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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In all the discussion about the Greek exit from the Euro I see a lot about wealth and poverty; about whether more damage would be done to the economies of Greece, Europe and the world by “austerity” within the Euro versus a default and a return to the drachma.
These are the questions of cost and benefit that it is respectable for world leaders to discuss. Discussion gets heated, I hear – voices are raised and cheeks flushed with anger. But the thing that really sends the blood rushing to a Prime Minister or a Chancellor’s cheek is pride, not money. Pride matters. Pride, shame and “face” in the oriental sense set billions of Euros coursing this way and that in a way that mere economics could never manage. Greek pride finds German diktats hard to bear – but not so unbearable as facing the fact that Greece did not join the Euro but rather was let in by condescending officials who turned a blind eye to obvious lies, like a university turning a blind eye to plagiarism in order to keep up the diversity quota. The Germans were proud of their Deutschmark, prouder still of their own nobility in giving it up for the greater good (with a little frisson of shame at the sinful pleasures of that export boom), and this is the thanks they get?
Bitterest of all is the wounded pride of the Eurocrats. Their sure touch was meant to gently shape history as the potter’s touch shapes the clay. Only the clay slid off-balance on the wheel and it has begun the trajectory that will end when it hits the wall with an almighty SPLAT.
Shapers of history really hate almighty splats. Hurts their pride, you see.
I really hate shapers of history.
This article on Greeks seeking refuge from their woes by emigrating to Australia is a bit old now, although I would be very surprised if the desire to go has changed at all. Greeks are now, by one measure I saw, the seventh largest ethnic grouping Down Under.
Of course, countries such as Australia and Canada, for that matter, might not be as easy to emigrate to as in the past if the would-be emigrant does not have the sort of skills that are likely to appeal to any granters of visas. And without wishing to sound sour about it, I could argue that the sort of enterprising Greeks who would have been welcomed with open arms by such countries have left their ancestral homes long ago. Another problem is that the very people who are trying to get the hell out of Greece are likely to be the sort most likely to drive their country back towards some semblance of prosperity.
Update: EU officials are starting to admit they are planning for a Greek exit. The end of Greece’s eurozone membership is very close now, I think.
Today I had an idea for a website that might be worth monetising. Nothing I could give up my day job for, but something that might bring in a few tens of pounds pocket money from Google Adsense. It would be fun; it might help fund my gadget habit. But:
Despite what you may have read somewhere on the Internet, any income earned from Google Adsense is taxable income. It makes no difference whether you earn £5 or £10,000 – this money must be declared to the Inland Revenue as income derived from self employment. Moreover, you must declare yourself as self employed as soon as you start work (this could be when you begin that new website or insert Google Adsense into a personal blog).
Says Her Majesty’s Revenue and Customs:
If you’re self-employed on a temporary or part-time basis you must register for business taxes with HM Revenue & Customs (HMRC) as soon as you start work. You’ll have to complete a Self Assessment tax return and are responsible for paying your own tax and National Insurance contributions on the income you earn.
Even if you don’t think you’ll earn enough to need to pay tax, you still need to complete a tax return.
Right now I pay my tax on Pay As You Earn, meaning my employer employs a department of people to do all the form filling. I like it that way. I have a very strong aversion to filling in official forms. When forced to do so my heart rate increases, I start to sweat, I hyperventilate, my writing hand cramps up, I have a stong urge to shout and throw things and people around me get nervous. This is partly indignation at being made to do something I do not want to do, partly the unease of spending time doing something that is not pleasant and not what I am skilled at (if I was good at organising paperwork and form filling I would have made different career choices), and partly irrational. And I can never find the damned supporting documents no matter how organised I have tried to be. I could elaborate yet further but thinking about it now is starting to induce symptoms so I must end this paragraph soon. The point is: the rewards would have to be very high to overcome this aversion, or I would have to make enough to pay someone else to do it for me.
A quick google suggests I am not the only one. Even for normal people, the cost, time and effort to fill in a tax return must be high enough to rule out all but the most serious of business ventures.
What is the cost to society of all the little side projects, hobbies and micro-businesses that do not get started because it is not worth the bureaucratic hassle?
Update: I found some tax examples graciously provided by HRMC. I particularly enjoyed the phrase “air of commerciality”. No grey areas here, then.
Samizdata’s favourite Member of Parliament, Steve Baker, has been elected an Executive Member of the 1922 Committee. What this shows is that he is the kind of Member of Parliament whom other Members of Parliament rate highly, and pay respectful attention to. It means that Baker has a Parliamentary following. He is not a loan (!!!) lone voice in the wilderness. Good.
In other words, ideas like this (written by Baker in response to some recent remarks by William Hague to the effect that we should all work harder) are now getting around:
Senior politicians must realise that hard work cannot produce prosperity without the right institutions. In addition to Adam Smith’s “peace, easy taxes and a tolerable administration of justice”, hard work must be rewarded with honest money which holds its value, not money which the commercial banks and the Bank of England can produce at the touch of a button.
Money loaned into existence in ever greater quantities caused the present crisis. It has given us a society based on crushing burdens of work in exchange for rewards which quickly disintegrate. That is the problem which must be solved if hard work is to have proper meaning and if we are to have a moral and just society which delivers prosperity for all.
Imagine a world in which the most powerful people in it started seriously to understand and to act upon notions like that. Thanks to people like Steve Baker we may eventually find our way towards such a world, and maybe (although one should never assume such a thing) quite soon.
I have admired Steve Baker MP ever since I first heard about him from my friend Tim Evans, and have liked him ever since I met him, at a Cobden Centre dinner a while back.
If you also admire Baker and what he is trying to accomplish, then please take the small amount of time needed to add a comment here saying so, even if you are not normally inclined to comment, here or anywhere else. Baker has several times told me, and I have no reason to doubt him, that encouragement of this sort makes a definite difference to his happiness, and to his willingness and ability to keep on keeping on.
I read this…
Leaders of the three biggest [Greek] parties met at the presidential mansion for a final attempt to bridge their differences, but the talks quickly hit an impasse as they traded accusations on a deeply unpopular bailout package tied to harsh spending cuts
…and…
Polls since the election show the balance of power tipping even further towards opponents of the bailout, who were divided among several small parties but now appear to be rallying behind Tsipras, a 37-year-old ex-Communist student leader
…and was then reminded of this by H.L Menchen which I have often quoted…
Democracy is the theory that the common people know what they want, and deserve to get it good and hard
Greece is often credited as being the place where formal democracy was first practised in antiquity and so it seems fitting that it is Greece where the current social democratic order of regulatory statism enters its terminal state of Maenad frenzy, perhaps proving beyond all doubt that social democracy is unreformable via democratic means.
But do not kid yourself that the tragicomic indigent collective derangement on ever more florid display is something peculiar to the Hellenic world.
There has been a bit of a buzz in the internet and elsewhere about a new development off the US West Coast, known as Blueseed:
“More than 100 international tech companies have registered their interest in floating geek city Blueseed, to be launched next year in international waters outside of Silicon Valley. The visa-free, start-up-friendly concept launched late last year aims to create a fully commercial technology incubator where global entrepreneurs can live and work in close proximity to the Valley, accessing VC funding and talent as required. The bulk of registered demand germinated from the U.S. at 20.3%, Indian 10.5%, and Australians at 6%. Reasons: living and working in an “awesome” start-up- and technology-oriented space, proximity to Silicon Valley’s investors, and an alternative to having to get U.S. work visas for company founders or employees were key reasons. Cost:$1,200 to $3,000 per person per month.”
One of the bitter ironies of recent years has been how the US, a country that operates a worldwide system of taxes, as well as tightening its visa and other regulations, has made it not just harder for people, including the likes of software engineers, to enter the country, but also far less easy for expat Americans on short- or long-term trips abroad to do so and gain access to even basic financial services. (To view more on the latter point, see this entry of mine about the FATCA Act.) But as the Blueseed venture demonstrates, entrepreneurs and other liberty-loving people will try and find a way around the tentacles of Big Government. No doubt the Eyeores will say this is all futile, that the authorities will shut this sort of thing down, yadda-yadda, but the very fact that such ventures are being worked on at all is itself a kind of victory for certain ideas.
Reason magazine has a nice roundup on the Blueseed venture. And Patri Friedman’s Seasteading Institute is still going strong. Here is a great book on the subject, How To Start Your Own Country, covering the failed attempts and the mini-victories along the way.
I am presently in the Kingdom of Jordan. It’s a pleasant place. Developing quite rapidly. Friendly, welcoming people, although with a slight excessive tendency to charge foreigners more than they might charge locals for the same thing. That’s a sign of the stage of development the country presently occupies, however. Those higher prices are still cheap, by the standards most westerners are used to, and it is easy to get away with. Such are the joys of using an alphabet that westerners generally cannot read, too. (This sort of thing happens much more in Thailand than it does in Vietnam, for instance, as the Latin alphabet used by the Vietnamese makes it much harder to get away with. Despite the preponderance of alphabets used in India, it happens far less there, given that every establishment has an English language price list that is used by Indians far more than by westerners).
Amman is a city with quite a lot in common with somewhere like Bangkok, actually, although Bangkok is clearly more developed right now. A huge number of people have arrived in Amman from the countryside in recent decades, boosted by greater economic opportunities in the city than the desert as well as for political regions. Huge, relatively poor neighbourhoods have sprung up in East and South Amman. Crowded, sure. Desperate, not at all. In these neighbourhoods you find clusters of souks and markets and stores devoted to most imaginable products.
The new and rapidly growing middle classes are in West Amman. This is a mixture of highway flyovers, international restaurant and hotel chains (including many American restaurant chains not seen in Europe), shopping malls, and bad driving. It resembles Dubai in some ways, but is much less manic, much less the product of ruthless absolute monarchy and a viscous caste system (the Jordinian royal family being much more moderate) and contains many more pedestrians, even if the road infrastructure does not appear to have been invented with pedestrians in mind. There are various signs that money has entered Amman both from and via the UAE in various ways, but it doesn’t appear to be dominating the place. Plus, the weather is a good deal nicer, which helps a lot.
Go into the nicer shopping malls, and you find many of the expected international tenants that are generally to be found in middle class districts of rapidly developing cities with aspirational middle classes: Starbucks, Zara, etc. Anchoring each mall is a huge supermarket, selling vast amounts of food and non-food items at good prices – devoting roughly 50% of floor space to food and 50% to everything else, an outlet of the French chain Carrefour.
As I usually do in foreign countries like this, I devoted some time to wandering around the aisles of this supermarket. There is no section devoted to alcoholic drinks, this being an Arab country. Jordan is not an especially difficult place to find a beer. There are (fairly expensive due to high taxation) liquor stores throughout the country, mostly operated by members of the sizeable Christian minority, but drinking alcohol is something you separate from good wholesome activities like doing the regular shopping or having dinner in a public place, so there is no alcohol section and most restaurants do not serve alcoholic drinks. More entertaining is the section that would be devoted to things like ham, bacon, and salami in a European country. It is really amazing what you can do with turkey meat if you try, as anyone who has ever been served a halal English breakfast can vouch. And along with the Turkey salami there is the lamb salami beloved of Indian pizza aficionados. The regular meat section is full of lamb and beef, some of it imported from places like Brazil and Australia, and some of it sourced locally. The seafood section contains lots of fish that are described as coming from Dubai. An almost landlocked country is not going to be able to source most of its seafood locally (and, in the modern globalised world, who does, anyway?). The food section in general contains much catering to local tastes, and contains a very impressive mixture of local and imported.
Go into the non-food section and you find cheap TVs, computers, and other electrical appliances of all kinds. Cheap, but not too unsightly clothing in a mixture of western and local styles, kitchen utensils, tools and light kitchen, household and garden stuff. Toys. People familiar with the non-food section of a Carrefour or a Tesco anywhere else will be familiar with the contents here. A larger portion of this is imported, and needs to be less localised than the food, but where local sourcing and catering to local needs and taste is necessary, it is done.
Get a bus or taxi to the poorer neighbourhoods of Amman, and there are more downmarket malls in existence or under construction. These also have Carrefour outlets in them, possibly smaller ones. While Starbucks and Zara don’t necessarily travel all that far down from the upwardly mobile middle classes, supermarkets can. Everyone wants to buy good and inexpensive food, and cheap TVs and mobile phones appeal to all social classes as well. Carrefour have moved into the market by first providing cheap goods to relatively upmarket purchasing power by opening in malls that want them as tenants and with which signing contracts and negotiating bureaucracy is relatively easy, in so doing setting up supply chains and logistical systems in the country, and are now just starting to move out into the mass market.
Carrefour are, i think, the best in the world at general retail in middle income and developing countries. Their two most important competitors in this are Wal-Mart of the US and Tesco of the UK. Carrefour resembles Tesco more than it does Wal-Mart. Both Carrefour and Tesco began as food retailers, and as supply chain management became more and more important became better and better at it. Both were very good at negotiating the vagaries of their local planning laws and local labour laws, and expanded domestically to a huge extent as a consequence of this. Both added more and more non-food items as they opened larger and larger stores, to the extent that they became general retailers rather than simply food retailers. (The French use the word hypermarché or possibly the pseudo-Anglicism hypermarket to describe a large store that sells both food and non-food under the same roof. The English stick with supermarket regardless of how big it gets. As well as opening larger stores, they also opened smaller stores, becoming masters of everything from small convenience stores to giant mega markets (some of which do not even sell food). Using economies of scale to run both very small convenience stores and very large megamarkets at the same time was a relatively new thing, and both companies got this relatively early. Both took advantage of the new markets that opened up in Eastern Europe after 1989.
Wal-Mart on the other hand came from general non-food retail and added food later. → Continue reading: Urban development in Jordan and the power of French hypermarkets (but not French politicians)
The main problem with monetary policy is that there is such a thing as monetary policy.
– Detlev Schlichter
An article in the Telegraph by Colin Hines: Seeing off the extreme Right with progressive protectionism
It begins,
Tim Worstall’s piece accusing Compass and me of promoting “fascist economic policy” is a libellous smokescreen, hiding the fact that it is the very free market economic policies that he promotes that are bringing about the economic stresses and rising insecurity that allow and will continue to encourage the rise of the extreme Right.
As quoted in James Delingpole’s assault on parts of the Green movement, Watermelons. The writer here he quotes on page 197 is Stephen Budiansky:
The statistics brandished by local-food advocates to support such doctrinaire assertions are always selective, usually misleading and often bogus. This is particularly the case with respect to the energy costs of transporting food. One popular and oft-repeated statistic is that it takes 36 (sometimes it’s 97) calories of fossil fuel energy to bring one calorie of iceberg lettuce from California to the East Coast. That’s an apples and oranges (or maybe apples and rocks) comparison to begin with, because you can’t eat petroleum or burn iceberg lettuce.
It is also an almost complete misrepresentation of reality, as those numbers reflect the entire energy cost of producing lettuce from seed to dinner table, not just transportation. Studies have shown that whether it’s grown in California or Maine, or whether it’s organic or conventional, about 5,000 calories of energy go into one pound of lettuce. Given how efficient trains and tractor-trailers are, shipping a head of lettuce across the country actually adds next to nothing to the total energy bill.
It takes about a tablespoon of diesel fuel to move one pound of freight 3,000 miles by rail; that works out to about 100 calories of energy. If it goes by truck, it’s about 300 calories, still a negligible amount in the overall picture. (For those checking the calculations at home, these are “large calories,” or kilocalories, the units used for food value.) Overall, transportation accounts for about 14 percent of the total energy consumed by the American food system.
Read it all. Oh, and buy Delingpole’s book. He is, as Brian Micklethwait says here, a hugely effective voice for our side. And as Brian points out, now that he has got his teeth into junk science, I am looking forward to his take on the current enthusiasm for junk money.
A post at Climate Lessons reminded my of my own childhood experiences of environmentalist indoctrination at school. It could have been any post – the whole blog is about how children are frightened and mislead by environmentalists in the classroom.
The topic is closer to home now that I have my own two-year-old son, and it cropped up sooner than I expected. Someone bought him a book about Noah’s Ark. It is perfectly charming: thick cardboard pages; bright colours; but on the last page:
Noah helped save the animals of the earth hundreds of years ago by building an ark. Now we must help to save them too — not from floods, but from human beings who are hunting them, and cutting down the forests where they live.
I mean, come on! It is a story book for toddlers. A silly story from the Bible I can handle, but children should not be worried about this nonsense.
At the turn of the nineties I was at secondary school putting up with some of this. Most of it came from geography class. Deforestation was the big one. An area the size of Wales was destroyed every so often, we were told. Apart from all the extinct animals, the rain forests were needed to turn the carbon dioxide into oxygen. They are the lungs of the planet. These days the rain forests still seem to be there and I am fairly sure that, carbon going round in a cycle, the rain forests are only the lungs of the rain forests. The plants that I (and the animals I eat) eat produce enough oxygen for me.
We also learnt about acid rain and the hole in the ozone layer. Both these problems seem to have gone away, arguably as a result of timely state intervention but more likely because the problems were not so bad in the first place and now they have been replaced by more urgent and dire concerns.
Assuming the BBC exam revision guide is a good proxy for what is taught in GCSE geography lessons in schools, acid rain and the ozone layer are gone from the curriculum. Deforestation is still there, and now we have to worry about climate change, pollution and (oh no!) globalisation. If you follow that last link you will learn about Thomas Malthus and Esther Boserup but not Norman Borlaug.
I remember another strange lesson: not geography; possibly personal social health and flim flam studies or whatever it was called. I can not imagine why but we were made to watch a video that included abattoir footage and there was a class discussion in which we were asked whether the video made us want to be vegetarians. Some of the girls became vegetarians on the spot. I wonder what their parents made of it.
GCSE Double Science was a mostly sensible affair involving the Carnot cycle and electrons apart from one odd day when a guest speaker came in to tell us that more oil was used in the last ten years than in the entire history of humanity before that. The lesson was that this was because oil use doubled every ten years (or whatever the number was). I recognise it now as the standard limits-to-growth spiel, but what was it doing in a fourth year science class? Some organisation must have bribed the school or something.
What harm did it do? Here I am after all, not believing a word of any of it. At the time I believed it, but I was more interested in tectonic plates, magnetic fields and playing Elite on my computer. Most of the rest of the class was only interested in who was snogging whom. We were bombarded with doom and gloom but it was boring and irrelevant.
But I bet a lot of it stayed there, in most of the rest of the class, deep down, in a way that causes them not to question it when they see it on the news. They are not interested: they think about it when they are forced to; they give money to charity when they want to look like nice people or feel good about themselves; they moan about the taxes and they forget about it and get on with their lives. They do not write to their MPs or vote and they do not rise up.
“Are you concerned about growing income inequality in America? Are you resentful of all that wealth concentrated in the 1 percent? I’ve got the perfect solution, a modest proposal that involves just a small adjustment in the Federal Reserve’s easy monetary policy. Best of all, it will mean that none of us have to work for a living anymore. For several years now, the Fed has been making money available to the financial sector at near-zero interest rates. Big banks and hedge funds, among others, have taken this cheap money and invested it in securities with high yields. This type of profit-making, called the “carry trade,” has been enormously profitable for them. So why not let everyone participate?”
Sheila Bair, Washington Post.
The article gets even better from here.
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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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