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]

Europe – In need of a Capitalist Manifesto

There is an interesting article in Newsweek suggesting capitalism is on the march in more minds than you might think.

In France, books approved by the Education Ministry promote statist policies and voodoo economics. “Economic growth imposes a way of life that fosters stress, nervous depression, circulatory disease and even cancer,” reports “20th-Century History,” a popular high-school text published by Hatier. Another suggests Margaret Thatcher and Ronald Reagan were dangerous free-market extremists whose reforms plunged their countries into chaos and despair. Such blatant disinformation sheds new light on the debate over why it is that Europeans lag so far behind Americans in rates of entrepreneurship and job creation.

[…]

a recent poll by the IPOS Institute finds the market economy’s approval rating rising to 59 percent among Germans under 30, with only 32 percent saying the state needs to play a bigger role. Ten years ago, the figures were reversed. “The values shift is already underway,” says Bürklin. It’s about time.

Indeed it is about time. The absurdities and contradictions of the statist world view is our biggest ally and gradually more people do figure out better theories for understanding reality regardless of what they are taught.

Gloating at Galileo

The Europeans mess up once again. We look at them playing power politics without a powerful hand or a sense of bluff. It takes some level of incompetence to have the Chinese do to you what you tried to do to the Americans:

Today, the Chinese are attempting to do to the Galileo system the same thing that Europe tried, and failed, to do to the US. China has registered with the ITU its intent to use frequencies that are as close to Galileo’s as Galileo’s were planned to be to GPS 3. The speculation is that this is the Chinese response to the European refusal to allow China into the charmed circle of senior Galileo management.

I mustn’t gloat.

There were no ‘good guys’ in the Spanish civil war

Spain’s socialist government is turning its back on the post-Franco ‘let sleeping dogs lie’ approach with regard to the Spanish civil war. It plans to prohibits any political event at the location of Franco’s tomb in the ‘Valley of the Fallen’, outside Madrid. Yet whilst I am hardly a fan of Franco, the notion that a socialist government has any moral authority to suppress pro-Franco sentiments strikes me as absurd. There were no ‘good guys’ in the Spanish civil war and if the current Spanish socialists see themselves as the heirs of those who fought Franco then they see themselves as heirs to despicable would-be tyrants who were in no way admirable just because their enemy was little better. It was a war between mass murderous collectivist socialists of various dispositions against mass murderous collectivist national socialists.

In many ways the one thing Franco had to commend him was that his system of government was always unlikely to outlive him whereas a socialist system might have lasted longer… which is to say it might have lasted until the late 1980’s and in which case more the mass graves being dug up now would be filled with falangists and their families as opposed to socialists and their families (not that the left was shy about slaughtering its civilian enemies during the war).

People who get misty eyed over the resistance to Franco in the Spanish civil war are fools. It did not really matter who won, Spain was going to lose regardless. A pox on both sides of that terrible war.

The Swiss constitution

Recently, I heard someone describe the Australian constitution as the second best in the world. No prizes for guessing the best. Since the recent 4th of July celebrations, I have been revelling in the bracing ideological purity of the Constitution of the United States of America, and I have no doubt that it is superior to the constitutions of other nations – in the mind of a liberal, anyway. What of Australia’s, however? It is hopelessly outdated and largely irrelevant – the form of state it envisions bears little likeness to modern Australia. For example, the office of Prime Minister is not mentioned at all and most of the mechanics of government exist thanks to convention rather than doctrine. It is not a bad constitution; mainly for the fact that it contains none of the Fabianesque “positive” rights (citizens have a right to a life free of poverty, etc) which tend to enable and then entrench statism. Such caveats are common in most modern constitutions, to their great detriment. If Australia’s constitution is the second best in the world, it is certainly a very distant second. As regular commenter Chris Harper said in a recent Samizdata thread,

The Constitution of the United States of America, one of the great works of human thought.

Quite. In contrast, Australia’s constitution is passable only due to the elements it does not contain – surely there are a number of superior (in ideology and effectiveness) national constitutions in place today. So what is the second best constitution in the world?

You would think Switzerland’s should be a contender. It is a country that holds a number of liberal values as national traits. It is also admired by many of the Samizdatistas, who tend to be a rather liberal bunch (for the most part). One would not be being unreasonable if they predicted that the Swiss constitution is a relatively liberal document. However, if you did predict that, you would be wrong. I did a little research to test my above hypothesis, and was surprised with what I discovered. Far from being one of the best constitutions around (from a liberal perspective), I believe the Swiss document to be one of the worst – if not the worst. For a start, it is too easily altered. According to Wikipedia, the original Swiss constitution was altered to include

the “right of initiative”, under which a certain number of voters could make a request to amend a constitutional article, or even to introduce a new article into the constitution. Thus, partial revisions of the constitution could be made any time.

Worse still, a revised version of the constitution that came into force in the 1990s

is subject to continual changes

due to

constitutional initiatives and counterproposals[.]

This is no good at all. Most liberals are deeply interested in durably enshrining the rights and freedoms of the individual; if these can be swept away on a majoritarian whim, then sooner or later it is likely they will be. Such ease of amendment dramatically weakens the document, although worse is to come. From the same Wikipedia article mentioned above:

[The] Swiss Federal Constitution has a certain peculiarity when compared to other constitutions in the world. It does not provide for any constitutional jurisdiction over any federal laws, that is, laws proclaimed by Parliament may not be struck down by the Federal Court on the grounds of unconstitutionality. This special provision in the Swiss Constitution is a manifestation of how democratic principles are held to outweigh the principles upon which the constitutional state is built.

What a terrible idea. A liberal would assert that the whole point of a constitution is to constrain majoritarian democracy – has the phrase “tyranny of the majority” been widely translated into French, German or Italian? This “peculiarity” consigns the Swiss constitution to complete irrelevance. Regarding the contents of the document – who cares? They can be ignored at any time by a majority of the Federal parliament. The constitution may currently be adhered to by Swiss federal politicians, but there is nothing enforcing their adherence. The only thing that stands between the relatively liberal arrangement the Swiss enjoy today and a Blairite soft tyranny (or worse) is the Swiss people’s enduring common sense and conservatism. I have met a number of Swiss folk in my time and have found that generally they are predisposed to exhibit both traits. However, events change people. Time changes people. If the Swiss elect a Tony Blair and the political circumstances allow it, such an individual could set about dismantling the various manifestations of Swiss liberalism, completely unrestrained by the toothless constitution. I am led to believe that the Swiss constitution is relatively popular in that country. For a generally conservative people, it is hard not to remark that they paradoxically admire a document that is inherently unconservative – dangerously so.

As for the second best constitution in the world, perhaps some of the readers of this post might put forward a few contenders.

(An English translation of the Swiss constitution can be found here – also via the aforementioned Wikipedia article.)

“An industry’s prosperity cannot be decided by law”

In connection with my regular writing duties here (at one of the blogs that Alex Singleton was recently so kind about) I have been unable to avoid learning about the huge takeover battle that now surrounds Arcelor. I hazarded the guess over a month ago that Lakshmi Mittal, one of the protagonists, seemed to be doing okay, despite much opposition, and now it does indeed look as if he will win.

Cécille Philippe‘s latest piece for the Molinari Economic Institute may have been particularly inspired by this huge news story, although all that she alludes to is a “large wave of takeovers”. Anyway, she writes lucidly about the benefits of takeovers, and of the constant disciplinary effect they have upon the managers of large enterprises, concluding thus:

Takeovers make it possible to put an end to sources of loss, to increase the wealth of shareholders and thus to preserve employment which would otherwise have been lost if the company had been brought to bankruptcy for failing to satisfy its consumers. Takeovers are thus an alternative to bankruptcy which leads in a brutal way to a total reallocation of assets to better performing companies.

An industry’s prosperity cannot be decided by law, it has to be created. If one allows the owner’s deeds to be exchanged freely on the financial markets, they end up in the hands of those who think they are most capable of developing them. The reason why they are better placed than the public authorities to carry out this task is that they will have to undergo the financial consequences of their actions in the event of failure. The bureaucrats while escaping the sanction of loss and profit, cannot do other than carry out industrial projects by hazard and chance.

It is thus necessary to recognise the legitimacy of takeovers and to make sure that foreigners are free to make purchase offers. It is equally important that nationals are free to compete with them. The freer the financial market is and the more the shareholders’ right is respected, the more the industry’s prosperity depends on industrial projects being adequate to consumers’ requirements.

Most of which will be fairly obvious to the average Samizdata reader. But France is, perhaps, a country in which such obvious propositions need to be stated with particular clarity just now. Knowing Cécille Philippe a little, I not only hope but assume that she is also doing this in French.

However, Arcelor is a very special case, and Cécille is probably right not to name that particular case in this piece, because it would complicate her argument dreadfully. With Arcelor, wider considerations, as they say, are at stake. However, having now come across this earlier piece, I am surer than ever that it is the Arcelor case that she, and her, I trust, numerous French readers, have been particularly thinking about.

The human rights abuses at the heart of Europe

The Libertarian Alliance is highlighting the disgraceful way Belgium has been trying to intimidate people who hold politically incorrect views. Put an article up that the powers-that-be do not like and they will order you to take it down or face prosecution. But then what can you expect from a country which simply bans established political parties they dislike?

Support the right to home school your children? Advocate the right to self-defence? Want to express your views about Islamic culture? Prepare to be criminalised by the Belgian state.

Big boom in Norway!

This takes some beating for an alarming sub-header for an article:

As Wednesday morning dawned, northern Norway was hit with an impact comparable to the atomic bomb used on Hiroshima

Blimey! At least it happened in the middle of nowhere rather than downtown Oslo.

Still, we all know it was really caused by George Bush  capitalism  McDonald’s  global warming!

The Italian job

Funny that Paul should mention Italian elections; I watched a piece on the Australian Broadcasting Corporation’s Foreign Correspondent tonight that trailed a couple of Australians (I call them Australians, because that’s what they are – not Italians, despite their declarations to the contrary) who have just been elected to the Italian federal parliament under the utterly ridiculous new system that mandates a level of parliamentary representation to “Italians abroad” – that is, emigrants. One of the two men, Nino Randazzo (who’s been an Australian for more than fifty years), nominally supports Romano Prodi’s coalition, however he is seen as a potentially swinging voter in a tightly balanced senate and thus holds power far beyond that which his diminutive stature implies.

Notwithstanding the fact that the legitimacy of these foreign men wielding Italian political power is extraordinarily tenuous, what do these people want from the Italian state? According to one of the two, financial assistance for “cultural purposes” to benefit people who have left Italy to make better lives for themselves in other countries. One newly-elected American member of the Italian parliament declared that Italy somehow owed its émigrés something due to the remittances they voluntarily sent back to Italy many years ago.* The mind boggles. Why, oh why do these privileged foreigners think they have the right to extract funds from the already hard-pressed Italian taxpayer – a group they deserted long ago? Why on earth are Italians not apoplectic with rage over these people who are only going to make the Italian government’s deficit slide further into the red with their demands of cultural grants for foreigners? And we’re talking about foreigners who have already helped create rich Italian cultures in their chosen countries and as a group could effortlessly afford to fund whatever cultural boondoggles these new enemies of the Italian taxpayer have in mind. Of course, most Australian-Italians would not give a cent (Australian or Euro) for these cultural pursuits – whatever they may be. Amazingly, in this circumstance the new Italian electoral system has made it easier to arm-twist a foreign government to do one’s bidding.

You have probably ascertained from my colourful use of formatting that I am a wee bit irritated by the exploits of these men. For a start, I do not like parasitic types who think they have some divine right to expropriate other people’s money. Secondly, I cannot stand those who move to a country like Australia, make their lives here and by all accounts do very well for themselves in a way that they could not have if they’d have stayed in the land of their birth, only to turn around and insult the nation that provided them with so much opportunity and declare “I’m Italian”. There is a simple solution to this problem. The Italians can have their new politicians back. It seems only fair; they are paying for them, after all.

*Apologies for not providing quotes; the programme in question – Foreign Correspondent on the Australian Broadcasting Corporation’s television channel – tends not to post the transcript of the segment until the day after it’s aired. It will be available here, and when it becomes available I will edit this post accordingly.

The Italian local elections

Ex-communists win re-election in Turin and Rome, and a Christian Democrat type (allied with the ex-communists) wins re-lection in Naples. Pity about Turin, where Rocco Buttiglione, the candidate for the ‘House of Freedoms’ is an interesting Catholic philosopher (but what can one expect from the city of the Red Brigades – and of that black hole for money, Fiat).

In Sicily the candidate supported by the ex-communists was defeated, although ‘the left’ (I know there is no agreed definition as to what ‘left’ and ‘right’ mean, but it is the term these people use to describe themselves) are claiming that “the friends” had a hand in the re-election of the foe of the ex-communists. Of course few complained when the Mafia supported Anglo American action in Sicily against the totalitarians of the time (the Italian Fascists and the German National Socialists), the Mafia may have their own (corrupt) reasons for opposing totalitarianism – but oppose it they do.

Of course the ex-communists now occupy the positions of President of Italy and of Speaker of at least one of the two houses of the Italian Parliament (the other being occupied by an allied ‘leftist’). Prime Minister Prodi has indeed worked hard to entrench his unholy alliance of European Union linked big business (the small family owned business enterprises in Italy tend to oppose Mr Prodi and his ‘Olive Tree’) and ex-communists into positions of power. Re-imposing inheritance tax (to undermine Italian family owned enterprises and hand the economy over to the state and to the corporations) will be the next move.

However, I more interested in what happened in Milan. The lady standing there for the House of Freedoms Party, Letizia Moratti, was not accused of corruption (the weapon the ‘left’ used against Mr Berlusconi.) nor is she a dodgy ‘National Alliance’ type (if one traces the National Alliance party’s history back one eventually comes to rather nasty collectivist statists – although of the ‘Black’ rather than the ‘Red’ variety). The lady was a moderate economic liberal, of exactly the sort one would think would suit a commercial city like Milan.

More than this, there was the terrible incident at the start of May when Letizia Moratti took her father to an event marking the liberation of Milan from the National Socialist Germans and their Italian ‘Social Republic’ (i.e. fascist) allies at the end of World War II. Although the lady was in the company of her elderly and disabled father (who had been sent to a concentration camp by the Germans), she was insulted, pushed and spat on by various ‘leftists’.

“Yes Paul, but Ms. Moratti won the election”.

Yes the lady won the election (in a city which has tended in recent years to vote against the ‘left’) – but she won it by only 51% to 47% (minor parties making up the rest of the votes). One would have thought that the pushing and insulting and spitting on a lady (especially in front of her elderly and disabled father) would be unacceptable to more than 51% of the population.

To put in bluntly, almost half the population of Milan have shown themselves to be lower than shit.

Can Suffolk really rival Bordeaux?

The Daily Telegraph reckons that global warming might advance the chances of England, or at least select bits of it, one day rivalling the wine producing prowess of France. Maybe. It has been rather hard to become convinced of the global warming thesis in what has been, by any standards, an exceptionally wet month of May. There is no doubt that a run of hot summers has got people thinking about the implications for agriculture. In my native Suffolk, there are a few quite famous wine producing farms, such as this one. The wine tends to be a bit too sharp for my taste, rather like the stuff produced in the Rhine area. (My favourite wine from the north European area is the very distinctive white wine from Alsace). Personally, I think the best booze in East Anglia is the cider, although it is very strong.

England produced quite a lot of wine in centuries past, when average temperatures were quite possibly hotter than now. The Romans produced a fair amount of the stuff (and no doubt their passion for baths and washing was partly driven by the desire to sweat away the subsequent hangovers). So maybe England could become a great wine producer again. Even so, it will have to go some way before it can rival the Lafites, Latours of Montrachets of France. Anyway, it is my 40th birthday today, so I may just have to find an excuse to do some tasting.

An offer they decided to refuse

Well, I guess one has to admire the guts of these fellows:

A group of 100 shopkeepers in Palermo, the nerve centre of the Sicilian Mafia, have staged an unprecedented rebellion against the Cosa Nostra by refusing to pay protection money. Until now, almost every business in the Sicilian capital has quietly paid off the Mafia or faced retribution. But since Bernardo Provenzano, the 73-year-old “boss of all the bosses”, was arrested two weeks ago after decades in hiding, the island’s anti-Mafia movement has gathered momentum.

This may end badly, I fear.

Three cheers for immigrants!

There are few topics in the world that get people heated up more then immigration, and in both Australia and the United States, societies that have been built by mass immigration, the topic is in the news.

In the United States, the question is based more on what to do about the millions of illegal immigrants that have consistently been keen to seek opportunity in that great country, and have taken the dubious path of avoiding the proper legal channels to do so. In ordinary times this would not have been such an issue. However, since 2001 the United States has become naturally very sensitive about who enters its borders. I am actually surprised that it has taken this long to surface.

The United States immigration question is particularly interesting. You might think that a society that has built itself on mass immigration would be in favour of more immigration, but this is not the case, and generally never has been the case. In general immigration is tolerated, rather then actively embraced by the general populace, but when times get tough, the political mood can turn quite quickly on newcomers. This was as true in the recession of 1819 as it is today.

This is because the costs of immigration are felt and paid for by individuals, but the benefits of immigration are diffuse and spread right across society. It is a shame that many defenders of the right of the free movement of people refuse to admit that there are costs to immigration. The worker who finds his wages undercut or loses his job entirely, or the victim of violence or the householder who finds his property values eroded is naturally going to feel distressed and angry at what he or she sees as the ‘cause’ of his or her loss. People find themselves surrounded by people of different appearance, religion, and cultural conditions, and worry about how the newcomers will assimilate. → Continue reading: Three cheers for immigrants!