It’s not capitalism when private individuals stand to gain from their actions but the taxpayer carries the risk. When risks are socialised and potential profits huge, individuals are bound to be reckless: why be responsible? It’s no good agonising about the culture of banking without considering the astronomical moral hazard endemic in the system today. Of course people who do not have to bear the negative consequences of their actions behave badly.
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If you think health care is expensive now, wait until you see what it costs when it’s free. – P. J. O’Rourke June 29th, 2012 | 4 comments - (Comments are closed)
 To hire an opinion pollster as a strategist is to put a spinning weathervane where a compass needle ought to be – Fraser Nelson in the Telegraph. Now where did I see the leader of this dismal crew described as a weathervane before back in 2007? June 28th, 2012 | 2 comments - (Comments are closed)
I just read this piece by Jeff Carter about how Germany is doing all the productive work for the entire EU. This bit in particular:
Which made me say to myself the phrase “Germany shrugs”. Which I then googled, and I got to this by Andrew Lawford:
And he ends by saying:
I am surprised that “Germany shrugs” (most of the google hits had an “off” bolted on to the end followed by whatever it was that Germany was shrugging off) is not a more common phrase. It certainly will be, Real Soon Now. Trouble is, the whole world, including us here, have been wondering for ages when “Germany”, by which I mean the people of Germany rather than their EU District Commissioner rulers, will finally demand that their leaders stop leading them into an economic morass and put their economic interests first. I’m now inclined to think that I got it right at the end of this, where I said that the EU will only collapse when it has entirely run out of all its money and all its power, and all of it will then collapse. June 25th, 2012 | 14 comments - (Comments are closed)
In the 1950s, Anthony Crosland argued that we could take capitalism’s strength for granted. A future Labour government would be able to heap up the tax burden as well as the regulatory one – and the capitalist milch cow would continue to pour out the milk. Through experience, we in the UK have learnt that Croslandism is as flawed as any other form of socialism, but Europe, albeit unwittingly, is still in his thrall. June 24th, 2012 | 3 comments - (Comments are closed)
America currently has the worst political class in its history. But if Europe doesn’t, it’s only because of how very bad it’s been in the past. June 23rd, 2012 | 6 comments - (Comments are closed)
How do I know that my narrative is better than yours? The experiments of the 20th century told me so. It would have been hard to know the wisdom of Friedrich Hayek or Milton Friedman or Matt Ridley or Deirdre McCloskey in August of 1914, before the experiments in large government were well begun. But anyone who after the 20th century still thinks that thoroughgoing socialism, nationalism, imperialism, mobilization, central planning, regulation, zoning, price controls, tax policy, labor unions, business cartels, government spending, intrusive policing, adventurism in foreign policy, faith in entangling religion and politics, or most of the other thoroughgoing 19th-century proposals for governmental action are still neat, harmless ideas for improving our lives is not paying attention. June 20th, 2012 | 6 comments - (Comments are closed)
Pleasure is a brain wave right now. Happiness is a good story of your life. The Greek word for happiness is “eudaimonia,” which means literally “having a good guiding angel,” like Clarence the angel in It’s a Wonderful Life. The schoolbook summary of the Greek idea in Aristotle says that such happiness is “the exercise of vital powers along lines of excellence in a life affording them scope. But nowadays there is a new science of happiness, and some of the psychologists and almost all the economists involved want you to think that happiness is just pleasure. Further, they propose to calculate your happiness, by asking you where you fall on a three-point scale, 1-2-3: “not too happy,” “pretty happy,” “very happy.” They then want to move to technical manipulations of the numbers, showing that you, too, can be “happy,” if you will but let the psychologists and the economists show you (and the government) how. – Deirdre N McCloskey, writing about the whole, rather dubious realm of “happiness studies”. The fact that the UK’s paternalistic prime minister, David Cameron, is a fan of this sort of thing does not fill me with confidence. June 19th, 2012 | 29 comments - (Comments are closed)
June 19th, 2012 | 11 comments - (Comments are closed)
[Greek government policy is] known as ‘drinking your way back to sobriety’. The deficit spending the Greek government wants to do is almost-entirely suppressive or neutral to GDP – it is spending by government, for government, on government. The population is shrinking, their internal revenue picture is already dreadful and only getting worse (because they have the worst ratio of producers to consumers of tax funding in the civilized world, and getting worser) and the only way any government of Greece can survive and keep the mayhem in the streets down to acceptable levels is to restore the drunken-sailor approach to public spending that got them into trouble in the first place. This means 14 monthly pension checks a year, retirement at 50 for workers in hazardous trades like hairdressing, and all the other 1,001 ways they managed to bankrupt themselves already. – Serial commenter llamas June 18th, 2012 | 3 comments - (Comments are closed)
The Greek electorate is in denial. It rejects austerity, but insists on keeping the euro. All the main parties duly parroted what voters wanted to hear, making for a fantasy election, a make-believe election, a fingers-in-my-ears-I-can’t-hear-you election. The only list which was honest about the necessary cuts – a coalition of three liberal parties – failed to gain a single seat. June 18th, 2012 | 23 comments - (Comments are closed)
“Historically, remember, Andrew Carnegie was a Scottish immigrant; John Roebling, a German one; Nikola Tesla, a Serb who emigrated from Croatia; Albert Einstein was a German immigrant who became a U.S. citizen in 1940; the great economist, Ludwig von Mises, was an Austrian immigrant; and Ayn Rand, author of Atlas Shrugged, a Russian one. The list could be indefinitely extended. In our day, Sergey Brin, co-founder of Google, emigrated to the U.S. from the Soviet Union. Jerry Yang, co-founder of Yahoo, emigrated to America from Taiwan. Vinod Khosla, one of the founders of Sun Microsystems, is an Indian immigrant; Andreas Bechtolsheim, another of Sun’s founders, a German one. This list, too, could be greatly extended.” June 15th, 2012 | 24 comments - (Comments are closed)
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