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]

Thoughts on 9/11

One thing comes through to me as I hear the stories from those doing their part for the remembrance. Far from destroying America, the lowly jihadi’s have created a powerful religious symbol. The World Trade Center has become a site of enormous power. Tiny pieces of metal from the site have been forged into religious icons. They are a part of a warship, a part of wind chimes for a church. They are items treated with great awe and reverence, perhaps as much as were bits of the ‘one true cross’ to generations of the distant past.

To the Jihadi’s and to those who think they will one day bring Shari’a to America, I say, “You have not only failed. You have created icons of greater power than your Mecca.”

I will go further. Two thousand years from now you and your icons will be remembered only in dusty historical archives. The World Trade Center site will still be there and will have gained a patina of age and legend, a tale of demons who came from out of the East and carried death, destruction and great evil with them as they battered a brave and honorable people.

But the more evil they did, the more the forces of good grew, until one day the hand of all peoples were raised against them and they were cast back into the lowest depths of hell and provinces of the damned from whence they had come.

Jihadi’s, you are done. Your dreams are dead. Your followers are dead or will soon be dead. Your beliefs will be forgotten. You have made us stronger and you and all about you are dust in the winds of time.

I do not have to curse you. You have cursed yourselves.

Samizdata quote of the day

“I wish Warren Buffett would emulate his father, Howard Buffett, the late Congressman from Nebraska. Howard Buffett decried the move to the welfare state. He wanted to end it. Also, he wanted the U.S. to get out of the Korean war and move to a non-interventionist foreign policy. Indeed, he was the campaign manager for Senator Robert A. Taft when Taft ran against Eisenhower for the 1952 Republican presidential nomination. I have a proposal for Warren that could cut tax rates for those whom he claims to care about and, at the same time, save having to raise tax rates on him and other rich people: get out of all the wars, close all the foreign bases, and save about $500 billion a year. His father would have liked that.”

David Henderson.

States and states

This piece, about how people are moving from states in the USA governed according to lefty principles, towards states governed by somewhat less lefty principles, reminded me of this piece I recently did here, about people moving from country to country in the world. As in the world as a whole, so in the USA.

Come the next round of elections, the numbers of Americans on the move, and the unmistakable direction in which they are moving, will be hard for the lefties to explain away.

In the emerging presidential campaign, it’s easy to see a version of these questions dominating the debate. Why should anyone choose to endorse liberal, Democratic policies when a single year (2009-10) saw 880,000 residents packing up their belongings to place Barack Obama’s Illinois in their rear-view mirror, while 782,000 new arrivals helped drive the robust economy in Rick Perry’s Texas?

California, so the piece says, lost two million people in the years 2009 and 2010. The promised land no more, it would seem.

I’d be interested to hear what American readers make of Governor Rick Perry. Will I like him, as and when I learn more about him? I’ve read people saying that Perry sounds too much like President Bush Junior. But I’m thinking that people are in the mood to listen to what is actually being said, next time around, rather than fussing about the mere manner in which it is said. Or is that being too optimistic?

Samizdata quote of the day

As I mentioned earlier, the TV networks are giving this wall-to-wall coverage. TJ Holmes on CNN is repeatedly calling it a “monster storm”, and everyone is desperately trying not to mention that it has been downgraded to a category one hurricane, the weakest category in the Saffir-Simoson hurricane scale.

The politicians are falling over themselves to be seen to be doing something. The president, Barack Obama, called it a “historic” hurricane yesterday and has returned to the White House a day early from his vacation at Martha’s Vineyard, Massachusetts. He is desperate to avoid the mistakes of George Bush, who was slow to act over Hurricane Katrina.

Here in New York, mayor Bloomberg was slammed over his slow response to the big snow dump last year. City Hall is at the end of my street – they’ve been up all night there, co-ordinating the response to this.

Hurricane Irene is political, as well as meteorological.

Matthew Wells

A picture says a thousand words

A graph on the growth of the regulatory state, courtesy of the National Review Corner blog.

A gem buried at the bottom of a comment thread

This person at the Daily Caller appears – with some justification I might add – to take a dim view of Ron Paul, the US congressman and Republican primary contender for the presidential ticket known as “Dr No” on account of his saying no to various government measures and enterprises. He is, famously or infamously, a hardline anti-interventionist in foreign affairs, so much so that his views might be dubbed as almost pacifist. He has called for accountability by the Federal Reserve, and argues that institution ought to be closed down. But he has feet of clay, and this article I link to, which is written in a sort of furious burst of anger, focuses on those flaws and makes light of Paul’s merits. In particular, the article unfairly misrepresents the Austrian school of economics and its methodology. It also seems to smear libertarianism on issues like legalising prostitution and drugs, ignoring the obvious arguments that criminalising consensual acts has created huge costs for society.

All the way down at the bottom of a comment thread prompted by this article, is large item by commenter Michael P. Ivy. It is so good that I reproduce it here. There is the odd typo, but it is worth quoting in the raw:

I am always amused by wannabe economists, who call themselves capitalists, but, are unable to embrace or understand the true axioms of capitalism when push comes to shove. Austrian economics spins on essentially to axioms: (1) that there is no free lunch, and (2) all human action is purposeful action motivated by the individual’s (not society’s) desire to move from a less to a more desired state. These are self evident truths, much like the “more is preferred to less” axiom of the neoclassical school. You butcher Rothbard without understanding his work and particularly his crititique of the neo classical school of wackjob indifference curve analysis and welfare economics. The notion that an individual can be indifferent between two different states of the world without ever actually exercising choice is not a reliable basis for recommending redistribution measures of the Kaldor/Hicks kind. Even Samuelson so much as admitted that it is impossible to derive a social welfare function without making assumptions about the marginal utility of money et al (1951).

The problem with Keynes’ economics, is that it must rob resources from one sector of the economy to furnish another and it consumes resources in the process. Moreover, in doing so, the government does so without the knowledge of the benefits that those resources procure that only those individuals holding those resources…know. This is the problem with any measure of government involvement in economics. That they suffer from fiscal illusion (not my money so it don’t matter) is one thing, but, they effectively create an environment of uncertainty by destroying productive incentives. Incentives do matter after all and I have yet to see the mathematical models of the neo-classicals actually recognize this and quantify them. The fact is, is that you can’t unless you invoke a value judgement of the Keynesian/Samuelson kind.

Welfare economics has never worked and it never will work, for as M. Thatcher so plainly points out, “Socialism is a great idea until you run out of other people’s money”. The statement captures two notions: (1) if their actually was a multiplier effect on GDP from government spending, don’t you think this would be a permanent line item of the government’s income/expense statement?, and (2) the No Free Lunch axiom is underscored by the fact that since government is an unproductive entity that consumes resources for its existence without actually creating anything of value is that eventually the productivity of the market is unable to keep up with and compensate for the unproductive actions of government. True capitalists understand this.

And if you think the market is unable to coordinate itself with respect to defense, innovation, policing of private property, mass transit, health, education, indeed all the things you think we require a central planner for, then you obviously have not bothered to school yourself on the opportunities that can and will present themselves if productive individuals are left alone and allowed to participate. Finally, I see that your article is riddled throughout with incorrect and obnoxious assertions about economic theory presented by Rothbard, Mises et al. (semi-autistic dogmatism). The fact is, is that there is nothing dogmatic about the Austrian school. Its core tenet is that the best production, exchange, and coordination of resources occurs when individuals are left free and unfettered to choose. And by whatever math you might care to invoke, given the level of debt ($16T) incurred by the Welfare State, I’d say you’re pointing the dogmatic finger in the entirely wrong direction. THAT is what is dogmatic….doing the same illogical, nonsensical thing over and over again (at the people’s expense), and expecting a different result every time. So before you decide to write another diatribe on someting you don’t know much about, I’d recommend that you review Rothbard…again, and in particular his piece on “Towards a Reconstruction of Utility and Welfare Economics”. There is nothing dogmatic, hairy scary or offensive about it.

Very good.

Ron Paul is very much a mixed bag, and I would not vote for him, and I am troubled by some of his views. But the fact has to be faced that almost unique in Western politics, he has put forward a classical liberal agenda on certain issues, and done so consistently. And he has managed, despite his age, to touch a lot of young people. There is a lesson here somewhere.

Caught in their own nets

Sit down. I am about to astonish you. Via the Drudge Report, I found this: Seattle’s ‘green jobs’ program a bust.

A green jobs scheme has failed. Over the shock yet? I’ve always meant to ask one of the enthusiasts for these schemes why they do not also support a job-creating proposal to forbid the generation of electricity by any means other than men on treadmills, but I have not done so for fear of giving them ideas.

I was lying earlier. I am not surprised at all and do not expect you to be. The best that any government “job creation” scheme can ever do is “create” a few jobs in some specific place or profession while the spotlight is on that place or profession – at the cost of destroying the wealth that actually creates long term jobs, but in a conveniently spread out way so no one much notices. Greens strive to convince us that there are external costs paid by the community as a whole when jets fly or factories produce geegaws. “Look at the whole picture,” they urge. “Don’t be bedazzled by the transitory benefit accruing to a few and fail to see the larger but subtler harm being borne by the many.” They have a point. I wish they could apply it to ‘job creation’.

Apparently, however, this Seattle scheme was even a bust in its own terms. It withered even before the spotlight moved on.

The unglamorous work of insulating crawl spaces and attics had emerged as a silver bullet in a bleak economy – able to create jobs and shrink carbon footprint – and the announcement came with great fanfare.

McGinn had joined Vice President Joe Biden in the White House to make it. It came on the eve of Earth Day. It had heady goals: creating 2,000 living-wage jobs in Seattle and retrofitting 2,000 homes in poorer neighborhoods.

But more than a year later, Seattle’s numbers are lackluster. As of last week, only three homes had been retrofitted and just 14 new jobs have emerged from the program. Many of the jobs are administrative, and not the entry-level pathways once dreamed of for low-income workers. Some people wonder if the original goals are now achievable.

I enjoyed the implication that there are others who do not wonder at all, no sir, no sliver of doubt that the original goals might not be met has ever crossed their minds.

That was not the only part of this article rich in irony. Look at this:

“Who’s benefitting from this program right now – it doesn’t square with what the aspiration was,” said Howard Greenwich, the policy director of Puget Sound Sage, an economic-justice group. He urged the city to revisit its social-equity goals.

….Greenwich said the energy retrofit market has turned out to be extremely complicated, with required hammering out of job standards, hiring practices, wages and how best to measure energy benefits.

Market? Where was the market there? The things that have “turned out” (talking as if it all happened by chance) to be “extremely complicated” (that I can believe) are the workings of the interlocking tangle of government rules and protections that people like him and his “economic justice” group advocate. Job standards. Hiring practices. How best to measure energy benefits on some government form. It is sad for all those whose hopes are dashed by these schemes, like the mugs here in the UK who trained as assessors to issue Energy Performance Certificates, or like the unfortunates who got burnt metaphorically and literally in the great Australian insulation debacle. (Not surprisingly, Tim Blair, chronicler of that saga, also has a post about this Seattle fandango. Mine was started first, though.) But what a joke when the very thing that reduces the progressive silver bullet to a twist of mangled brass is… all the stuff that progressives wanted all along.

On second thoughts, I need not worry about giving them dangerous ideas. The great ‘men on treadmills’ job creation scheme would never get moving. It would have to be persons on treadmills regardless of gender, age, religious belief or sexual orientation for a start. And what about disabled access?

What Obama’s decline in job approval means – and does not mean

Instapundit, whom I revere for his relentless, industrial strength linkage (happy tenth anniversary Professor), has been in the habit, in recent times, of linking to pieces about how Americans are getting ever more disappointed by President Obama. But, as I am sure that Instapundit himself appreciates, the disappointment with Obama coming from Obama’s own former supporters is not because Obama’s preferred economic policies are now correctly understood by those ex-supporters to be disastrously destructive, but rather because Obama seems insufficiently determined and skilful in imposing these policies upon Americans who would prefer relatively sensible economic policies.

Obama’s leftist critics are not disappointed with Obama because they have come, reluctantly and through bitter experience, to share the opinion of his policies held by the Tea Party. Rather are such critics disappointed with Obama because he is not crushing the Tea Party, but instead haggling with them, and doing so, as these critics see it, with insufficient skill and nastiness.

Yes, Obama still seems to believe in the same daft policies that these leftist critics favour. But where is the passionate commitment to folly that he persuaded them he felt when he was getting elected, and that they still yearn for? Perhaps someone else (Hillary Clinton?), with greater energy, industriousness and human warmth, could lead America over the cliff with the proper amount of dash and determination, instead of Obama just leading the herd from somewhere in among it.

One should not, in short, confuse the fact – if fact it be – that President Obama is now being thought by ever more Americans to be doing a bad job, with the claim that all of America is coming to its senses in the matter of what it should do about its current economic woes, or what will happen to it, and to the world, if it does not do what it should do.

Samizdata quote of the day

Notice how the loudest complaints about “broken politics” come from those who lost the debate. It’s understandable for sore losers to rage against the machine. But there’s no need for the rest of us to parrot their petulance.

Charles Krauthammer.

Samizdata quote of the day

Obama declares US is still a AAA nation, in his regard. Like when i would try & convince my parents that my C+ in math was pretty much a B-

– Mark Ronson (via Twitter)

Does Democrats calling Tea Partiers terrorists mean that the Democrats are winning, or losing?

I see that some Democrat politicians in the USA have taken to calling Tea Party politicians terrorists.

I wonder if this is wise on their part. It is clearly wrong and nasty; that’s a given. What I now wonder is whether such insults will be politically damaging to the Tea Party, or rather to any politician who uses such wrong and nasty language. Is this some kind of concerted effort by Democrat bigmouths to badmouth the Tea Party? Or are they just very angry, and individually blowing off steam? Being the optimist I am, I suspect the latter, or that if it is more the former, it may be a serious miscalculation.

Recently, in a comment here (I apologise for forgetting to which posting this comment was attached and for being unable to supply the link that the commenter did supply – perhaps he or some other commenter can rectify that and I will be able to add the link (by turning those last two words blue)) to a theory that once a “convinced minority” (I think that was the phrase) reaches about ten per cent of the population, its success from that moment on cascades, and soon part or even all of the agenda that this minority is pushing becomes a given of conventional discussion and debate. (I presume that this book was involved.)

This makes a lot of sense to me. I think the key to such transformations of opinion or behaviour are that individual members of the population, even though mostly not themselves already members of the convinced minority in question, are almost all of them quite closely connected to people who are.

The Tea Party, for the purposes of such analysis as this, doesn’t just mean all the good (I think) people who are spending every spare hour and spare dime they have forcing, by impeccably democratic methods, Tea Party opinions upon that great and greedy bi-partisan tribe of Washington tax-and-spenders. I include also the (much(?) greater) group of people who, when they hear a Tea Party opinion about government spending, government debt and so on, nod their heads and say: “Yeah that’s right. They may be … (insert insult of choice involving religion, science, abortion, witchcraft, guns, four-wheel-drive vehicles, etc.) … but these people are right about government spending. It’s too much. It’s got to be controlled.”

And, I’m guessing, a lot of Americans now know people like that. A lot are even related to such people. They may not agree with such sentiments themselves, but they know, and like, maybe even love, people who do now believe such things. So, when some Democrat politician calls a Tea Party politician a terrorist, a great many average Americans respond, not by making a note to not join the Tea Party and to agree about how mad they are when next they come up in conversation, but rather, by reacting with a thought like: “Hey, that’s my Uncle Freddy you’re talking about! He likes those Tea Party people. He may be a bit of an old grump, but he ain’t no terrorist sympathiser. He drove a truck in Gulf War 1. Last Christmas he bought me an iPhone. He’s okay. Take it back!”

To put the above story another way, the key to all this is that once the population as a whole starts to have its own personal face-to-face take on what it thinks about that convinced minority with its previously off-the-chart-of-respectability opinions, no amount of political and media insults can change how they see things. They now have their own personal versions of the story, and they ain’t going to be told what to think by a mere politician on TV.

If that’s right, and if all this convinced minority stuff does now apply to the Tea Party, then bigmouth Democrats calling their Tea Party enemies “terrorists” is cause not for fear, but for rejoicing, among all those of us who want the finances of the US government to be something vaguely like sane in the years to come. Such insults are not evidence of an argument being or about to be won by such Dems; it is evidence that they are at least beginning seriously to lose this argument, and that they are starting to realise this. They know that a great many people will feel personally insulted by all this terrorist talk, but, … Grrrrrrrr!!!! What the hell is happening to the world, when a politician can’t spend other people’s money any damn way he likes? Screw the damn world!!! Screw you all, you bastards!!! When Dems call Tea Partiers terrorists, they are being honest, in the sense that they are truly saying what is on their angry, confused, wrong, nasty minds.

Does the above make any sense? It does to me. Or am I being, as I so often am, too optimistic?

By the way, while typing in this posting (on an unfamiliar computer) I noticed that I had at one point put the “Teat” Party. But actually, I quite like that phrase, to describe all the kind of people who think that Tea Partiers really are terrorists.

On that jobless “recovery”

This paragraph from a good posting by Victor Davis Hanson, at the National Review’s Corner blog, applies not just to the US, but also to the UK:

“The strangest thing about the current paradox of cash-flush companies and little or no economic growth is the administration’s puzzlement over the lethargy — as if no one outside Washington ever listened to what the administration has said or noticed what they have done the last three years.”

Exactly. I’d also add to VDH’s list of things that have stymied recovery: the still-lingering and damaging impact of the Sarbanes-Oxley law on things such as initial public offerings and the foolish FASB tampering with share option payments that have crimped venture capital startup businesses. (I can, by the way, recommend this book by Dale Halling about why US entrepreneurship is stalling – it controversially argues that a key problem has been the erosion of patent law in the US, an argument that is bound to get some libertarian opponents of IP excited).

VDH’s points apply in Britain, too, such as what he says about demonisation of some businesses, as well as things like bailouts, Green regulations and so on. Of course, a key problem here is the European Union and all the red tape that comes from that.

Regime uncertainty, if I can use that term, is a big problem. We have a tax authority (HMRC), given the power to decide, as it goes along, what constitutes tax “avoidance”, so that avoidance is now seen as wrong, as is tax evasion. This relates to a wider problem of uncertainty. Even the daftest tax laws are more tolerable if they are predictable. The problems get even worse, though, if officials have the ability to retrospectively decide that this or that business practice is wrong and should be shut down. Our tax code remains one of the longest and most complex in the world.

We need far fewer laws, and those that remain should be simple, easy to understand and enforce. Sometimes though, doing things the simple way seems to be so hard.