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This item in the FT reminds us that the spirit of enterprise has not reached all pockets of British society:
More than half a million young Britons are officially too sick to work and claiming incapacity benefits, a higher tally than the number claiming unemployment benefit, according to figures obtained by the Financial Times.
The word I think the FT is looking for but reluctant to use, I think, is “lazy”.
The figure, which includes more than 300,000 young people claiming for “mental and behavioural disorders”, shows continuing high levels of worklessness among the young, in spite of 10 years of steady economic growth and a concerted attempt to move people off welfare and into work.
I will not dismiss problems of mental health – this is a serious subject, but 300,000?
This does rather throw the issue of economic immigration – and indeed, emigration – into sharper relief. If a significant chunk of the potential working population is mentally not the full set of cards, or lazy, no wonder it is proving easy for motiviated, not-ill foreigners to enter the UK job market. Contrary to the Rod Liddles of this world, I dread to think what would have happened to the British economy had it not been for the influx of immigrants over the past decade or so.
Via Andrew Sullivan’s blog, I came across this rather nifty map showing how different countries around the world vary in their treatment of privacy. Both Britain and America get a black. Some parts of the world are a sort of grey, like Africa (I guess the thugs that run parts of that continent have other things to worry about besides snooping on everyone). It looks as if Germany is less intrusive than France, and less than Britain. Canada is less intrusive than the USA, etc. The link takes you to the methodology that Privacy International, a civil lberties group, uses to calculate its rankings.
Here’s hoping that British lovers of liberty have rather more reason to feel less ashamed of what has happened in this nation in 12 months’ time.
Kevin Hassett, of the American Enterprise Institute, has a pretty good item over at Bloomberg about the good economic developments over the past 12 months, which inevitably get overlooked with so much understandable focus on the sub-prime mortgage snafu and the associated mega-buck losses sustained by some of the world’s top financial institutions, such as Citi and Merrill. But much of the economic news is good; when I punch some numbers on my Bloomberg machine, I am reminded that a goodly number of African stock markets are up strongly this year – that nicely upsets the usual cliches of Africa as a story of unmitigated woe, not that there are not serious problems there of course. China’s stock market looks like a bubble but the growth of the economy is real enough, whatever one thinks of government statistics; one of the best performing stock markets of 2007 has been Germany’s, up more than 20% this year, despite the high exchange rate of the euro. France may be starting to turn a corner, despite my doubts on how far Sarkozy will go in liberalising that country’s economy. A weak dollar should boost American exports and hence help the US economy close its trade deficit. Most Latin American economies are on an upward curve and Venezuela’s Chavez received an admirable rebuff in his attempt to seize permanent power late in the year. (Quick question: what are readers’ bets for most promising economy in 2008?). Russia is problematic: its status as an energy exporter means it is enjoying a bonanza of revenues, but this needs to be matched the emergence of a large, broad middle class able to sustain the sort of entrepreneurial economy for the long term; India is a bright spot; most of central Europe, Scandanavia is in decent shape. Italy is a permanent car accident and a possible quitter of the euro, but Italy seems to have incredible powers of survival.
All of these developments should be borne in mind when you look at how Britain’s economy has performed. On one level, the figures are poor: we have UK public deficits despite years of economic growth; tax burdens are rising and productivity is not what it could be; but from my admittedly biased vantage point in central London, I do not see a country in crisis (what I do see is a statist political culture in decline or at best, paralysis, which is not quite the same thing); the inventiveness and entrepreneurial gusto in this country is impressive, although one worries about the impact of an exodus of bright talents to foreign, sunnier climes. All in all though, I think it quite wrong to end 2007 on a whiny note, so I will not. As far as the cause of liberty is concerned, there is all to play for; the ID card venture is not a done deal and the Big Brother state received a mighty poke in the eye this year with the fiasco of the lost data on 25m people. I get more and more sense from the media that Britons are losing patience with this state of affairs. Let’s hope so.
Wishing my fellow contributors and our readers a very happy, prosperous and healthy 2008.
Wired has a list of what it regards as the top scientific breakthroughs of 2007. Some of the technologists and scientifically literate folk who read our blog might disagree, so comment away with your own suggestions.
I missed this when it came out before Christmas, but this crackerjack of an article by the often-excellent Martin Samuel in the Times (of London) about the hypocritical attitudes of the press towards burglaries on well-paid footballers is a good read. It had me nodding in agreement. So footballers have terrible taste in jewellery and cars? So what? Burgling their homes, particularly when family members are in the premises, is a heinous crime and should be punished with heavy restitution by the offender (if it takes the yob years to pay off such a debt, well tough). And yet the attitude of some parts of the press, if Samuel’s take is correct, is that rich sportsmen somehow have it coming. It reminds us of an unpleasant combination of anti-wealth snobbery mixed with the current loathing of “Chav” culture that brings together some fairly weird mixtures of political and cultural views. A bling-wearing Liverpool footballer is as entitled to the protection of his life and property as any Torygraph reader in Tonbridge Wells.
Read the whole thing. I like the Mossad reference at the end.
A close friend who recently bought a lovely property down in Cannes, France, invited Mrs Pearce and yours truly down for Christmas. How can one refuse? We did not. I rather like the old seaside town, with its 19th Century Belle Epoque hotels and small side-streets. The place is pretty civilised over Christmas: unlike the Film Festival season or the various financial services conferences held there during the year, the place was mostly filled by locals and there was a merciful lack of beer-swilling Brits. France likes to pride itself as being far more grown-up in its approach to alcohol than the British, and I think this is mostly accurate, having been to France many times to see the locals in action of an evening. This item, however, says the French go pretty “British” in their drinking habits over the New Year.
Meanwhile, France is of course joining the puritanical Anglosphere by banning smoking in all cafes and restaurants from next February. A shame: although I dislike tobacco smoke intensely, if I choose to enter a bar where the owner of said private property allows it, it is my problem, not his. I can choose to leave. No-one forces me to work in a bar or drink in one at gun point. One of the things I quite like about France is that despite it being a more bureaucratic nation than Britain in many ways – although that is passing – the French have always struck me as a fairly tolerant bunch on certain social issues (the Catholic influence, maybe, I am not sure).
It will be interesting to see whether the ban is enforced in all French premises. I rather doubt it.
I was sad to read this story as I got back into the office today – having resolutely refused to read much press over the holidays – about the death of Oscar Peterson, the jazz pianist. Jazz is not everyone’s cup of tea: some modern stuff is unlistenable, in my view, but this man crossed a lot of barriers with his wonderful blues style. I love his album, Night Train. I might just put it on the CD machine later.
And he died at the ripe old age of 82, proof, surely, that not all great musicians have to die young or mess up their talents by drugs or general over-indulgence.
An issue rumbling away in the business sections for the past few months, and likely to rumble on in the New Year, are the activities of what are called “sovereign wealth funds,” enormous funds, usually accumulated from government oil revenues and run by countries such as Norway. They are now major buyers of assets such as chunks of shares of banks like Citi, the US bank that has taken massive write-downs connected to the US sub-prime mortgage crisis. The question that comes up, especially when these funds are run by Middle Eastern governments or the Chinese, is whether their control of large parts of western firms poses some sort of “problem”. At this stage, I do not see it being a problem. As Sylvia Pfeiffer points out, these funds ultimately want what any intelligent investor wants: maximumum possible returns. I suppose that conspiracy theorists might wonder whether the Chinese, say, will deliberately run their acquisitions into the ground as part of some grand dastardly Blofeld-like plan to take over the world, but this strikes me as a bit unlikely. Perhaps more significant are issues such as protection of intellectual property rights and whether the companies that get taken over are as open about their accounts and profits as before. But again, it strikes me that as long as these new funds do not breach any regular laws against fraud or force, I do not see their activities as a problem.
The truth is, emerging economies in Asia, coupled with the petro-dollar wealth of the MidEast, parts of Asia, Russia and even Africa, is giving these funds a degree of market muscle that has taken some investment observers by surprise, but it should not do so. We are living through a major period of change in the economic clout of non-western states. We might as well learn to profit from it.
The Sunday Telegraph leads with this story about how there are reportedly more Roman Catholics living in Britain than Anglicans, based on figures for church attendance as well as census data. As a former Anglican and now atheist with a Catholic wife of decidedly liberal persuasions, I look upon this news item with a relaxed attitude. Part of the shift is down to the loss of nerve of the Anglican church, not to mention the impact of trends like mass immigration from eastern Europe, such as Poland. I am not a fan of the idea of national churches anyway – like the US Founding Fathers I support a separation of church and state – although I do believe that in certain respects, the Anglican church, and the wonderful hymns and literature it is associated with, is an often elevating part of British, and certainly English, culture. But the church was a political creation, remember, with all the faults that implies. Up until the middle of the 19th Century, recall, atheists, Dissenters, Catholics and Jews faced all manner of barriers to entering British public life, although in practice this meant that many non-Anglicans ended up driving the Industrial Revolution – like the Quakers – precisely because they had a hard time entering certain professions or going into politics. But this prejudice was still wrong even if the unintended consequences could be beneficial with the benefit of hindsight.
I am blogging this from the very decadently Catholic south of France, in Cannes. Just thought I would mention that.
The Great Before, by Ross Clark. Great little satire on a world after the Greens have taken over.
Bad Thoughts, by Jamie Whyte. Whyte is a philosopher and writer from New Zealand, now living in Britain. This book is a gem; he cuts through the fallacies and lazy thinking of the current age like a knife through butter.
Beau Brummell, by Ian Kelly. Wonderful and at times moving account of the greatest dandy who ever lived. The man who told gentlemen how to dress. I am still not sure I should wear a cravat to work, though. But I do believe that white tie and tails should be de rigeur for men who want to be taken seriously by the ladies.
Ray Kurzweill, the Singularity is Near. A challenging book, but one of those works that is essential reading for figuring out the direction that the world is heading along. The message overall is pretty optimistic.
The Not So Wild, Wild West, by Terry L. Anderson. A fascinating account of the American West and how society evolved. The basic point is that the frontier was more peaceful than the usual images from Hollywood suggest.
Die Trying, by Lee Child. The Jack Reacher thrillers are wonderful. I am delighted I came across him, thanks to reading the blog of Bob Bidinotto.
P.J. O’Rourke and his study of Adam Smith. O’Rourke, when he resists the urge to tell a gag every sentence, is surprisingly good on the great Scottish economist and philosopher.
Light this Candle, the story of Alan Shepard, America’s first astronaut. Still in print – you may have to wait a bit for Amazon to get you the copy from its stock – this is one of the best accounts of the amazing men who made up the space programme. Shepard was hard as nails and a sometimes difficult man to deal with, but without his determination to be the best, the progress of the space program would have been far slower.
Enzo Ferrari, by Richard Williams. Splendid account of the man who helped create some of the goddam-sexiest, fastest and most desirable motor cars on the planet.
Dynasties: Fortune and Misfortune of the World’s Great Family Businesses, by David Landes. Landes is one of the most interesting writers on business and the process of getting wealthy in the world today.
How to Fly a Plane, by Nick Barnard. I want to do flying lessons when I get the time and the cash. This is a great book to introduce important concepts and has plenty of nice photos to whet the appetite. Now, can I buy an English Electric Lightning or P-51 on e-Bay?
I recently finished reading Jonathan Knee’s book, The Accidental Investment Banker, chronicling the period of 1994-2003 during which time our slightly jaundiced writer was working for two of the leading practitioners of mega-mergers and initial public offerings (IPOs), Goldman Sachs and Morgan Stanley. As someone who has worked on the fringes of this world here in London, I could relate to quite a lot of Knee’s account. At the heart of it is his argument that investment banks have gone from being supposedly impartial providers of advice for long-term clients to mercenary hired guns willing to pump up any stock, sell any junk bond, to the highest bidder. He wishes to see investment banking give up this sordid activity and resemble the ideals (please try not to laugh) of the legal and medical professions.
This is all written with passion and a lot of detail; if you want to know how Philip Purcell, the former head honcho of Morgan Stanley, plotted to remove rivals or vice-versa, or how investment banks can be open to conflicts of interest, this is the book for you. But at the end of this volume I had no real clear answer to the question as to why a self-declared liberal (in the American usage) like Knee soiled himself working for these ghastly banks doing their ghastly IPOs and mergers at all (sorry for my sarcasm). Or maybe those mega-buck salaries eased the pain a bit (now you are being very sarcastic, Ed). Frankly, to be rude, Knee comes across as a bit of a prig; also, I find his naivete about the world of modern finance frankly a bit hard to take. Banks want to make money and this should hardly be a shocker; if you expect Olympian standards of objectivity from an analyst about a stock that the same bank might be underwriting in an IPO, you should not be investing at all and make sure to get a second or third opinion first. And yes, while there was a lot of hubris in the 1990s IT boom, remember that without the entrepreneurial gusto that that “bubble” made possible, I would not now be typing these words on a laptop and putting them onto a blog. It would not have harmed Knee to have mentioned that point. One might as well write about the supposed evils of the 1840s railway boom in Britain while overlooking that it did, after all, make possible loads of fanstastic railways.
In fact, although there are delusional dreamers, shysters and dullards in any walk of life, I tend to find that investment bankers or hedge fund managers or private equity partners tend to be pretty straight folk on the whole; personally, I find such people to be more honest, hard-working and clever than politicians, although just as prone to the error of sometimes believing their own propoganda. I don’t think any of the people that Knee writes about could be as guilty of financial crookedness as the Britsh government has been over its shamefully under-priced bid for the London Olympic Games, for example, which have turned into the mother of all money pits. And Gordon Brown’s handling of public accounts while he was Chancellor, putting PFI projects’ liabilities off balance sheet, would have landed him in disgrace, as happened to Stan O’Neill, former head of Merrill Lynch, who was kicked out after his firm suffered massive write-downs over the US sub-prime mortgages fiasco. When things go wrong in investment banks, people get fired; in politics, they get another cabinet post.
To be fair to Knee, he does not offer any concrete solutions to the ills he claims have gripped investment banks and he also expresses doubt about the need for yet more regulation; in fact, he even concedes that the legislative reaction to the implosion of the 1990s stock bubble and various accounting frauds have arguably made the job of investment banking even worse in ways that are unlikely to benefit clients. On the other hand, he is far too gentle on Eliot Spitzer, who’s bout of lawsuits against financial players, while not without some justification, went too far and have played a part in damaging New York as a competitve place to do business, to the benefit of London.
If you buy a new BMW car, you can make a trip to the place near where these fine German machines are built, in southern Germany. These photos of the building where many of the cars are kept for their owners are impressive. One thing that people who criticise some of the horrendous modern architecture used to house people en masse in the 1950s, 60s and 70s tend to forget is that when these buildings are done right and with the needs of clients in mind, they work superbly.
Of course, some stunning cars have been made in very ordinary-looking places indeed. Like Aston Martin.
Brian Micklethwait has dug out some superb pictures of modern buildings via this guy. Amazing stuff.
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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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