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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Washington is a parasite that sucks the rest of the country dry. The counties surrounding Washington, D.C., have the highest per capita income of any metropolitan area in the country including New York, Hollywood and Silicon Valley. The unemployment rate is also the lowest of any large region in the country.
At least New York, Silicon Valley and Hollywood all produce something we need or enjoy. Washington produces red tape, taxes and new ways to handicap innovation on a daily basis.
While America staggers after its first lost decade (2007–17) and with a new lost decade set to begin (Japan, anyone?), Washington grows fat and rich. Trust me, the hotels and restaurants in town are jammed. No depression here.
– Jim Rickards.
Not sure I’d agree with him on Hollywood but he is one of an apparently growing number of commentators who have noticed the parallels between the West’s current predicament and the Fall of the Western Roman Empire.
The United States wants Canada to end supply management, which impedes agricultural imports – dairy, eggs, and poultry. Canada’s trade negotiators and politicians steadfastly refuse, and in their defense of the policy call up an astounding piece of logic: that the less Canadians have, the richer we are.
Canada’s Agriculture Minister insists that supply management is an “excellent system” and that “to deal with anything else is simply a non-starter.” Supporters on the left argue that the policy is necessary to protect domestic farmers from unfair competition from American farmers who receive government subsidies.
Conservatives have argued the same. Current Parliament Member and former International Trade Minister, Ed Fast argued in a recent essay that America simply wants access to the Canadian market “to deal with its own problem of overproduction, to the detriment of Canadian farmers.”
Here is what all proponents of supply management are arguing: If we allow the Americans to send us milk, then their problem of overproduction becomes our problem. Don’t you see how problematic it is, how much poorer we will become if we allow them to send to us the fruits of their overproduction, and at a low price to boot? Don’t you see how much richer we would be if we had less milk?
– Matthew Lau
Unilateral free trade benefits us all and even benefits the poor more than other groups in society. Just what we learned 169 years ago with the repeal of the Corn Laws. Further, as they say, tariff protection makes all poorer while also weighing more heavily upon the poor. This is not an argument in favour of trade protection.
Unilateral free trade it is then, eh?
– Tim Worstall
Complaints about the water industry, meanwhile, are at an all-time low and, according to the independent water consumer watchdog, satisfaction with the industry is at record levels.
If there ever was a time when water customers were ripped-off it was when water was state-owned and millions of households were sometimes paying for a service that had been cut off.
– Ian King
But I do think King is making a fundamental error by assuming the motives for nationalising has anything whatsoever to do with about producing better value, or improved management 😆, or in any way yielding more of the thing an industry does. Yes, I know what they say, and I can say I am a hippopotamus with opposable thumbs (I am, of course). Nationalisation is about a total world view, in which the state is all, and nothing must be beyond the reach of its unfettered power: the state is an end in and of itself. Quoting facts about the water industry at Corbyn supporters is not just an exercise in futility, it indicates a complete failure to understand the enemy. Indeed, the only reason to talk to them at all is for the benefit of third parties who may be listening.
The Guardian‘s Owen Jones asked the following question on Twitter:
How quickly should anti-LGBTQ rail tycoon and SNP donor Brian Souter’s assets be nationalised by a Labour Government?
As a side-issue to the recent decision by London’s TFL [Transport for London] to stiff Uber for alleged safety concerns (please try not to laugh at the back), it occurs to me that there are various reasons why people across the spectrum, including Tories, seem quite fine with the ban (it may be that Uber will do some sort of deal and get back into business in London, mind). One seems to be a sort of fogeyish dislike of Uber (it’s American, which is vulgar, and relies on newfangled tech that some people don’t understand, such as apps, and satellites, etc); another seems to be “fuck-the-consumer-why-can’t-they-use-the-night bus?” level of grumpy nastiness, and another is a sort of feigned, or maybe real, worry about the loss of a set of skills (learning the streets of London by heart). I regard the first two reasons as so fatuous as to not be worth responding to. The latter, however, does interest me.
Consider, a standard Marxist argument, and indeed one not just associated with Marx but even early classical economics (the Labour Theory of Value) It holds that the value which a provider of a service/product should receive is linked to his labour, his effort and skill (learned via effort), not simply the interplay of demand and supply. There are, of course, all manner of problems with it: you cannot simply work out whether a skilled worker is worth X or Y times more than an unskilled one – there is no formula to do this. Second, resource allocation is impossible if the amount paid for Y or X is based not on the relative differences in wants and scarcities of something, but labour, instead. The marginalist revolution in economics, which broke in the 19th Century and which seems to have passed Marxists by, points out that the subtle differences in the subjective preferences of people for this or that are what drive economic exchange. Prices are signals; a labour theory of value leaves out the vital signalling function of prices, which is why an economy driven by such a theory breaks down, with shortages of much-wanted goods over here, and a glut of not-wanted stuff over there (evidence: socialist countries throughout history).
It may be a bummer for the taxi drivers of black cabs who have spent ages learning the streets of London by heart – getting “the knowledge” – to find that satnav and apps have driven a stake into their business model and potential sources of earnings, and be forced to get all those newfangled gizmos and compete with a chap from Hounslow who is second-generation Indian and who cannot name the first-11 team sheet of your favourite soccer team. But in a free market, technology and innovation means the customer isn’t paying for the effort to acquire a skill, but the outcome of it. And that seems a tough argument to sell, but it is nevertheless correct.
On a related note, this essay by Jeff Tucker of FEE about marginal utility and human happiness is brilliant. I shared it on social media and people who might not normally give a crap about such ideas said how much they liked it. Economic wisdom can spread in mysterious ways!
Here’s where we get to the economics lesson. When producers aren’t allowed to profit, they don’t produce.
– Daniel Mitchell
Now this might seem screamingly obvious, yet even the UK is full of people who are either utterly oblivious to this self-evident and often demonstrated fact, or simply do not care, as equality via privation-for-all is actually their objective, with Venezuela’s example on that score being much admired.
Not paying corporation tax is an advantage to those who don’t pay it as against those who do. Which is what we’ve been saying about corporate and capital taxation all along. If you tax corporations then there will be less investment in them in your economy. This makes everyone poorer – the deadweight costs are high. This is indeed exactly the same reasoning which leads us to insisting, as a result of optimal tax theory, that we shouldn’t be taxing the corporations at all.
Which is interesting, even amusing, don’t you think? The EU’s justification for why they just must tax companies is the very reason basic theory says we shouldn’t be taxing corporations at all.
– Tim Worstall
The #SaveYourUber petition has, as of 10:45 pm in London, attracted 600,000+ names, and one of them is mine.
Of course the best way to save Uber is to get rid of Sadiq Khan and make the issue politically radioactive.
This may seem a rather strange proposition, but in terms of ‘housekeeping’, there are various aspects to running a ‘household’, and I am comparing the financial discipline and general acumen of the First Lord of the Treasury (aka Mrs May) making the analogy to running the national ‘house’ to the practical but non-monetary skills of a badger, or rather, some badgers local to me.
The other day I found a badgers’ latrine on my morning walk, it was rather obvious, a ‘not-quite steaming’ pile and I immediately thought of the Prime Minister. I was struck by how careful the badger is to look after his household (or rather, his sett) and not to dump in it, instead using a carefully-dug latrine. This one was unusual in that it was very close to the roadside and highly visible.
Whereas it seems that the Prime Minister is quite happy to dump on the country a €20,000,000,000 bill for the privilege of leaving the EU and letting the UK run a trade deficit with them, and also dump a load of regulations on the UK. If you are going to make a payment, at the bloody least make it in Sterling, so the Bank of England can QE the money out of thin air (if this has to be done at all, which it doesn’t) and they can spend their nice pounds rather than HMG buy Euros. The good folk at Lawyers for Britain have debunked the case for any payment to be made for leaving. How about telling the EU that if your income falls, you cut costs, so that there are fewer than 10,000 in the EU earning more than the UK’s Prime Minister (which ought not to be an ‘office of profit’ under the Crown anyway).
The plan to graft into UK law all EU Regulations has at least the attraction of providing certainty, but why not plan a bonfire ‘On Day 1‘ to quote the Donald (yeah, it still hasn’t happened).
So if I have to choose between the two?
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Having had to negotiate with a badger at 3 am one winter morning to get him to leave my garden, in my pyjamas and armed with only a garden fork for self-defence (this is England), I can testify that they do not give up a position easily, but my bluff worked.
To be fair to Mrs May, the badger seems to know instinctively not to foul its home, however, this is a skill that some of our politicians have yet to learn, and they are so very busy doing the opposite, it may take some time for them to lose their habits, but why?
Photo credits: Per Wikipedia, The Rt. Hon. T May MP, per Controller of HMSO – Own work, CC BY-SA 3.0, Badgerhero.
That’s terrible economics. It’s a classic application of a well-known fallacy called the Lump of Labor — the idea that there are a fixed number of jobs in the world, and those jobs get divvied up among people.
How do we know this is a fallacy? It’s obvious that the number of jobs in the world isn’t fixed. Imagine if the United States deported every single American except for Jeff Sessions. Would Sessions then have his pick of any job? No, he’d be in the forest trying to eat berries to survive. Kicking people out doesn’t just reallocate jobs from one person to another. It also destroys them.
– Noah Smith
The above picture is the most commonplace thing in the world. There is a gift wrapped car in a shopping mall. Obviously, this is a prize in a competition, designed to encourage people to visit the shopping mall and spend money in the shops. The car is first generation Daewoo Matiz – later known as the Chevrolet Spark – an old design now but one of the cheapest cars in production in the world. It’s an utterly awful car to drive, but it is A NEW CAR!. If you are a shopping centre owner, then the main thing is that it is a new car. That it is the cheapest new car in existence is not the point. The point is that the prize in our competition is A NEW CAR! It’s a city car, also. If you are in a place where the traffic is bad enough, a lack of acceleration and an inability to drive above 80km/h matters less, anyway.
Well, yes. And no.
There is, of course a story.
I live in London by myself. My family are in Australia. London is cold, dark, and deserted between Christmas and New Year, and it can be depressing to be here by yourself. Although I don’t need much of an excuse to go travelling at the best of times, I particularly try to get out of town, ideally to somewhere where there is no Christmas. Last year this led to my finding myself in Tehran, Iran. I didn’t quite entirely escape Christmas – there was still a Christmas tree in the lobby of my hotel – but I mostly escaped Christmas. Certainly, the traffic gridlock on December 25 was horrendous, as indeed the traffic gridlock is horrendous in Tehran on most days. There is a metro in Tehran, but Tehran is a sprawling city which makes it only so useful, a little like the metro in Los Angeles. Tehran is a sprawling city of multi-lane freeways and horrendous traffic in a basin surrounded by mountains, a little like Los Angeles. In the expensive suburbs of north Tehran, it’s not especially hard to find yourself in achingly hip cafes that might almost be in Silver Lake, too, but let’s go there some other time.
The whole “enormous, car-centric sprawl with an immense freeway system” makes Los Angeles a polluted city by American standards, but in all honesty it is much less polluted than it used to be. Modern cars are more efficient and have more advanced emissions control systems than was the case even a few years ago, and like all developed world cities, the air in Los Angeles is much cleaner than it once was.
In Tehran, though, imagine a rapidly growing city, that despite sanctions is getting richer. Demand for cars is high, but due to those sanctions Iran is unable to import cars from many industrial countries. Cars stay on the road longer, which means the pollution will remain worse for longer than in many other cities of similar levels of development. Sanctions are uneven, so it is much easier to do business with carmakers in certain other countries than others. When you look around, you find that most of the cars are Korean, or French, or will be oddly familiar things or brands you haven’t heard of.
This gets us back to the overtly Korean car in the shopping mall.
→ Continue reading: Globalisation is very weird.
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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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