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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Sovereign Wealth Funds (SWFs) controlled more than $11.8 trillion in 2023, beating hedge funds and private equity firms combined, up from $1 trillion in 2000. State-owned enterprises (SOEs) had assets worth $45 trillion in 2020, the equivalent of half of global gross domestic product, up from $13 trillion in 2000. The Organization for Economic Cooperation and Development calculates that half of the world’s 10 biggest companies and 132 of its 500 biggest are SOEs. The state is not only back. It has burrowed into the heart of the capitalist economy — running companies (often across borders) and shaping capital markets.”
– Adrian Wooldridge, Bloomberg ($)
I would argue that this issue is as big, or more serious, than the usual complaint that boards of large, mostly listed, companies have gone “woke”. Because as we have seen, as interest rates have risen to curb inflation, some of this wokery has gone into retreat. But sovereign wealth funds are a different kettle of fish. With a few exceptions (Norway), nearly all the countries operating SWFs are commodity-rich autocracies, such as those of the Gulf, of varying levels of opacity. As Wooldridge says, this creates a big problem because the healthy “creative destruction” of free market capitalism cannot so easily work its brutal, if necessary, magic.
Recently, there was an attempt – since thwarted, as far as I can tell – by an Abu Dhabi-backed fund to buy the Telegraph Group, owner of titles including the Spectator and the Daily Telegraph. That caused a political storm. But many other acquisitions, such as of ports, sports clubs and infrastructure, go on and are routine.
A question I have is whether the current Labour government, full of managerialist/statist types with no feel for entrepreneurship and the healthy ups and downs of capitalism, will be tempted to do something similar, although the UK, unlike the oil-rich potentates of the Gulf, is short of funds. But even so, the Starmer government might be tempted, maybe in concert with other countries, to try and get into the state capitalism act. It is probably already doing so.
The question is whether any of the opposition parties have the fortitude and discipline to mount a coherent takedown of all this, and perhaps join it with a similar assault on the growing spread of the “administrative state”. In many ways, the rise of this state, and SWFs, are part the same, troubling trend.
“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
The foreign ministers of Australia, Japan, India and the US issued a joint statement after the massacre, saying ‘We underscore the need to prevent the conflict from escalating’. Likewise, Britain’s foreign secretary, David Lammy, has said ‘we are deeply concerned about the risk of further escalation’. These are warnings to Israel, aren’t they? These powerhouses of Western diplomacy, with their noisy teeth-gnashing over ‘escalation’, are essentially telling Israel to chill out. Indeed, one US security analyst told the Guardian that ‘the most pressing task for US officials’ is to ‘delay any Israeli retaliation’ in order that we might ‘achieve de-escalation’. Relax, Israel – it’s only 12 kids.
– Brendan O’Neill
“How will the service rebuild in the wake of its catastrophic failure? The agency might argue that it is striving to bulk up, adding personnel needed to thwart assassins. On Monday, the Secret Service advertised two openings. The positions could be found at the U.S. government’s employment portal, USAJobs. Those hired will each be paid $139,395 annually. With what essential mission will they be tasked? Counter-sniping? Evasive driving? No. The title of both jobs is “Lead Public Affairs Specialist.”
– Eric Felten, Wall Street Journal ($).
The humorous writers and mockers of government idiocies, such as the late H L Mencken and P J O’Rourke, would have had much sport with this sort of story.
Ivory Coast and Ghana provide the bulk of the world’s cocoa crop. They’re getting richer, substantially so. Cocoa is a crop usually farmed by an old bloke and his machete, the plants spread through a few acres of forest. It’s labour intensive – which means that as the countries get richer they hit that servants/peasant problem. If it’s possible to make much more than being a cocoa farmer then why would people be cocoa farmers?
The answer, obviously, is as with everything else – mechanise it. Ah, but no one’s really worked out how to grow cocoa at scale, in the sort of plantations that are suitable for that sort of large scale mechanisation. As far as technology is concerned it’s still, really, a peasant crop. A peasant crop in places rapidly getting much richer.
In the long run choccies are going to get very much more expensive unless someone does work out that mechanised farming method. For the joyous and lovely reason that people are getting too rich to want to live like peasants any more.
– Tim Worstall
If we had fewer false assumptions, because we were able to connect discrete pieces of information up with their intellectual hinterlands and explain to ourselves coherently why they are likely to be true, the world would become much less “interesting “in this sense — you can’t be surprised by what you already know — but it would become more fascinating in quite another.
But perhaps a would-be technocrat like [Rory] Stewart doesn’t want you to do too much of that sort of thing — you might end up seeing through the soundbites. For all that he frequently says he wants a more intelligent kind of government, in practice he often seems uneasy with treating audiences as intellectual equals.
– Kathleen Stock
Over eight in 10 of the 113 temperature measuring stations opened in the last 30 years by the U.K. Met Office have been deliberately or carelessly sited in junk Class 4 and 5 locations where unnatural heating errors of 2°C and 5°C respectively are possible. This shock revelation, obtained by a recent Freedom of Information request, must cast serious doubt on the ability of the Met Office to provide a true measurement of the U.K. air temperature, a statistic that is the bedrock of support for Net Zero. Over time, increasing urban encroachment has corrupted almost the entire network of 384 stations with 77.9% of the stations rated Class 4 and 5, but it beggars belief that new stations are being sited in such locations.
– Chris Morrison
I used to quip that the only thing I believe on the BBC is the weather reports. Even that is no longer true.
“I’m not entirely sure what loving one’s body might mean, beyond the obvious off-colour jokes. But apparently, it’s something that one is supposed to proclaim as an accomplishment, a credential of progressivism. I have, however, noted that it tends to be announced by people whose declared triumph in this matter is not altogether convincing, and whose basis for doing so is generally much slimmer than they are.”
– David Thompson. As a take-down of nonsense, this article is brutal.
“After Butler, America has suddenly become a more Jacksonian nation. The shadow of Old Hickory looms larger than ever, and Donald Trump stands taller as his undisputed heir.”
– Walter Russell Mead, WSJ ($)
For those unfamiliar with the extraordinary politician and general, Andrew Jackson, check out this link for some biographies and studies.
In the end, what I would offer to anyone on either side of the Atlantic who thinks a new Trump administration would yeet the USA out of NATO on a whim is this; get out more. Actually talk to people on the natsec right. Get out of your intellectually onanistic terrariums. And for the sake of your larger credibility and sanity – do not think the America you read about in the NYT/WaPo and their derivatives, especially in an election year, is a reflection of the full reality.
Read broadly. Seek out a contrary opinion. Have reasonable discussions of substance. Don’t assume anyone who disagrees with you on policy is evil and the absolute worst version of their enemies’ caricature.
In the end, we all want the same thing, don’t we? Keep America in, the Russia out, and France & Germany down.
– CDR Salamander
Ever since their defeat, many Tories have been on the airwaves smothering themselves with comfort blankets. They’ve been saying Farage and Reform are merely a ‘protest vote’. Are ‘far right’. Are ‘not Conservative’. But actually the evidence does not support this at all. Reform, we already know, rallied an electorate that is socially distinctive —is mainly older, leans toward the working-class and non-graduates, and tends to be outside the cities and university towns. This makes it ‘sticky’, more likely it will stick to Reform in the years ahead. And in his post-election poll, Lord Ashcroft finds that most of the people who voted for Reform did so because they ‘preferred the promises made by the party I voted for more than the promises of other parties’, and ‘I trusted the motives of the party I voted for more than those of other parties’. This does not sound like protest to me. It sounds like a very instrumental vote rooted in sincere and coherent concerns about the country. Furthermore, the top issue for these voters is immigration and asylum, once again underlining their coherent worldview.
– Matt Goodwin
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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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