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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Philip Booth, of the Institute of Economic Affairs (peace be upon him), has this excellent article about the mix of reforms enacted in the 1980s, which have come in for some criticism from those who claim it contributed to the late unpleasantness in 2008. He refers, in particular, to the “Big Bang” reform changes to the City of London.
So, two things are clear when it comes to Thatcher’s legacy. In many respects she increased regulation of the financial sector in ways previous governments had not considered. Secondly, the most important feature of the Big Bang was that it took regulatory responsibility away from the markets and gave it to the state. In this area Thatcher was a pragmatist, not an unalloyed free market supporter. If these policies led to the crisis, those on the left have some thinking to do.
As always, whether looking at the Cold War, or financial crisis of 2008, or other issues, it is crucial to see how certain groups are trying to “shape the narrative”. The reactions to the death of Mrs T. are a textbook example of how these sort of things play out. Someone should make a film about it.
From the Daily Mail website:
Unemployed Julian Styles, 58, who was made redundant from his factory job in 1984, said: ‘I’ve been waiting for that witch to die for 30 years. `Tonight is party time. I’m drinking one drink for every year I’ve been out of work.’”
The article, which chronicles the outbreaks of violence and antics of – mostly – young people following the death of Margaret Thatcher, does not inform us as to whether Mr Styles has been permanently out of work since 1984, a period of 29 years. It may be that he has worked for periods, no doubt adding his magnificent skills, charm and knowledge to the global economy. On the other hand, I suppose it is possible that this individual has spent the last, entire 29-year period living off the benefits provided by fellow taxpayers. I hope he has managed to cope. He sounds as if he certainly will be able to drown his sorrows with plenty of drink.
Forgive my sarcastic tone, but while I certainly do sympathise with anyone made redundant – I have been through that experience and I know what it feels like – it seems to be stretching one’s natural compassion to the limit to feel much sympathy for a person who might have been out of work, or at least some form of productive activity, for almost three decades, even while remaining an able-bodied citizen. (The article does not say if he is disabled.)
Among the many things that the late Margaret Thatcher strived against was what she thought of as an “entitlement mentality”: the idea that we are, simply by virtue of being alive, entitled to coerce our fellow man into providing us with things or services. The assertion of such “rights” is impossible without stipulating that others have some duty to provide these things. But how much of a right does one have? To one job? To a permanent job? A highly paid one? A moderately paid one? In your home town? Globally?
To pose such questions is to cut to the heart of the incoherence and contradictory nature of such bogus “rights”. A right is, by definition, an assertion that one has a personal space that cannot be invaded, which is why property rights are an essential component of the idea, and why socialist “rights” are a hopeless muddle. I suppose all this philosophy might be a bit of a stretch for this ex-coal miner and his fellows, but it might be nice to think that in contemplating some of the sentiments of recent days, one might also reflect on the principles that are highlighted by Margaret Thatcher’s 11 momentous years in power.
“In 1978, West German Chancellor Helmut Schmidt declared: “England is no longer a developed country.” Just as Spain had, in its decline from Empire, ceased to be part of the developed world, and Argentina followed in the mid-twentieth century, many expected that Britain would go the same way.”
– Andrew Lilico.
Of course, in 1979, when I was a mere 13-year-old Suffolk farmer’s son, some blonde lady by the name of Maggie changed Herr Schmidt’s assessment rather drastically. And by the way, since one of the urban myths is how Mrs Thatcher destroyed our manufacturing while Germany encouraged its own, ponder the fact that the value of manufacturing output in this country has scarcely been higher. I just thought I should mention that as part of a daily service.
The basic moral issue, however, is that no one has a right to other people’s wealth. Need – even the genuine need of someone suffering through no fault of his own – is not a license to steal. In Ayn Rand’s words `misfortune is not a claim to slave labor; there is no such thing as the right to consume, control, and destroy those without whom one would be unable to survive.’ Does that sound harsh? Consider your own case: Would you regard your hardships as a claim on your neighbor’s paycheck? would you march into his house waving your need around like a gun and helping yourself to his food or his medicine cabinet? Would you think very much of a neighbor who did that to you?
– Free Market Revolution, by Yaron Brook and Don Watkins, page 188-189.
There has been a lot of commentary in the general news recently about Bitcoin, the digital currency that its creators and users hope will have the same, inelastic qualities ascribed to such things as gold. At a time when mainstream, fiat money has seen its value trashed in certain cases by central banks’ money-printing policies, it is easy to see the attractions.
But what the hell is Bitcoin? How does it work? And what do free marketeers of an “Austrian” bent make of it? Well, here is an essay by Jeffrey A Tucker, which I think is well worth reading.
Bitcoin is certainly making the news at the moment, judging by some very sharp market movements over the past day or so. Even if it turns out not to be quite as successful as hoped, if it sparks off more thinking about alternatives to government funny-money, that has to be a good thing.
A Bitcoin hedge fund has been set up in Malta. I am actually going down to Malta in May for a few days – perhaps I’ll look up the managers there to find out more.
“Money, when paid into a bank, ceases altogether to be the money of the principal; it is then the money of the banker, who is bound to an equivalent by paying a similar sum to that deposited with him when he is asked for it…The money placed in the custody of a banker is, to all intents and purposes, the money of the banker, to do with it as he pleases; he is guilty of no breach of trust in employing it; he is not answerable to the principal if he puts it into jeopardy, if he engages in hazardous speculation; he is not bound to keep it or deal with it as the property of his principal; but he is, of course, answerable for the amount, because he has contracted.”
Detlev Schlichter, quoting a 19th Century ruling about the status of bank deposits in the UK. It is, in fact, a sobering thought that many members of the general public might not be fully aware of what actually happens to their deposits, and be aware that to all intents and purposes, they do not “own” their deposits.
Let’s just say that for a lot of people, the Cyprus episode has been a learning experience about the fundamental nature of what banks, today, actually are and do.
“I want a “leave me alone” society — one where Christian schools can turn people away for rejecting their doctrine, just as gay rights groups can reject those who don’t share their beliefs. I don’t want us all to get along — not because I’m misanthropic (well, not just because I’m misanthropic), but because I know that “consensus” is usually a fancy word for muting minority viewpoints. I want us all to be free to be annoyed with each other from our separate corners. Is that too much to ask?”
– Troy Senik
He’s writing about Michael Bloomberg, who is up there with Hugh Grant and George Galloway in my current “rogues’ gallery”. Competition for membership of the gallery is proving quite competitive at the moment.
David Cameron’s immigration speech fails to capture the imagination
This is a headline on the Coffee House blog of the Spectator. I am not picking on CH – it is a good site generally – but it ought to be a default position, borne of years of following Cameron’s speeches and sayings, that nothing he has to say, nothing at all, captures the imagination. Even when he apparently stands up for certain things, such as press freedom, and it gives us all a glow of approval, it is quickly destroyed when the grubby reality intrudes. Cameron, and the coterie of buffoons, hangers on and knaves who work with and around him, have no ability to fire anyone’s imagination. Far better to have a headline saying “Cameron says some things about immigrants”.
But with the greatest respect, West Ham aren’t my football club. So why am paying to give them a brand new football stadium? OK, £25 million may not even add up to the GDP of Cyprus in this crazy world. But that’s still a fair chunk of change. And what are we getting for it? Some people are arguing that this is an important part of securing the fabled “Olympic Legacy”. But is this really what the late Baron de Coubertin had in mind? Half a dozen long balls aimed at Andy Carroll, and some lusty renditions of ”Oh Christian Dailly, You are the love of my life, Oh Christian Dailly, I’ll let you s**g my wife”.
– Dan Hodges.
Samizdata quote of the day has already been taken but I couldn’t not share this one.
There is more:
Or, if the crude economics are too unpalatable, look at the whole thing through a footballing prism. If I was Peter Hill-Wood I’d be spitting blood. A club like Arsenal risks its entire future on moving to a state-of-the-art new stadium, pays the price on the pitch, and then watches as one of its local rivals walks into England’s second stadium for the princely cost of £15 million, plus £2 million rent a year.
The state has played an indirect role in the footballing world – such as policing, although the cost of policing grounds is shared by the clubs – and football has, mostly, been out of the state’s hands. The only time that its regulatory influence really tightened was after the various disasters, such as Heysel and Hillsborough, in which large numbers of fans were killed and regulations were changed to make grounds all-seater.
One commentator on the Hodges posting says this, though: ….” it is worth pointing out that West Ham will be paying £2m per year rent on the 99 year lease (not sure if that is inflation linked) and that there is a considerable cost in maintaining an empty stadium”.
Well quite. West Ham is going to have to pay a fair amount to use this ground, so it is not getting the site for free, which at times is the impression gained by the original article. Even so, given that compulsory purchase laws were used originally to clear the Olympic site – and some businesses never recovered – it is worth pointing out that one beneficiary is a privately owned football club which already has a ground of its own. It amounts to a transfer of valuable land and resources to a group of businessmen.
“Bent British newspaper hacks are indeed a curse. Nobody anywhere in the world thinks Britain’s tabloid press does a good job. But the slimiest, most gin-sodden Fleet Street hack who ever lived isn’t as dangerous to Britain as the bland, responsible, respectable people who decided to set up a government-backed press board. Britain can thrive in the 21st century, but it will surely fail if the British people allow their brain dead but well groomed establishment free rein.”
From The American Interest.
The eroding liberty of the UK is getting noticed.
This article from John Phelan, at The Commentator, is worth reading:
Functioning banks certainly are a key part of a modern financial system but why should the same be said of the toxic zombies who are blundering round the current financial landscape?
And how did these rotten banks get so big in the first place? It’s because governments and central banks prop them up. Bad banks rarely go out of business, they just lumber on, soaking up and destroying more wealth. Goldman Sachs and JP Morgan were bailed out five times in the 20 years before 2008.
The second lesson is that there really is no such thing as private property. In extremis the government considers itself entitled to any amount of your property it desires even if, as in the Cypriot case, it means revoking its own commitments to protect bank deposits.
But then this is the logical outcome of taxation. If you think that a shortage of government revenue can be solved by the government simply helping itself to someone else’s revenue you really can’t have a philosophical problem with this. If you believe in the 50p tax rate this is where you end up.
The last paragraph is particularly telling. It is good, in a grim sort of way, that people have been alarmed at the idea of governments grabbing savings. But what on earth do people think governments do already? Consider the central banks’ “quantitative easing” policies. Printing money benefits those who get the new money first against those who do not; savers lose out when a government “reflates” an economy. In the UK, for example, inflation – understated by government statistics – is in the low but significant single digits and over a relatively short period, will devastate savings due to the impact of compounding. The proposals from leftist politicians for a so-called “wealth tax” in the UK is merely another form of property rights confiscation, but then again, income taxes are a form of confiscation in that they confiscate the products of work. Confiscation is what governments with a monopoly on the use of physical force do. It is one of their defining characteristics.
Meanwhile, Detlev Schlichter has an interesting new item up about the Cypriot disaster. What is notable about it is that he does not adopt a lazily predictable “bash the eurozone” stance here.
In particular, Schlichter kicks against the assumption that what was proposed – taking a slice of deposits – is somehow uniquely evil:
I am a free market guy. I am in favor of laissez faire so I always like to see placards that read “Hands off”. One could see such placards at demonstrations in Cyprus yesterday: “Hands off Cyprus”. That is great. But be careful what you wish for. A proper hands-off policy means letting the chips fall where they may. That would certainly mean no bailout and thus total collapse of the Cypriot banking system and the Cypriot economy. Don’t forget that Cyprus and its banks and its depositors are still being bailed out with other people’s money here.
That is also what some of my libertarian friends don’t seem to get when they speak, as some of them did yesterday, of another incident of the ‘the state stealing from its citizens’ or of confiscating their property. As much sympathy as I usually have with these views, in this instance they are simply mistaken. If this were expropriation it would mean that the act of abstaining from this expropriation – of the expropriator simply doing nothing – would mean that the ‘victim’ keeps his property. But if the EU did nothing in this situation – “hands off”, laissez faire – it would mean that most depositors, including those under €100,000, got wiped out completely. The choice is not between keeping everything and paying a ‘levy’, but between paying a ‘levy’ and losing almost everything.
Just to weigh in with my tuppence on the UK attempt to regulate the media, which is proving to be grimly fascinating in the manner of a slow-motion car accident, this item by the Guardian newspaper points out that the local UK media, such as regional newspapers and the like, could be crippled by the prospect of “exemplary” damages and a cumbersome complaints procedure.
It is, I suppose, a bit late in the day for a leftist newspaper such as the Guardian to notice that heavy regulatory moves weigh particularly on smaller firms. That sometimes is the point – so that big firms can flourish. Notice how bigger firms tend to be more pro-European Union than smaller ones, for example.
In the UK’s financial sector, the wealth advisory industry has been put under what is called the “Retail Distribution Review”, which is designed to stamp out use of commission on sales and force up standards for advisors. A result has been that hundreds of advisors have gone out of business, or been forced to sell their firms to rivals, and so forth. The cost of purchasing financial advice has risen, putting it out of reach of often the very people who need it the most. Result!
There comes a point where one grows weary of fighting against this period of sustained lunacy. When an entire political establishment, such as the current one in the UK, feels determined to lash out, the results are terrible. Eventually, one hopes, this nonsense might get overturned, as may happen as court cases concerning the press regulation show it to be the pile of dog-mess that it is. Nick Cohen explains what a legal minefield this will be.
There appears to be no clear idea of what sort of internet-based publications will be affected. I suspect that those organisations that are not already hosted outside the UK will move, as will some of the people involved. The UK government has, along with the the opposition side, just given another reason for anyone with a love of liberty to get out of here while they still can. People overseas have noticed what a joke the UK is becoming on this issue. Let’s hope it doesn’t give Mr Obama ideas.
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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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