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]
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I tend not to bother much these days with the dead-tree press but occasionally I’ll pick up a paper on my journeys on London’s Underground to one meeting or whatever. Yesterday, Anthony Hilton, writing in his regular column in the Evening Standard, absolutely crushed the argument, as floated by the mis-named Liberal Democrats and its leader, Nick Clegg, that what Britain needs is a “wealth tax”, given the existence of current state grabs of our wealth upon death:
“What no one seems to have grasped, however, is that if a further wealth tax were imposed to be paid by people when they were still living, it would reduce the yield on inheritance tax. A wealth tax on the living would not raise additional revenue so much as bring part of the payment forward which would ultimately have come out of the person’s estate anyway on their death. This is most obvious in considering some of the schemes mooted to pay a mansion tax. It is understood that the nearest most people come to wealth is to own a house that has gone up in value over the years. Many of the people living in expensive homes are old and not particularly well-off in terms of income. The house is probably the only thing of real value they have. It means they do not have the ready cash to pay the tax.”
Absolutely. Hilton continues:
“This cash-flow problem could be overcome, it is suggested by wealth-tax supporters, by telling them to borrow against the value of their property through an equity release scheme. They would of course have to pay interest on the money thus borrowed, or have it added to their debt. Alternatively, it may be permissible for them to defer payment and allow the outstanding tax to roll up into a lump sum. This would then be collected on death when the house could be sold. Obviously, both solutions are possible. But both would directly reduce the value of the deceased’s estate, and would therefore result in a pro rata reduction in the amount of estate duty.”
And he plunges a stake into the heart:
“So we have a proposal that would deliver no increase in the overall tax take but would create even more impoverished pensioners, who would be most likely to get their revenge at the ballot box. It might not go down that well with younger voters either once they saw a wealth tax — or the fear of a wealth tax — take away any chance that their parents might help them with a deposit for a house.”
Of course, it is entirely possible that Clegg and his allies are only giving the impression of wanting to enact such a tax in exchange for agreeing to more, supposed spending cuts, and in reality, they realise how pointless and self-destructive such taxes could be. But it is also a sign of how far away we are from any coherent notions of tax in the first place. Consider: the current government recently sought to attract foreign investors to the UK by offering accelerated visas for those investing serious amounts in the UK; it has, it says, sought to clarify rules about domicile and residence. Last year, finance minister George Osborne vowed to cut the top rate of income tax to a still-high 45 per cent. Imposing a wealth tax would blow such limited moves towards commonsense out of the water.
“Yes, in fact the freedom to examine and criticize people and beliefs is a positive good, and how else will we ever be able to separate good ideas from bad ones? There is no other way other than freedom of discussion. And one can’t specify in advance which ideas or criticisms are and aren’t permitted — that would assume we already knew and agreed on Truth.”
Charles Steele, a US blogger writing about some wretch by the name of Eric Posner, a tenured law professor who believes the US 1st Amendment is so just 18th Century, daaaahling.
What we are dealing with is a documentary formula, into which Hayek’s life and work has been stuffed. The particular formula is the one they use for pioneering scientists who discover bacteria or something like that, and the need is to stress just how isolated and way-out the fellow was considered by everybody else. That might be fine for doing the mathematician who cracked Fermat’s Last Theorem, and may lend itself to atmospheric long-shots of the presenter walking through empty courtyards and along echoing corridors, but Friedrich Hayek was not a man working alone, and his ideas built on the ideas of other earlier and contemporary economists. I kept waiting for the name Ludwig von Mises to crop up, and it never did. It’s kind of hard to discuss Hayek’s early years in Vienna without once mentioning Mises. The final straw came when the presenter described his work at the Institute of Business Cycle Research which was founded with Mises at the Chamber of Commerce where Mises worked, and where he held his legendary seminars, which Hayek attended, and even then she could not bear to utter Mises’ name. The following is far from a perfect analogy, but it’s like watching a documentary about Mark Antony with no mention of Caesar.
– Richard Carey is unimpressed by part two of the BBC series ‘Masters of Money’, featuring the work of F. A. Hayek. Part one was about Keynes. Part three will be about Marx. I know. What the hell kind of “master of money” was Karl Marx? Carey’s sentiments exactly.
I considered recycling Carey’s entire posting, which is not a whole lot longer than the above excerpt, to include in particular what he says about Marx, and also about the BBC. But it is no part of my intention to have anyone here ignoring Libertarian Home, where this posting appears. Do please go there, and read the whole thing. Or just go there anyway.
So, Glenn Reynolds makes me buy this book. It hasn’t made me any thinner yet, despite my having followed the world’s most popular diet strategy: Getting Thin by Reading About It. Never mind. I shall talk about it instead.
I do not know if Gary Taubes has any particular political views, but if the case he makes is true his book has political implications. In extreme summary it says (a) the experts, the official health guidance, the posters in doctors’ surgeries, the healthy eating lesson plans – all wrong; (b) it’s not fat that makes you fat, it’s carbs; and (c) eat as much meat as you want. Eat almost nothing but meat, if you like. No need to go hungry.
(a), if true, will please the C-AGW sceptics. So much for scientific consensus. It will also please the libertarians and minarchists. So much for government advice.
(b) and (c) will distress everyone who has ever worn a mung bean. Fat and meat good. It’s so… so… American.
(c) is especially annoying to some because, if Taubes is correct, the solution is relatively easy. How vexatious to think that these self indulgent fat slobs might escape just punishment! And how troubling to think that the obesity “epidemic” might be solved without the assistance of counsellors, coordinators or facilitators.
Things do not break entirely one way. One of the other messages of the book is that it is not the case that fat people are fat because calories in exceeded calories out. Anti-Puritans though many libertarians claim to be, they rediscover their inner Cromwell when it comes to that sort of equation. When they – oh hang it, when we – hear the pathetic excuses of fatties that they are fat because of genes or metabolism we rather enjoy pricking the bubble of their delusions. It is like being a deficit hawk, but for calories. Only this man Taubes says it really might not be their fault.
And in more ways than one.
More from the Department of Capitalism-Ain’t-It-Just-Great?!?!, in the form of this incoming email from fellow Samizdatista Rob Fisher:
Have you seen this camera that does not need to be focused?
I have now.
In fact you focus afterwards by clicking on the picture: link.
An example picture: link. Click on the raindrops or click on the building.
Amazing.
A review: link.
No time to read that now, but I bet they think it’s amazing too.
It’s a bit early-adopter as apart from the gimmick the pictures aren’t actually that great. But imagine this is in a very good camera with lots of megapixels. Imagine lots of dynamic range so you don’t have to worry about focus or exposure … Imagine so many pixels that you can even zoom after the picture is taken …
And if it was combined with this equally astonishing flat lens …
Something tells me that this will not be my last camera.
That’s just my opinion, of course, but I happen to be right.
– Lynn Sislo speaks for us all.
According to the New York Times:
In an attempt to erase a $210,000 penalty the utility said the company owed for [over]estimating its power use, Microsoft proceeded to simply waste millions of watts of electricity, records show. Then it threatened to continue burning power in what it acknowledged was an “unnecessarily wasteful” way until the fine was substantially cut, according to documents obtained by The New York Times.
To which my initial reaction was, “hell, yes. Go Microsoft! You kick ass!”, and my more considered reaction is, yes, that is perfectly rational. Microsoft used “giant heaters” to burn $70,000 worth of electricity in three days and avoid the penalty; an impressive feat.
[Edit for clarity]: The utility “requires large industrial customers to file load forecasts each fall for the next calendar year and face a penalty if they are off by a significant margin in either direction”. Microsoft used less electricity than it forecast and realised it could just burn some up to avoid paying the penalty.
The obvious question is, why would the penalty for overestimating use be more than the cost of the estimated use? It is a question that commenters at the Verge, where I first read this story, are speculating about. My favourite comment here is a response to complaints that all the comments are excusing Microsoft: “I don’t think it’s MS apologists in this instance. They seem more like libertarians and climatology deniers.”
It could simply be that the fees really are in line with the utility’s costs, but in that case Microsoft’s actions would be nothing for anyone to complain about. It seems more likely that some sort of market distortion is going on. The “utility” in question is Grant County Public Utility District, tagline “Community Owned and Operated”. Perhaps there are some clues there.
The Verge also reports on a New York Times crusade against the energy cost of the Internet. Sigh.
These are the facts. George W Bush left behind a set of books that were not so much unbalanced as vertiginous. At the end of 2008, US debt was $9.9 trillion, or 69.7 per cent of GDP, and the ballooning deficit was $683 billion. Since then, all the key indicators have worsened markedly. By the end of this year, gross debt is forecast to reach $16.3 trillion (the number to which Letterman was alluding), more than 100 per cent of GDP, or a rise of two thirds under Obama. The annual deficit is close to $1.5 trillion, 10 per cent of GDP. Worse still, according to official forecasts, US debt is on course to hit $20 trillion by 2016.
– Jeff Randall
David Leigh thinks that broadband needs to be taxed to keep him in his job at The Guardian:
A £2-a-month levy on broadband could save our newspapers. Proceeds could be distributed based on UK online readership and reinvested to protect great journalism
In case you do not know (and why should you in this age of a multiplicity of news sources?), The Guardian is a very pro-statist dead tree newspaper. I was going to explain what I thought of this notion but I will instead just quote the first commenter I saw who replied, someone calling themselves ‘romandavid’:
A £2-a-month levy on automobiles could save our horse and cart business.
Quite. Moreover I have looked over some articles by David Leigh and it is unclear where this ‘great journalism’ is that so desperately needs protection. It is bad enough we have to pay for the crap on the BBC whether we watch it or not.
“It is easier to search for your own solutions to your own problems than to those of others. Most of the recent success stories are countries that not get a lot of foreign aid and did not spend a lot of time in IMF programs, two of the indicators of the recent indicator of the White Man’s burden…Most of the recent disasters are just the opposite – tons of foreign aid and much time spent in IMF constraints. This of course involves some reverse causality….the disasters were getting IMF assistance and foreign aid because they were disasters, while the IMF and the donors bypassed success stories because those countries didn’t need the help. This does not prove that foreign assistance causes disaster, but it does show that outlandish success is very much possible without Western tutelage, while repeated treatments don’t seem to stem the tide of disaster in the failures. Most of the recent success in the world economy is happening in Eastern and southern Asia, not as a result of some global plan to end poverty but for homegrown reasons.”
The White Man’s Burden, pages 345-346, by William Easterly (2006).
Easterly is a US-based economics professor and has been a senior economist at the World Bank, as well as a columnist and regular commentator. His book, which despite the title is anything but a piece of Western triumphalism, is an example of a man who is prepared to discard ideas, however seemingly noble, if the results don’t stack up. And it is a book that ought to be compulsory reading for Britain’s coalition government as it continues to pour billions into overseas aid, despite the questionable results and even more questionable assumptions behind it.
For far too long, the late writer and economist, Peter Bauer, was, like John the Baptist, a “voice crying in the wilderness” when it came to government aid programmes. Let’s hope more people wake up to the nonsense that a lot of so-called “aid” actually is.
I have been paying almost zero attention to President Obama’s campaign of robotised aerial execution, beyond noting that it has been happening. I didn’t know if this drone-killing was doing good, or harm, or what, besides the potential harm of causing governments maybe later to incline towards drone-killing or drone-harassing their domestic enemies, when foreign enemies have run out or have negotiated a truce. I still don’t know what I think about drone-killing, but recent Islamo-American dramas made me wonder slightly more than usual.
I was raised by an Anglo-Saxon trial lawyer (himself the son of another Anglo-Saxon trial lawyer) and by the daughter of yet another Anglo-Saxon trial lawyer. Barristers, we call these creatures over here. This was the mental and conversational equivalent of being raised by wolves. My father was eloquent enough to present very good arguments. My mother was eloquent enough to stop him ever pulling rank to win such arguments. We all had our turn.
Which may be why I understand things best by watching people argue about them. Only when there is disagreement do the experts feel the need to try to persuade the humans of their own rightness and of the other experts’ wrongness, and thus to speak in clear English rather than in very unclear Expert. And only then do I have much of a chance of getting a handle on things.
Today, the indispensable Instapundit pointed me towards just the sort of drone-killing arguments I had been keeping about a quarter of any eye out for.
Robert Wright, commenting on an article by Micah Zenko, concludes thus:
If this is a strategy for eliminating terrorists, what would a strategy for creating them look like?
This story, as Zenko and Wright tell it, reminds me of the classic counter-terrorism movie The Battle of Algiers. In this movie, the French soldiers spend almost the entire movie winning, by torturing and then killing all their enemies. And then in the final seconds of the movie, they lose. More enemies, enraged by the injustices suffered by their predecessors and clever enough to avoid suffering the same fate as them, have sprung forth out of nowhere. Hearts and minds are not, said this movie, won merely by the most hostile ones being blown to pieces. You have to win the argument.
The good news is that England did achieve total domination over Afghanistan, just two days ago. But, alas, this was only at twenty overs each way cricket.
LATER: Cricket? Sorry I mentioned it.
Together with other central banks, the ECB is flooding the market, posing the question not only about how the ECB will get its money back, but also how the excess liquidity created can be absorbed globally. It can’t be solved by pressing a button. If the global economy stabilises, the potential for inflation has grown enormously
– Jürgen Stark
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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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