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I am currently watching the head of Equitable Life, the UK life insurer that made massive losses a few years ago, demanding that you and I, the UK taxpayer, put our hands in our pockets to compensate EL’s policyholders for their losses. They are complaining that mistakes taken by government caused many of the problems it suffered.
Leaving aside the ins and outs of the case, in general principle, I think it is outrageous that anyone claiming to be a senior manager of a commercial business like Equitable Life should have the brass neck to demand that governments, ie, taxpayers, should bail them out. Yes, some of the rule changes made by governments can harm a business – the tax changes on pensions by Gordon Brown in the late 1990s are a classic case in point. There may, as a result, be something to be said for demanding repayment of taxes wrongly levied on a company, for example. But why should a taxpayer, say, who has no likelihood of a decent private sector pension, be taxed to save the blushes of business executives on six-figure salaries or affluent policyholders who have lost a portion of their pensions? There seems to be no awareness of the perverse, and often regressive, redistribution of wealth that is entailed when these demands for compensation emerge.
It is true that Equitable Life has done quite a bit to honour some of its debts. However, asking the UK general public to put right the rest of the mess is a step too far. And there is another reason for objecting to such corporate welfare, since every time taxpayers foot the bill for another financial Snafu, it creates a fresh moral hazard, and encourages financially inept firms to imagine that if anything goes seriously wrong, the taxpayer will put everything right.
The BBC, anticipating the upcoming school holidays in the UK – lasting several weeks – has a news item up about the soaring cost of providing facilities for children to give them something to do. The story does not address the crucial question of why the cost is soaring. Is it increased regulation of child-care staff, or what? But beyond that, there clearly is a problem here, particularly for youngsters who are entering their teens and quickly find themselves getting bored after the first flush of pleasure of having free time wears off. When I was a kid, I was incredibly lucky to be brought up in a part of the world where I could help my parents run our family farm. At the age of 13 or 14 I was allowed to drive some of the farm machinery during the annual harvest. Under current UK health and safety regulations, all this would be made illegal, I suspect. I was paid an actual weekly wage based on the hours I worked on the farm. I remember thinking how cool that was. Many of my mates at school had summer jobs of various kinds, played some sports, went biking up to the coast, etc.
It seems to me that in part of the discussion about what “should be done” about feral kids armed with knives, there ought to be a recognition that one of the main problems that young people face in and outside school is boredom. And that can be cured, possibly, by working. We have to overcome our strange squeamishness over the employment of minors in actual jobs. I think that the rules and regulatory burdens should be relaxed so that apprenticeships become much easier for an employer to provide. I think some, if not all, of the young tearaways who are so worrying policymakers might actually feel proud of having a job, of earning money, of being able to brag about this to their lazier friends.
And please, dear commenters, do not tell me that all this is optimistic pie-in-the-sky speculation. We have a significant problem in the UK of young people who are a, being forced to stay in school well beyond the age at which they wish and can learn anything, and b, denied the opportunity to work, and c, becoming attracted to the fake charms of gangs and violence. By rejecting our horror of teen-labour, we might help to fix some of these problems.
Say what you like about our embattled UK prime minister, but he does at least have good taste in a place to relax on holiday: the Suffolk seaside town of Southwold. I am not sure if the locals will be thrilled at all the security types who will inevitably swarm all over the area, though.
Southwold is a charming, small place. It is the home of Adnams, the brewery of excellent beer. Now, my recommendation to Mr Brown and his family, in a spirit of generosity, is to pack the complete works of Ludwig von Mises in his luggage, visit the local pubs and go for some nice coastal walks. As a result of all this exercise, reading and drinking, he will return to Downing Street a wiser and better man.
Sizewell B nuclear power station is down the coast. You can actually see its massive dome from Southwold beach. I rather like it.
One word of caution to Mr Brown’s entourage: a lot of Suffolk folk have guns.
I do love Guido:
Knife crime is the media scare of the moment and on Sunday Jacqui Smith spun Sky News that “something would be done”. The knife carrying and stabbing classes would be taken to hospital A&Es to confront the results of their crimes.
See the snag? Sounds tough and progressive to triangulating wonks. Sounds more like adding insult to injury when you are lying on a trolley bleeding, hoping you won’t catch MRSA – “Here’s Wayne, he is very sorry he stabbed you”. Doctors and the opposition went ballistic. By lunchtime today the plan was dropped.
The official line here is that They’re As Bad As Each Other, but I actually think that the Cameron regime, as and when it materialises, might show real glimmerings of adequacy, at any rate compared to this lot. I realise that much of my optimism is based on believing David Cameron to be a liar, and not as bad as he says he will be about such things as the environment (which I am basically opposed to), and taxes (ditto), and EUrope (ditto again). But I think it is reasonable to hope for the best, as well as to fear that he might be telling the truth. Except re EUrope, about which I assume Cameron to be lying only in hinting that he might do a teensy bit of good.
Meanwhile, it says a great deal about the terminal state of this present government that they are now making such particular fools of themselves in the one solitary area that they used until a year or two ago to excel at, namely manipulating the contents of the newspapers and the television. They have taxed and regulated the British economy into stagnation and presided over the relentless decline of all public services except weather forecasts and cricket commentaries, and this process of degradation began, or rather continued, as soon as they were voted in in 1997. But they used at least to be able to boss the newspapers. Not any more.
John Redwood MP has a blog, which is very party political as is only to be expected of a party politician, but I find him quite good. Not so long ago he had a posting entitled Legislation – just a longer press release?
You sense that everyone in and around the government has now come to similar conclusions themselves, about themselves. It is being said that what is keeping Mr Brown in his job is that they are all far too busy abandoning ship to care who the captain is. Although, maybe they are being too pessimistic about how badly they will do. Presumably their extreme pessimism comes from reading the newspapers every day.
It may be disgustingly authoritarian, but it is risibly incompetent too. It appears the Home Office has just spent a very large amount of UK readers’ money making a vast online advertisement for NO2ID. We’d despaired of reaching ‘the youth’ ourselves, too expensive. I’m very glad they decided to do it for us.
With audience participation. Which embarrassingly for the Home Office shows ‘kids’ not to be quite the suckers they’d hoped. Enjoy.
One mechanism for ensuring the individual does take responsibility for his or her health is social stigma. For many a year we have been enjoined to cease stigmatising the morbidly obese, the terminally drunk and skagheads, because it really isn’t their fault — and as a result an important means of combating these social ills has been thrown away. Stigmatising has a point; it is not just fun to shout abuse at fat people, it is socially useful too.
– Rod Liddle, who talks some sense, although he is a bit of a yob himself.
Update: some people have asked if I support all of his argument. I do not. For a start, obesity is not something one can define precisely; secondly, it can add to the generally authortarian, bullying atmsophere in which we live if it is deemed acceptable to make all kinds of fun of the largely-built, or whatever. But Liddle is quite correct to locate the issue of personal responsibility and to get away from the victim-culture angle that is so often exploited by the medical profession and their political friends
That invaluable organisation, the Taxpayer’s Alliance, has worked out that the total cost of the various surveillance and data-gathering services favoured by the UK government is just under £20 billion, or about £800 per household. The figure is a total, not an annual sum. £20 billion is a huge figure, even in these times of inflated financial sums.
Now the question arises whether, if we really do face serious security threats – and I think we do – what else could that £20 billion have purchased that might actually have made us safer?
Of course, £20 billion could also enable quite a few tax cuts, but that is obviously hark heresy these days (sarcasm alert).
At my education blog late last night, I found myself putting, in connection with this (which is a story about how two French science students were brutally murdered in London yesterday), this:
It’s somewhat off topic for this blog, but I say: allow non-crims be be armed!
It may yet happen. London, full of disarmed non-crims and armed crims, is rapidly becoming like New York used to be but is now so conspicuously not, a “crime capital”. Any decade now, something might just give. Or, to use the language of this blog, the lesson might be learned.
Something about the extreme savagery of that double murder yesterday made me think that now was the exact time to be saying such a thing, not just to those few of my devoted libertarian friends so devoted that they read that education blog of mine, but also to any eco-friendly home-schoolers or weary school teachers who happen to drop by there. Suddenly, the anti-gun-control message felt very right, like an idea whose time, finally, might have come. → Continue reading: Is gun control about to be rolled back in Britain?
Another senior UK figure – one of the most senior judges in the land – has argued that some aspects of Sharia law should be permissable when it comes to settling certain disputes between Muslim couples. This re-ignites the controversy sparked by the Archbishop of Canterbury, who argued for the same.
Once more, the bedrock principle of a liberal order, that men and women should be treated equally before the law, is potentially at odds with a code that, by definition, does not accept this equality as part of its essence. The inherently anti-women bias of Sharia is not a bug, it is a feature. Take cases where, for instance, a young English guy who is an atheist or Christian tries to take a Muslim girl out on a date and the latter gets physically intimidated by her family (this is not a hypothetical situation, it has happened). To what authority should the woman or man appeal in dealing with such cases? Unless the judge is able to answer that sort of hard question, which goes to the heart of why sharia is considered unworkable in a liberal order, the judge would be well advised to focus on his core responsibility, of seeing that justice is done under the laws of this land. This is one of those examples of why I do not think that a polycentric legal order can really work unless it is possible for its members to elect to choose under which code they wish to be treated. Muslim women would not have that choice if sharia law was incorporated. More importantly, they do not have the key right of “exit”, the right to choose no longer to be treated under a specific code of their families.
The judge, like the Archbishop, is proof to radical Islamists that some of the most senior figures in what might pass for the British Establishment lack the intellectual or moral fibre to defend the core values of this nation.
Last night, flicking through the TV channels after watching Andy Murray get pulverised by Nadal, the muscle-bound Spaniard, in the tennis, I watched in bemused fascination as ITV and the BBC both devoted quite a lot of air time to celebrating – that word was used repeatedly – the 60th anniversary of the National Health Service. There has even been a church service, attended by Prince Charles and the Prime Minister, Gordon Brown, to mark the anniversary of Britain’s monopoly provider of health care, an essentially socialist creation that is hardly emulated anywhere else in the world, and for good reason. None of the major objections to health care that is provided via tax and distributed “free” at the point of use were mentioned. Last night’s stories gave no balancing comments from skeptics or opponents of the NHS to counter the general feel-good presentations.
At the Institute of Economic Affairs, here is a rather more sober treatment of the NHS. As the US writer PJ O’Rourke once warned his countrymen about socialised medical care, if you think US private sector healthcare is expensive, just wait until it is “free”.
Data is accumulating that the British residential property market is now undergoing a significant fall. The commercial side of it has been suffering for some time. Apart from some prime residential bits in central London – and even these parts are not immune to change – average prices have now fallen month on month across the country for quite some time.
Some of this may abate eventually. I hope so, since a collapse in house prices would presage a major recession. It is all well and good for people to say that a shakeout is necessary to clear all this cheap money out of the system – and I understand that point – but it is pretty grim having to endure the process first-hand. But beyond that, what this episode reminds me of is the unwise move by many people to put all their long-term retirement savings options into property. I know quite a few people who cheerfully tell me that they have no pension and are relying on a business or set of properties to do the job. Well, they have a half-decent point: many pension savings schemes are a rip-off and poorly invested. But relying on bricks and mortar to keep us comfortable in our rocking chairs does not strike me as very smart. Maybe market developments will act as a wakeup call. And anyway, as I have remarked before, more and more people are going to have to re-think the whole notion of “retirement” anyway, particularly if we are going to live longer, and in healthier shape, than our ancestors.
You may not know that a Home Office minister is touring the UK holding ‘consultation’ meetings about the National Identity Scheme, and that it is more nonsensical than even the average government consultation exercise. She is, however, and nothing will be allowed to stand in her way. 3 members of NO2ID were arrested this morning for “suspected breach of the peace” while protesting outside the venue of the Edinburgh consultation exercise. Making ministers look bad will these days get you hustled away by police, apparently.
The reason the ‘consultation’ is even more fatuous than usual is this. There is no question the intention is to go ahead: the legislation was passed two years ago. And any questioning of the plan is ruled out of order – if not, indeed, arrestable. The object of this tour is to gather together “stakeholders” – businesses and voluntary organisations, and to persuade them that helping the government strong-arm their customers, staff and volunteers into enrolling will ultimately be for the good of all. In fact it seeks suggestions from them how best to get universal compliance.
Rounding up any dissidents is the last resort, of course.
Update: Apparently 9 people are still in custody at time of writing (18:20 BST). Hat-tip: Glasgow Herald, who called me for a statement.
Update 2: (06:23 BST) You can read the account of Geraint Bevan, of NO2ID Scotland, here. (The hard scientists among our readers will be pleased to know that the ‘Dr’ signifies Geraint just got his PhD in engineering.)
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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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