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]

‘I was a green energy zealot – until I had a nightmare heat pump installed’

The title of this post is taken from the title of this Telegraph article:

All Paul Robinson really wanted were some solar panels on his roof.

The company director, who had recently moved to a quiet market town in Mid Wales, is a firm believer in green technology. In the 12 years before he moved, he had benefitted from solar panels and a home battery, both of which shaved money off his power bill.

The Government offers homeowners grants towards solar panels through its Energy Company Obligation (ECO4) scheme. But to take advantage of the generous initiative, Robinson was also required to install an air source heat pump, an endeavour that proved to be more trouble than it was worth.

“I’m so glad I didn’t pay for any of it,” he says. “The amount it cost is crackers.”

Robinson estimates that around 18 tradesmen – a team of electricians, plumbers, plasterers, and supervisors – descended on the stone barn conversion in Welshpool, with the entire installation costing at least £40,000, according to estimates seen by The Telegraph.

Mr Robinson is understandably glad he didn’t pay for any of it.

UK taxpayers, are you glad you did?

Pitiful returns, regulatory hassle, unpredictable taxes – why Santander is on the point of quitting

In the Telegraph’s business section, Matthew Lynn writes about why Santander is thinking of leaving the UK:

Santander’s departure would certainly come as a crushing blow to Rachel Reeves’s ambition to turn the UK into the fastest growing economy in the G7. It emerged during the week that the Spanish bank, a familiar presence in the UK since it acquired Abbey National back in 2004, was considering getting out of the country.

It is not hard to understand why. The returns are pitiful, the regulations are a hassle, costs are rising all the time, and even if profitability does improve, there’s a risk the Government will accuse it of “profiteering” and confiscate whatever money it does manage to make with an extra windfall tax.

For a global bank such as Santander, there are better opportunities elsewhere. It has 76m customers already in South America, for example, and that would seem a better place to deploy its capital, not to mention management time, than the UK.

True, Botin [Santander’s executive chairman] moved quickly to dismiss the reports, telling a panel in Davos how much she loved the UK, and how the bank was committed to the British market for the long term. But then again, she would say that. Nothing will be confirmed until the day a final decision is made.

And yet the simple truth is this. It is a shocking indicator of how poor the prospects are in the UK market that a major corporation such as Santander is even thinking about leaving.

As for “Likes” on Twitter, so for votes

The political scientist Timur Kuran coined the term “preference falsification” in 1987. Earlier today he sent this tweet:

Musk’s purchase of Twitter was a political game changer. Also important was his decision to hide people’s “likes” from other users. This diminished preference falsification on X. It also boosted the apparent popularity, and thus the circulation, of un- or anti-woke posts.

Tony Blair greatly increased the ease of postal voting in UK elections by means of the Representation of the People Act 2000. That Wikipedia article says the Act made only “minor amendments”. They were not minor in their effects and nor were they intended to be. Whoever edited the Wikipedia article on Absentee voting in the United Kingdom got it right:

After the introduction of on-demand postal voting in the UK, there has been a massive uptake in postal voting. Whilst in 2001 1.8 million postal ballots were distributed to voters, this has increased to more than 8 million postal ballots by the UK 2017 general election and represented one in every five ballots cast in 2019 United Kingdom general election.

Labour did this because they thought it would help them win elections, of course. Did it? Perhaps not. While it did increase turnout, which historically has usually helped Labour candidates, the increase in turnout was particularly strong among pensioners, who tend to have mobility problems that make it harder for them to get to the polling station in person. Pensioners skew Conservative. The change also had other effects, of which more below.

I can certainly see a reason for some mechanism to be available to let people arrange to vote by post (or vote by mail as the Americans call it) when circumstances make them unable to vote in person. But absentee voting unquestionably degrades the secret ballot. This brings us back to the issue of preference falsification. As the same Wikipedia article says,

In the United Kingdom a 2016 government inquiry found that postal voting “was considered by some to be the UK’s main electoral vulnerability and to provide the ‘best’ opportunity for electoral fraud… Evidence was presented of pressure being put on vulnerable members of some ethnic minority communities, particularly women and young people, to vote according to the will of the elders… the possibilities of undue influence, theft of postal votes and tampering with them after completion were all still risks.” The government responded by saying it would consider the recommendations on postal voting.

Presumably the government (by then a Conservative one) did consider the recommendations. It evidently decided it wanted more postal voting anyway. Probably that was to get the pensioner vote.

However something changed in the 2024 election that I speculate might lead Labour to fall out of love with postal voting. Of course Labour won that election with a massive majority – but there were some nasty surprises for individual Labour MPs, many of them quite prominent.

Wes Streeting, the Secretary of State for Health, had a majority of 5,218 in the 2019 election. His majority in the 2024 election was 528. The person who came near to unseating him was a Muslim Independent who campaigned on the issue of Gaza.

Shabana Mahmood, the Secretary of State for Justice, had a majority of 28,582 in the 2019 election. Her majority in the 2024 election was 3,421. The person who came near to unseating her was a Muslim Independent who campaigned on the issue of Gaza.

Jess Philips had a majority of 10,659 in the 2019 election. Her majority in the 2024 election was 693. The person who came near to unseating her is a Muslim member of George Galloway’s Workers Party who campaigned on the issue of Gaza.

Jonathan Ashworth had a majority of 22,675 in 2019. His constituency was considered a safe seat for Labour, but he lost it in 2024 to a Muslim Independent who campaigned on the issue of Gaza.

There are several other similar examples.

Labour knows full well that its current majority is a mile high but an inch thick, as the saying goes. If Reform eats the Tories, or vice versa, I think that Labour will look with fresh eyes at the issue highlighted in that 2016 report:

Evidence was presented of pressure being put on vulnerable members of some ethnic minority communities, particularly women and young people, to vote according to the will of the elders.

Why do so many want to believe that violent protest works better than peaceful protest?

What makes one protest movement succeed and another fail? An article by Helen Pearson in today’s Guardian called “Stand up and be counted: six ways to protest that will make your voice heard” attempts to give a factual answer to that question.

Among its conclusions is this one:

A body of research shows that non-violent protests appear more effective than violent ones. “That’s one of the most robust findings,” says Mueller, who published a handbook for activists this year (The New Science of Social Change: A Modern Handbook for Activists). But when authorities violently repress protests, it backfires and appears to strengthen movements.

Omar Wasow, a political scientist at the University of California, Berkeley, saw this in a study of the 1960s US civil rights movement. He found that when protesters were violent, it prompted news stories focused on crime and disorder, and shunted votes to the Republican party, which was viewed as promoting law and order. A wave of violent protests after Martin Luther King’s assassination in April 1968 even tipped the election to Republican Richard Nixon, Wasow concluded.

“Violent protests provoke a reaction in favour of law and order” seems an obvious point to make – though it never hurts to have some facts and figures to back up the obvious, as the work of Omar Wasow provided. In 2025 Wasow’s findings would be not be deemed controversial by most on the Left or the Right.

Not so in 2020. I knew that name “Wasow” was familiar. A little Googling found me this article by Matthew Yglesias from July 2020, writing in Vox:

“The real stakes in the David Shor saga”

On May 28, David Shor, a political data analyst, sent a controversial tweet. Soon after George Floyd’s death, alongside peaceful mass protests there was a substantial amount of looting and vandalism in Minneapolis and a few other cities. Shor, citing research by Princeton political scientist Omar Wasow, suggested that these incidents could prompt a political backlash that would help President Donald Trump’s bid for reelection. At the same time, he noted that, historically, nonviolent protests had been effective at driving political change “mainly by encouraging warm elite discourse and media coverage.”

The tweet was characterized as “concern trolling” by the podcast host Benjamin Dixon, while Ari Trujillo Wesler, the impresario behind a popular organizing app, denounced it as “anti-Blackness.”

The following day Shor apologized for the tweet; shortly thereafter, he was dismissed from his job.

The crazy stuff didn’t end there:

. . . in fact, many Democratic Party professionals believe the backlash to his tweets was deserved. Indeed, though Shor has found a new job in progressive politics, one of the conditions of his employment is that he can’t reveal who’s hired him — lest his new employers face the same criticism Civis did. And all accounts of the internal situation at Civis confirm that clients and partners did in fact complain about him and his tweet to the company.

Shor’s tweet, as originally reported by Jonathan Chait, became a topic of discussion on the Progressphiles email list, a widely used networking list for progressive data operatives, and he was soon kicked out of the group. The group’s moderators described Shor’s tweet as “racist” and the criticism he got on Twitter for it as a “much deserved call in.” They also alleged that by arguing with his critics on Twitter, he had “encouraged harassment that led to death threats.”

Shor’s so-called “racist” tweet consisted of quoting factual research by a political scientist – one who is of mixed race himself. Shor’s aim in tweeting it was to help the Black Lives Matter protests and other Democrat causes be more effective. Why were the American Left in 2020 so desperate to believe that violent protest worked better than peaceful protest that they punished one of their own merely for pointing out the tactically useful fact that it did not?

Contemplating the errors made by one’s political enemies during a bout of insanity is fun and easy. It is much harder to spot the errors made by one’s own side due to it currently being the one with its fingers stuck in its ears chanting “La-la, I can’t hear you”. Any suggestions as to what People We Like are currently refusing to see?

In a disaster do not turn away help just because the helper is motivated by profit

Russell Roberts wrote this essay yesterday in response to the devastating fires in Los Angeles: “Profits versus Love”

A few years back we thought about building a deck or a porch on the back of our house. But we decided against it when the estimates started coming in. They were about double what the architect had told us it would cost. Double! Had the architect misled us as a way of encouraging us to proceed with the project? No, six months earlier the Mississippi had overflowed its banks and destroyed a lot of houses in the St. Louis area. Carpenters and builders had no time to build a back porch or a deck. They had bigger fish to fry. To get them to build a porch, you had to pay a premium.

We delayed the project for a couple of years, and prices came down. That delay was an example of the hidden benefit of high prices. When prices are high, the least-urgent projects get delayed, freeing up resources for more urgent projects. The porch just isn’t worth it. So the wood I would have used instead gets set aside to rebuild a washed-away house. The carpenter I would have kept busy now works on building that new house.

As you may have noticed, my claim that Russell Roberts wrote that essay yesterday was a lie. He wrote it twenty-one years ago in 2003. Unfortunately it might as well have been written yesterday because some people never learn. On 12 January 2025 the Governor of California, Gavin Newsom, tweeted about measures he is taking in an effort to help the victims of the fires:

NEW: Just issued an Executive Order that will allow victims of the SoCal fires to not get caught up in bureaucratic red tape and quickly rebuild their homes.

We are also extending key price gouging protections to help make rebuilding more affordable.

The responses are full of people making the obvious point about red tape. A lady calling herself “Orange County MAGA” says, “So you’re saying California has too much bureaucratic red tape? Gee, if only there was an elected leader who we could call…”

Criticism of Newsom’s “price gouging protections” is much rarer, despite the harm they do being more immediate and severe than the long-term harm done by excessive building regulations. That is par for the course. Patrick Crozier’s post from 2015, “People are ignorant about economics”, contains this anecdote from Mike Munger:

…there was a hurricane in Raleigh, North Carolina. The roads were blocked, there was no electricity and there was a shortage of ice.

Ice may not sound that important but it is. Not only does it help to preserve food but it also helps to preserve some medicines like, for instance, the insulin needed by diabetics.

Some “yahoos” – Munger’s term – saw an opportunity to make money. They got themselves a truck, loaded it with ice and some chainsaws and proceeded to drive towards the centre of Raleigh. If they found the road in front of them blocked they chopped up the fallen trees and carried on.

When they got to the centre of town they started selling the ice. Usually, ice sold for $2 a bag. They were selling it for $12. Very soon a queue appeared. Then the police arrived. Citing price-gouging laws they arrested the men and impounded the truck.

And here’s the kicker: as the truck was towed away the people in the queue applauded the police.

Here are some more posts from the Samizdata archives about how “price-gouging” helps people hit by natural disasters:

As Hurricane Milton makes landfall, a reminder about price-gouging

“The good news,” Cuomo said of the promised 12 million gallons, “is it’s going to be free.”

A Quote of the Day from Tim Worstall

Or check out the entire discipline of economics.

Yes, it does seem Labour wants to be a 60s, or even 70s, tribute act

On 14 June last year, just prior to the UK General Election, I noticed parallels between the Labour Party and its stated aims and how matters unfolded after that party won power in 1964 under Harold Wilson.

An important event was the sterling crisis of 1967. And this week, we read of how the yields on UK government bonds (gilts) have soared – which means investors are far less confident in the country’s creditworthiness. UK Chancellor of the Exchequer, Rachel Reeves, now dubbed in certain quarters as “Rachel from Accounts” due to her questionable background details, is in China at the moment (interesting destination), and there is talk of how the UK might need to be bailed out by the IMF as it was in 1976. Even if this does not come to pass, the descent of this government has taken place with tremendous speed. We could be headed for a sterling and government debt crunch; there is widespread and justified anger about its handling of criticisms about the “grooming gangs” saga; the questionable decision to hand over the Chagos Islands in the Indian Ocean to Mauritius looks worse by the day; the government is going after private schools and educational rigor more generally; one in five working-aged adults are economically inactive….and on it goes.

We are not out of the first half of January yet. “Hard pounding, Hardy”, as Nelson said at the Battle of Trafalgar.

 

 

Samizdata quote of the day – material equality edition

“The legitimacy of altering social institutions to achieve greater equality of material condition is, though often assumed, rarely argued for. Writers note that in a given country the wealthiest n percent of the population holds more than that percentage of the wealth, and the poorest n percent holds less; that to get to the wealth of the top n percent from the poorest, one must look at the bottom p percent (where p is vastly greater than n), and so forth. They proceed immediately to discuss how this might be altered.”

Robert Nozick, noting how the presumption of equality of wealth as a just default position is widely held and rarely challenged head-on.

Anarchy, State and Utopia, page 232. The book’s second section, in which Nozick demolishes egalitarian ideas about equality and what he calls the “patterned” approach to justice in holdings, is in my view the best bit of the book, and enduringly influential on many classical liberals, libertarians, etc, to this day. The book was published in 1974, and Nozick was a Harvard academic at the time. (Proof that the 1970s was in some ways a fertile time for good ideas, and Harvard was in better shape than today.)

Samizdata quote of the day – Musk & Milei’s cult of disruption

“But there is a limit to how much we can gain from a combination of long-term reforms and controlled disruption. The deeper problem with the public sector is not the people who run it but the people who use it. The combination of an ageing population and a stagnant economy means that a growing number of countries can no longer afford the largesse of the post-war era. And the only viable long-term solution to this problem (barring a productivity miracle) is to cut big entitlements rather than to pretend that we can force the public sector to produce miracles. What really needs to be disrupted is not so much the workings of government as the public’s expectations.”

Adrian Wooldridge.

How to solve the debt crisis

As most of us are aware the almost all Western governments are living beyond their means. Every year they spend more than they raise and their debts spiral ever upwards. But there is a solution: ask the voters. Here is how it would work:

  1. On his birthday the voter is asked what he would like the government to spend its money – sorry ill-gotten gains – on.
  2. The voter gets to select from the departments of state: defence, interior, health, education etc.
  3. At the end of the month the selections of all the voters who have responded are totted up and government revenues for that moth are divided amongst government deportments in proportion to how many voters have selected them.

At a stroke:

  1. Spending and revenues are brought into line.
  2. Voters cannot complain that the government isn’t spending enough on such and such because it is in their power to do something about it.
  3. If it becomes apparent that a department has too much money (or too little) then that will (one hopes) become public knowledge and voters will change their selections accordingly.
  4. There will no longer be interdepartmental rows over spending. It is taken out of the hands of politicians.
  5. Departments would have a strong incentive to keep waste to a minimum. If it becomes known that they are being wasteful, voters are likely to move their money to a different department.

I can see some objections/issues:

  1. How should voters make their preferences known? In person? By mail? Should the voters get one vote or several? 90% of me wants to spend on defence but 10% wants the money spent on prisons.
  2. War. If a war starts it could take a while for the state to get on a war-footing. About a month but I would guess there would be provision for such an emergency.
  3. Publicity. Humans being humans and politicians being politicians, there will be great competition between departments for voters’ favour. Would there be a danger of advertising budgets getting out of hand? If advertising was banned what else might politicians get up to?
  4. Revenue is lumpy as are birthdays. The government does not raise the same amount every month and birthdays are not evenly distributed throughout the year. This could have some interesting effects.

Down with the hoarders!

Will Hutton: “Farmers have hoarded land for too long. Inheritance tax will bring new life to rural Britain”.

“Inheritance tax springs from the universally held belief that society has the right to share when wealth is transferred on death as a matter of justice.”

It is not universal.

“This is not confiscation, especially if the lion’s share of the bequest is left intact.”

It is confiscation.

“It is asking for a share.”

It is not asking.

When they say the type of future they want, believe them

Someone tweeting under the name of “Lyndon Baines Johnson”, a supporter of Kamala Harris, explains how he would like a Harris administration to deal with technological innovators:

Lyndon Baines Johnson
@lyndonbajohnson
If Harris wins, fairly high on the agenda should be finding new federal contractors so that SpaceX and Starlink are shown the door. -OS
8:05 PM · Nov 3, 2024

For all his grievous faults, the actual LBJ would have known how to describe that proposal in a few choice words. He wanted the Apollo program to succeed.

Samizdata quote of the day – what we “deserve” in our working lives edition

“The necessity of finding a sphere of usefulness, an appropriate job, ourselves is the hardest discipline that a free society imposes on us. It is, however, inseparable from freedom, since nobody can assure each man that his gifts will be properly used unless he has the power to coerce others to use them. Only by depriving somebody else of the choice as to who should serve him, whose capacities or which products he is to use, could we guarantee to any man that his gifts will be used in the matter he feels he deserves. It is of the essence of a free society that a man’s value and remuneration depend not on capacity in the abstract but on success in turning it into concrete service which is useful to others who can reciprocate. And the chief aim of freedom is to provide both the opportunity and the inducement to insure the maximum use of the knowledge that an individual can acquire. What makes the individual unique in this respect is not his generic but his concrete knowledge, his knowledge of particular circumstances and conditions.”

– F. A. Hayek, The Constitution of Liberty, pages 80-81.

With yesterday’s revolting annual Budget statement from the Labour government still ringing in my ears, I thought a bit about how this lot treats ideas of “merit” and what is considered “unearned” wealth. For instance, one aspect of yesterday’s measures from Chancellor Rachel Reeves is to add a deceased spouse’s pension pot to inheritance tax (threshold starts at £325,000); IHT is 40 per cent. Any money paid out from the pension will be hit, subject to certain conditions, at 45 per cent for top-rate taxpayers – an effective rate of 67 per cent. This sort of move stems from the idea that certain people don’t “deserve” to inherit X or Y, and must pay their “fair” share to the Moloch of the State. I urge people to read Hayek’s masterpiece, not least for its dissection, and demolition, of much of the argument put forward about why certain wealth is “unearned”, and why we should be paid according to some social formula of merit. That way totalitarianism lies.