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]

Another important lesson about rationing

A few weeks ago, I pointed out that if the allocation of scarce resources that have competing uses is no longer the province of voluntary market exchange, but state control, it gives all manner of power, sometimes life and death power, to state functionaries. I wrote about the issue of healthcare, but we have had another example here in socialist Britain, in the form of our state education system.

At present, parents who send their children to state schools must send them to a school that operates in a “catchment area”. Parents who want to send their children to a school in a different catchment area cannot do so, except in exceptional circumstances. And much to the comical horror of our educational establishment, some parents have told lies about where they life so they can send their children to the highest-performing schools. The performance figures of school pupils are now published and, while a crude measure of performance in some ways, give parents at least some idea of where the best schools are. And so naturally, parents like to choose the best schools.

Of course, if we scrapped the state schooling system, and gave generous tax breaks or vouchers worth several thousand pounds to any parent with children, they could directly shop around for the best schools, and the whole nonsense of catchment area allocation would disappear. New education entrepreneurs would spring up. The catchment area mentality is partly drawn from a classic piece of egalitarian zero-sum thinking, which goes a bit like this: there are only so many good teachers to go around, and it is wrong that some children should be better schooled than others because of some unjust inequality in the spending power of their parents. But leaving aside the fact that I deny it is unjust for parents to spend as much as they want on their children’s schooling, the fact is that if you give far more choice to parents, competition will drive up the overall standard of schooling, and this, in my view, will disproportionately benefit youngsters from the poorest backgrounds. It is poor children who most need the kind of competition and drive of a school that has to worry about keeping its “customers”. Let’s face it, children from middle class schools will always be able to have some of the benefits of private tuition, etc.

I know that one objection to vouchers is that the state could, presumably, dictate certain standards for any school receiving voucher cash, and might use that power as a way of interfering with education another way. Fair point. To reduce the dangers of that happening, any voucher scheme or tax break system for schools should be accompanied by the obliteration of the current education bureaucracy. This is desirable on a number of grounds, not least for the cuts to state spending. It is, however, folly to imagine that a perfect free market system would be on the table any time soon, but as an intermediary step, greater parental choice, which would be of particularly great value to parents on low or moderate incomes, would be an enormous benefit to society, not just in educational terms, but also as a way of reinforcing the power of parents and of families generally. As some readers might remember me saying before, any such reform should also be accompanied by a reduction in the school leaving age.

But the present system of allocating school places by a rigid geographical formula, and policing it in the current way, is simply unendurable. It is also worth considering something else: in UK society, many of the big spending decisions that people make, either as individuals or as parents, are not mediated through the voluntary exchange of a market, but via the “tax-now and we might give you something in return” route of the state. On education and health – two of the most important issues for us – the role of the private sector is squeezed to the margins. One would have thought that the great growth in the prosperity of the West would have made the involvement of the state in such large areas less necessary than it might have appeared to someone in say, the late 1940s, but judging by this story about schools and catchment areas, the statist mindset is as strong as it was in the era of Clement Attlee.

We are used to all manner of choices in our lives in the West, whether it be our choice of holiday, spouse or computer system. Is it really such a massive leap to hope that parental choice of school will soon be as unremarkable as any other choice we make in our lives?

Mapping your tax dollars or pounds at work

Via those observant followers of tech weirdness, Boing Boing, here is an electronic map that identifies where US bailout money gets spent. I am not quite sure of the accuracy of the plots, but cynics will have their views confirmed that a lot of bailout money seems to be clustered in politically sensitive places.

Whatever the flaws, I am all in favour of such “gimmicks” if they help people to visualise the scale of the state, taxes, and so on. For example, I support the way the UK’s Adam Smith Institute and others make a point about “tax freedom day”, the day in the year when you cease to work for the state and your earnings go to you. Such things can ram home just what government costs in way that no amount of elegantly written treatises can do.

Another great line from Mr Woods

“The Japanese government did absolutely everything the Austrian theory suggests it should not do in order to fight recession. It engaged in every single activity that Keynesians like Paul Krugman recommended. As a result, its slump went on for a decade and a half. Keynesians continue to recommend these very policies for the United States, as if the debacle in Japan never occurred. In late 2008 financial newspapers in the US actually began to speak of a revival of Keynesian thinking (claiming, absurdly enough, that the present crisis gave the ideas of Keynes, one of the twentieth century’s collection of inexplicably respected crackpots, a new lease of life) again with no mention of Japan.”

Thomas Woods, Meltdown, A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse. Page 84.

This book is full of great passages like this. I have already quoted a nice line from Mr Woods mocking the contention that the enormous expansion of government spending in WW2 helped “solve” the Great Depression. Incredibly, there were people who actually defended this absurd idea on our comment boards. It never fails to amaze me that people overlook a basic fact of economic life: we work to produce stuff that people want to consume. The kind of state domination of a country during war, with its rationing, government direction of labour, and of course, mass conscription, hardly sounds like the sort of policy that anyone interested in increased prosperity should favour.

There is one point where I disagree with Mr Woods. He says the veneration of Keynes is inexplicable. It is in fact pretty easy to understand: he had a sort of superficial plausibility, and of course his ideas were meat and drink to politicians looking for intellectual cover to expand their powers. Even so, I do kind of wonder if Keynes would be embarrassed by some of the people who claim his name as justification for their views.

Wine goes very technical

Here is a diverting read: a trip to Napa Valley’s wine country. It involves a robotic grape picker. The Singularity is coming!

The Lisbon Treaty

It may seem late in the day, but those fine people at the Taxpayers’ Alliance are putting around a petition urging support for a referendum on the Lisbon Treaty, aka the European Constitution. The Czech Republic is, at present, the last country to stand in the way of what will be a dangerous acceleration in the move of the EU towards the status of being a complete state in its own right.

Here is the link for those who are interested.

As an aside, I see that the TPA has spawned a leftist website using almost exactly the same URL. The TPA, is, according to this outfit, an evil, right-wing (booo!) organisation that er, wants to do terrible things like curb the spending of the state. This lot appear to be almost as capable of tax-doublespeak as the absurdly misnamed Tax Justice Network .

It is not even to protect the children, apparently

Well, I cannot say I am remotely surprised.

An estimated 11.3 million people – including parents who join school rotas to take pupils to sports events – already face having their backgrounds checked to allow them to work with children.

But Sir Roger Singleton, the chairman of the Independent Safeguarding Authority, said the scope of the database could increase significantly because companies would fear losing business if they did not have their employees vetted.

It is really hard to know how a satire publication like the Onion or Private Eye can make a living these days.

More on technology and threats to business models

Following on from this post about how technology can boost some businesses but later turn them over, I thought about a specific type of business that I use, as a result of one of the comments. Namely, the optician. I am one of those folk who wear glasses pretty much all day and I do not like bothering with contact lenses or laser eye surgery. I have a slight stigmatism in my right eye and contact lenses for such a thing are very pricey. Since I was a young boy I have worn specs, and after the usual phase of being teased as a “four-eyes”, I got over that, and decided, “To hell with it, I am going to go for the intelligent preppy guy look instead”. (It worked on the ladies, I find. Come to that, I find some women in glasses incredibly attractive).

But will modern technology and things like the internet put some opticians out of business? Possibly. If you know your prescription and the type of lenses you need, then I suppose that if you see a frame that suits, you can submit the order, and assuming the postal system is working, get the specs in a few days. In my case, though, I actually like to browse through a number of different frames and try them on first. There does not seem to be a substitute for doing it in the flesh, so to speak. It is the same, surely, for buying some kind of clothes, even off-the-peg ones where you know your size. Sometimes there is just no getting around the need to go to a store, go to the changing room and try stuff on.

Food for thought in London’s clubland

The week resumes after a highly enjoyable and stimulating annual Libertarian Alliance conference, which I attended along with one or two other members of the Samizdata crew, such as Brian Micklethwait. I may put together some more considered thoughts about some of the ideas and issues that arose over the past two days, but for now, let me join in congratulating Antoine Clarke – another occasional Samizdata writer – for picking up a deserved literary prize, and also Tim and Helen Evans and Sean Gabb, for putting this event together. What was encouraging was how we had delegates from all over the globe, with plenty of new, young faces.

One of the best sessions was the final one, in which we were treated to a survey of how the UK public actually thinks about banking and the credit crisis. The results, as Antoine himself suggested, might show that people are far less naive in believing fashionable nonsense about financial affairs than politicians assume. It would be nice to think that whenever some warmed-up Keynesian goes on about “quantitative easing”, the response from Joe Public is to roll the eyes.

The conference also featured a highly entertaining post-dinner speech by Paul Staines, aka Guido Fawkes. As Paul noted, it is galling that the word “freedom” is conspicuously absent from the rhetoric of any of the main party leaders in the UK. The same, for that matter, can be said of those in countries such as the US.

The sleep of reason brings forth monsters

There is an excellent article in the Times (of London) today about the bitter fruits of relativism, of the pernicious idea, so beloved by our faux sophisticates, that there is no such thing as objective truth. That notion has done enormous damage; far from shielding us from the effects of bigotry and violence, the idea that there are no rights or wrongs has arguably achieved the opposite. Give up reason and respect for evidence, and monsters fill up the resultant gaps. Just look at the wasteland of much of our education system today, for example.

I am reminded of an outburst from a gentleman at a recent talk I attended by the University of Texas philosopher and Objectivist, Tara Smith (a very smart and nice lady, by the way). I blogged about it here. The person concerned – I do not know his name – became incredibly angry that she had dared present any argument that says that there is an external reality outside of ourselves, that existence exists whether we like it or not, that there are laws and principles one can discover, etc. What he did not realise was that his own certainty about his own opinion undermined the notion that one cannot be certain of anything. In the act of attacking certainty, he in fact validated it.

No need to break banks up

“There is no real evidence that any fewer UK banks would have gone bust had this separation been in place. It was not proprietary trading that brought down HBOS, it was bad lending to commercial property. Northern Rock, Bradford and Bingley and the Dunfermline did not own investment banks. RBS was brought to its knees as a result of a multitude of bad lending decisions, the over-priced takeover of ABN Amro and vast holdings of dodgy “assets”; its collapse was not caused by a giant investment banking bet gone wrong. In the US, it is likely that Citigroup would have required a bailout even had it not owned an investment bank. Generally, the same is true of all of virtually all the recipients of Tarp funds.”

Allister Heath, arguing against the idea, floated the other day by the Bank of England governor, that governments should force banks to split off their supposedly high-risk investment banking arms.

Of course, with the “too big to fail” doctrine now more or less entrenched, the danger is that politicians will feel – with some justification, arguably – that they do not want taxpayers to be held to ransom by the threat of having to bail out huge firms, so the “solution” is to prevent banks being so big in the first place. My own preference is that all state-backed deposit protection should be abolished, so that any bank operating on a fractional reserve basis would have to take its chances in a free market, with the only deposit protection coming from private insurance. But in the current policymaking environment, that does not appear very likely or politically palatable. But sooner or later, the idea of taxpayers’ underwriting the losses of FRB banks has to be confronted.

Question Time and the BNP

There is obviously plenty of controversy – seen across the internet and the MSM – about the decision by the BBC, the UK state broadcaster, to let the British National Party leader Nick Griffin appear on the BBC’s Question Time current affairs show. For non-Brits, I should explain that QT is a show where a panel of politicians, pundits and the occasional “personality” take questions from an audience. The audience is selected, according to the BBC, from a supposed balanced cross-section of the public. What in fact this means is that such folk are often drawn from a series of pressure groups and the like. The journalist Paul Johnson once said, many years ago, that if the QT audience were representative of the UK population as a whole, he would think of blowing his brains out. I agree. If I ever chance upon the programme, I feel murderous not towards the panelists, but towards a large part of the audience. It fills me with despair.

Even so, the decision of the QT producers to let this man on the show has thrown up some bizarre arguments. This morning, the Labour MP and pundit, Diane Abbott, told the BBC Breakfast TV show that Griffin should not appear. At the core of her argument, if one can dignify it with such a word, was the idea that only “mainstream” parties should be allowed to be panelists. The interviewer did not immediately hit back with the question as to what Ms Abbott defines as “mainstream”. After all, one could object to a Labour, or indeed Conservative politician, appearing on the show on the grounds that both parties support the idea of seizing a large portion of our wealth on pain of imprisonment; support wars against countries that, whatever the justification, involve the deaths of innocent civilians; support the UK’s membership of an oppressive and undemocratic European federal state, have taken away the right of self-defence for householders; have supported, and continue to support, an intrusive, meddling and yet also incompetent state apparatus. On those grounds alone, one could argue that such politicians should not only be banned from Question Time or any other forum, but hanged from a lampost.

Given that the BNP – a party with a hard-left, socialist economic agenda, by the way – has been elected to several seats in the EU Parliament, it would be odd not to allow the leader of a party that has won a million votes not to be held to account in the run-up to a general election next year. Of course, if we had a genuine free market in broadcasting, the editorial judgement of the BBC, which is funded by a tax, would be irrelevant. But given we have a state-financed broadcaster, that broadcaster, under its charter of incorporation, should enable elected political parties to be put to the public test. The BNP is an odious party for a libertarian, and Mr Griffin is, as his background suggests, a nasty piece of work. What have other parties to be afraid of in putting this lot under the media microscope?

Samizdata quote of the day

“If you want to be a conservative in an England broken by revolution, you need to look beyond a rearguard defence of forms from which all substance was long since drained.. The conservative tradition may have been dominated since the 1970s by Edmund Burke. But it does also contain the radicals of the seventeenth century. And – yes – it also has a place even for Tom Paine. If you want to preserve this nation, you must be prepared for a radical jettisoning of what is no longer merely old, but also dead. The conservative challenge is to look beneath the plumage and save the dying bird.”

Sean Gabb. He pulls no punches in condemning what he sees as the poor conduct of the British monarchy in signing off on a host of liberty-destroying legislation, including its apparent silence over the Lisbon Treaty. Strong stuff, and I urge folk to read the whole piece.