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Thoughts on the altered economic and ideological incentives faced by the rich and famous

Almost a month ago now, I attended an event, organised by Christian Michel, at which another friend, Professor Tim Evans, spoke about the public and private supply of public goods. You attend such events in the hope that they will make you think things that might not otherwise have occurred to you, and Tim’s talk had this effect on me. What follows is based on what I mostly wrote the day after that talk. I had intended to finish writing this and then post it here before going on a recent expedition to stay with friends in the South of France, but travel preparations got in the way of this. However, nothing in what I wrote then had to be said then or never, if you get my meaning, so here is what I put, suitably polished and amended, now.

Tim Evans’s theme was how, over the centuries, institutions for the supply of such things as healthcare, roads, lighthouses (mention was made in that connection of Ronald Coase), education, and suchlike seem to have oscillated, rather slowly and in timespans often long enough for most of those involved not to be aware of them, between private or charitable supply on the one hand, and government control and government provision on the other.

Tim’s other big point (assuming my recollection is about right – I took no notes) is that the perpetual game of political ping-pong that now rages with statists on one side and anti-statists like me (and like Tim) on the other sometimes does scant justice to the complexity of the institutional arrangements involved. So, for instance, arguments about healthcare are routinely presented, on both sides, as an argument between a total free market and total state control, when in reality medicine has long been a very mixed sort of economy. In the USA, typically held up by anti-free-marketeers as an example of what happens when there is no government control at all, the government is heavily involved with (the phrase “in bed with” also springs to mind) those quasi-political entities which determine what a qualified doctor is and who may or may not practise as one.

I like to think that I may have planted the seed of that last notion about governments and medical monopolies in Tim’s head, with a Libertarian Alliance effort of mine from a quarter of a century ago now, entitled How And How Not To Demonopolise Medicine, about which Tim has often said admiring things to me. I just re-read this, and many of the themes in Tim’s talk were alluded to in that also. At around the same time I wrote that piece, I recall expressing, in another Libertarian Alliance piece, a rather jaundiced view about charity, something Tim also mentioned quite a bit but rather more admiringly, particularly in the matter of healthcare.

Which got me thinking about the incentives faced by very rich people, and how these incentives are not the same as they are for regular people. For the super-rich, a charitable donation which is huge by anyone else’s reckoning is liable to be small change, for a start. But just as significantly, I surmise that the super-rich actually think differently from the rest of us, not just because thinking differently is probably what made them super-rich but because being super-rich then induces them some more to think differently.

→ Continue reading: Thoughts on the altered economic and ideological incentives faced by the rich and famous

Oh noez, Brexit be bad!

Just spotted this splendid summary of the dire consequences of Brexit:

6. The NHS will collapse as Bulgarian X-ray technicians head home, leaving thousands of Brits with badly-set broken limbs
7. When we tell German intelligence about terrorist threats, they will put their fingers in their ears and go ‘nah nah nah’ (actually, they probably do this already)
8. The British advance Battlegroup stationed on the Oder (two tanks, a platoon of RLC dog-trainers and a QM Sergeant) will be asked to return home

Check out the rest on Raedwald.

A slap in the face becomes a kick in the balls for the Education nomenklatura

A fresh instalment in the case of the man, the heroic Jon Platt, prosecuted for taking his chid out of school in term time for a holiday, but was acquitted by Magistrates. Scandalously, bureaucrats on the Isle of Wight appealed against the decision of the Magistrates to throw out the case, only to find that the High Court has found ‘no error of law’ in the Magistrates’ decision, so the acquittal remains. This has now blown back in the face of the bureaucrats, as this decision sets an unwelcome precedent with two High Court judges giving a ruling on the law, and meaning that for years, bureaucrats have harassed parents and got many to pay fixed-penalty notices on what was likely, in most cases, to be a wholly wrong interpretation of the law. As Mr Platt put it:

“Is there really 100,000 parents who are so criminally incompetent that it warrants dragging them to court?”

It appears that the scale of the problem is vast:

According to local authority data, almost 64,000 fines were imposed for unauthorised absences between September 2013 and August 2014.

And are the bureaucrats saying ‘Oh well, the law is the law, we must respect it’? If they are, I can’t hear them.

This is, of course, great news for parents in England and Wales who may now take their children on holiday in term-time without a realistic prospect of a prosecution. It also means that the old and absurd complaint about prices and supply-and-demand, ‘Oh look, holiday prices go up at half-term, how exploitative blah, blah, blah, regulate the holiday industry…‘ will be less easy for buffoons and villains to make out, and there will be a more economic use of resources in the holiday industry, taking use one more step away from the Stone Age.

What’s not to like when the light of freedom flickers more brightly?

Samizdata quote of the day

But why should those of us who want to leave the EU feel any obligation to accept the particular vision of the UK’s future offered by Gove or anyone else? Why the insistence that we couldn’t vote to leave the EU without a clearly worked out plan about what happens next? The referendum question boils down to the question of control: who decides what the UK should do in relation to the economy, immigration, trade rules or anything else? Those things should be decided in Westminster, not Brussels.

Rob Lyons

Brexit: The Movie

I am watching Brexit: The Movie. I am only about half an hour in and I am learning a lot. I did not realise how little power the European Parliament had or how many different councils and presidents there were. The tone is measured and reasonable, rather than polemical and raving, which makes it useful and easy to share widely. I understand that it focuses on economic issues, which might even change the minds of those who think anti-EU sentiment is confined to xenophobics. The production standards are very high, too.

I wonder if it will get any publicity in the mainstream press.

Samizdata quote of the day

So, the EU is primarily a political project. Just think about it. The mantra of the Remain camp is “to trade with Europe you have to be part of it”. But this is bizarre. Nobody says “to trade with China you have to be part of it”. That would be very scary. They don’t even say “to trade with the USA, you have to be part of it”. Nobody suggests accepting the US constitution or the dollar as part of the price to trade with America.

Alan Sked

Scary viruses and clinical trials

Some people think the Rio Olympics might cause the Zika virus to spread all over the world. Reddit is not a reliable place for sensible political commentary, but I am heartened at how up-voted comments like these are:

mixmastamikey: “Global Health Disaster” How about just “Global Disaster”… Why the fuck can’t we reuse olympic venues? Seriously why does a different country need to host the olympics every 4 years. Cant everyone just buy a fucking island and call it olympic island maybe update a few things here and there.

BlueBlazerIrregular: But then the IOC wouldn’t be able to steal millions and would lose out on all that graft and bribery. Think of the rich for once! They are people too!

kangamooster: Hmm, I guess you could consider lizardfolk people….

Kamuiberen: Wait, are we talking about IOC or FIFA here?

BlueBlazerIrregular: Same modus operandi

Anyway it seems unlikely that the Olympics will be stopped or moved and I am not sure if doing so would really make any difference. I am hopeful of solving problems with technology, though. I am quite keen on the plan to exterminate all mosquitoes. And then there is IBM’s rather interesting research into a chemical that blocks viruses in general.

“We began to think, how can we move forward and kind of attack the virus in a very different way,” says Hedrick. “Instead of going after its RNA or DNA, we looked at the glycoproteins that surround…the virus.” No matter what the virus and how it mutates, it’s going to have these substances on the surface; they have electric charges (some positive, some negative) that a chemical can stick onto. What the researchers developed is a polymer that adheres to the virus, blocking it from hooking onto a victim cell in the body.

The idea is to put the molecule in soap and hand-wipes, but it could also be put into a person.

Assuming it works as well as the researchers say, the macromolecule couldn’t come soon enough to handle frightening outbreaks like Zika, Ebola, and chikungunya. But it hasn’t quite come yet. “My gut feeling is, something like a wipe, something like a hand cleaner is going to be relatively straightforward to move to market,” says Hedrick. “It you market it as a true antiviral, I would imagine it would take 3, 4, 5 years maybe maximum.” Getting the macromolecule into humans, where it uses all three of its powers, would require clinical trials than could extend over several years.

Serious question: why the need for such long clinical trials? What is wrong with marketing something with the caveat that it is not fully tested yet and it might be a cure worse than the disease but if you have a terrible enough disease it might be worth a try?

Manoeuvring the Benevolent Laissez Faire conference

Since Brian is busy exploring rooftops and mountains in the south of France, it is my turn to be “nudged” by conference organiser Simon Gibbs whose event is running this Saturday (May 14th).

As Brian predicted Simon has indeed been busy, not least sorting out a new venue – De Morgan House, on Russell Square. Problems with a floor, or something. Make sure you go the right place.

It is also interesting that the event has won over a new speaker – Syed Kamall. Syed has always kept good company by attending the right events and has impeccable free-market credentials. That he has made it to quite a senior position and is continuing to speak at such events is a compliment to the man.

In case you never heard of him, he has been MEP for London for years, rose to chair a bit of the EU parliament, and lately stood against green lunatic Zac Goldsmith for the Tory mayoral nomination. He would have made a much better candidate. He also, amusingly, pissed off the right people, including David Cameron and his own EU counterpart Guy Verhofstadt (triggering the Daily Mail to use a big red warning).

Syed is very serious about making sure his constituents know how to solve problems without relying on people like himself – solving their problems outside politics. That he is coming to say this at “Benevolent Laissez Faire” is a great compliment to the event. Fair enough: under one roof are Syed, two blockchain-enabled anarchists, the second most senior Randian, and a certain “Doctor Anton Howes” (whose name sounds familiar).

Looks like a fun way to spend a Saturday afternoon!

A Tale of the Sea

This anecdote was sent to me by a correspondent – NS.

*

I chanced to be speaking to a chaplain who works with a mission to seafarers in a British port, and had the following tale from him.

One of the seamen he knows is a guy – let us call him John Smith – who is fine provided he remembers to take his meds but not so fine if he forgets. On a working ship, daily life is structured and John reliably remembers to take his meds, and if he did not, the captain would look into it, or John would be given medical evacuation. However the control regime is different in port.

Recently, John’s ship was sent to port for several months awaiting a new cargo or scrapping. Presently the chaplain was summoned by port security. When you are asked to the main security point, things are serious. When they offer you a cup of tea, things are really serious. Security told him that John had clearly not been taking his meds, was doing things that were not dangerous in themselves but “violated security protocols”, so they’d have to act in a way that they would prefer to avoid, unless the chaplain could make something better happen.

The chaplain contacted the Port Health authority and was told, “Well, you know, a seaman has rights. If we get involved and the result is to say he’s unfit or whatever, he could sue for loss of earnings or whatever …”

He contacted the company that contracts John’s labour. “Oh well, we’d like to help but seamen these days have a lot of rights. If we get involved and it’s later ruled we did not respect all of them …”

He contacted the union rep, whose first words were “You do know John has rights, don’t you?” and who then pointed out that John’s ship “is not my flag state, so I can’t come aboard uninvited.”

The chaplain solved that one by saying pointedly, “I’m inviting you to come aboard with me.” So, with the union rep in more or less literal tow, the chaplain went aboard, and was told by the captain, “Do whatever you can and I’ll back you.” He had a long and sometimes very strange talk with John, at the end of which John swallowed his meds, whereupon a very hyper man swiftly became calmer.

This example was in the context of the chaplain’s explaining to me how much of his job these days was doing what none of the jobsworths dared to do, even when some of them were not such creeps as not even to want to help. As he put it, “Sometimes the one with no formal power is actually the only one with any remaining power to act.”

A man kills someone whilst shouting “Allahu Akbar”, but…

When I saw this, I thought…

A German man suffering from psychiatric problems stabbed four people at a train station near Munich early on Tuesday, killing one man and wounding three more in an attack investigators said did not appear to be politically motivated.

Witnesses said the alleged assailant, a 27-year-old unemployed carpenter, attacked his first victim shouting “Allahu Akbar” (‘God is Greatest’ in Arabic). Some witnesses said they also heard him shout “infidels must die“.

…Well thank goodness this killing has nothing to do with the killer’s Islamic political beliefs. Good to know. Because if he had been motivated by Islam, presumably he would have shouted something like “The best döner kebabs in München are on Leonrodstraße and I’ll kill anyone who says otherwise!”

Yeah, nothing to see here. Move along. Move along.

UPDATE to linked article: “Investigators said the suspect may have converted to Islam but there was no indication that he had been radicalized“.

…presumably because as everyone knows, killing a stranger with a knife whilst shouting “Allahu Akhbar” is not an indication of radicalization, and therefore he must be a common or garden variety nutter.

Samizdata quote of the day

Indeed, one of the advantages of tax havens is that they help hold governments to account. They make it possible for businesses to avoid the worst excesses of government largesse and crazy tax systems – including the 39 per cent US corporation tax rate. They have other functions too: it is simply wrong to say that they have no useful purpose. It is also wrong to argue that, if only corrupt governments had more tax revenue, their people would be better served.

Philip Booth

Samizdata quote of the day

There are many, many reasons why the UK economy remains skittish and the global recovery extremely patchy – and almost all of them predate not only this referendum campaign but even the announcement the UK electorate was to be given its first say on our relationship with Europe since the mid-1970s. Yet, while real investors fret about the prospect of another sub-prime style meltdown, a lack of genuine banking reform, the implosion of the eurozone, the lunacy that is negative nominal interest rates and now, we’re told, “helicopter money” – a kind of quantitative easing on steroids – it suits a wide variety of political and financial interests to blame every blip in the British and broader European economy on “the prospect of Brexit”.

Liam Halligan