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]

A good article on the Green affair

Henry Porter, who to his immense credit has been telling it like it is on the civil liberties issue in Britain for several years, has a strong article in the Guardian on the arrest of Damian Green and the government’s miserable behaviour since.

As he puts it, the arrest of one of their own has finally woken MPs up to what is going on. It is hard not to feel a certain bitterness at MPs’ complacency on these issues for many years, but better late than never. The arrest of an MP in such circumstances must count as the ultimate “canary in the coalmine”.

What a way to mark the State Opening of Parliament. At the time of writing I do not know if the Speaker of the House of Commons has been sacked yet or resigned.

Losing the plot

My respect for the EU Referendum blog, one of my daily reads, has just cratered. It argues that because the person leaking immigration details to Damian Green had sought to get a Tory party job, and the leaks of such data were a serious matter, that the authorities were entirely right to treat Mr Green as they did. As far as EUR is concerned, we are all getting het up about nothing and that it is high time that politically motivated civil servants were given a warning. This is nonsense: given the vast number of leaks out of the government that often have direct impacts on things like financial markets, the use of sweeping laws to deal with such matters is bizarre.

What on earth has got into that blog’s authors that they should seek to excuse the use of anti-terror police in dealing with leaks that while embarrassing, posed no danger to UK national security? Had the EU acted in this way, that blog would have gone ballistic.

Update: EUR continues to attack those who are attacking this arrest, arguing that if the cops had suspicions that something was fishy about Mr Green’s activities, they were entitled to act as they did. But again, why the use of anti-terror police when this was plainly not an issue that raises national security issues?

I see that the Devil’s Kitchen blog, which normally has little time for the intrusions of state power, goes into an incoherent rant at MPs’ expense, saying, pretty much, that Members of Parliament have been such poor custodians of our liberties – which is a true fact – that they deserve no sympathy now that the guns are turned on them. Well yes but so what? The point that DK misses is how this story plays, or should play, straight into the hands of civil libertarians anxious to focus attention on how out of control government and its agents now are. As Brian Micklethwait said the other day, this story is great news for civil libertarians, and terrible for the government. Perhaps EU Referendendum and DK are so consumed with hatred for the Tory Party that they are untroubled by the significance of last week’s arrest other than to yell abuse.

A very relevant film about East Germany

The other night I rented out the DVD based on life in former East Germany, The Lives of Others. It is about what life in the former Communist state was like in the fag-end of the Cold War era. It portrays the extent to which people were spied on by the Stasi, and the brutal efficiency with which that organisation went about its job. It does not sound very promising material for an evening in front of the TV but the film is simply outstanding. I strongly recommend it.

Inevitably, given recent UK events and the government’s mania for CCTV, abuse of civil liberties and assault on the Common Law, the film has a certain poignance for a British viewer. It is also clearly apparent to me that once a critical number of people become involved in spying on others and earning a living from doing this, it is very hard to dislodge it but East Germany eventually crumbled along with the Berlin Wall. When, I wonder, will ZanuLabour have its 1989?

A sinister development

As the terrible events in Mumbai have reminded us – I have some ex-colleagues who work there – terrorism remains an ever-present threat. Even while the economic stories dominated our news headlines in recent months, I had a nagging worry that the jihadis were not going to pass up the chance to strike, particularly with a new US president on the way. So terrorism is back as a topic in the most awful way imaginable.

So it is all the more extraordinary that counter-terrorist police, instead of actually trying to deal with terrorists, were instead employed in the highly dodgy arrest of Tory MP Damian Green, who had received leaked information on immigration into the UK and who, like any half-competent politician, was trying to use this information to add to the debate on immigration. Now whatever one thinks about immigration – and Samizdata has gone over this issue many times – it seems deeply sinister that a man who had received leaked details about the numbers involved should find his collar felt by Pc Plod. Considering all the vast numbers of leaks out of the government, which sometimes have direct impacts on markets and livelihoods, this is bad. This is the first time I can recall that a senior MP has been arrested on what looks suspiciously like an attempt by the authorities to shut up a political party. No wonder that Tory leader David Cameron is demanding action on this. Whether he gets it remains to be seen.

Mr Green’s actions are not remotely in the same bracket as the very serious allegations of receipt of oil-for-food funds that have been levelled against the Saddam apologist, George Galloway. At least in the latter case one could see why Galloway should, at the very least, have had a little chat with the police. As for Mr Green, his treatment looks downright sinister. When people throw around the words “police state” to describe what Britain has become, it all too easy to roll the eyes. But if this case does wake this country up a bit, it will have served some purpose.

Philip Johnston in the Daily Telegraph agrees.

Update: Old Holborn puts up this graphic, via Guido Fawkes.

Suggestion to the Tories: refuse to turn up for the State Opening of Parliament on Wednesday. Seriously. Do not turn up, but tell the government to go and boil its collective head.

Things have really got that bad. Can a no-confidence motion be far off?

Books about America

Richard North on UK writer, actor and travel writer, Stephen Fry:

As he takes us on his taxi-ride around the US, he is not ostensibly defending the place, though in his accompanying notes (in interviews and on his website) that seems to be his mission. It is easier to warm to Mr Fry’s account. He seems a nice old thing. But he has a striking narrowness of mind, best exemplified by the disdain with which he passed by Miami as too horrid to detain him. He sneers too easily. I doubt that he is quite as clever as he thinks, though he clearly has a good memory and has an intense middlebrow love of science.

Brrr, that was venomous! Considering that Mr North dislikes Fry’s sneering, that is quite a snide comment itself. Ouch, as they say. Even so, Mr North has a good review of a number of books written by folk about the US recently. He does not seem very impressed by them.

I still think the greatest book written about the US from an outsider is Tocqueville’s Democracy in America.

A tasty plug-in device

I just love gadgets, and this has to be one of the funniest. Ideal for bloggers at breakfast.

Debt addiction

Andrew Sullivan, commenting on a remark about the enormous bailouts being put into place by Western governments, has this to say:

“The debt was so reckless and so immense that it now threatens to destroy the entire financial system. That’s what electing George W Bush twice has done for us. But then we are told that this threat requires us to do even more of the borrowing and spending before we can begin to get ourselves back in balance again. The unchallenged doctrine of the day is that: doing nothing would provoke a worse collapse than necessary and so we have to make our fiscal situation much worse now in order to make it much better later. Why am I not convinced?”

Well, Sullivan is obviously right that the way to solve our debt addiction is not to go on the equivalent of yet another binge in the hope of relieving the hangover. Although his glib remark that re-electing Bush twice has added to the debt addiction does rather ignore, for example, the role of the Democrats, for example, in opposing Bush’s attempts to constrain the US federal home mortgage agencies, Freddie Mac and Fannie Mae. He is right though to chide the Republicans for letting spendng soar, but then I fear that Sullivan has become such a victim of Bush Derangement Syndrome that even a good point now becomes distorted through his worship of Mr Obama. And if it is debt addiction Sullivan is worried about, I somehow do not expect the Community Organiser to be the one to decisively take us back to the days of small government.

Samizdata quote of the day

I love to go to Washington – if only to be near my money.

Bob Hope

Tax and ethics

Amid all the words that will be written about the UK government’s Pre-Budget Report statement yesterday, many will no doubt focus on the utility, or otherwise, of proposed measures such as creating a new, higher 45 per cent tax band on people earning £150,000 or more. Maybe even some supply-siders will point to the destructive effects, the counter-productive consequences, and the likely exodus of entrepreneurs and wealthy citizens, if the tax hike becomes law – after the next election. And they will be right to do so, of course. Throw in the impact of cuts to tax allowances and rises in national insurance payments – a tax by any other name – and the real upper rate of tax is heading towards 50 per cent. I hope all those middle England Jeremy’s and Fionas who voted for that nice Mr Blair and who turfed out the Tories are feeling suitably chastened.

But the core of the problem with resisting such egalitarian acts of robbery is that pointing out the bad economic effects of such measures is not enough. Large swathes of the UK public do not care, or assume that they will never be very rich anyway, so why should they be worried? The current government and public sector, with state, inflation-proofed salaries, could not give a damn either. What is lacking from almost all political and media analysis of the increased steepness of the progressive tax code is a moral element.

Progressivism is a looter’s charter. There is no coherent, objective principle by which one can say that a person earning XXX should contribute say, 40 per cent of their income to the State while another person, on a higher figure, should pay 50, or 60, or even 80 per cent. It is about as scientific as plucking figures at random from a telephone directory. This is not just unwise, it is wicked.

The only reason I can think of for progressive tax is to offset the potential regressive impact of taxes on consumption such as VAT, sales taxes and the like. However, in practice the people who might benefit from any offset are not the same as those who get hit by a consumption tax in the first place. Far better, in fact, to cut through the web of complexity and introduce a flat-tax where the whole population, apart from the poor, pay the same percentage of their income, preferably at a much lower rate. Of course, the ultimate objective is not just flatter taxes, but lower, or no taxes, at all. But although this appears so much dreaming at the moment, anyone who wants to make the moral and philosophical case for lower taxes and against egalitarian thieving must do so in such moral terms and not expect that economic arguments will win the day. What Alistair Darling proposed yesterday was to clobber people for no other reasons than they happen to be well off and he knew quite well that his tax increase will garner relatively little revenue. But he does not give a brass farthing. This government is now acting out of spite.

I finish with this quote, taken from here: “The moment you abandon the cardinal principle of exacting from all individuals the same proportion of their income or of their property, you are at sea without rudder or com pass, and there is no amount of injustice and folly you may not commit.”

Priorities

I see the UK Chancellor, Alistair Darling, is making the point in the House of Commons that the financial crisis will not deflect the government from bringing about a low-carbon economy, despite the fact that such a change, by definition, will be costly. I am watching his statement in the House right now. He has also referred to the current economic climate as if it were an outbreak of a virus or a meteorite impact from outer space.

There is a risk that these people are sincere about all this. That, in fact, is the danger: not that such folk are liars and charlatans, but that they actually mean it.

Keeping the Keynes myth alive

The biographer of JM Keynes, Robert Skidelsky, writing in the Independent newspaper over the weekend, ponders what his economics hero might have done in the current environment. Not surprisingly, perhaps, Skidelsky argues that the economist would have advocated stimulating aggregate demand in some way, either through tax cuts, interest rate reductions or a combination of the two.

In the course of the article, he has a swipe at the “Austrian” school of free market economists who argued that Keynesian economics was – and is – quackery:

“However, his clinching argument in his 1930s debates with free market economists such as Friedrich Hayek was political. It was much too risky to allow economies to slide into deep depression. The example of Hitler was vivid in the minds of all democratic politicians. In 1928, at the height of Weimar Germany’s prosperity, the Nazis got 2 per cent of the vote. By 1930 they were up to 18 per cent. In 1933 Hitler was in power.”

The trouble with this argument is that when supposedly Keynesian stimulii were applied to economies in say, 1930s America, they did not work. Fact. As I pointed out here with reference to US official statistics, unemployment never fell much below the average levels for that decade until the outbreak of the Second World War. Paul Marks has also pointed out how FDR’s achievements were largely mythical, if not in fact the opposite. This woman has argued in a recent book that FDR’s policies made the situation worse. In the UK, the supposedly more fuddy-duddy governments of Baldwin and Chamberlain arguably presided over a less serious outcome by not adopting such “New Deal” policies. Meanwhile, in Japan during the 1990s and part of the ‘Noughties, a number of stimulus packages failed to revive the world’s second largest economy.

Now Mr Skidelsky presumably must be familiar with these statistics, and yet he argues that the reflationary policies of his hero, even though they have not been borne out by historical evidence, were somehow capitalism’s best defence against political fanaticism. He may be making the case that governments have to be seen to be “doing something”, even if it does not work much, to avoid the charge of callous neglect. But if policies don’t work, how is this supposed to calm political agitation? The German example is instructive: I would at the very least have thought that the destruction of the German middle class via the hyper-inflation of the 1920s was a major part of why Germany was so easily tipped over into extremism when economic problems hit home. And that reflation was caused by government, not the private sector. I also think that Skidelsky underestimates the extent to which people do, at a gut level, understand that the governments in power in the West bear some, if not all, responsibility for the present mess.

Meanwhile, I see the UK Labour government is going to take Britain down the wrong side of the Laffer curve by making tax hikes on “the rich” – including entrepreneurs and other wealth creators – a campaign pledge. And this despite evidence, which the government must surely realise, that higher marginal tax rates are destructive of revenues. Update: Fraser Nelson has a splendid, bullet-point take-down of Gordon Brown’s bare-faced lies on the economy and his supposed role in leading us to sunnier climes. It cannot be said too often what a complete shit the UK premier is.

Samizdata quote of the day

“There is no art which one government sooner learns of another, than that of draining money from the pockets of the people.”

– The Wisdom of Adam Smith, page 194.