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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News comes to me that an advert, a video in the style of a musical, for something called Coinbase, which I understand is some form of crypto set up, which is why the advert has been banned, and about which I know nothing more, (and this is not advice or recommendation on financial matters) is not permitted in the UK by the regulator, OFCOM. Not that I doubt that OFCOM are interpreting the regulations correctly. That the advert might be termed mildly satirical would be a fair description, and take a look at the shop names. It’s almost an updated Oliver Twist. Has it been made by people familiar with modern Britain? I would say so.
As Burns said in his ode ‘To a louse’:’O wad some Power the giftie gie us / To see oursels as ithers see us!’.
Thanks to comedian Andrew Lawrence for the tip.
The result of [Argentina’s] shock therapy has been a stunning recovery. Milei has brought monthly inflation down from 13 percent to 2 percent. The economy is now growing at an annual rate of 7 percent. Investors no longer shun Argentine bonds and stocks—indeed, they were among the best investments you could have made over the past two years. After a brief upward jump, the poverty rate has fallen from 42 percent, when Milei was elected, to 31 percent. There is much work still to be done, but a new program from the IMF will provide $12 billion of new lending upfront and potentially another $2 billion, which should enable Milei to remove the remaining capital and exchange controls without reigniting inflation.
Most governments that cut their fiscal deficit by five percentage points of GDP pay a heavy political price for the resulting pain. Margaret Thatcher took nearly all her years in office to get the British public sector borrowing requirement down from 4.5 percent of GDP when she was elected in 1979 to −1.1 percent 10 years later.
– Niall Ferguson
Now the thing is:
You can gatekeep in Europe
You can gatekeep in the United States
You can gatekeep in every single economy of the West
But you absolutely cannot gatekeep in China, for there are no tools at all, that would allow you to do that
Like what would you even do to restrict the new entrees?
Intellectual property? lmao
Some other lawfare? Again, just like the enforcement of intellectual property rights, that would ultimately rely upon the cooperation of state, and the state in China – unlike in the West – just would not cooperate.
High profit margins in the West are ultimately based upon the artificial restraints upon the new entrees, and upon the state-sponsored gatekeeping. You keep your prices high, because any new entree on the market will be scared away by the force of the state machine. And in China, the state machine just wouldn’t do that. That is why Chinese competition is getting so close to perfect, and that is why prices (and profits margins) in China, can be getting so low.
– Kamil Galeev
Alex Tabarrok over at the Marginal Revolution blog has an interesting item that pushes back against the idea that the items we buy, such as clothes and household appliances such as electric toasters, fridges and vacuum cleaners, don’t last as long and that is something terrible and a fault of modern capitalism, yadda-yadda.
He concludes: “appliance durability hasn’t collapsed—it’s evolved to meet consumer demand. We’re not being ripped off. We are getting better products at better prices. Rising incomes have simply redefined what “better” means.”
One part of it, as Tabarrok said, is that the “Baumol Effect” shows that the cost of repairing stuff rises vs the cost of buying that new toaster, flat-screen TV or whatever. And that seems to make sense. I’ve also noticed with a lot of modern tech, it is less reparable. That is partly, I think, a function of moving to a digital from analogue world. I am just about old enough to remember how to service my first car, including changing the spark plugs on the engine, etc. Nowadays, the chance of maintaining a modern car engine rank alongside how I’d fix the human brain.
The MR post also cites this excellent and detailed Rachel Wharton article in the New York Times’ “Wirecutter” publication, which contests the idea that “planned obsolescence” – some fiendish business tactic – is the cause.
Read the article and you will learn a lot about the market for fridges. You will thank me later.
Alfred Marshall’s grand vision of economics was that you did the maths to check your logic. Then you translated all of that into English and burnt the maths. Steve Keen won’t do it that way for of course Marshall was a neoclassical and that’s just wrong, see?
Keen did once try to insist that I followed along with one of his papers – he was showing that there are no free markets, there are only oligopolies and therefore everything must be controlled by politics – and was most put out when I said well, yes, that’s mathematically true but useless.
For his contention was that as we’ve never got an infinite number of producers (nor consumers) therefore that model of free markets – which relies upon no individual producer or consumer having pricing power, which in itself implies an infinite number – therefore neoclassical economics was all wet. His maths was fine for that’s all true too. Except for the bit where if we analyse markets which we know are oligopolistic and then see how many producers we need for them not to be then the number seems to be about 5 or 6. True, true, 7 supermarkets doesn’t mean a wholly perfectly free market with profits no higher than the cost of capital but it’s pretty damn close. Close enough for either jazz or the economics of public policy.
The maths is for working through the logic not a replacement for it.
– Tim Worstall
Farage wants healthcare more like France, Netherlands or Switzerland, which all have a varying degree of insurance element. NHS was always a terrible way to do healthcare, which is why rest of Europe didn’t copy it
So, is it not ironic Reform party are open to at least exploring that kind of system, whereas the supposedly pro-European anti-Brexiteer elements who most depreciate Farage get the vapours at the notion of a more European healthcare system for the UK? 🤣
As AJP Taylor once wrote, “until August 1914 a sensible, law-abiding Englishman could pass through life and hardly notice the existence of the state beyond the post office and the policeman”.
That is emphatically not the case today. Having won the wars, the advocates of freedom comprehensively lost the peace. They lost to such a degree that those of us born and raised afterwards find it hard to comprehend the scale of the change.
It’s easiest to start with the size of the state. To be sure, socialism in Britain has receded from its high point. The nationalisation of coal, iron, steel, electricity, gas, roads, aviation, telecommunications, and railways has been mostly undone, although steel and rail are on the way back in.
But by comparison to our pre-war starting point, we live in a nearly unrecognisable country. In 1913, taxes and spending took up around 8 per cent of GDP. Today, they account for 35 per cent and 45 per cent respectively. To put it another way, almost half of all economic activity in Britain involves funds allocated at the behest of the government, and over half of British adults rely on the state for major parts of their income.
And if anything, this understates the degree of government control. Outcomes which are nominally left to the market are rigged by a state which sees prices as less as a way for markets to clear, and more as a tool for social engineering.
– Sam Ashworth-Hayes (£)
So, why did we stop this taxation of “excessive” pensions pots? Because it lost revenue. It took tax rates well over the Laffer Curve peak if you prefer.
So, what’s Ms. Rayner, Labour’s Deputy Prime Minister, suggesting today? That we reimpose a policy that we already know fails.
Idiot’s a bit mild really, isn’t it? Also, it’s rather a pity that Googlebombs don’t work these days.
– Tim Worstall
“Labour seems to think the British economic renaissance is going to be rebuilt on minor changes to a food and drink trade that amounts to 2-3 per cent of our exports, yet if it really believed this, why is it killing family farms and making them erect solar panels instead?”
– David Frost, former chief Brexit negotiator in the former Tory government, writing about the sellout deal that UK prime minister Sir Keir Starmer agreed with the EU at the weekend. The deal effectively puts the UK back into the EU Single Market on farming and food; it also gives a number of concessions that, even if they don’t completely reverse the UK’s independence from the EU, make a number of steps in that direction. This is one of those cases where the devil is in the detail. Like Lord (David) Frost, I want the UK to go for mutual recognition of trade standards, which is what sovereign nation states, such as New Zealand, already do without fuss. Apparently, this is outside the mental universe of Brussels negotiators and the UK government.
The reference in the quote above is to the policy of the current Labour government to impose inheritance tax on family-run farms, a measure that will force a number of these farmers’ families to sell up, possibly selling out to energy companies instead.
From where I stand, it seems pretty clear that Starmer wants to reverse Brexit, even if it falls short of formal re-entry into the EU.
The idea that the British government should subsidise an American mine is pretty weird. Very weird even. But it does seem to be about to happen.
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To the extent that we’ve got a scandium expert lying around I’m it. Niocorp isn’t going to work. But the British government, using your and my money, is eager to invest in it?
Why can’t they leave us just to piss away our own money in our own ways? Why this insistence upon doing it wholesale on obvious disasters?
– Tim Worstall
The biggest reduction we ever enjoyed in our electricity costs was after the newly privatised electricity industry installed gas power stations across the UK. It halved our electricity costs. The biggest increase we’ve ever seen was after the Government imposed “green” ideology on the electricity industry. It has tripled our electricity costs so far.
So as with every statement made by the UK Government about energy, this one is wrong. Shutting down our oil and gas exploration, and increasing taxes on existing production, makes us poorer.
– Richard Lyon
The wealthy don’t protest. They exit.
– Alessandro Palombo
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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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