Quotulatiousness

July 26, 2016

The “international sporting event” in “a major city in Brazil”

Filed under: Americas, Law, Media, Sports — Tags: , , , , — Nicholas @ 03:00

Every four years, the world’s media turn en masse to a new location for the summer Olympic Games. This time around the games event is in Rio de Janeiro a major city in Brazil. I’d give more details, but the IOC is determined to reserve as much of that information to themselves and their official sponsoring media partners:

As the Olympic Games approach, the tension between athletes and non-sponsors with the United States Olympic Committee and the International Olympic Committee has ratcheted up once again.

In recent weeks, the United States Olympic Committee sent letters to those who sponsor athletes but don’t have any sponsorship designation with the USOC or International Olympic Committee, warning them about stealing intellectual property.

“Commercial entities may not post about the Trials or Games on their corporate social media accounts,” reads the letter written by USOC chief marketing officer Lisa Baird. “This restriction includes the use of USOC’s trademarks in hashtags such as #Rio2016 or #TeamUSA.”

The USOC owns the trademarks to “Olympic,” “Olympian” and “Go For The Gold,” among many other words and phrases.

The letter further stipulates that a company whose primary mission is not media-related cannot reference any Olympic results, cannot share or repost anything from the official Olympic account and cannot use any pictures taken at the Olympics.

This isn’t really a new or surprising thing, as we had warnings about any discussion of the “‘international sporting event’ in ‘the capital of the United Kingdom'” back in 2012. More recently, Toronto’s Pan Am Games organizers did the same sort of trademarks-out-the-wazoo-and-lawyers-on-speed-dial stuff over their 2015 international sporting event in ‘a large city in Ontario’.

If nothing else, it gives me an excuse to not blog anything about those every-four-years international corruption championships…

July 12, 2016

Mexico in WW1 – The Mexican Revolution I THE GREAT WAR Special

Filed under: Americas, History, Military, USA — Tags: , , , , — Nicholas @ 02:00

Published on 11 Jul 2016

The full text of the Zimmerman Telegram: https://en.wikipedia.org/wiki/Zimmerm…

Mexico was mainly focussing on internal struggles and the Mexican Revolution during World War 1. But Germany’s stance against the USA actually brought the country into the international spotlight. After the decoding of the Zimmerman Telegram, sent by the Germans to Mexico, was decoded it was clear that Germany wanted to bring Mexico into the war – against the United States.

June 27, 2016

Media fans of Chavez

Filed under: Americas, Economics, Media — Tags: , , — Nicholas @ 03:00

Theodore Dalrymple on the unfailing ability of some political pundits to not only be wrong, but to be proven wrong so completely and so quickly (and yet to seem unable to learn from the experience):

In 2000 [former literary editor of The Guardian, Richard Gott] wrote a book about Chavez that I thought startling in its adulatory idiocy. The Bourbons may have learnt nothing and forgotten nothing, but Gott was far worse than any Bourbon. Despite it being obvious that Chavez’s crude and demagogic economic notions were capable of producing a sand shortage in the Sahara, Gott saw in them a rainbow with a pot of social justice at the end of it. As late as 2012, Gott wrote an article in The Guardian with the title “Chavez’s economic lesson for Europe.” Its subtitle was “Hugo Chavez’s rejection of the neoliberal policies dragging Europe down sets a hopeful example.”

Chavez’s policy was simply to use Venezuela’s large oil revenues, in effect its unearned income, to subsidize the standard of living of millions of people, while at the same time antagonizing foreign and even domestic capital. Oddly enough, it did not occur to the learned author of the article that Greece, for example, had no revenues from a resource comparable to oil to distribute, though for a time borrowed money played the role of those oil revenues; nor that an economy utterly dependent on the price of oil was extremely fragile, and that to distribute largesse on the assumption that the price would remain high forever was improvident, to say the least.

The article ends as follows:

    Greece has a wonderful chance to change the history of Europe and to throw their caps of Bolívar into the air, as once the Italian carbonari did in Paris all those years ago. Lord Byron, who planned to settle in Bolívar’s Venezuela before sailing off to help liberate Greece, named his yacht Bolívar; he would certainly have been pleased with contemporary developments.

What this omits, apart from the chaos into which Venezuela has only too predictably fallen, is Bolívar’s own miserable end as a fugitive from what he himself had brought about, and his deeply despairing though splendidly lapidary last pronouncement: He who serves the revolution ploughs the sea.

It was never very difficult, even for persons such as I ungifted with foresight, to predict that Chavez’s so-called Bolivarian Revolution would end in tears, with shortages of practically everything and corruption on a Brobdingnagian scale. For any person possessed of the most minimal common sense, Gott’s own book about the Venezuelan mountebank provided enough evidence that this would happen. Gott’s economic utopia is a place in which everything for everybody is subsidized, and nothing has a real price. A cynic, said Oscar Wilde, is a person who knows the price of everything; a Gott is a person who thinks there should be no prices, and everything should be distributed according to everyone’s wishes.

But perhaps we should not be too hard on poor old Chavez and his Guardian acolyte, praise-singer, and sycophant. Chavez’s Bolivarian Revolution was only European social democracy writ large and loud, a tropical parrot to Europe’s more soberly plumaged crows. After all, what is most of Western politics about other than the size and distribution of subsidies, the state, as the great French economist of the 19th century, Frédéric Bastiat, put it (he is the only economist in the history of the world who makes you laugh on practically every page), the means by which everyone seeks to live at everyone else’s expense?

December 7, 2015

If not amnesty, then what?

Filed under: Americas, Government, Politics, USA — Tags: , , , , — Nicholas @ 02:00

At Coyote Blog, Warren Meyer cuts to the chase on the whole amnesty “debate” in US politics:

Mickey Kaus wonders why the GOP elite is still “clinging to amnesty” for illegal immigrants. I have the same thought every time I hear someone rail against “amensty”: What the f*ck else are we going to do? Put 12 million people in jail for violating immigration laws? Are we really talking about deporting 12 million people? Do you have any idea how ugly this will be? I don’t want to commit a Godwin’s Law violation, but rousting people — whole families — out of their homes at gunpoint and loading them up on trucks and trains to be shipped en mass somewhere else — does this sound like any other 20th century event to you? If you wanted to find some other precedent for this that was not the German shipping of Jews to Poland, what would even be close?

Looked at another way, the disastrous government and civil war in Syria has created, by UN estimates, 4 million refugees. At a stroke, do Republicans really want to create 12 million refugees?

October 29, 2015

For a change, a sensible trademark ruling

Filed under: Americas, Business, Cancon, Law — Tags: , , , — Nicholas @ 03:00

Timothy Geigner on a remarkably sensible trademark judgement from a BC court:

For this, we travel up to Canada, where a Federal Court judge presided over a trademark dispute between Pacific Western Brewing and Cerveceria del Pacifico over the branding of their brews. At issue was the labels on packaging for PWB’s Pacific Pilsner and Cerveceria’s Pacifico Clara. PWB argued at court that the branding and language was too similar and would confuse customers. Here are samples of each beer’s branding.

Pacific Pilsner vs Pacifico Clara Cerveza

So, yeah, other than roughly similar uses of the word “Pacific”, there’s not a whole lot of similarity here. Normally, this is about when we’d hold our collective breaths and wait to see if the court comes down with a sensible ruling based on the likelihood of customer confusion, or if the court instead chooses the over-protectionist route, focusing on the common language and nothing else. In this case, Justice Luc Martineau appears to have gotten every last bit of it right.

    Martineau said the first impression given by the label Cerveceria uses for its Pacifico brand “is of its obviously foreign origin” and that it’s “highly stylized, with many distinctive design elements, including strong and contrasting colours and font in red, gold, blue, green and yellow.” He further said the label “differs visually, phonetically, and semantically” from all of the marks PWB uses for its Pacific brands of beers.

    Martineau also dismissed as without merit PWB’s argument that contrary to a statement on the register, Cerveceria del Pacifico was not first sold in Canada as early as April 1986. He noted that an affidavit from Cerveceria stating the beer was introduced at Expo ’86, where it was sold at a Mexican restaurant called Ole Cantina, was not challenged by PWB counsel. By December 1989, Pacifico was listed with the B.C. Liquor Distribution branch and in August 1990, a registration protecting the mark was issued.

    “The delay of almost 25 years before attempting to invalidate the registration weighs heavily against a finding of confusion,” Martineau said of PWB’s action.

October 14, 2015

QotD: The temptations of power

Filed under: Americas, Humour, Quotations — Tags: , — Nicholas @ 01:00

The late Jean-Claude Duvalier, better known as Baby Doc, played only a small part in my life. I arrived in Haiti for the first time two years after his downfall, during the presidency of the eminently respectable academic, Leslie Manigat, who was soon to be removed by army coup. The pudgy bovine face of Baby Doc still adorned the worn and grubby banknotes in circulation, and I could not help but feel a certain personal sympathy for so eminently unintelligent and naturally undistinguished a person, thrust into a prominence and power he never sought, and actually wanted to avoid.

It cannot have been easy to be president for life from the age of 19, especially since he had a bossy mother, sister, and wife, all of whom plotted and intrigued for power. And if I had been in his shoes at that age, I think — being more intelligent than Baby Doc and therefore having my head more stuffed with adolescent nonsense — I should have been far worse even than he.

Theodore Dalrymple, “The Despot Within”, Taki’s Magazine, 2014-10-12.

October 7, 2015

Argentina’s colonial history

Filed under: Americas, History — Tags: , , — Nicholas @ 04:00

Ralph Peters on the history of Argentina during the colonial era:

In the 19th century in the Western hemisphere, two states fought a protracted series of wars to subdue their frontiers, the United States and Argentina. Others, such as Chile or Canada, saw lesser violence, but the great wars of conquest were directed from Washington and Buenos Aires.

And the Argentine conquest appears to have been the crueler.

Settlers in the Spanish territory that became Argentina faced Indian threats from the beginning, but as the population swelled and expanded its territorial claims, the violence grew more frequent and extreme, with Indian raids on settlers similar to those experienced on the American frontier. Finally, in 1833, Juan Manuel de Rosas — a man of great vision and spectacular brutality who would rule Argentina as dictator — launched his “Desert Campaign,” which pushed back the frontier to Patagonia. Still, Indian raids continued, on and off, as did minor punitive expeditions, until the 1870s saw the years-long campaign, the “Conquest of the Desert,” that finally mastered all of Patagonia — which would become Argentina’s agricultural heartland, facilitating a turn-of-the-century economic boom.

Those wars saw a long list of massacres, atrocities, forced removals and the treatment of Argentina’s aboriginal peoples as animals, rather than humans.

When the Pope told Americans not to judge the past by today’s standards, we thought of our “Trail of Tears,” or of the last, murderous drives to contain our Indians on bleak reservations. But the Pope saw mounted troops in Argentine uniforms hunting down natives like game animals.

September 29, 2015

Argentina’s side of the Falklands War

Filed under: Americas, Britain, History, Military — Tags: , , , — Nicholas @ 05:00

James Lockhart discusses some recent revelations from the Argentine government on their side of the 1982 Falklands War:

Earlier this month, the Argentine army declassified documents showing that some officers abused other officers and soldiers under their command and subjected them to excessively harsh disciplinary measures, including torture, during the Falklands War of April to June 1982. Reportedly, this included beatings and mock executions. One lieutenant described how “another officer tied his hands and legs to this [sic] back and left him face down on the wet sand of a cold Falklands beach for eight hours.” Though declassified, these documents remain in the army’s archives, requiring a trip to Buenos Aires for anyone who wishes to read them.

Argentine Lieutenant General Benjamín Rattenbach, however, presided over an inquiry just after the war. The Rattenbach report, which Argentina’s Servicio Privado de Información, an independent news agency, has made available online, presents the junta‘s history of the Anglo–Argentine dispute from 1833 to 1982. The report critically reviews the junta’s strategic and operational planning that preceded its decision to invade the Falklands (which Argentina refers to as Las Malvinas) in 1982, and summarizes the negotiations that occurred both before and after the war. It contains insights that help us understand what was going on and why it led to some Argentine officers’ and soldiers’ maltreatment.

[…]

The Rattenbach report criticized the junta‘s political decisions, its ad hoc operational planning, and its commanders’ multiple failures in execution. In short, it found that the Falklands campaign represented an ill-conceived, poorly planned, and terribly implemented military operation, especially in the area of logistics.

The junta‘s multiple errors in judgment began becoming apparent just before its invasion began. As the report notes, “On 1 April, late in the evening, [Secretary of State] General [Alexander] Haig told Ambassador [Esteban] Takacs in Washington that he was aware of the invasion that was taking place. He asked that the operation, which would place two powers friendly to the United States at war with each other, be stopped. He offered to mediate the dispute and he warned him that if war were unleashed, the Reagan administration could not remain neutral. It would necessarily side with Britain.” Reagan telephoned the junta‘s leader, General Leopoldo Galtieri, reiterating this message to no avail.

Thus the junta‘s errors in judgment included its failure to anticipate and plan for Washington’s granting British forces use of American-controlled airfields on Ascension Island. But the junta‘s errors in judgment went deeper than this. It believed that by occupying the islands, it would force Britain to negotiate, and that would be the end of the matter. It did not plan for a British military response. Indeed, it did not begin planning for one until the Royal Navy had already put to sea.

The Rattenbach report also concludes that “logistical operations did not unfold in an acceptable manner.” In fact, Rattenbach and his colleagues describe an unmitigated disaster. When they began their investigation, they soon discovered that it was “useless to seek any coherence” in the junta‘s logistical planning before it launched the invasion, and they could discern only improvised logistical operations afterward. They cite the 5th and 12th Infantry Regiments to illustrate what this meant on the ground. These units lacked vehicles and in many cases, ammunition. There was no internal transportation system to move the supplies they did have. This reduced their combat effectiveness by 40–50 percent before anyone had even fired a shot. “LOGISTICS CANNOT BE IMPROVISED,” Rattenbach aptly insists in all caps.

September 22, 2015

A unique genetic population in the Dominican Republic

Filed under: Americas, Health, Science — Tags: , , , — Nicholas @ 03:00

BBC Magazine on the extraordinary lives of the Guevedoces, children who suddenly develop male sexual characteristics at puberty:

The discovery of a small community in the Dominican Republic, where some males are born looking like girls and only grow penises at puberty, has led to the development of a blockbuster drug that has helped millions of people, writes Michael Mosley.

Johnny lives in a small town in the Dominican Republic where he, and others like him, are known as “Guevedoces“, which effectively translates as “penis at twelve”.

We came across Johnny when we were filming for a new BBC Two series Countdown to Life, which looks at how we develop in the womb and how those changes, normal and abnormal, impact us later in life.

Like the other Guevedoces, Johnny was brought up as a girl because he had no visible testes or penis and what appeared to be a vagina. It is only when he approached puberty that his penis grew and testicles descended.

[…]

So why does it happen? Well, one of the first people to study this unusual condition was Dr Julianne Imperato-McGinley, from Cornell Medical College in New York. In the 1970s she made her way to this remote part of the Dominican Republic, drawn by extraordinary reports of girls turning into boys.

When she got there she found the rumours were true. She did lots of studies on the Guevedoces (including what must have been rather painful biopsies of their testicles) before finally unravelling the mystery of what was going on.

When you are conceived you normally have a pair of X chromosomes if you are to become a girl and a set of XY chromosomes if you are destined to be male.

For the first weeks of life in womb you are neither, though in both sexes nipples start to grow.

Then, around eight weeks after conception, the sex hormones kick in. If you’re genetically male the Y chromosome instructs your gonads to become testicles and sends testosterone to a structure called the tubercle, where it is converted into a more potent hormone called dihydro-testosterone This in turn transforms the tubercle into a penis. If you’re female and you don’t make dihydro-testosterone then your tubercle becomes a clitoris.

August 30, 2015

Argentina’s decaying armed forces

Filed under: Americas, Economics, History, Military — Tags: , , , , — Nicholas @ 02:00

Argentina is, once again, suffering the consequences of populist-but-incompetent governance, and the state of the armed forces clearly reflect the economic woes of the country. Last year, Rowan Allport contrasted the Argentinian military in the late 1970s leading up to the Falkland War with the hollow shell of today:

It is difficult to believe from the vantage point of 2014, but in 1978, Argentina came within hours of invading Chile. The scheme arose as a result of a conflict between the two countries regarding the ownership of the Picton, Nueva and Lennox islands, which are situated at the western entrance to the Beagle Channel – a waterway running between the Pacific and Atlantic Oceans. The plan envisaged the seizure by the Argentine military of these and a number of other islands, to be followed shortly after by an invasion of mainland Chile, with the intent of capturing the capital Santiago and other key population centres. From this position, the Argentine leadership believed that it would be in an unassailable position to force Chile into a beggar’s peace regarding its territorial demands. Whilst the operation was ultimately aborted at the last minute, it was the then government’s belief that Buenos Ares had the ability to exercise hard power on a substantial scale – together the domestic economic crisis it was experiencing – that ultimately led it to once again travel down the path of aggression with the invasion of the British-governed Falkland Islands in 1982. Although Argentina did not expect the British to attempt to retake the territory and ultimately lost the conflict, its armed forces were – in addition to performing the initial amphibious assault which captured the islands – able to deploy a carrier group, surface action groups and submarines into the South Atlantic, and managed to inflict significant losses on the British using modern anti-ship weapons and a substantial fleet of jet aircraft.

Flashing forward over three decades, the Argentine Armed Forces find themselves in a calamitous state. The depleted Argentine Navy rarely puts to sea, is desperately short of spare parts, and much of the ordinance carried by its ships is past its expiration date. 2012 saw the training ship ARA Libertad seized in Ghana on the orders of a hedge fund seeking reparations from the Argentinian government [blogged here]. Shortly afterward, the corvette ARA Espora was stranded in South Africa for seventy-three days after the German company hired to repair a mechanical fault refused to carry out the work as a result of the Argentine government’s unpaid bills. Then, in a final indignity, 2013 saw the sinking of the decommissioned destroyer ARA Santísima Trinidad in port as a consequence of poor maintenance [blogged here]. The Argentine Air Force largely consists of a collection of obsolete aircraft mostly dating back to the 1970s, which are frequently grounded due to poor serviceability. The Argentine Army has deployed on operations without some of even the most basic equipment and rarely has the resources for training.

So how did this situation arise? As with most such calamities, the root causes are both financial and political. The story of Argentina’s economic fall from grace – both historical and contemporary – is well known. In 1914, Argentina was the tenth wealthiest country in the world, but a century later it has fallen to fifty-fourth place. The last three decades has seen the country careen from crisis to crisis. During the 1980s, Argentina was crippled by inflation and external debt. The free market reforms begun under President Carlos Menem allowed a short reprieve, but a succession of financial crises in Mexico, Brazil, Russia and South East Asia during the 1990s – combined with a failure to tackle numerous underlying domestic economic issues and corruption – sowed the seeds of further catastrophe. In 1998, Argentina’s economy fell into a depression, climaxing with the largest debt default in human history. Though a commodities boom and a currency devaluation allowed room for a brief recovery, the increasing use of interventionist economic policies by the government, along with the 2008 global financial crash and attempts by so-called ‘vulture funds’ to obtain payment for debts on which Argentina had previously defaulted led the country back into crisis, forcing another default in 2014.

So how bad is it now? Argentina is being forced to retire the last of their supersonic jet fighters because they can neither maintain nor replace them:

According to IHS Janes

    “The Argentine Air Force is drastically cutting staff working hours and decommissioning its last fighter aircraft amid continuing budget issues.

    A recently published daily agenda indicates that the service’s working hours have been significantly reduced, from 0800 to 1300; rationing of food, energy consumption, and office supplies has been directed headquarters staff and property residents; and only the minimum personnel required to staff headquarters, directorates, and commands are working.

    These orders, issued on 11 August, take effect 18 August. A next step will cut Monday and Tuesday as working days. Moreover, air force officials said any aircraft taken out of service will not undergo maintenance for now.”

This leaves the Argentine military with just two types of jet aircraft A-4’s and IA-63’s and both are subsonic, decades old and barely serviceable. Argentina had looked into buying new Gripen’s from Sweden via Brazil but this was vetoed by the United Kingdom which makes a large number of internal components for the aircraft. They had also looked at JF-17’s from China, but the JF-17s proved too expensive to modify.

August 23, 2015

The Falklands War – The Untold Story

Filed under: Americas, Britain, History, Military — Tags: , , , , — Nicholas @ 04:00

Published on 19 Aug 2013

Falklands Crisis was a 1982 war between Argentina and the United Kingdom. The conflict resulted from the long-standing dispute over the sovereignty of the Falkland Islands and South Georgia and the South Sandwich Islands, which lie in the South Atlantic, east of Argentina.

H/T to Ghost of a Flea for the link.

August 18, 2015

Donald Trump’s immigration “policy” proposals

Filed under: Americas, Politics, USA — Tags: , , , , — Nicholas @ 03:00

Megan McArdle found herself coming back to the phrase “bag o’ crazy” when she tried to make sense of Donald Trump’s immigration proposals:

To be fair, he does have some practical positions. Some of them will be controversial, like criminal penalties for people who overstay temporary visas. Some of them are theoretically feasible, but wildly expensive, such as tripling the size of the Immigration and Customs Enforcement staff, and stepping up detentions and deportations.

Then there are the less practical ideas, which are — well, there’s a reason I got stuck on “bag o’ crazy.”

Most notably, Trump is promising to end birthright citizenship and get Mexico to pay for building a giant wall across our nearly 2,000-mile border. He also adds bizarre promises like a temporary halt on issuing any green cards at all until the domestic labor market recovers and a “refugee program for American children” aimed at getting foster kids into better homes.

This is not a serious policy document. Ending birthright citizenship would require a Constitutional amendment, which would never pass Congress, much less the three-quarters of the state legislatures required to ratify it. The difficulty of this task is exceeded only in the difficulty of getting Mexico to pay for a 2,000-mile wall that Mexicans have no interest in.

But critiquing Trump on the basis of his policy fantasies sort of misses the point. The precise reason that people like him is that his campaign is completely unmoored from underlying realities.

Every election season, candidates release white papers outlining what they will do when they take office. Those policy papers inevitably have a bunch of magic asterisks where the candidate has substituted heroic assumption for plausible numbers. These heroic assumptions do the bold and necessary work of hiding the costs of their rosy promises from voters. For example, Obama’s promise that his health care plan would save the average family a bunch of money, and also, never include a legal mandate forcing them to buy health insurance.

While those policy documents always have a certain … let’s call it a “muscular optimism” — they’re ultimately at least weakly tethered to the plausible. Viable Republican presidential candidates do not promise that on their first day in office, they will repeal Roe v. Wade. Democrats do not claim that they will provide universal preschool education for a net cost of $5. That’s just unrealistic.

But a broad swath of American voters are hungry for those sweet little lies. Or big lies. These voters don’t want some guy who crafts a policy agenda that could actually be enacted, some triangulated plan that could get past the American system’s checks and balances. In Dave Weigel’s terrific piece on a Trump rally in Flint, Michigan, two quotes, from two different people, stand out:

    “Being a businessman, he knows the ways around. I don’t think he’d go to Congress and ask. I think he’d just do it.”

And:

    “I compare Donald Trump to Ronald Reagan. He lets people know what he’s going to do, not what to ask for.”

This is, of course, a completely inaccurate picture of how government works. But they’re sick of how the government works.

June 21, 2015

Chile’s red wine regions

Filed under: Americas, Wine — Tags: — Nicholas @ 02:00

Chile has emerged over the last decade or so as a dependable source of relatively inexpensive — and good value — red wine. Here is Wine Folly‘s brief overview of the distinctive wine regions of Chile:

It seems unlikely that the thin, long country of Chile is a larger producer of Cabernet Sauvignon than the US, but it’s true!

Chile’s vineyard area dedicated to Cabernet Sauvignon is second only to France. The country has become a winemaking hot spot due to the cooling effect Chile receives from the Pacific Ocean and the Humboldt Current. In other words, Chile has an ideal climate for wine. Chilean red wines have gone from good to exceptional in recent years and yet, they still offer good value.

Click to see full-sized image at WineFolly

Click to see full-sized image at WineFolly

Most of Chile’s vineyards are located in the Central Valley Region, which is a large region that contains several smaller valleys including Maipo, Colchagua and Maule Valley. Most of the Central Valley is wide and flat and this is where the bulk of Chilean wine is made. If you’re looking for age-worthy wine however, the fine wines of Chile tend to be found in the foothills (areas with higher elevations), especially the sub-regions of Puente Alto (in Alto Maipo or “High Maipo”) and Alto Cachapoal (“High Cachapoal”). Chilean Cabernet Sauvignon and Bordeaux blends have a signature tart-and-fruity style, typical of a cool-climate wine. The tartness (aka acidity) comes from cool ocean breezes being pulled inland by the incredibly tall Andes Mountains.

June 19, 2015

QotD: There is a lot of ruin in a nation … but not an infinite amount

Filed under: Americas, Economics, Europe, Quotations — Tags: , — Nicholas @ 01:00

Over the years, I’ve had many arguments about economic policy with my statist friends. I put them into three categories.

  • The completely unreasonable statists blindly assert, notwithstanding all the evidence around the world, that bigger government and more intervention are actually good for growth.
  • The somewhat unreasonable statists acknowledge that bigger government and more intervention might have some minor “efficiency” costs, but those costs are acceptable and affordable in the pursuit of more “equity.”
  • The semi-reasonable statists admit that bigger government and more intervention hurt growth, but they argue that “libertarian types” must somehow be wrong because our predictions of economic chaos never materialize.

The folks in the last category have a point. For decades, advocates of limited government and free markets have warned about the economic cost of bad policy, yet where’s the collapse?

Why hasn’t Atlas shrugged, as libertarians have warned? Why have predictions of economic dystopia (examples here and here) been wrong?

I have two responses to these questions.

First, the economic damage caused by an expanding welfare state has been offset by improvements in other types of economic policy.

Second, maybe dour libertarians have been right, but got the timing wrong because it takes a long time and a lot of bad policy to destroy an economy.

And that’s today’s topic, because it certainly looks like both Greece and Venezuela have finally reached the end of the road. Let’s call it the Thatcher Inflection Point.

Dan Mitchell, “Atlas Is Shrugging in Greece and Venezuela: Two Case Studies of Statist Failure”, International Liberty, 2015-05-27.

May 28, 2015

QotD: The key strength of markets

Filed under: Americas, Economics, Government, Quotations — Tags: , , — Nicholas @ 01:00

This is a general and pernicious failing of the left in my view. They really, just really, don’t get what it is that markets do and do very well. What markets do do is they produce the information, through the price system, of who is willing to produce what at which price and who desires to consume what at which price. Thus we get an efficient allocation of scarce resources by our use of markets. And Hayek pretty much got his Nobel for proving that there is no other system to hand which can perform this function. The planner simply cannot gain enough information to be able to perform that function, nor process it real time (and no, computing can’t do it either, Allende and his computer to run the Chilean economy was wrong.)

It’s entirely possible to critique markets on the grounds of equity though. For example, too many people are too poor if we just leave it to the market. Perhaps we agree with that idea, perhaps we don’t: but that argues for changing peoples’ incomes through intervention, not for abolishing the market in the provision of goods. Or, as I’ve said before, if Chavez and Maduro want poor Venezuelans to be better off then send them more money. Don’t mess with the market: the result of that messing will inevitably be the sort of breakdown we see here.

As for the people of Venezuela, well, obviously, this isn’t going to work out well. Their rulers have pretty much bankrupted the country through their incompetence: and now they’re taking more economic power unto themselves?

Not going to work, is it? Even competent governments haven’t been able to make nationalised food distribution systems work…

Tim Worstall, “Amazingly, Maduro Is Going To Make The Venezuelan Economy Even Worse. Yes, Worse”, Forbes, 2015-05-03.

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