent out of shape by a group of people who hold them in contempt.

One of the world’s smartest economic thinkers in London

Well that was not very clever of me, was it? I got the wrong de Soto in the original posting here, which I have taken down to avoid confusion. My apologies for the first poster who told me it was wrong. Ugh. Grovel-grovel.

Here is the event, anyway. I strongly recommend people to go if they get the chance. I will be.

Harold Macmillan was not a superman

There have, as I might expect, been a flurry of reviews about a recent biography of Harold Macmillan, who – to those non-Brit readers who might not have heard of him – was prime minister in the late 1950s through to 1963, and who was involved in controversies that hung over his head until his very old age, such as the issue of his alleged involvement in sending Cossack forces back to the tender mercies of Stalin at the end of WW2. He was a complex and interesting character in many ways; my mother remembers his nickname of “Supermac” and the extraordinary period in the early 1960s when the Profumo Scandal broke, as well as Macmillan’s own resignation through ill health and the subsequent emergence of Alec Douglas Home as leader. Home, let it not be forgotten considering how he was mercilessly lampooned by parts of the leftist press, almost won the 1964 general election.

One review here by Simon Heffer more or less sums up my own views of the man. Heffer recognises that for all Macmillan’s undoubted merits – he was, for example, an extremely brave army officer wounded several times in the First World War – that he was a decidedly flawed politician in certain respects, particularly on the crucial issue of economic policy and industrial relations. The 1950s and 60s saw the rise of what was to be dubbed the “British disease” – a time of rising industrial strife, inflation, low productivity, endless “stop-go” cycles of Keynesian-inspired reflation followed by subsequent slamming on of the monetary brakes. And while it would be grossly unfair to pin too much blame on one prime minister for the sort of problems that eventually came to a head in the 1970s, he must take some share of the responsibility for the mess that was eventually addressed – after a fashion – by Mrs Thatcher’s administration in the 1980s. And yet the impression I get from Heffer’s review, and particularly, this one by Peregrine Worsthorne, is that the biography more or less absolves Macmillan of any blame whatever. Worsthorne’s review in the Spectator – behind a subscription firewall – carries this, for instance:

“He was right to have himself been the main political champion of his old friend Keynes and his economics.”

Oh dear. Fell asleep during the 1970s, did we?

He also says that Macmillan was right to have played down the danger of the Soviet Union during the Cold War. I am not sure that is really true, but if it was true, is that to his credit? With the benefit of hindsight, the Soviet Union was a rotten house that looked imposing with all its mass Red Square parades and all the rest but eventually crumbled very fast, but at the time, it did not seem that way, and some very supposedly clever people, such as that Keynes fan (!) JK Galbraith, were arguing as late as the early 80s that there was no real difference economically between the West and the Soviet Empire. And the sheer size of the Soviet armed forces, and the way that the Hungarian and Czech revolts were harshly suppressed, hardly squares with the idea that that Empire could be treated with a sort of shrug of the shoulders. By the way, for a dose of good sense on the Cold War years, I recommend this by Norman Stone.

But perhaps the most ludicrous aspect of Worsthorne’s review is this part, in which he writes mournfully of what might had been had Sir Alec Douglas Home won in 1964:

“This would have spared us both the Thatcher interlude, which put power in to the greedy hands of what Macmillan called the ‘banksters’, and then the Blair/Brown years, which entrusted it to the equally grasping and disreputable New Labour cabal, which purported to be a meritocracy. But it is beginning to look as if a promising reaction has set in – not too late one hopes – and although David Cameron is not exactly a 14th earl, he is the next best thing, so Uncle Harold must be cheering in his grave.”

I am going to do Worsthorne the respect of assuming he is sane, and serious, when he wrote that somehow, Mrs Thatcher’s time in office was some sort of ghastly “interlude” when the rightful aristocratic rulers of us unwashed were horribly pushed aside by a bunch of grammar school educated City slickers and Jewish intellectuals. Macmillan once infamously said that he regretted there were more Estonians than Etonians in the Tory Cabinet of the time, a particularly nasty little line. Sure, the attack on the Blair and Brown bunch is perhaps more deserved, but let’s not forget that Blair was a Fettes public schoolboy, and a good many of Mrs Thatcher’s ministers came from smart backgrounds.

In fact, when all is said and done, what Worsthorne rates as Macmillan’s greatest achievement, is contained in the opening paragraph of his review. I leave readers with this to ponder:

“Since the main purpose on earth of the Conservative Party was, and still should be, to keep Britain’s ancient and well-proven social and political hierarchy in power – give or take a few necessary upward mobility adjustments – Harold Macmillan must rank very high in the scale of successful Conservative prime ministers; just below Benjamin Disraeli, whose skill in sugaring the pill of inequality and humanising the face of privilege is never likely to be bettered.”

In other words, whatever Macmillan may or may not have done to stem the UK’s post-war economic decline, at least he kept the toffs on top.

Words fail me.