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]
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I have read that in the days when newspapers still used metal type, the compositors used to keep commonly used headlines ready-formed. The Bloomberg headline below would require only the substitution of the appropriate country name to work for anywhere in the world in any decade since governments came to vex mankind:
How Rent Controls Are Deepening the Dutch Housing Crisis
A law designed to make homes more affordable ended up aggravating an apartment shortage.
Two years ago, Nine Moraal and her two children moved into a one-bedroom flat near the Dutch city of Utrecht, a comfortable spot close to family and friends. Although she had only a two-year lease, she expected to be able to extend it and stay until she could get one of the Netherlands’ many rent-controlled apartments.
But last spring, her landlord told her she’d have to move out in November, because renting the flat was no longer profitable. Despite “frantic efforts on social media, phone calls, visits to realtors and housing agencies,” the 33-year-old educator says she hasn’t found anything. “The cost isn’t the problem, but a real shortage of housing is.”
Moraal is among the growing number of Dutch people struggling to find a rental property after a new law designed to make homes more affordable ended up aggravating a housing shortage. Aiming to protect low-income tenants, the government in July imposed rent controls on thousands of homes, introducing a system of rating properties based on factors such as condition, size and energy efficiency. The Affordable Rent Act introduced rent controls on 300,000 units, moving them out of the unregulated market.
[…]
ASR Nederland NV, which owns about 15,000 apartments across the country, has called on the government to rethink the measure. Almost its entire portfolio was shifted into the regulated segment on July 1, spurring it to abandon plans to purchase more rental properties, says Jos Baeten, ASR’s chief executive officer. “There are other investment categories that are more appropriate,” he says.
One provision of the law bars short-term leases, instead requiring all contracts to be open-ended. Some in the industry suggest the change will encourage landlords to prioritize foreigners, who are more likely to move away after a few years, giving owners more flexibility.
Emphasis added. That’ll go down well with the PVV, currently the largest party in the Dutch House of Representatives.
I have seen the light. The man who convinced me of the truth of MMT was someone called Daron Medway, who replied to a tweet by Richard Murphy that said,
The government can never run out of money https://youtu.be/2m3BXdkDJYI?si=cjSA5MJ5AcDWkKgJ
Politicians, commentators and journalists all like to claim that the UK government could run out of money, but that is total nonsense. The UK government can always create the money it needs to pay its debts. It is the one and only organisation in the UK that can never, as a result, run out of money.
with this extremely persuasive point:
This is great! I guess I can keep all of mine then?
The following article comes from Paul Marks, regular commenter here. Thomas Paine (author of Common Sense, The Age of Reason, and others) is someone who, at one point, would have been as familiar to an American or Briton of decent reading as, say, the Founders, or a character such as Davy Crockett or Daniel Boone. Paine’s books were read as avidly as any social media post today, and were arguably far more influential and profound. Paine was immensely influential in his time. But he had serious flaws in his views, as Paul Marks argues, and was foolish in the extreme about the French Revolution and where it might lead. He ended up nearly losing his life in France.
Another person who wielded great influence in the ideas of the Founders was John Locke, the English writer. Views such as the idea that Man is a “self owner”, for example, and of how property legitimately comes into existence, are often associated with Locke.
I can recommend this book by Yuval Levin, comparing and contrasting Edmund Burke (who supported the American colonists in their bid for independence), and Paine. See also this book about the Founding by Timothy Sandefur, which readers might enjoy. And one more is America’s Revolutionary Mind, by C Bradley Thompson.
Of course, this sort of topic might appear “arcane” to some, but at a time when the Founding, and the the origins of the greatest free nation on earth, are sometimes questioned and even attacked, it is never a waste of time to re-visit the territory and learn new lessons.
Anyway, over to the “Sage of Kettering”:
Thomas “Tom” Paine is mocked for holding that it was wrong for monarchies to have fiat money (rather than gold and silver coin), and high taxes and lots of government spending – but just fine for democratically elected governments to-do-the-same-things. His position was indeed absurd – but what was the source of his specific economic position that high taxes, specifically high land taxes, should fund lots of benefits, education for the poor, old age pensions, money for the poor generally – and-so-on?
Well Adam Smith implied there was something special about land taxation – and David Ricardo and Henry George developed this idea long after the death of Mr Paine – and the idea was not fully refuted till the American economist Frank Fetter just over a century ago, although experience in Ireland in the 1840s where the British government tried to run the Poor Law welfare schemes by a land tax, assuming that this would just hurt “the landowners”, should have discredited the idea that taxing land is somehow special – in Ireland the economy totally collapsed and between a quarter and a third of the population either died or fled the country. But there is more to all this than just taking a few, false, hints from Adam Smith and running wild with them.
As far back as John Locke there was a mixing (by slight of hand) of individual consent and majority consent. Gough (Oriel Oxford about 70 years ago now) showed in his book on Locke that medieval thinkers understood the difference between majority consent and individual consent – and that Locke, in his “Two Treatises on Government” mixed them up – in order to imply that a government is not coercive if it has majority support, that you as an individual are not being coerced, no matter what government does to you, if you had a vote – if only one vote out of millions (a doctrine that makes no sense – but a doctrine that both Mr Paine and Rousseau before him, later ran wild with).
Nor is it just the political side – there is also an element of economic thinking that Mr Paine may (perhaps) have taken from John Locke. Locke held, contrary to Hugo Grotius (the Dutch theologian and legal thinker) and other theologians and legal thinkers, that God gave land (the world) to humanity in-common – rather than land being unowned till claimed (the Roman or Common Law position).
As Locke held (by his interpretation of the Book of Genesis in the Bible – thinkers such as Hugo Grotius held to a very different interpretation) that the land was originally given to humans in-common, he held that private ownership had to be “justified” – either by “as much and as good left for others” (clearly impossible with a rising population) or by some sort of payment to meet the “Lockian Proviso” – see how Mr Paine might get the idea of a land tax and various benefits funded by it, from this position of John Locke? Although, yes, Thomas Paine rejected Christianity – and it was from his interpretation of Christianity (opposed by many other Christian thinkers) that Locke got his ideas, in this area, from.
John Locke even held that if a ship’s captain with a cargo of food refused to sell it in a port where there starving people, seeking a better price at another port, the captain was “guilty of murder” – seemingly oblivious to the fact that this would (given there have always been hungry people in some part of the world) bid the price of food down to zero, bankrupting not just the captain – but also the farmers. It is also just legally wrong – as the captain may (may) be a very morally bad person (lacking in the virtue of charity – mercy), but he is NOT “guilty of murder” as any lawyer (of either English Common Law or Roman Law) could have told Mr Locke.
So, in all this, if (if) ideas are developed in a certain way it is quite possible to go from John Locke (supposedly the founder of English liberalism) to the Collectivism of Thomas Paine or even Rousseau – and of the French Revolution rather than individual private property based American Revolution. This is one of the reasons why American Founding Fathers such as Roger Sherman and John Adams were so opposed to Thomas Paine.
I get the daily posts from the Law & Liberty blog, and this struck me as interesting, because of the preamble:
Dozens of start-ups now offer Artificial Intelligence tools to help businesses set market prices. Assuming unlimited computing power to run such models and comprehensive data sets to train them, can AI replicate the way human actors make decisions in the marketplace? Socialists have argued for more than a century that enlightened bureaucrats can set prices as well as the myriad of private actors in the marketplace. Ludwig von Mises offered a celebrated refutation of the socialist case. Does the vast computing power behind Large Language Models give new life to the socialist argument? The answer is no, but Mises’ argument needs to be updated and sharpened.
The author of the article, David P Goldman, goes on to explain the problem. As the article is free to access, I won’t reproduce other paragraphs here apart from the two final ones:
AI can’t replace the innovative creativity of entrepreneurs. On the contrary: AI itself is an innovation whose outcome is uncertain. Some applications (replacing human beings on corporate help desks, for example) may turn out to be trivial; others, for example devising new pharmaceuticals, may be revolutionary. Only in an imaginary world in which no innovation occurs could we envision an AI-driven marketplace.
Artificial Intelligence isn’t intelligence in the first place. It can replicate the lower-order functions of the human mind, the sorting and categorizing faculty, and perform such operations much faster than humans. But it cannot reproduce the higher-order functions of the mind—what Immanuel Kant called Vernunft (roughly, critical reason) as opposed to Verstand (usually translated as “understanding”). It can mine data from past experience, but it can’t stand at a distance from experience and ask, “What if we did things differently?” Freedom is the freedom to create, and that is what free societies must preserve.
This seems right to me. I think AI is going to produce marvels, but I don’t see it removing the need for boldness, risk-taking and ability that all great businessmen have to “look around corners”. To ome extent I am a techno-optimist, as the likes of Marc Andreessen, the US venture capitalist, is. But I am not, I hope, Panglossian, or the opposite of a perma-doomster, either.
It is also interesting to consider how governments, for example, might seize the idea that AI makes it possible to co-ordinate human activity in ways that eliminate all that pesky free market exchange and messy entrepreneurship. This line of thinking resembles the view of certain science fiction writers who tried to imagine a post-scarcity world. (Science fiction often contains lots of economics, as this article by Rick Liebling shows.) Eliminate the idea of scarcity, so the argument runs, and then the underlying foundation of economics – “the study of scarce resources that have alternative uses” – falls away. It is easy to see the utopian attractions if you like to mould humanity to your will. I mean, what could go wrong?
Eliminate scarcity, then who needs enforceable property rights and rules about “mine and thine”?
In a post-scarcity world, where will the sense of urgency come – the sense of adventure, that drives great businessmen to create and innovate to push back against such scarcity? (This is also the fear that some might have of universal basic income – creating a world of indolent trustafarians who, like a couch potato, suffer muscle loss and mental decline because they don’t have to work or struggle to build anything.)
Karl Marx dreamed of a post-scarcity world – that seems the logical end-point of his communist utopia, to the extent he fleshed it out at all. (The irony being that his ideas helped inspire some of the greatest Man-made famines and loss of life in recorded history, in part because of the failure to understand the importance of property, prices and incentives.)
I am sure that some of this post-scarcity thinking might be encouraged by AI. But then again, AI uses a lot of electricity, and even without the distractions of Net Zero (no laughing in the class, people), producing the power necessary for modern high-potency computing requires a lot of stuff. And mention of science fiction reminds me of the “There Ain’t No Such Thing As a Free Lunch” that came from Robert A Heinlein, and later taken up by Professor Milton Friedman.
“Economics without price theory is knowledge without wisdom. Any economist can analyze data to estimate how many lives you’d save by requiring car seats for toddlers on airplanes. It takes a price theorist to ask how many lives you’d lose when the resulting increase in airfares prompts families to drive—which is far more dangerous—instead of fly. Price theory breeds wiser policymakers and wiser voters. If we fail to teach it, that’s a tragedy.”
– Steven E. Landsburg
The first piece is how pensions work, and what’s gone wrong with them. In our state pension (I’ll say a little about private schemes at the end), we don’t “save up for our retirement”. When we started the system after the war, we needed to pay retirees immediately. Pensions have therefore always been met each month out of taxes paid by workers that month. At any given moment, there is only a week or two of funds in the government’s “State Pension account”.
While that arrangement solved an immediate problem, it created an enormous structural problem. When the pension scheme was started, life expectancy was about 68. Now it’s about 82. And birth rates started falling in the 1960s, meaning that more and more pensioners incomes are being funded by fewer and fewer workers. The result is that the average person born in 1956 now takes out around £290,000 more in retirement income than she paid over her working life.
The plan for addressing that problem was to grow the economy each year by an amount sufficient to generate enough tax receipts to keep funding the expanding retirement bill. And for most of the 20th century, while we benefitted from a global hydrocarbon and nuclear energy system that for decades doubled in size every 7 years, that plan worked.
“Net Zero” puts an end to that.
– Richard Lyon
As I keep saying jobs are a cost not a benefit. We do not want to go around the world – or even our own country – creating costs now, do we?
No, no, jobs really are a cost, they are not a benefit. Think on it. We have some amount of human labour available to us. So, if we use that labour to do this thing here then we cannot use it to do this other thing over there. The cost to us of using the labour to do this thing is therefore losing the opportunity to do that other thing over there.
Yes, I know, people like to be able to consume. For most of us that means having an income with which we can purchase our consumption. But even to us that job is a cost. The work we’ve got to do is the cost of gaining the income. And, obviously, a job is a cost to the employer – the production is what they desire, the job is a cost of gaining it.
It’s entirely true that renewables require more human labour than other forms of energy collection and or generation. But that means they make us *poorer*.
– Tim Worstall
The count through the night after British elections makes great TV. What could be more juicy than thrusting a microphone into the face of someone who has just made their concession speech and asking them how they feel? ITV’s election coverage roped in a lot of ex-politicians who had been there themselves to carry out this task, including two former Chancellors of the Exchequer, one Labour and one Conservative, Ed Balls and George Osborne. The two former rivals seemed very pally. As is the custom, they interviewed both the winning and the losing candidates in various constituencies just after the results were announced when emotions are at their most raw.
So, in the early hours of Friday morning, Steve Baker was standing in Stoke Mandeville Stadium where the Wycombe count took place, having just lost his seat to Labour, being quizzed by a visibly gloating Ed Balls. Baker talked about three factors that got him into politics, all of which had been presided over by the government of which Balls was a part: Extraordinary Rendition, Labour bringing forward the Lisbon Treaty to avoid having a referendum on the Constitution for Europe, and “that your government rode an enormous credit boom within which the money supply tripled, leading into the global financial crisis”.
Chuckling, Ed Balls said, “Goodness me, Mr Baker, I have to say, y’know, it’s 2024. You’ve just lost your seat in your constituency. You’ve sort of thought of three different things which all happened over seventeen years ago. Are you maybe in denial?”
Freed of the obligations of being a minister, Baker’s response did not spare either the Labour or the Conservative Chancellor:
“You know as well as I do that these big treaty changes with the European Union, and indeed the monetary system post-Bretton Woods, is fifty years old – and it’s now breaking down. And I’m afraid you and George are as bad as each other on this particular score. Neither of you have ever really understood monetary economics and I’ve wasted a lot of breath in the House of Commons trying to explain to George in particular what was going on, and the kind of injustice it was manufacturing. Well, much good did it do everybody. And now, with the nation seething with a sense of injustice, economic injustice – of course they are; they can’t afford house prices if they are young! Why? Because cheap credit was pumped into a housing market in which supply was constrained by planning laws, about which neither of you did anything. So, you know, at last, as I say, I’m free, thank God.”
Commentators as varied as the financial journalist John Stepek, the IEA’s Reem Ibrahim, and the very left wing Aaron Bastani have reposted Baker’s reply. As Stepek said, “Sorry but @SteveBakerFRSA is mostly, perhaps entirely correct in his analysis here. And the smug reaction – ridicule, not to mention the extraordinary notion that 17 years ago is ancient history with no bearing on the current situation – exemplifies why voters are fed up”.
No Parliament can repeal the laws of economics. Whilst, to quote Hirohito ‘We must endure the unendurable.‘, there is a real Prester John in the faraway land of Argentina, where a zero weekly inflation rate in food prices has been registered for the first time in 30 years, and a truly libertarian President is doing great things.
So let us adapt and cherry-pick the words of Winston Churchill:
‘…And even if, which I do not for a moment believe, this island or a large part of it were subjugated and starving, it will carry on, until, in God’s good time, the New World, with all its power and might, steps forth to the rescue and the liberation of the Old…‘.
But if that doesn’t come to pass, it will just be more of the same, faster, until what can’t carry on any longer, doesn’t.
…the Guardian’s website is thataway. Honestly, they are usually very good at this sort of thing, although even their best writers would struggle to inject much tension into this episode. Before I head up the wooden hill to Bedfordshire, I shall raise a glass to the humbling of the Scottish National Party and to whichever stubborn old reactionary kept British votes retro.
JD Tuccille articulates, brilliantly, one of the main reasons I am a classical liberal who belives in limited, constrained and small government:
But it’s easier to reconcile a fading, honesty-challenged presidential candidate with a desire for “a smaller government providing fewer services” than it is to credibly claim that an even more badly eroded politician and his unethical minions are exactly the sort of folks you want presiding over an all-powerful state. Frankly, a healthy cynicism about the competency and the decency of government officials is a credible response to what was on display on Thursday evening when Biden spent 90-plus minutes demonstrating that he and his supporters had been lying about his mental and physical fitness to not only run for a second term, but to carry out the duties of office right now.
The idea of an all-powerful, benevolent Daddy federal state is a lot harder to sustain if it appears the head of it is not playing with a full deck of cards, or even knows he’s in a casino.
And if Trump’s comparatively less-bad performance still didn’t fill you with confidence that he’s a person you want presiding over a bigger, more activist government, that’s the appropriate take, too. He didn’t face-plant like his opponent, but the former president gave us every reason to believe that, under his control, a smaller, less-involved government is preferable for reasons ideological, practical, and involving self-preservation.
Exactly. Let’s not forget that the size of the federal debt did not shrink under Mr Trump. And he’s no Calvin Coolidge. Alas.
The final paragraph is right on the money:
The belief that government should do more, provide more, and embrace us all in a warm and nurturing embrace requires an enormous leap of faith. At the least, those exercising such vast power must be wise and well-intentioned. As last week’s debate reminded us, that’s a wildly unrealistic assumption.
It appears too few in the commentariat seem to join the dots between the “aren’t the presidential candidates/political classes awful?” with “and perhaps we should constrain government and make it do less” sort of viewpoint.
I wonder how much the Founders thought about the problems of an ageing president who was losing his mind, of an opponent such as Trump, and other sort of characters, when they composed the architecture of the republic, with its checks, balances and principles. But at times like these, all the abuse that gets thrown at the Founders (some of them kept slaves, etc) needs to be put in context, and that people should be grateful for their wisdom and understanding of the need for government to be restrained. We could use a bit of that mindset around the world.
“Teenagers could lose bank accounts and driving licences for snubbing national service, Rishi Sunak says”
Despite everything, I will vote Conservative in this election, because my local MP is Kemi Badenoch, of whom I approve. But what a silly party the Tories have become.
I had my say about their proposal to reinstate conscription a month ago in this post: “A press gang there I chanced to meet”. I am honestly amazed that the proposal is still alive as anything other than a guaranteed laugh line for Radio Four comedians. It seems I was wrong: the prime minister still maintains this is something he will do after his surprise election victory. OK, let’s run with that. If he thinks that it would be a good thing for the state to compel British youth to spend a year in the army or “volunteering” (yes, they really do call it that) in the community, why does he evidently not trust the legal mechanisms of compulsion that the state evolved over centuries to enforce it?
Taking away people’s driving licence is an arbitrary punishment. For one young draft-dodger living in the country it might come as a disaster, for another convicted of the same crime but living in a major city with good public transport, it would be no more than a mild inconvenience. A young person who could not drive in the first place would laugh in the faces of the enforcers. Did we not once have some sort of legal system to iron out inconsistencies like that?
Another thing, I could have sworn we used to have this idea that a driving licence was issued when a person had demonstrated he or she could safely operate a motor vehicle on the public highway, and could be revoked only if that person drove dangerously. If it can be revoked for offences that have nothing to do with driving, trust in the whole system of licensing is damaged.
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Who Are We? The Samizdata people are a bunch of sinister and heavily armed globalist illuminati who seek to infect the entire world with the values of personal liberty and several property. Amongst our many crimes is a sense of humour and the intermittent use of British spelling.
We are also a varied group made up of social individualists, classical liberals, whigs, libertarians, extropians, futurists, ‘Porcupines’, Karl Popper fetishists, recovering neo-conservatives, crazed Ayn Rand worshipers, over-caffeinated Virginia Postrel devotees, witty Frédéric Bastiat wannabes, cypherpunks, minarchists, kritarchists and wild-eyed anarcho-capitalists from Britain, North America, Australia and Europe.
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