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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Two days ago the BBC reported that the Supreme Court had ruled that Uber drivers are workers rather than being self-employed.
With what glad hosannas did the drivers greet the news of their liberation!
Er, no. As Sam Dumitriu writes in CapX,
Putting questions of legality to one side, it’s clear Uber’s business model works for drivers. If you don’t believe me, just ask them. Countless surveys have found that the majority of Uber drivers are happy with the status quo and would not sacrifice flexibility for greater security.
A survey carried out by Oxford University academics Carl Benedikt Frey and Thor Berger, in partnership with Uber, found that drivers reported higher levels of life satisfaction compared to other London workers, despite on average earning less. And, counter to the conventional wisdom, drivers typically worked full-time in other jobs before choosing to shift to Uber. Furthermore, more than four-fifths of drivers agreed with the statement: ‘Being able to choose my own hours is more important than having holiday pay and a guaranteed minimum wage’. They found that drivers would accept a move to fixed hours – but only if it came with a 25% pay rise.
Perhaps they had looked across the Atlantic and seen the results of California’s attempt to save gig economy workers from working in the gig economy:
In Uber’s home state of California, 70% of drivers backed Proposition 22, a ballot measure that created a carve-out for ridesharing services from the state’s tough laws on freelance work. The measure passed with 59% of the vote in November.
AB 5, the freelancer law which Prop 22 was responding to highlights how interventions designed to solve a problem in one market can have unintended consequences in others.
When it passed, Vox published an article: “Gig workers’ win in California is a victory for workers everywhere”. A month later they published another article: “Freelance journalists are mad about a new California law. Here’s what’s missing from the debate. The alternative to AB5 would be worse”. Two months later, Vox Media itself cut hundreds of freelance writing jobs in California.
It is hard to overstate the importance of trying to use alternatives to oligopolistic companies seeking control what you can see or purchase. Sadly, Amazon is very hard to avoid these days but at least people can seek out competitors in specific areas, such as e-books.
The chaps at Creative Destruction Media suggest Smashwords. Highlighting the existence of alternatives where they exist is important.
Tim Worstall was recently quotulated, and from that quotulation I extracted this much smaller quote:
The entire point of any form of automation is to destroy jobs so as to free up that labour to do something else. The new technology doesn’t create jobs, it allows other jobs to be done.
Well it’s a snappy quote, but I disagree. The entire point? Surely, part of the point of automation is, often, to make certain sorts of product possible that otherwise wouldn’t be possible, many of which products make other sorts of work both necessary and possible. The point of automation, to use a well-worn metaphor, is not merely to break eggs, in the form of existing jobs that it destroys; it is also to create new kinds of omelette in the form of new products previously unmakeable and new jobs previously undoable, by creating inputs and materials for these new jobs that used not to exist. Oftentimes, new technology does create new jobs, and often this happens on purpose. An often, that’s at the very least part of the point of the exercise. The new technology does not merely allow other jobs, jobs in general, to be done by those it throws out of their existing jobs. It creates particular new jobs that people must then be hired to do.
I think I get where Worstall is coming from. The grand aim of economic life is to create a world that requires us all to do less work rather than merely to remain on progressively more elaborate treadmills and still slaving away at the same old pace for the same old number of hours, for the same old money. But, he overstates that case. The “purpose” of any particular enterprise can be whatever may reasonably be expected to result from it. That can indeed be more freed up labour, but it can also be particular new kinds of labour, which are more fun, more significant, and better remunerated.
Also, the first impact of new technology is often to destroy existing jobs. But that is often only the beginning of the story, as those unleashing the new technology are typically well aware.
What Worstall says reminds me of that claim that you regularly hear that “the entire purpose of any business is to make profits”. Again, snappy, but again, in most cases, wrong. Any enterprise must stay solvent. One way or another, it must pay its bills. But the idea that all that matters to the people who run some particular enterprise is its profitability is, more often than not, just plain wrong. Often, what unites them is not the love of profit but the love of making whatever they make, doing whatever they do. They know that they must be profitable, and can’t be too wasteful, but that’s because that way they get to keep on serving up this stuff, stuff that they love to create for its own sake.
Brian Micklethwait has long observed that a company building a large new vanity HQ is highly corelated with the long march into decline 😀
That said, they have the world’s governments slaughtering their competition, so maybe wait a few years to go short.
Stop press: Continental Telegraph seems to be making the same observation.
“The EU is a divided house”, writes John Keiger at the Spectator:
A 2019 German think tank report, entitled ‘20 Years of the Euro; Winners and Losers’, costed the single currency’s impact on individual states. From 1999 to 2017, only Germany and the Netherlands were serious winners with the former gaining a huge € 1.9 trillion, or around €23,000 per inhabitant.
In all other states analysed the Euro has provoked a drop in prosperity, with France losing a massive €3.6 trillion and Italy €4.3 trillion. French losses amount to €56,000 per capita and for Italians €74,000. Without fundamental reform the nineteen-member single currency’s divide between high-debt, high-unemployment southern states and their low-debt, low-unemployment northern counterparts will widen. The next crisis will come as the ECB’s quantitative easing programme ends and southern debt ceases to be sucked up by the Bank.
“The EU’s China deal is bad for democracy”, writes Edward Lucas at the Times:
The deal itself is quite narrow. It replaces and amplifies multiple existing agreements, with the aim of protecting investors against arbitrary treatment. Their bugbears include mandatory joint ventures, which China uses to steal technology and other secrets, and subsidies for local competitors. China has also made a mealy-mouthed commitment to make “continued and sustained efforts” to ratify International Labour Organization conventions that underpin free trade unions and prohibit slave labour.
The Chinese Communist Party (CCP) may have given away a bit on this front but has gained far more on others. Hopes of a global stance against Chinese bullying are dashed. Australia, the subject of ferocious pressure, is left marooned. Countries mulling how far to stand up to China will draw their own conclusions: Europe talks about values but self-interest trumps solidarity.
The deal exemplifies the gap between the EU’s foreign policy aims and reality. The European Commission claims to be “geopolitical”. In 2019 it deemed China a “strategic rival”. Yet the mercantilist influence of big business, particularly in Germany, steamrollers ethical and security concerns.
“EU’s coronavirus vaccination strategy in chaos as supplies run short”, write Oliver Moody and Charles Bremner, also in the Times:
The European Union’s vaccine strategy has been criticised as “clearly inadequate” after a first week of inoculation on the continent was marred by logistical mishaps.
President Macron reprimanded his ministers over France’s sluggish start after only 400 people received the Pfizer-Biontech jab in the first six days.
A senior German minister and the German-Turkish scientist who developed the Biontech vaccine questioned why the EU had not amassed a sufficient stockpile of the only vaccine it had licensed. Brussels has ordered up to 300 million doses of the jab — barely enough to cover a third of the EU’s 450 million residents — but turned down an offer of an extra 500 million doses, according to Der Spiegel magazine. This has left the bloc dependent on a range of vaccines that have yet to be licensed, including those from Sanofi and Curevac, which are not expected to be available until at least the second half of the year.
But the EU has survived many predictions of its demise, and it is not the only union of nations under strain. “With Brexit, the UK may be bolstering the EU and seeding its own disintegration”, writes Andrew Hammond in the South China Morning Post:
Within the EU, for instance, there are several key debates about the 27-member bloc’s future well under way, including rebalancing the union given the new balance of power within it, and whether the EU now integrates further, disintegrates or muddles through.
For instance, with the UK no longer in the Brussels-based club, the EU 27 has already made significant steps last year towards greater federalism. One example is the new €750 billion (US$825 billion) coronavirus recovery fund, a major political milestone in the post-war history of European integration, which saw the continent’s presidents and prime ministers commit for the first time to the principle of jointly issued debt as a funding tool.
What do you think will happen to the EU? What do you want to happen? Views from citizens or residents of EU countries would be especially welcome.
I had been assured that the reason so many unfortunate lorry drivers were stranded in Kent unable to cross the Channel was that President Macron of France had closed the border for fear of a new strain of Covid. But who I am I to argue with Guy Verhofstadt, until recently the Chair of the EU’s Brexit Steering Group, who tweets,
We forgot what borders look like.
Some thought they would remain open with or without the EU.
They will now start to understand what leaving the EU really means…
In other news:
Brexit trade deal expected within hours – the Guardian.
Brexit deal now imminent – EU sources – the Irish Independent.
Brexit deal ‘done’ with Boris Johnson planning a statement tonight – the New European.
Update: Brexit deal ‘agreed,’ two senior EU diplomats tell DW – German broadcaster Deutsche Welle.
”The only ways to control an epidemic effectively are by a vaccine or by a change in behaviour. Time and again, the scientists and health professionals have failed the government by ignoring the crucial role of incentives in changing behaviour. If the only tool you have is a hammer, everything looks like a nail, and the only tool they have had is lockdown.”
– Paul Omerod, writing about the UK government’s approach to taking advice during the plague.
Says absolutely everyone.
UK faces Brexit limbo after talks deadline missed
Britain risks weeks without trade transition plans from 1 January after missing EU parliament Sunday deadline
– The Guardian last night.
Europe shuts door on Britain over fears of mutant virus
• Countries ban UK travellers as Covid cases rise by 50% in a week • Health secretary admits new strain is ‘out of control’
Britain’s border with France was closed last night with all travellers and lorry drivers blocked from leaving and the EU ready to ban all arrivals to the bloc.
Fears were mounting of gridlock on roads in Kent as the Channel Tunnel said that its services would be suspended at 11pm yesterday amid an international scramble to quarantine Britain over a faster-spreading variant of coronavirus.
Flights, ferries and trains from Britain are expected to be banned by Brussels after a wave of European countries including Italy, the Netherlands and Ireland implemented bans on arrivals. Austria, Belgium, Bulgaria, Poland, Germany and Sweden also announced travel bans. Justin Trudeau, the Canadian prime minister, said no flights from the UK would be allowed to land for 72 hours, a move which came into effect at midnight.
– The Times this morning.
“Hey, Brexshitters, Macron just proved that being a member of the EU does not mean you lose control of your borders. This just proves how idiotic your “sovereignty” argument was.”
“Hey, Remoaners, all the awful things you said were going to happen if we left the EU without a deal are happening anyway. Might as well make it official.”
P.S. This proves what I always said about Covid, too.
“The same people who are shutting down our economies are the same people who have yet to miss a paycheck.”
An anonymous comment I saw on the internet today. It nicely distills where we are at with the policy response to the virus.
It appears that our existing monetary systems have run their course. Central bankers may or may not be deliberately engineering or amplifying crises in order to usher in new systems.
The World Economic Forum seems to be on board.
So shutting down the world economy in a calculated but unnecessary response to COVID has caused a monetary system crisis so profound that some kind of dramatic monetary system reset is required, and the global economy is going to go down as a COVID death.
Luckily, they had a Great Reset on the shelf. Ready for your ID card?
– Alex Noble
I was watching this interview with “lukewarmer” Matt Ridley, who agrees that global warming is a problem but who thinks technology and market-driven solutions are a way to address it, not State dictats. He was being asked about the UK government’s proposals (I have no great confidence this will be remotely achievable) to ban sales of petrol- and diesel-powered cars by 2030. As he noted, such changes will weigh disproportionately on those on low to medium incomes. Even if electric cars and other appliance costs fall because of economies of scale, there is a high probability in my view that a push for “net zero” carbon emissions in the UK is going to require a big rise in electricity costs, and hence prices. And because energy is central to so much of our economy, that means more expensive food. More expensive everything.
Almost two centuries ago, free market lobbyists set up the Anti-Corn Law League to fight against tariffs on grain imports – and other items. Their cry was for “cheap bread”. It was a potent political message. I wonder if any political figure has the gumption to make “cheap energy” such a rallying cry. Because once the full, eye-watering cost of “net zero” becomes evident to ordinary consumers – forcing them to rip out gas appliances, lose their reliable cars and so on – the groundswell of anger is going to be considerable.
Another problem is that there is no real political opposition to this madness. The Labour Party – at least at the moment – is in thrall to this hairshirt Greenery. The Tories are for the moment rallying behind Boris Johnson although one wonders for how long once the costs come even more painfully evident. My hope is that a lot of those MPs in Midland and Northern seats who were swept in last December may be among those telling Johnson to show some realism.
Recent spending and delivery overruns on projects such as Crossrail give me no confidence the UK could create a grid to enable electricity-powered vehicles by 2030 on a scale to fill the gap left when petrol and diesel are taken off the table.
The cynic in me says that Johnson, who is mainly a political stunt artist, does not really care about the details, and will probably be retired from front-line politics, in a cushy job somewhere, once the nature of this mess comes home, and that someone else will have to clear up the mess.
Here’s another interview with Ridely about energy innovation. I can also recommend Alex Epstein’s The Moral Case for Fossil Fuels, which has the sort of title designed to raise the blood pressure of today’s Green humanity-diminishers.
“The Soviet Union (also Mao’s China, North Korea, Cuba, and Venezuela) have proved that central planning is impossible. Even something as simple as corn. To grow corn, you just plant seeds in fertile soil, and wait. Yet every country that attempted to centrally plan it, has starved.”
– Keith Weiner, who runs a precious metals investments business, based in Scottsdale, Arizona. He’s become a friend, and a fount of good sense on issues such as money and central banking. Check out his blog.
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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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