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]

St. George’s Day

On this particular day, I will commemorate St. George with a picture I took in Kyiv a few years ago, the symbolism of which is even more apt.

Screw ‘Earth Day’

Sorry but someone needed to say it… 😀

Samizdata quote of the day

Information liberalism was already in trouble in 2016, when Brexit and the election of Donald Trump made it clear that freeing information didn’t always produce progressive results. Perhaps, respectable voices began to suggest nervously, all this fake news and misinformation means more discourse isn’t always better.

Since then, ever more of our public life has been forced online. And with it, information management has intensified and grown more organised. Facebook has censored anti-vaccine content; UnHerd interviews and even British MPs have been removed from YouTube; “free speech” messaging app Parler was kicked off Apple and Android platforms after the Capitol riot; Donald Trump was banned from Twitter; what turned out to be a true story about Joe Biden’s son was censored at a delicate moment in Biden’s election campaign.

In the digital age, then, the right side of history no longer wants to free information, but to curate the right message. To that end, many erstwhile cheerleaders of free speech have pivoted to claiming for themselves the place of those bishops and inquisitores haereticae pravitatis Leo X tasked in 1515, with controlling what could be published.

Mary Harrington

People can collaborate in free markets too

The author of this Reuters article on the German jobs market plainly hasn’t heard of Linkedin, or jobs advertising, or even old-style labour exchanges where people can go to find out where vacancies are and retrain. Time for a good old fisking:

Germany’s industrial heavyweights are teaming up to retrain workers in areas such as software and logistics to fill a growing skills gap and avoid layoffs among workers of all ages as the economy shifts to clean energy and online shopping.

There is nothing wrong with firms exchanging ideas with one another to fix an issue. (Although ironically, government “anti-trust” laws might work against that.) It is worth noting, of course, that losses of jobs in areas such as petrol-driven cars are partly caused by government policy itself, such as the Net Zero decarbonization efforts that, depending on your point of view, are necessary or barking insane.

More than 36 major companies, ranging from auto suppliers such as Continental (CONG.DE) and Bosch (ROBG.UL) to industrial firms BASF (BASFn.DE) and Siemens (SIEGn.DE), have agreed to coordinate on redundancies at one firm and vacancies at another, training workers to move directly from job to job.

Right.

The scheme underscores Germany’s long-term social market economy model, which gives more influence to labour unions as opposed to free-market capitalism focused on maximizing profits.

Does it? I mean, I assume German firms want to pursue a profit. They’re not charities.

The costs of the initiative will be shared by the companies involved on a case-by-case basis. So if a factory closes, a dialogue will begin on what to do with its workers and then involve another company which may be seeking new skills.

Again, this seems like rational self-interest to me. There’s no objection I see to firms liaising with one another, and forming pacts about dealing with the need for skilled people. The key is that the State keeps its nose out of it. Also, if firms try and steer staff who might lose a job to another firm, that needs to be weighed against whether and how the employee might want their lives to go. The tone of the article seems to be that what is needed is a sort of hand-holding paternalism, but that creates a vicious circle where employees lose the desire to manage their working careers in a proactive way.

A study by think-tank Ifo Institute warned that 100,000 jobs linked to the internal combustion engine could be lost by 2025 if carmakers failed to transition fast enough to electric vehicles and retrain workers.

Forcing an entire industry to abandon a reliable, effective technology used for a century and switch to an arguably less reliable, and more costly one. Yep, there are going to be consequences. It also doesn’t help that German government policy in the past 20 years on energy has been almost calculated to harm its manufacturing base in the long run.

Engineering, metalwork and logistics are among the sectors seeking high numbers of people in Germany, alongside care work, catering and sales.The demand for skilled workers is coming from overseas companies too, highlighted by Tesla’s (TSLA.O) decision to build its European electric vehicle and battery plant in the state of Brandenburg, where it will create 12,000 new jobs.

Good news, so long as the jobs are financially viable.

Ariane Reinhart, board member responsible for human resources (HR) at Continental and chief spokesperson of the [jobs] business-led initiative, was quoted as saying: “Leaving it to the free market is not enough – it would not be what’s best for workers, or the economy.”

Wrong. For a start, none of the ideas about firms collaborating to move workers with desired skills around could not happen in a free market without state interference. Employers (I am one) know that finding talented staff is one of the most important issues there is, and in an open economy, there are all kinds of ways people with skills in demand can find jobs. Further, it is hardly a mystery to employees that they should keep on top of new skills to make themselves more desirable and increase what they earn. That’s the “free market”. The author of this article might want to reflect that it was the free market economy, and not some sort of top-down socialism, that helped propel West Germany after 1945 into being one of the richest economies on earth. By 1960 or thereabouts, that country had matched the UK in terms output per head.

To repeat an important point: there is no reason why firms could not and would not collaborate, if their self-interest coincided, in figuring out how people with desirable skills could be moved from place to place. What the author of this article cannot or will not address is whether firms in the article are not just doing what they might do anyway? Why did this question not get asked? Why just accept, at face value, that this sort of collaboration is some wonderful example of a less market-based system? After all, I can log on to the internet and find jobs, homes, flights, hotels, courses for training in new skills, etc, without anyone from government or some official entity holding my hand. Amazing, isn’t it, this “free market” of ours.

An utter croc

“Boris Johnson has said any peace talks over Ukraine are likely to fail as he compared holding talks with Vladimir Putin to negotiating with a crocodile.”

BBC reports that Boris Johnson made crocophobic remarks today, with LGBTQIAC activists decrying this blatant display of Tory prejudice as “triggering”. A Tory spokesman dismissed the criticism as “a complete croc”.

Samizdata quote of the day

It is important to be open minded, but not so open minded that one’s brain falls out. This is one of those rare moments in the affairs of states where the moral and geopolitical realities are as clear as night and day.

Perry de Havilland, seen lurking in the Daily Telegraph comment section (£)

Samizdata quote of the day

The job of the BBC is to inform us of the Governments intention to send migrants to Rwanda. Our job is to determine whether we deem it racist or not.

Chris Samps

What a difference a year makes: the green dream dies in Sri Lanka

April 2021:

“Sri Lanka will become first country to be free of chemical fertilizer”, the Sri Lankan news website News First reported:

COLOMBO (News 1st); President Gotabhaya Rajapaksa has stated that he will take up the challenge in making Sri Lanka the first country in the world to eliminate the use of chemical fertilizers without reversing any of the steps that have been taken.

The absence of any country in the world that has eliminated the use of chemical fertilizers is not an obstacle to achieving the goal, President Rajapaksa noted.

The President urged all to unite to educate the farmer and create a healthy generation at a discussion held at the Presidential Secretariat on Thursday (29) to raise awareness on the use of chemical fertilizers, pesticides and herbicides and the ban on such imports.

“The government must guarantee the right of the people to a non-toxic diet to produce a healthy and productive citizen,” said the President.

April 2022:

“How Sri Lanka’s shift to organic farming left it in the manure,” reports the Times:

What turned Sri Lanka’s economic situation from difficult to catastrophic was the decision by the Rajapaksa government to implement a nationwide ban on synthetic fertiliser. It was made not at the behest of neoliberal economists doing the bidding of global capital, but rather on the advice of environmentalists in the name of sustainable agriculture.

[…]

But that strategy backfired in spectacular fashion. Domestic rice production fell by 14 per cent from 2021 to 2022, forcing the nation, long self-sufficient in rice production, to import hundreds of millions of dollars of rice and more than eroding all of the savings from ceasing fertiliser imports. On top of that, the ban decimated tea production, leading to a $425 million economic loss to the industry in its first six months of implementation. Tea, one of the nation’s primary crops, is a key source of its total export income, making a bad foreign exchange situation far worse.

Government minister guilty of ‘bullying’: expecting senior civil servants to do actual work

Michael Gove stands accused of bullying his civil servants. According to The Sun, he “was said to have been visibly angry with a string of officials” over the abject state of the visa scheme for Ukrainian refugees.

This has led Jeremy Rycroft, the Permanent Secretary at the Home Office, to complain to Jeremy Pocklington, his counterpart at the Department for Levelling Up, Housing and Communities (DLUHC). … when Priti Patel was accused of the same, the report into the incident concluded that: “Her approach on occasions has amounted to behaviour that can be described as bullying in terms of the impact felt by individuals”. … If they feel bullied, it’s bullying

One would not expect Conservative Home to be overly sympathetic to the whining permanent secretaries, or harsh to Gove. That said, I think a new series of ‘Yes, Minister’ would see Permanent Secretary Sir Humphrey Appleby sobbing “How can you bully me like this?”, then behind-the-scenes fixing the ‘enquiry’, as another way to block whatever Minister Jim Hacker was pushing him to do. Whether it’s Priti Patel ‘bullying’ a permanent secretary to bar illegal immigrants the higher civil service is happy to see enter the UK, or Michael Gove ‘bullying’ a permanent secretary to admit Ukrainian refugees the higher civil service is happy to see kept out of the UK, it’s a great way to ensure that if the minister ever reaches the point of banging the table and demanding that orders be carried out, yet another obstacle to that can be put in place.

The WWII Jewish Brigade was formed when Churchill banged the table and stated that of course it would be, putting an end to the meant-to-be-endless delays of certain advisors. The Jewish Brigade spent the last six months of WWII killing Germans and learning everything the British army knew about military technique (by the end of WWII, that was a lot). Historians of the wars of Israel’s formation say Israel would not have survived without the Jewish Brigade. It was lucky Churchill banged the table then, not today, when the brigade’s creation could have been delayed yet longer by a ‘bullying’ enquiry.

Inflation: what happened last time

A lot of people in the media are calling it the “cost of living crisis” but us lot who were around in the 1970s know it as “inflation”. Back then – if the government’s figures are/were to be believed – it peaked at 25%. The 1970s were a pretty horrible decade all round. As well as inflation, there were constant strikes, bankrupt nationalised industries and a general air of doom. A Samizdata contributor, growing up in France even had an economics text book with a chapter entitled, “Britain: headed for the Third World?”

Since the mid-1980s inflation has been much lower. It’s been present but until now it has been far less of a day-to-day problem. So, what happened? The Thatcher government put up interest rates. For reasons that I may have once understood, but no longer do, this reduced inflation. But it came at a price. Huge numbers of businesses went bust or reduced their workforces. Unemployment skyrocketed. By the mid-1980s growth had returned but many previously industrialised areas did not recover and still haven’t. I doubt they ever will.

Are there lessons in this? Harbingers more like. Interest rates have been very low for a very long time. Homeowners – as opposed to businesses last time round – have borrowed a lot. If you are on an average income and want to own your own house and bring up a family that is what you have to do. Should interest rates go up, millions will find they cannot pay their mortgages. A cynic might argue that at least in the 1980s, the pain was borne by people who weren’t going to vote Conservative anyway. This time, that’s not so clear.

Update 16/4/22. I see from the comments that a lot of people in the US have fixed rate mortgages. Very sensible. I wonder if that is the case here in the UK? Also, how easy is for banks to call a loan in?

It occurs to me that lots of people with fixed-rate mortgages might not be all that good a get-out-of-jail-free card. If interest rates do go up that would severely depress house prices. Sure, homeowners would still be able to pay off their mortgages but their properties would be worth a lot less.

Homeowners of course are not the only borrowers. A few years ago – when I was into this sort of thing – I came across a couple of reasonably-large, barely-profitable companies with large amounts of debt that periodically needed to be refinanced. If interest rates go up they would be in a lot of trouble. I wonder how prevalent this is?

Perun on the war in Ukraine

Perun is a gaming YouTuber who started making PowerPoint presentations on the war in Ukraine and they are so good that his channel has since become extremely successful.

The two most recent presentations are particularly good. In Who is winning? – Mythbusting the Ukraine-Russia war, Perun looks at claims of kills of each side vs. inventory (Russia’s overstatement is reaching its limits), the idea that attacking Kiev was a feint (a bad idea if so), various claims that Russia could do better if it wanted to (it is trying its hardest) and discussion of how well Russia is doing towards Russia’s own claimed goals (not well). All of this is done without sensationalism, with well-explained reasoning, with evidence where available and descriptions of the limitations of the evidence. There is no cheerleading here: claims that Ukraine has more tanks than before the war started are examined critically, as are Ukraine’s claimed successes.

However, as reasonable as it sounds to me, I am not very well placed to judge Perun’s military analysis. I think I understand some economics, though, and he makes a lot of sense in The Price of War – Can Russia afford a long conflict? Certainly the inverse of Gell-Mann amnesia applies. He points out that the price of the Ruble and the Russian stock market are at this point propped up by market interventions. “The Russian stock market is doing ok. But only because nobody’s bloody allowed to sell their shares.” (Did I mention Perun is Australian?)

He points out just how “hilariously” bigger the economies of all the Nato countries combined are compared to the Russian economy, and how that means that the West can continue to support Ukraine indefinitely while still growing, and Russia can only get poorer as the war goes on. He downplays the importance of Russian hydrocarbon exports to the West, because in the long term we can wean ourselves off them, and that leaves Russia selling them at a discount to India, and with a hefty bill to construct pipelines to China.

One aspect covered in both videos is the difficulty of Russia controlling the Donbass region in any useful way. Assuming Ukraine does not just give up and agree to hand it over, the Russians potentially have to defend it from attacks forever. That would make keeping it expensive and extracting any gas from beneath it difficult.

According to Perun, it does seem as if Western support for Ukraine and shunning of Russia, if kept up for long enough, will be very unpleasant for Russia. They would be better off giving up sooner rather than later, and even then Russia is in a bad way if the West pours aid and investment into Ukraine and does not return to investing in and trading with Russia. One possible problem with this is confidence:

The West needs to recognise its own strength. It’s always funny watching countries like Germany act really afraid of Russia, frankly, when economically Germany’s got about as much heft as the Russians do. Sure, Germany’s dependent on Russian gas but Russia is dependent on gas sales to Germany, too. The West seldom acts like it is the 40 trillion dollar gorilla that it is. It needs to acknowledge that is has muscle; it needs to be willing to use that economic muscle.

We did this but we didn’t do this, so stop saying we did this, because we didn’t do what we did

It works the same way in all “democratic” governments – “Yes we attempted to censor them, but we did NOT attempt to censor them!”

For further study on the phenomenon, might I refer to Alexandria Ocasio-Cortez’s definitive “I was in the building that day and I was TERRIFIED FOR MY LIFE, but I was not in the building that day…” Or maybe Doctor ( – I use the term loosely – ) Fauci’s famous retort, “Yes I funded gain-of-function research at the Wuhan Lab, but I did NOT fund gain-of-function research at the Wuhan Lab so stop accusing me of it!”

Remember please, the Party is the instrument of History and there are no other valid referents, so if the Party declares both a thing and its exact opposite in the same sentence, it is perfectly correct throughout; and you are mistaken, or racist, or misogynist, or some sort of hater or maybe even male or white or BOTH if you draw attention to it. The good news is that you won’t be taken straight out back and shot, not yet at least – but they’re working on it.

– Commenter Y. Knott