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]

It is. Are you?

Clueless. The Independent has what it thinks is good news for employees:

The minimum amount of money that employers must pay staff they make redundant is set to be increased by the Government, The Independent has learnt. In another attempt to ease the pain of those worst affected by the recession, ministers have launched a review of the minimum payments to which people are entitled by law when they lose their job. With around 1,500 posts being axed each week, unemployment will soon pass the two million mark and could eventually rise to more than three million.

So, what is the predicatble effect of making redundancies more costly to employers? You at the back, there! A firm wants to stay in business. It needs to keep cash in hand in order to do so. Looking ahead it sees uncertainty as to whether it can afford the wage bill, and it has to balance the cost of keeping people on and maintaining capacity, with the cost of losing them, and its ability to continue in business after they have left.

Yes, Purnell minor, if the cash lost by making people redundant increases, they will be made redundant sooner, and firms will be more averse to taking the risk of hiring.

As a crude estimate, we might expect the cash constraint to require someone to be sacked sooner by the amount of time in which the cost of employing them would accrue to equal the increase in statutory redundancy they would be owed. (Which is the sort of ‘linear programming’ people could do before spreadsheets and Monte Carlo methods: the wisdom of the 1970s for a government that has worked so hard to return us to them.)

Those firms that do not make such precautionary sacrifices increase their risk of total failure, and none of their workers getting redundancy pay. So higher redundancy pay means more redundancies and more business failures, in an uncertain proportion.

What’s worse, it is likely that such a change in the rules that is signalled in advance will mean large, well-informed and unsentimental corporations (which are typically more risk averse, and more capital intensive, anyway) reducing their headcounts to get under the wire. Even “a review” undertaken to give an impression of doing something, and as a sop to the trades unions, is likely to influence hiring and firing policies. And not in a good way.

It’s the regulation, stupid

Gordon thinks that banks have been wicked and they need to confess:

Gordon Brown told banks to come clean over the extent of their bad assets on Friday, admitting the scale of the banking crisis could threaten the global economy with a new phenomenon: “financial isolationism”.

“Tell me how bad it really is,” is at best irrelevant, and, given we have a crisis of confidence, most likely damaging. But the quintessential moralitarian is not concerned about that. Nor about isolationism, merely because it means poverty and depression. The self-criticism of others must not stop, engagement with the global system must not stop, because otherwise there will be no one else left to blame. There is no chance of him confessing his faults. Our Great Helmsman will stand as a colossus of rectitude and the transparency he demands in others is not necessary for him, lest we be blinded by the light.

And yet mighty Oz, aware of his own illusion, thinks banking is a magic that will survive removal of the smoke and mirrors (he almost certainly believes in ‘fair’ prices too). The opposite is the truth. The obsession with stripping the mystery in case someone might be making money, has the predictable effect that making money is harder. Compliance and confession will crash the banks, not stabilise them. They are already doing so, as The Economist points out:

The Basel 2 international bank-capital regime and the global accounting standards known as IFRS—to say nothing of security analysts and rating agencies—are forcing banks to hoard more capital, anticipating that deepening recession will slash asset values further.

This is the modern equivalent of Keynes’s “cross of gold”. We are being wrecked by the rectitude of mark-to-market. But the governmentalist says the problem is not enough sinners have been whipped, and “orders” that they are.

Retreat on all fronts. Advance anywhere?

When I saw this:

California may accept military identification as proof of legal drinking age under legislation proposed after a group of Marines were denied service because they weren’t carrying other documents showing they were at least 21.
[…]

The legislation comes after a group of Camp Pendleton Marines attending a banquet in Temecula were refused service when none was able to produce any identification other than their military card.

The cards include the holder’s picture and date of birth. What the cards don’t have printed are height, weight and other physical characteristics, which are encoded in a magnetic strip for security purposes. Because that information isn’t visible, the cards are not officially recognized by the state as proof the person is old enough to purchase alcohol.

I thought

— Wow! an extension of personal liberty; pity it is only for state employees.

Then I thought

— ‘Wow’? Is that really the reaction to such a feeble easing of regulation? Surely there are plenty of better things happening all the time?

And I thought. And I thought. And I discovered I could not think of any significant withdrawals of the (western ‘liberal’ democratic) state from the personal lives of its citizens this side of the millennium. It is too depressing (and would involve half an hour of futile typing) to list the obvious encroachments — in 2009 so far.

Please prove me wrong by providing copious examples of liberty expanded.

He really did mean “the world”

I think I know best, too, of course. But what I know best is that the world is too complicated for me or anyone else to rule. Other people are generally better placed than I am to decide what is good for them. Even when they are not, nothing gives me in particular the right to impose my ideas.

Gordon Brown is one of the elect (not just the elected) who knows no such restraint.

The Prime Minister: The first point of recapitalisation was to save banks that would otherwise have collapsed. We not only saved the world— [Laughter . ]—saved the banks and led the way— [ Interruption. ] We not only saved the banks— [ Interruption. ]

Mr. Speaker: Order.

The Prime Minister: Not only did we work with other countries to save the world’s banking— [ Interruption. ] Not only did we work with other countries to save the world’s banking system, but not one depositor actually lost any money in Britain.* That is the first thing.

Having contented himself that he only saved world banking, Mr Brown has now set out to work on the rest of the job. He has started on a mission to create peace between Pakistan and India – two countries that have not had a war since 1971. Such is his supreme diplomatic tact that his approach after the Mumbai massacre is to visit the region in order to announce that “Three quarters of the most serious plots investigated by the British authorities have links to al-Qaeda in Pakistan.” A claim that is both occult (full in equal measure of secret authority and meaninglessness), and calculated to make people in India more hostile to Pakistan.

Maybe this is not a record breaking sprint to megalomania for a British Prime Minister. Perhaps it is that Mr Brown’s nostalgia for the 1970s knows no bounds. Having destroyed the British economy in order to become its saviour, he is trying the same trick on the global village.

*[This is a lie: I know personally several depositors who between them lost many millions in Britain when Mr Brown decided to expropriate the Icelandic banks. Even those among them whom the Treasury has made a vague promise to compensate have yet to see a penny, and have had the huge cost, which is unlikely to be refunded, of arranging indefinite bridging finance in near-impossible borrowing conditions.]

Samizdata quote of the day

I am deeply concerned about the sort of world we will bequeath to our children and I promise you, the minute I get back from my holiday I will write a letter to my MP demanding that they do whatever it is you want them to do. But please, for the time being, fuck off bastard hippies.

– A fictional character articulating the sane human response to PlaneStupid, courtesy of the Daily Mash.

I fear that for a lot of campaigners, being a nuisance is an end in itself, and other people’s annoyance is taken to signify how stupid and morally worthless ordinary people are – and thus as reinforcement by comparison of the overweening self-esteem of the campaigners themselves. Something similar is found in the shock-jockery of the blogosphere. I frequently spot the attitude in some NO2ID-ers but I do try to counteract it. People are entitled to want to get on with their lives in a way that is meaningful to them. If you want to persuade them, then give them a reason to care and listen, don’t bully and excoriate them. In the words of Dale Carnegie: “You can’t win an argument.”

Only the stupid have nothing to fear

Their lack of imagination will also protect them from the apprehension that they have anything to hide.

It is only people who behave suspiciously who should – and quite rightly deserve to – fear. That is the purpose of having ID cards!”

“Like my friends and acquaintances, I cannot understand how a law abiding citizen
can object to the proposal or how they will limit or infringe my “civil liberties”.

– Unnamed members of the public quoted as endorsing the Home Office view in its consultation summary (2003) (pdf).

The national identity cards scheme will give people confidence, convenience and security in an increasingly vital aspect of modern life – proving and protecting their identity.

– David Blunkett, launching the Identity Cards Bill in 2004

Such views are surprisingly persistent. To tackle them, we (NO2ID) have produced what I suppose is the first NO2ID commercial:

Samizdata quote of the day

Un despote a toujours quelques bons moments ; une assemblée de despotes n’en a jamais. Si un tyran me fait une injustice, je peux le désarmer par sa maîtresse, par son confesseur, ou par son page ; mais une compagnie de graves tyrans est inaccessible Á  toutes les séductions.

[A despot still has good moments; an assembly of despots never does. If one tyrant mistreats me, I can get round him by means of his mistress, his priest, or his page-boy. But a staid company of tyrants is impervious to temptation.]

– Voltaire. A remarkable characterisation of the monotonic puritanism of modern democratic government, but written in around 1760. I wonder whether C.S. Lewis’s better known pronouncement on those who torment us for our own good has its origin here. It is similar both in the thought expressed and the cadence of its expression.

For any non-MPs reading

As someone who has certainly conspired with Damian Green (and LibDem MPs too) to embarrass the Government and the Home Office. I spent some time Thursday and Friday making provision in case I were to be arrested and my property searched. The reaction from the media and parliamentarians in the Green affair has been so strong that I don’t now think it likely. But it does seem possible. Before Thursday night I would have laughed at someone who suggested things had got so bad.

I was misinformed. Nick Cohen in the Observer picks up a case I should have known about:

Admittedly, when anti-terrorist officers arrested him, it was the first time they had held a suspect for trying to protect national security. But their motive was clear. Green had embarrassed the Home Secretary and made Home Office civil servants look idle fools. He and his source had to pay.

The accusations against Sally Murrer, on the other hand, were incomprehensibly trivial. The state said that Mark Kearney, a police officer and Murrer’s co-defendant, had given her the story that Thames Valley Police did not intend to prosecute the star striker of the MK Dons after a fight in a hotel. It also alleged he had passed on a tip that a man who had been murdered in the town had a conviction for drug dealing.

Journalists in free countries receive similar steers every day. Yet the police bugged her phones, ransacked her home and office, confiscated her computers, interrogated her, humiliated her with a strip search, separated her from her daughters and handicapped son and left her with the threat of a prison sentence hanging over her for 18 months.

As I noted for US readers over on another thread, none of this of course required a judicial warrant. Though the charges were thrown out when a trial finally came, the process is the punishment. And someone searched under these conditions might easily end up being prosecuted for something else, if police find evidence of any other offence in the course of it. After all, a lot of very common conduct is now illegal.

Delicious

I don’t often praise The Times. It is too often busy pleasing the administration of the day, in order to maintain regulatory tolerance for its proprietor’s market dominance. But this is wicked, in both senses.

Commentary on Chancellor Darling’s performance yesterday includes a nonsensical Labour-loyal diatribe from Roy Hattersley… which is beautifully undercut by this by-line:

Roy Hattersley was Secretary of State for Prices and Consumer Protection, 1976-79

Governmentalism

These are all internet problems and [internet users] think someone should do something about it. Although many internet users think the government should keep out of the internet, I suggest to you that most ordinary people who just use the internet like they use the banking system or the trains think that the government should make sure it all works properly for them and that bad things get stopped from happening.

– David Hendon, Director, Business Relations 2, Business Group , Department for Business, Enterprise and Regulatory Reform, speaking to the registrars’ meeting of Nominet. Imagine, if the government regulated it, then the internet would run as well as the banking system and bad things would get stopped from happening. This was a speech made yesterday.

(Hat-tip: The Register)

Own goal

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Oh dear! It is not that the services the PCS is proud of having delivered will not generally find much favour with denizens of Samizdata, that prompts me to clip this. It is that this is a disastrous committee-driven ad. They end up showing their members as miserable, whinging, ugly and colourless petty bureaucrats, who want taxpayers to be grateful to pay them more.

Even a minimal government would need officials. And even a big bureaucracy will contain some witty, energetic and attractive people. Sir Humphrey was much closer to being the hero of Yes, Minister than Jim Hacker.

Were I a PCS member then I would want to be represented as someone normal and likeable who cheerfully keeps the wheels of the country turning regardless of all the political shit thrown at me. And I would be looking for the head of whoever signed-off this ad. (Preferably to be displayed on a pole outside the Department of Work and Pensions, though perhaps my view of the possibilities of staff organisations are too influenced by Terry Gilliam’s The Crimson Permanent Assurance.)

Samizdata quote of the day

To the authoritarian mind, freedom and chaos are synonymous.

– Commentator Ian B, er, yesterday. My guess is that ‘Ian B’ does not stand for Ian Blair, nor is it a pseudonym of Liam Byrne MP.