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]

#Labourpurge

In the olden days, anyone got a letter from the Labour Party telling them their support was rejected and their vote wouldn’t count because “we have reason to believe you do not support the aims and values” would moan about it to a few friends and that would be that.

But it is not the olden days any more, so get your popcorn out!

“Rent control does not work . . . It breaks my bleeding lefty heart, but that’s just how it is”

Sometimes the Guardian surprises. This piece by David Crouch certainly came as an unwelcome surprise to some of the regular Guardian commentariat. Mr Crouch has written a very fair appraisal of the effects of rent control in Sweden: “Pitfalls of rent restraints: why Stockholm’s model has failed many.” He writes,

The result [of rent controls] is a thriving rental property black market, with bribes of as much as 100,000 kronor per room to obtain a direct contract, McCormac says. Many people sublet space in their rental apartments. When one tenant advertised a tiny closet last year for rent, there were many potential takers.

“It is almost impossible for immigrants and new arrivals to penetrate this market – it is all about who you know and how much money you have,” McCormac says. Students, young people and immigrants are consequently shut out, and ethnic and social segregation is increasing.

A commenter called “JohannesL” adds his own story:

When I moved to Helsinki in 1982, there was strict rent control in place and the tenant was well-protected, it was very difficult to get rid of even the tenant from hell. Because of this, there were no rental flats available at all, except the council flats, which were definitely not available for healthy non-addicted young men.

There were plenty of people living in tents and cardboard huts in the woods then. (I enrolled in the university just to get a room in a student dormitory).

In the early 90’s they got rid of the rent control which made renting a profitable business, with the result that suddenly there was an active and relatively abundant rental market, and has been ever since.

Sad but true. Rent control does not work. Also, it must be possible to get rid of your tenant in reasonable time. It breaks my bleeding lefty heart, but that’s just how it is.

Cafe Hayek fisks Donald Trump

Too good not to share. From the excellent Cafe Hayek blog.

Dear Mr. Trump:

You insist that we Americans are harmed whenever foreigners take actions that result in us getting more imports in exchange for our exports.  I ask that you, with your own money, prove that you really believe the economic principle that lies at the root of your insistence.

If you’re correct that people are impoverished when they pay lower prices, and are enriched when they pay higher prices, then you can easily augment your personal fortune by demanding that the suppliers from whom you purchase the steel, cement, and other materials used to construct Trump buildings raise the prices they charge you for their merchandise.  The higher they raise the prices they charge you to carry out your economic affairs, the wealthier you’ll become because you’ll be increasingly reluctant to purchase their offerings.  In the limit they can charge you prices so high that you’ll buy nothing from them!  How great would that be?!  And the possibilities don’t end there!  You can even further expand the Trump treasure by lowering the prices – even to $0 – that you charge your customers for hotel rooms and the other goods and services that you supply.

Just think of the additional wealth that will come your way by your being, as a buyer, dissuaded by high prices from purchasing goods and services from people not named ‘Donald Trump,’ and, as a seller, by the hordes of customers who will demand to consume almost limitless quantities of the wares that you make available at prices of $0.

Who knew that getting rich is so easy?!

Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA  22030

If the NHS is the ‘envy of the world’, no need to fix it then, right?

The dramatically named NHS Survival – an “umbrella group bringing together patients, public and professionals” – echoes previous dire warnings that we had “24 hours to save the NHS”, or “14 days to save the NHS”, and so on. At best it seems a bit “boy who cried wolf” and at worst actually contradictory.

Backed by many of the same people who cherry-pick the Commonwealth Fund report to claim the NHS is just super, its website says that “our NHS is a wonder of the world”. In another part, it warns “the NHS will continue to fail”. If it’s failing, then why are they trying to save it? If it’s so good, why are they trying to fix it?

Contradictions like this make it difficult to take the group seriously at all. We are told that it wants an “independent body” (presumably stuffed with NHS staff) to set funding requirements for the NHS. Yet the campaign’s whole website is predicated on the idea that it already knows what funding needs to be – higher, much higher.

Ryan Bourne

People are ignorant about economics

Russ Roberts’s EconTalk is a wonderful thing, I have been listening to it on and off for a few years now. One of the great things about it is that despite being a libertarian, Roberts is always happy to expose himself to new ideas and challenge his assumptions.

I have recently taken to listening to some of the earlier episodes and found myself listening to what happens when you have price gouging laws – or “anti-supply” laws as I prefer to call them.

His interviewee, Mike Munger, explained how there was a hurricane in Raleigh, North Carolina. The roads were blocked, there was no electricity and there was a shortage of ice.

Ice may not sound that important but it is. Not only does it help to preserve food but it also helps to preserve some medicines like, for instance, the insulin needed by diabetics.

Some “yahoos” – Munger’s term – saw an opportunity to make money. They got themselves a truck, loaded it with ice and some chainsaws and proceeded to drive towards the centre of Raleigh. If they found the road in front of them blocked they chopped up the fallen trees and carried on.

When they got to the centre of town they started selling the ice. Usually, ice sold for $2 a bag. They were selling it for $12. Very soon a queue appeared. Then the police arrived. Citing price-gouging laws they arrested the men and impounded the truck.

And here’s the kicker: as the truck was towed away the people in the queue applauded the police.

So, here we have an example where the gap between cause – the price gouging laws – and effect – the lack of supply – is instantaneous. And yet people still support the law.

Words fail me.

ice

So… will the extraterrestrials be Ferengi?

When the aliens stop trifling with crop circles, bumpkin abduction, and indelicate probes and finally introduce themselves to the rest of humanity, will they turn out to be partisans of central planning, interventionism, or unhampered markets?

B.K. Marcus

Samizdata quote of the day

The Royal Society for Public Health is suggesting that unusual, unhealthy or minority pursuits should be criminalised in order to set a good example to others. They want people to be arrested, fined and possibly even imprisoned for being poor role models. In a liberal society, the only appropriate response can be made with two words or two fingers.

Chris Snowdon

Janice Fiamengo very calmly puts the boot in

The fight back continues.

Samizdata quote of the day

This week, Alastair Campbell said that the current eruption of ‘Corbynmania’ was akin to ‘what happened when Diana died’. Worse still, popular delirium can foster a herd mentality that leads to the persecution of dissenters and opponents. This is especially the case when a movement’s mentality is half-detached from reality. Protecting benefits, ending austerity, raising taxes on the wealthiest, abolishing university tuition fees, reopening coal mines: Corbynomics is basically the equivalent of saying ‘wouldn’t it be great if all this Monopoly money was free?’.

Patrick West

For extra FSM karma points, also read: The Corbyn audit: how Marxist Jezza would impoverish Britain by Zac Tate

Against ‘Crony Capitalism’

Jeb Bush has recently taken to criticizing crony capitalism in his speeches, but his record belies his rhetoric. For example, Bush joins Governor Walker in supporting taxpayer-financed sports stadiums. Bush flip-flopped, first opposing but later supporting a new ballpark for the Miami Marlins baseball team. Moreover, as governor, Bush regularly used taxpayer money to provide special benefits to favored businesses or industries. For example, he set up an “Innovation Incentive Fund,” which spent $456 million to lure biotech and life-science businesses to Florida. If you count local funding as well as this state funding, taxpayers ended up spending nearly $1 million for every job generated, and even the state was forced to admit that the fund “does not break even.” That’s just one example of Bush’s willingness to pick corporate winners and losers at taxpayer expense.

Michael Tanner

Now some in this parish dislike the term ‘crony capitalism’ as much as I dislike the loaded term ‘austerity’. So in the interests of collegiality and calm, let me say… tough shit. ‘Crony capitalism’ is an awesome term as it is a presupposition of something good made bad by the modifier ‘crony’, which is indeed correct. If you want to debate the use of the term, arguing crony capitalism is not capitalism at all, well yeah but so what? Tell someone who cares as I will keep using this spiffing term, as will Carly Fiorina apparently.

Samizdata quote of the day

This situation begs a huge question: what is justice for? The idea that people who stand accused of something have the right to have those allegations tested is being fundamentally undermined by this new form of public showtrial. In the past, showtrials were used by authoritarian governments to establish a ‘truth’, which was convenient for their political purposes. Today, the showtrial is used to validate and confirm the experiences of those making accusations. The showtrial has become the most effective way of telling people that their story has been believed by society at large, even when the laws of that country prevent a formal trial from taking place. In a society in which such therapeutic validation has become so central, what value do we accord justice, fairness and objectivity? Principles which have, for centuries, been cornerstones of Western systems of justice are now being done away with.

– Luke Gittos, in an article entitled ‘Cosby: convicted by social-media showtrial

The EU’s Memory Holes

The European law gives individuals and institutions the right to demand that search engines such as Google must de-list postings containing ‘outdated’ or ‘irrelevant’ information. The Euro authorities insist that this cannot be construed as censorship, since the material will not actually be removed from the internet – it will simply not be linked to by Google and Co anymore. When plans for these regulations were first announced in 2012, the European Commission’s vice-president said: ‘It is clear that the right to be forgotten cannot amount to a right of the total erasure of history.’ That sounds like rewriting history. If material is not listed by search engines, it is effectively invisible to most online and ceases to exist as public information.

No, no, say the authorities, of course we are not banning this controversial book! We are simply ordering all libraries and bookshops to remove it from their shelves and websites forthwith. You will still be at liberty to read it – if you can find a copy anywhere, or even spot a reference to its existence…

Mick Hume