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]

Motoring eye-candy

I am just about to go out to nail some final Christmas shopping but if anyone is feeling all warm and generous, they can always buy me one of these. I promise I will send a very fulsome thankyou card.

“Stunning” does not even come close to describing how magnificent the new Aston Martin is. No wonder the makers of the Bond movies keep going back to the marque. Isn’t rampant capitalism just great?

Health insurance takes a turn for the worse

The Irish government has this week succeeded in their plans to help restore a monopoly in health insurance, as the main private insurer was yesterday forced to withdraw from business, leaving the state behemoth with only one tiny rival left to prevent it from controlling the market. Risk equalisation payments which cost them a million €uro every week left BUPA with no choice but to leave.

For those unacquainted with the health insurance market, risk equalisation is a device designed to underpin community rating: a regulation of health insurance whereby the level of risk a consumer poses to an insurer must not affect the premium paid; i.e. everyone must be offered the same products at the same price regardless of their age, gender, or personal health characteristics. A sceptical observer might wonder why a healthy young person should have to pay the same as a sick geriatric, or in what sense this is really insurance at all. Well, the justification given is that, without this scheme, and the associated regulations of lifetime cover and open enrolment, no-one would be willing to offer sick or old people a health plan they could afford. Therefore, the argument goes, it is acceptable that young people are overcharged in order to prevent this. Community rating is designed to produce inter-generational subsidies, and is a clear example of cradle-to-grave statism.

However, community rating alone does not fully prevent competition – it is possible for more than one insurance company to offer community-rated products simultaneously, as indeed was the case in Ireland for the last ten years. It’s a heavily regulated market (imagine if car insurers were not allowed to discriminate according to the risk profile and vehicles of their customers, or house insurance had to ignore the likelihood of flooding or earthquakes in any particular area), but we proved that it can exist sustainably.

So, to really cut out competition, there are several other things you have to do. The first thing that the Irish government did for the last number of years was to give its dominant state provider preferential treatment with respect to the requirements of its solvency reserves. While that did hurt the private operators, it did not totally force them out of business. So our supposedly pro-market government decided to trigger risk equalisation: a device which is theoretically meant to correct discrepancies between customer bases by forcing insurers with younger customers to subsidise their rivals with older, costlier, riskier members. In our case, what it actually did was threaten the main private insurer with having to subsidise its wealthy state rival with nearly three times its operating profits, for little discernible reason and despite clear, logical protests from professional economists in Ireland’s major universities (for example listen to this file).

The result of all of this: BUPA is forced to quit, leaving increased power to the state company. According to leaked documents, this company is preparing to increase its premiums by 15% each year over the next three years, clearly exploiting its position of power to the fullest. The public has been duped, and has absolutely no clue.

What’s more, no-one is going to stand up for them. An Taoiseach (Prime Minister) Bertie Ahern revealed his lack of understanding of the issues by launching an ignorant attack against BUPA. The powerful trade union controlling the state monopoly then announced that it would fight against any efforts to break up this company into competing units. And the mainly left-wing opposition has, predictably, come up short in its handling of this issue.

My question is this: what would you call a private business that was able to intimidate and then forcefully eliminate anyone who dared to compete with it? That’s right, you would call it a highly organised criminal outfit. So why is the government any different?

An artistic argument for the Olympic Games

I oppose arts subsidies not only because arts subsidies are thieving from people who do not want art thank you very much, although it is that of course. I also oppose arts subsidies because I really like art and I think arts subsidies damage art, by separating artists from audiences and by separating nob audiences from yob audiences, the aristocracy from the groundlings. With arts subsidies, you get High Art in one tent – precious, clever, obscure, self-regarding and pretentious, and expensive; and Low Art, brain-dead trash, in the other bigger tent. Without arts subsidies, they all go into the same tent and you get, well: Shakespeare basically. Shakespeare, nineteenth century classical music, the great nineteenth century novelists, twentieth century cinema (before that too got to subsidised into Posh and Trash), twentieth century pop music, all that is artistically vibrant, fun and profound.

So, arts subsidies are really bad, both morally and artistically. And the good news is that, at any rate here in Britain, they are about to be “cut”, which is a cultural word meaning “not increased very much”. And who or what do we have to thank for this semi-excellent circumstance? Why, the Olympic Games:

The Treasury has warned of a tough spending round and the Culture Department has let it be known that there will be no extra money for the arts so long as the country is paying for the Olympics, a bill we will be paying well beyond 2012.

This means, at the very best, seven lean years of standstill subsidy for the arts and, at the worst, selective cuts that will drive some ensembles out of existence.

This is especially good news when you bear in mind that “so long as the country is paying for the Olympics” and “well beyond 2012” actually mean “for ever”.

Reading about a wise Scot by a funny American

P.J. O’ Rourke has a book on Adam Smith’s Wealth of Nations. This looks like the ideal Christmas gift to give someone who might be undecided politically, has an open mind and can be moved by the wisdom of a man who persuades with wit rather than the blunderbuss of masses of statistics or over-preachy bromides. I must say I really enjoyed O’Rourke’s little gem “Eat the Rich”, which is still available and which came out a few years ago. He may have veered away from the uber-hilarious form of books like Parliament of Whores, Republican Party Reptile or the Batchelor Home Companion, but it is good to see that O’Rourke is still writing and making people think and laugh at the same time. His is a special and all-too-rare talent.

Miracle cement

This is bloody clever:

Italcementi, which spent 10 years developing its TX Active, said the building material is capable of reducing urban pollution by more than 40 percent, the Italian news agency ANSA reported Tuesday.

Tests on a road near Milan showed TX Active cut the level of nitrogen dioxide and carbon monoxide by as much as 65 percent.

I came across this story while browsing through the weekly magazine, The Business (which has been re-launched from its previous format of a Sunday newspaper). The story says that the cement’s amazing properties were discovered quite by accident and emerged from nanotechnology research undertaken by an EU-funded project (good grief, something positive via the EU, Ed). The Business article says that the photocatalytic cement building materials can get rid of up to 80 percent of air pollution.

The applications of the new kinds of materials technologies coming out from the worlds of nanotech and beyond are legion. I particularly like the idea that concrete, which normally turns a sort of gunky, greyish colour in Britain’s damp climate, could stay a more pristine colour thanks to stuff like this. One of the reasons why so much modern architecture is so crap is not just the basic shapes of the buildings but the materials they are composed of.

I wonder whether it gets rid of grafitti, though.

(Update: another story on the subject)

Liberty unbound

An unsavoury developement of Le Web 3 in Paris, a conference about and for bloggers organised for the third time by Loic Le Meur of Six Apart. I have always considered Loic as one of the clued up people in this area and I will give him the benefit of the doubt as to what really happened. Politicians are a toxic breed. Dealings with them tend to backfire and so I’ll wait to hear his side of the story. Jackie has more on this. Following a link from her post, I came across a comment that captures one of the fundamental differences between the Anglosphere and ze Europe.

The very notion that liberty can be restricted by rules and STILL be called liberty is very difficult for English or American people. Actually, I don’t really know about the notion of liberty in the UK, but I do know that the Americans tend to define it as the absence of constraint (especially from the State… constraint from the dominant Opinion is still quite strong and widely accepted).

Now for the French side: liberty is defined as the ability to do what you want INSIDE of a collectively defined set of rules. See Rousseau on that matter.

I’m not pretending that any of these view is better than the other. But I think it helps why a Frenchman can say that liberty should be bound without (French) people gazing at him like he was a madman.

What is the British movie industry anyway?

One of the reasons why I like the idea of a “flat tax” is that, by sweeping away all the existing loopholes, it removes a whole group of people who have a vested interest in pushing for special treatement from the Inland Revenue and instead creates a simpler system that is far easier to run, less distortive of economic activity. As a libertarian, of course, my main aim is to see the overall burden come down rather than be flatter; the flatness of the tax code is not, ultimately, as important as its weight.

One of the groups that have managed to chisel a tax break out of finance minister Gordon Brown is the domestic film industry. Apparently, the End of Civilisation As We Know It may possibly be arriving soon if we no longer make movies in England. It is all tosh, of course. Many British actors, directors, producers, technicians and photographers work all over the world, very successfully too. While financed with U.S. money and so forth, many of the biggest hits in recent years have had strong British themes, such as the Harry Potter series, and even the latest James Bond movie.

Boris Johnson has a nice article demonstrating the absurdity of trying to define what is a “British” film for the purposes of qualifying for tax treatment. Just get rid of these loopholes and focus on cutting taxes across the board, Boris. And please do inform your statist-minded Tory leader, David Cameron, about that aim.

The strange need for conspiracy theories

To my complete lack of surprise, the latest inquest into Princess Diana’s death in 1997 is expected to state that she died because her chauffeur was drunk and lost control of the car whilst evading paparazzi. Sad but it happens all the time.

Why is it that people have such need to concoct weird conspiracy theories to explain so many events when recourse to good ol’ William of Ockham usually provides a far simpler explanation for why things happen? In particular, government conspiracies are either obvious (revealed by ineptitude or crassness) or non-existent due to the extraordinary difficulty of any group of more than three people have in keeping anything secret for more than a short period of time. It is not that conspiracies do not happen, it is just that they cannot stay secret for very long.

Thoughts on the Suffolk murders

The other day I wrote about the charms of Suffolk, that county in East Anglia in which I was brought up. A place famous for gentle, flattish countryside, nice buildings, coastal scenery, fine beer and a once-very-good football team (Ipswich Town FC won the FA Cup in 1978 and the European UEFA Cup in 1981 in the glory years when the team was managed by Sir Bobby Robson).

Alas, Ipswich is now likely to be known some time for very different, appalling reasons.

Now is not the time to really go into much analysis of the crimes themselves. My heart goes out to the friends and families of the victims and like most people, I hope the piece of scum that carried out these killings is quickly brought to justice. While I have my doubts about using the death penalty in a world when so much of our Common Law has been damaged by stupid governments, it is hard not to feel sympathy for despatching such a lowlife rather than leaving him – I assume it is a he – to rot in jail for years at the taxpayer’s expense.

The victims in this case are described as prostitutes. Blogger Tim Worstall has thoughts about the nexus of drug use and prostitution and, being the pro-liberty guy he is, reckons that the women who ply this trade would be safer if prostitution was legalised. I agree (I had quite a joust with an authortarian if probably well-meaning chap by the name of Martin on Tim’s comment thread). I think that a person who sells his or her sexual favours for cash is entitled to do so with consenting adults and it is no business of the state to say otherwise. The harms that people usually associate with prostitution stem from the fact that it is often illegal and thus controlled by organised criminals, many of them drug-pushers as well. Legalising it, and taking prostitution out of a legal twilight zone is not a cure-all for the ills some people associate with it, but it would reduce problems, I think, such as sexually transmitted diseases, and perhaps reduce the sort of horrors that we have seen in the Ipswich area. Of course, if this monster strikes again and this time attacks someone from a very different set of circumstances, then the debate will shift.

This terrible saga also prompts me to wonder what could and should be done to encourage people to learn and practice self defence, but that is a whole topic in itself and I don’t have the time right now to explore it, but I am sure that commenters will want to think about it. I’d be interested to know if there are comparable recent incidents from other parts of the world and what happened subsequently. Send in any examples.

Perceptive article on the local area by Times columnist Libby Purves.

(Update: fixed silly typo in original).

Samizdata neat analogy of the day

Bragging about low unemployment under hyper-inflation is like bragging about the airspeed of aircraft in a power dive towards the ground.

– Commenter Shannon Love responds to a Salvador Allende admirer’s lionising of the Chilean economy under the socialist leader.

A great thing about capitalism is…

A great thing about capitalism is that people pay for the consequences of their own stupidity. So staying on the topic of Russia as per my last article, I have no sympathy with Shell Oil now that they are getting shafted by the Russian state after making vast investments in that country. The word of the Russia government (even more so than most governments) is worth less than nothing. As a result, anyone who makes agreements with that government and puts big money into a place which has for years clearly been a kleptocratic sink hole is the author of their own misfortune when things inevitably go pear-shaped.

Of course the Kremlin murdered Litvinenko

So now that odd organisation Interpol has joined the ever more multi-national hunt for Alexander Litvinenko’s assassins. This all completely pointless. If the Kremlin or anyone else had wanted Alexander Litvinenko dead with no one knowing who had killed him, they would have simply have hired some thug in London to push him under a bus or stick a knife in him. But no… instead the murderers chose an absurdly sophisticated method of assassination by using an exotic toxic isotope only available to someone with access to the resources of a nuclear industry. The conclusion to draw from this is screamingly obvious: Vladimir Putin wants his critics to know who killed Litvinenko in order to frighten them into silence. I can see no other plausible explanation.

So why keep pretending it is a mystery who murdered this man? He was killed in London by agents of the Russian government and as a result the only discussion needed is how to react to a foreign government using violence to decide who can say what about people in Britain. At least the sort of response directed at Iran in the aftermath of the Salman Rushdi affair must be implemented. At the very least.