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]

Politics as usual

You might think this is good news. From The Times:

Council homes for life ‘to be scrapped’ – People living in council houses will no longer be entitled to a subsidised tenancy for life under Whitehall proposals to address waiting lists. New tenants would have fixed-term contracts under the plans, with regular reviews every few years, The Times has learnt. […]

At the moment anyone allocated a council home can usually stay for life, irrespective of circumstances. People in council homes paying subsidised rents can end up relatively wealthy, and in some cases they can bequeath the tenancy to their children. Frank Dobson became a Cabinet Minister while living in a council flat in his London constituency.

But no, even this is not a move to logic and fairness, removing privilege from state clients and getting the state out of people’s lives. The bit I cut out reads:

If a tenant’s financial position improved he or she would be encouraged to take an equity share or to move to the private sector. If they refused they could face higher rents. The right to a council home is also likely to be tied to a requirement to have or be actively looking for a job.

The measures are being considered by Margaret Beckett, the new Housing Minister, in the most radical shake-up of the social housing system for decades to ensure that those who deserve council homes get them.

So this is not, repeat not, a plan to reduce dependency, to diminish the proportion of the population in receipt of the taxpayer’s subsidy, nor even to relieve poverty.

It looks like the proposals will be both more intrusive, bureaucratic and moralitarian than the present ones. Instead of in old socialist style checking people are poor enough to qualify for subsidised housing and leaving them to it, on the (generally correct) assumption that the dependent poor are unlikely in general to get much better off, and not worrying if some do, we are to look forward to a new grand scheme of supervision, whereby people are compelled continually to immiserate themselves for the inspectors in order to keep their roof. So there is to be a new premium to be created for inadequacy and profligacy.

But the dependent class may not be too miserable or helpless. The very people who in a reasonable humane system we might be willing to help (those too feeble or disturbed to be able to earn a living) will not be the ones that are targetted for assistance, but those who have or are actively looking for a job, who show every sign of being able to look after themselves, in other words.

How to explain this? It is neither likely to be economically efficient, nor is kindly (foolishly or otherwise).

We need to note that as a project it embodies Gordon Brown’s puritan obsession with “hard working families”. I do not particularly care if people are feckless or pleasure seeking as long as it is not at my expense. I rationally wish I could be a bit more feckless and pleasure seeking myself, but I can neither afford it, nor do I have a sybarite’s soul. But the Brownite regards suffering and struggle, social compliance, and resentment of the easy life, as the core moral values.

And this is of a piece with the politics of New New Labour. For the struggling compliant, resentful of others pleasure, are reliable voters for the gifts of authority. The feeble and disturbed who can make no shift for themselves are not voters at all. This is a plan to build, and politically police, a new client class.

[To pre-empt the objection that at least it gets rid of privileged access to council accomodation to party apparatchiks and local government employees, I would point out that that form of corruption is already obsolete. Such people now get subsidised equity as often as subsidised rent, and get to live with others like themselves, not among the lumpenproletariat on council estates, because they have a claim as key workers. Key workers (who are largely middle-class and paid above average, even including town planners and Connexions advisers) constitute another client class of the state that has been silently established this last decade. Welcome to nomenklatura UK.]

Miss Smith meets with an accident

This is even better.

Once is happenstance…

Andy Burnham MP to the Royal Television Society (in questions after the speech):

The time has come for perhaps a different approach to the internet. I want to even up that see-saw, even up the regulation [imbalance] between the old and the new.

[Reported by The Register]

Twice is coincidence…

In response to a letter from the UK Department for Business Enterprise and Regulatory Reform (BERR), Nominet is announcing an independent review of its current corporate governance structure, to be benchmarked against established best practice corporate governance standards.

Three times is enemy action…

Hazel Blears MP:

There will always be a role for political commentary, providing perspective, illumination and explanation. But editors need to do more to disentangle it from news reporting, and to allow elected politicians the same kind of prominent space for comment as people who have never stood for office. […]

Unless and until political blogging adds value to our political culture, by allowing new and disparate voices, ideas and legitimate protest and challenge, and until the mainstream media reports politics in a calmer, more responsible manner, it will continue to fuel a culture of cynicism and despair.

I take it that “adds value” means ‘supports us’; “legitimate protest” means ‘sneering at our enemies’; and a “more responsible manner” means ‘without questioning our control of the discourse’.

State of paranoia

Home Office plans to require registration of mobile phones (and to register the identities of hotel guests (pdf), record who calls whom and what they read online, etc …) have a familiar feel. In the Soviet Union, all printing machinery and typewriters were registered just in case they might be used for ‘anti-social’ purposes, when the people who had access to them could be tracked-down, watched and questioned.

No_chat.jpg

Now we are all doomed

Poor naive George W. Bush! For all his shambolic presidency, his dreadful mistakes, and the horrors of aggressive imperialism, his last couple of months in office could end up being the most disastrous for the world.

Bloomberg reports:

The leaders of the U.S., France and the European Commission will ask other world leaders to join in a series of summits on the global financial crisis beginning in the U.S. soon after the Nov. 4 presidential election.

President George W. Bush, French President Nicolas Sarkozy and European Commission President Jose Barroso said in a joint statement after meeting yesterday that they will continue pressing for coordination to address “the challenges facing the global economy.”

The initial summit will seek “agreement on principles of reform needed to avoid a repetition and assure global prosperity in the future,” and later meetings “would be designed to implement agreement on specific steps to be taken to meet those principles,” the statement said.

Just how bad this could be is already showing. The report continues:

Sarkozy and Barraso are pressing Bush for a G8 agenda that includes stiffer regulation and supervision for cross-border banks, a global “early warning” system and an overhaul of the International Monetary Fund. Talks may also encompass tougher regulations on hedge funds, new rules for credit-rating companies, limits on executive pay and changing the treatment of tax havens such as the Cayman Islands and Monaco.

Just what has the continuation of the OECD nations’ campaign to plunder smaller states and institute globally uniform (high) taxation got to do with the market crash? Nothing. Executive pay? Irrelevant, too, save in the politics of envy. Mainstream banks, not hedgies, were the ones that crashed after playing iffy games with CDOs, and governments helped pump-up house prices – with enthusiasm. Where this agenda comes in is as an opportunity to kick the resented “Anglo-Saxon” model of capitalism while it is down – even, and especially, in those places where it is not down yet. (Are we missing Commissioner Mandelson yet?)

Mr Bush has lost the thread entirely if he really thinks a transnational “reform” of the financial system can do other than damage “free markets, free enterprise and free trade”. He may have a patchy record on liberty, and a bad record on limited government. His guests in November will have no interest in either. They will tempt him (have tempted him) with the mantle of world saviour, and will try to get him to bind his successors. We shall have to hope that his successor, either one of whom would be well to the economic right of the self-selected ‘international community’, depressingly enough, is more wily and far-sighted.

Meanwhile, where is there left to run?

Learning the wrong lessons

Corporate industrialists are frequently not keen on free markets. They are fond of order, safety, and “fairness” or “a level playing-field” – which means everybody doing things the same way they do. They like a managed world, because management is what they do. So no good comes of appointing them as regulators. Technocracy joins with bureaucracy.

Here is Adair Turner interviewed by The Guardian (perhaps in itself a significant choice of forum):

There will be more people asking more questions and getting more information than we were getting before… . There is no doubt the touch will be heavier. We have to make sure it is intelligent and focused on where the risks really are.

Translation: “We have to destroy The City in order to save it.” This is ‘risk’ as understood by a safety fanatic – one-sided, and totally unrelated to choice or to return.

We will have more people than before looking at the high-impact, systemically important firms with major knock-on effects than we did before. We will pay more than necessary to attract the correct quality of people from outside.

More than necessary? And who will pay for such artificial premiums? Whoever the FSA decides to tax or fine. It is a predatory organisation: a Self-Financing Regulatory Agency. So it wil have to find more occasions to punish and to license in order to fund more intervention, licensing and punishment.

There is no chance of a 1929-33 Depression. We know the lessons and we know how to stop it happening again.

A prime lesson of the Great Depression for most commentators has been that shutting down free trade in goods in order to protect industrial markets made the depression deeper and longer than anyone could have imagined. It stopped trade and industry recovering from the shock. That our Government is looking to blame foreign investors for our problems and is taking measures to frighten them off, and that Lord Adair is advocating, as the cure for a financial market crash, tight supervision of the surviving free markets in finance and commercial instruments, suggests the lessons have been rather badly understood. They risk stopping the financial markets recovering from the shock.

Executive action

The inquest into the death of Jean Charles de Menezes today heard there were “chaotic” scenes in the police control room coordinating the pursuit that ended with him being shot dead.

A detective superintendent from special branch, identified only as Brian, said he was not even aware the Brazilian electrician had been identified as the failed suicide bomber Hussain Osman.

The officer, who was in control of administrative tasks in the control room, said: “I was certainly aware that a male had been shot. The fact that he was unidentified, from what I could gather from the room, was how it felt at the moment.”

(Guardian)

Gordon Brown claims that the expropriation was necessary because Iceland planned to default on British Icesave accounts. […]

Brown’s response? To seize the UK assets, not of the bank that ran Icesave, but of a wholly unrelated bank, Kaupthing, thereby collapsing it. Icelanders, who had been expecting to negotiate a guarantee to British depositors – eventually agreed on Monday – were stunned. They couldn’t bring themselves to believe that the leader of a country they admired would destroy their last solvent bank simply to give himself what Labour MPs have since called “his Falklands moment”.

(Daniel Hannan, Times)

At least they shot de Menezes in the head. For a business whose bank has been terminated on executive orders, the experience is rather like how I imagine it feels to drown in your own blood.

Of course if you have done nothing wrong you have nothing to fear. The government is benevolent, and always acts in the best interests of everyone. Foreigners are a threat. We must remember that. The government says so. So it must be true.

Unco guid

happy_brown.jpg

At least someone is enjoying themselves. The taxpayer has always paid his bills, except in his childhood, when God did. And now he gets to use unlimited power to seize whatever he likes and congratulate himself that he is punishing bad people for taking risks in the hope of making money for themselves.

pic hat-tip: Guido

The confidence trick

Government consistently works to undermine trust in other institutions in order to build its power. That is calculated to increase anxiety, and dependency on the state. It is a sort of reverse confidence trick. The ordinary con-man creates a false relationship of trust, and lets you believe he has something you actually want. The key political trick is, to create false suspicion in order to make you seek a “safety” you never really needed.

Now governments that have spent a decade or more telling the public to be very, very afraid, that it is helpless and needs more powerful government to save it, are very ill-adapted to deal with a loss of confidence in the financial markets. They seem to grasp dimly that stopping a panic ought to be the aim, but their approach to stopping a panic is to appear on television for emergency announcements that the situation is uniquely grave and unpredictable and so government is now going to be doing big arbitrary things inconsistently and without warning.

If they wanted calm resolution from others, then demonstrating it themselves might be a good way to start. But they don’t know how.

Missing the point of Mandy

Peter Mandelson’s re-appointment to Gordon Brown’s cabinet is a potential disaster, and not just for Britain.

I have always liked Mandelson more than any other Labour politician. I ought to hate him, because his strategic genius gave us the New Labour revolution of the last decade. But his lucent unwillingness to pretend he is an imbecile, to conceal the fact of his cunning, or to act out his party’s customary hatred of private enterprise, even while his pupils execute their vile populist capers, is to me endearing.

Maybe that is why I’m worried more than stunned by his return to British politics. While most commentators are mesmerised by the story of Brown’s feud with The Prince of Darkness, and the daring of playing with Labour Party’s own resentment of him by bringing him back from Brussels, I am more interested in strategy. Do not just look at the flashy sacrifice; see how it changes the board.

There is now a gap in the European Commission. Brown will appoint one of his favourites to it, and have far reaching influence on Europe, and therefore Britain, even after he steps down. This can be seen as a subtle purge by bribery, and as a retirement strategy. A preparation for the Brown legacy.

There is now a gap in the European Commission. Whoever fills Mandelson’s Trade portfolio will be replacing one of the most free-trade-friendly commissioners that the EU has ever had, in a financial crisis, with protectionist populism surging on both sides of the Atlantic. Brown’s legacy could easily be a trade war and a real depression.

Implausible?

I have always regarded Lloyd’s List as hard-packed with hard fact (as about the most expensive newspaper by weight you are likely to find anywhere, it should be). But can this really be true?

British Foreign Office officials are understood to have advised the Royal Navy not to confront or arrest pirates in the region [the horn of Africa] for fear of transgressing human rights legislation or encouraging their seeking asylum once taken to the UK.

If such advice is followed, it seems there is precious little reason left to even have a Royal Navy.

Hat-tip: The Register

Electoral arithmetic

Peter Tatchell, selling Green policy under the guise of giving advice to the PM, has a number of suggestions. One of them fully restores the Green Party’s reputation for plain weirdness:

Raise tax-free personal allowances from £6,035 to £8,000 for people earning under £20,000 a year and to £7,000 for those earning £20,000 to £25,000, which would be funded by a rise in tax on incomes over £80,000 and which would assist the lower-paid at a time of rocketing food prices.

That top limit of £25,000 implies he’s leaving personal allowances where they are for people earning over £25,000, so that they drop by £1,000, twice. Lots of people, including me, have suggested reshaping the tax system by raising allowances. But no-one I think has before suggested that it would be a vote-winner openly to treat very large numbers of people to marginal rates over 100% by clawing back an extra £200 when they cross an arbitrary threshold. Twice. At close to the median earnings level so the maximum numbers notice.

In fact, it was a disaster for Gordon Brown when he did it as a concealed one-time-only adjustment. Possibly it was the disaster for Gordon Brown, where he finally came unstuck. It’s probably not something he wants to try again once, Peter. Let alone twice.