Quotulatiousness

March 7, 2024

“The traditional answer to this is to leave those inheritees be and they’ll blow it all on hookers and coke soon enough”

Filed under: Britain, Government, Media, Politics — Tags: , , , — Nicholas @ 04:00

Tim Worstall tackles the ongoing angst about “the wrong sort of people” getting their sweaty mitts on family inheritances and then backhands the ostentatiously super wealthy demanding to be taxed more heavily as “Full Of Shit. Obviously”.

This has to be one of the least sympathy inducing articles ever — rich kids worried about their inheritances. We’re about to have that grand generational shift apparently, trillions upon trillions are going to move from the people who made it to the Lucky Sperm Club.

Woes.

The traditional answer to this is to leave those inheritees be and they’ll blow it all on hookers and coke soon enough. The standard deviation of soon enough is pretty big — the folk tale is clogs to clogs in three generations but the Hervey’s managed to wait until the 7th Marquess for it all to get — quite literally in that case — blown. But, you know, it does eventually happen. There are no really old fortunes.

This isn’t, perhaps, enough for the hurry hurry of the modern world. Thus we get people like this:

    Tax, of course, could — should — play a huge part in all this. “Philanthropic donations are a drop in the ocean compared to what even quite minor tax increases on the richest in society would provide,” Lewis says. Patriotic Millionaires is calling for a hike in taxation for the super-rich — and its members aren’t limited to millennials. They include Guy Singh-Watson, founder of Riverford Organic Farmers; Graham Hobson, founder of Photobox; the Perry family, from the posh ready-meal business Cook; and Ian Gregg, whose father founded Greggs.

    “At the moment philanthropic donations amount to about £10 billion per year,” Lewis says. “A wealth tax of 1 to 2 per cent on assets over £10 million, which would affect only the wealthiest in the UK, would raise more than double that. Closing tax avoidance loopholes would raise much more than this.”

As I pointed out in the same newspaper, The Times, two decades back, this is purest bollocks. For it’s entirely easy to pay extra tax if that’s what you wish to do:

    Cheques, by the way, should be made out to “The Accountant, HM Treasury”, and sent to 1 Horse Guards Road, London SW1A 2HQ.

Job’s a good ‘un. Except, back then, near no one did. I managed to get the numbers out of The Treasury for the previous year — it took some months as they were amazed that anyone had even thought of checking this — and a whole 5 people had paid that extra tax. Four of whom were dead, leaving bequests. That is, the UK, that year, contained one whole person willing to pay higher tax than duly and justly levied upon them. Some flood of patriotic millionaires there was not.

Matters do not seem to have improved greatly:

    But something is not working. The accounts of the Debt Management Office for the year ended 31 March 2020 show that it received donations or bequests totalling just £48,957. While that’s a large percentage increase on the £11,069 received during the year ended 31 March 2019, by any standards these figures are tiny.

Not the sorts of amounts likely to make a great impact upon a lifetime’s supply of coke and hookers, is it?

One correct answer to these claims by the Patriotic Millionaires is therefore that they’re full of shit. In slightly more technical language they’re doing ethical performativity. There’s always a difference between expressed preferences — what people say — and revealed preferences, what people do. What people really believe is in what they do — but it’s entirely possible that saying the right things, even if not doing them, will get you invited to the right sorts of parties. You know, the ones where someone else pays for the hookers and coke. So, people say things they don’t do for reasons of societal enrapture. Hardly an uncommon human activity, that.

I seem to remember linking to an article of Tim’s on the old blog, but that’s long been offline. More recently, we’ve seen this exact scenario play out in Norway, the UK, the United States, and the City of Toronto.

His Majesty King Charles, in right of Canada, would also be happy to accept any unwanted sums of money above your mandatory tax rate here. Go wild, wealthy and patriotic Canadian multi-millionaires!

February 24, 2024

Never mind the unfunded liability … money printer go brrrr!

Filed under: Economics, Government, USA — Tags: , , , , , , — Nicholas @ 05:00

Kulak at Anarchonomicon points out that the US government’s debt situation — which was alarming 20 years ago — has continued to get worse every year:

Libertarian Economists have been predicting this collapse of the federal system would happen “By About 2030” since before 2008. I remember in high school in the early 2010s listening to Ron Paul lectures and visiting USDebtClock.com, this was a hot button issue after 2008 … (then of course there was no political will to do anything and everyone just stopped talking about it)

I honestly forget that everyone around me doesn’t already know this, this is so common and accepted in libertarian and economic circles, and everyone who knows it got bored of eyes glossing over when they tried to explain it (in an autistic panic) decades ago.

US Unfunded liabilities:

Social Security, Medicare, Medicaid, US Debt, and Federal employee benefits and pensions, are all basically intergenerational ponzi schemes that require constant 1950s level population growth amongst the productive tax paying middle-class to maintain. By 2000 it was obvious this population growth was not happening, that population was beginning to age and collapse, and NO, the illegals at the border weren’t adequate replacements … (they weren’t adequate to prop up federal expenses in 2000 when they were still Mexican, now that they’re Guatemalan, Haitian, and Senegalese they’re almost certainly a net drain).

The Specter of Mass Boomer retirements with few to no children and grandchildren to replace them and pay for all the costs of their retirements and healthcare was maybe the slowest but most assured crisis ever to be seen in human history … Demographics is destiny.

This was a foreseen problem in 2000 when US Debt to GDP (just the portion that’s already been spent and interest has to be paid on) was 59% of GDP. Today the US Debt to GDP ratio is 122% of GDP whilst just in the past 24 years. Absolute US Federal Debt (not including state or local) has grown from 5.6 trillion dollars to 34 trillion dollars (102k per citizen: man, woman, and child). just the interest that has to be paid out of your tax dollars on that debt is set to eclipse ALL US Military spending sometime this year … And by 2028 Debt to GDP will be 150% (46.4 Trillion, 132k per citizen, 12 trillion more in 4 years, with no additional spending bills) and the Interest (at current estimates) will be over 2.5 trillion dollars, over a third of all Tax Dollars brought in will be spent on just interest, because dollar confidence has collapsed and the only way to keep inflation from destroying the dollar has been to radically raise the interest rates the Federal Reserve offers.

Now all that, That catastrophic state of things, is just the debt, the money that’s been spent … The real crisis is the Unfunded liabilities, all the promises the US has made to Boomers (who dominate the vote) and others about money they’re GOING to spend.

As of now total Unfunded liabilities stand at 213 trillion dollars, $633,000 per US Citizen (Man woman, and newborn babe)… These are all dollars the US has promised to pay to someone somewhere at some point: Social Security, Medicare, Medicaid, Federal pensions, VA Benefits, etc. And cannot in any politically feasible way restructure or get out of.

If no one ever contributed another dime to social security, and in so doing was promised in turn significantly more than that dime (it’s a Ponzi scheme, it loses money in proportion to and at a greater rate than the money being contributed to it (every dollar you contribute you’re promised multiple dollars in return, and your dollar is not invested, it just pays off previous contributors)) … If everything froze and every young person was locked out of ever receiving Social Security, Medicare, or Medicaid, the Unfunded Liability would be $633k per every man, woman, and child … that’d be the debt a newborn American would be born with.

However because it is NOT frozen and it will not be, by 2028 that number will Rise to $837k and an ordinary household of 4 will have seen their, politically unavoidable, family obligation in future tax payments to the federal government increase by $804,000 in just 4 years.

If your response is that your family doesn’t even make 804k in 4 years and there’s no way you could ever pay that much in 4 years given its just going to increase at a faster rate the next 4 years … CONGRATULATIONS! 90% of families don’t make that much, and less than 1% of families could ever afford to pay that much in taxes in a 4 year time.

This has been slowly growing for decades, and in the late 2000s and 2010s Ron Paul types were screaming that those Benefits needed to be reformed NOW (in 2008) or they’d drown America. But of course, cutting benefits is political Anathema to boomers, so nothing was done …

The Course of Empire – Destruction by Thomas Cole, 1836.
From the New York Historical Society collection via Wikimedia Commons.

Times might be tough right now, America, but at least you’re not Canada

Filed under: Bureaucracy, Cancon, Economics, Government, USA — Tags: , — Nicholas @ 03:00

You may be feeling the pinch from Bidenflation, election year stresses, and political lawfare, but at least you’re not up in America’s hat:

It’s late February, a time of year when many Americans contemplate stacks of documents and receipts, dreading the moment when they’ll have to square accounts with government extortionists. That this comes as the state grows increasingly intrusive and coercive adds insult to injury, since we pay the bill for this mistreatment. But it could be worse; we could be Canadian!

Same Inquisition, Different Dollar

“As tax season ramps into high gear in Canada, the average citizen is facing an unholy ream of paperwork so daunting that even the Canada Revenue Agency isn’t entirely sure how it all works,” Tristin Hopper wrote this week for the National Post. “An infamous 2017 Auditor General report found that CRA call centres ‘gave wrong information to callers almost 30 per cent of the time’.”

Oh, OK. That doesn’t sound much different from the experience here in the U.S., where the IRS hands out the wrong information maybe a quarter of the time. (Or more. Who knows?) But Canadians pay a high price tag for the privilege of spelling “call centre” with the “r” in front of the “e”.

But a Higher Tax Bill North of the Border

“In December 2015, Canada’s new Liberal government introduced changes to Canada’s personal income tax system,” Canada’s Fraser Institute, a free-market think tank, noted in 2020. “Even before the changes, the country’s combined federal and provincial top marginal tax rates compared unfavourably to those in the United States and other industrialized countries. … Nine Canadian provinces occupy the list of 10 jurisdictions with the highest top combined marginal income tax rates and all provinces are in the top 13 [across the U.S. and Canada].”

Umm. Ouch.

In truth, comparing tax burdens requires a deep dive because of differences in how taxes are applied, income brackets, deductions, and the like. Fans of big government always want to balance costs against “benefits” of government services, as if being mugged to support a state monopoly should be welcomed by those who’d rather shop among competitors or entirely forgo some services. Suffice it to say that comparisons of provincial and state tax burdens generally reveal a lighter touch south of the border.

Worse, though, the think tank finds overall economic freedom slipping across Canada.

Higher Taxes Reflect Less Freedom

“For the first time, every Canadian province ranks in the bottom half of jurisdictions in our annual rankings of economic freedom in North America,” Fraser announced of its Economic Freedom of North America 2023 report. “Alberta in the all-government index is once again the highest-ranking Canadian province but it has declined substantially. In the all-government index, Alberta is now tied for 31st place out of 50 U.S. states, 32 Mexican states, 10 Canadian provinces, and the US territory of Puerto Rico.”

Economic freedom is defined as you’d expect, with economic activity involving “minimal government interference”. As the report adds, “an index of economic freedom should measure the extent to which rightly acquired property is protected and individuals are engaged in voluntary transactions”.

Fraser compares the states and provinces to each other within their countries, and also across Canada, Mexico, and the United States. For the purpose of comparing jurisdictions across three nations, the report looks at six areas of economic activity: government spending; taxes; labor market freedom; legal systems and property rights; sound money; and freedom to trade internationally.

The highest ranked jurisdiction is New Hampshire, followed in the first quartile by Florida and 20 other U.S. states. Alberta ranks at 31, between Missouri and Connecticut. British Columbia comes in at 45, with Ontario at 50 and Manitoba at 54. The last-ranked U.S. state is Delaware, at 53, though the territory of Puerto Rico ranks at 61. Quebec brings up the rear for Canada, at 56.

February 12, 2024

QotD: The Golden Rule of Canadian Politics

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

But we forgot the golden rule of all Canadian politics: The voter will demand all manner of lofty principles from his government, provided he never has to sacrifice or pay for it in any noticeable way whatsoever. Name any popular high-minded pursuit of government — from stream rehabilitation to famine relief — and it all comes crashing down tomorrow if you start making it an itemized charge on everyone’s utility bill.

Tristin Hopper, “‘Stick a fork in me; I’m done’: Inside the thoughts of the carbon tax”, National Post, 2023-11-11.

February 9, 2024

His Year: Julius Caesar (59 BC)

Filed under: Europe, Government, History — Tags: , , , , , , — Nicholas @ 02:00

Historia Civilis
Published Jul 5, 2016
(more…)

January 2, 2024

QotD: Cigarette smuggling and the powers-that-be

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

[In the 1960s and 70s,] smoking was rapidly becoming an expensive vice … so expensive, in fact, that shaving a few cents per pack could make a real difference in your daily quality of life. If you could get your smokes off the back of a truck at even 30 cents per pack …

At that point, the Powers That Be were in trouble. Butt-smuggling was cutting into their projected tax revenues — tax revenues which, being governments, they’d already spent several years in advance. That’s bad.

Much worse, though, was the realization that, the more people bought their smokes off the back of a truck in Weehawken, the more those people realized that 99% of law “enforcement” is really “convincing people to voluntarily comply with the law”. As they should’ve realized from Prohibition back in the Twenties, and would soon have the opportunity to learn again with the War on Drugs, 1980-present, lifestyle laws are effectively unenforceable. Not even the most draconian techno-fascists, armed with 100% realtime surveillance, can stop people from getting high off something.

And that’s the worst knock-on effect of all, because the attempt turns “getting high” into a rebellious little thrill. You’re not just getting drunk / burning one down / smoking a Mob-supplied cigarette, you’re sticking it to The Man. If you don’t believe me, watch what happens to pot consumption in college towns once it’s fully legalized. Hint: It’s the same thing that happens to college kids’ alcohol consumption after they turn 21 — now that the cheap little thrill of being the rebel with the fake ID is gone, drinking loses a lot of its charm. Similarly, 99% of the “legalize it!” crowd’s “arguments” are just virtue signaling — they’re letting you know what rebels they are by breaking the pot laws. If you really want to cut down the consumption of intoxicants in a college town, at least, simply legalize ’em all. Your few true addicts will provide a spectacular lesson in Darwinism to the student body, but the vast majority of kids will be all but straight-edge.

Severian, “The Mob, Faux-tism, and the Ever-Rising Costs of Compliance”, Founding Questions, 2021-02-02.

November 26, 2023

It’s apparently political earthquake season

Elizabeth Nickson wonders if you can feel the Earth shaking in your area:

Did you hear the roar on the streets when Milei won Argentina? It built and built, and then everyone was out on the streets shouting, from windows, inside shops, houses. It is the future, all over the world. The Netherlands on Friday. Same same. Universal rejoicing.

Absurdistan does a solid line in doom, but our firmly held first principle is that every single one of us should be two or three times as rich, with massively increased scope and ability to do the things we want to do. Defeating the criminal cartel that runs Big Pharma, Big Ag, Big Government, Big Tech and Big Charity will light up the galaxy if not the universe. And … this. Especially this:

Unlike almost everyone in the media, Absurdistan knows regulation is the principal reason we are hornswoggled serfs. Even Trump’s team was surprised at the economic boom that came from his mild de-regulation; they thought tax relief was the key. It was important, none of us should be paying more than 25% in taxes, if that, but the regulation! You have no earthly idea how fiendish it has become until you start a business or require permission to create anything in the material world. Few journalists ever do that, the most they do is join a bank in “communications”, design an app or website, do PR, or “consult”. They are virtually, to a man or woman, children in the real world. So no one reports on the most brutal crippler of every man, woman and child on earth. Equally, virtually no writer I read has any grasp on the ingenuity, the creativity, the strength of the ordinary man. They all seem to think we need guidance from them, which is laughable. They have screwed up everything so utterly, we teeter daily on the edge of fiscal catastrophe.

Bloomberg reports on Milei victory

When Vivek Ramaswamy proposed instantly firing 50% of federal bureaucrats on Day One, I stood on my office chair and cheered.

When Javier Milei tore strips of paper representing government ministries off the whiteboard, I had to go out and run around the house a few times.

Africa is not limited by anything but confiscatory corrupt government, as asserted by Magatte Wade in her new book. Wade should be running things in Africa, which is polluted by commies, plutocrats, crooked multinationals, ravening bureaucrats, corrupt politicians and the brutalist green movement. The Chinese would stun the world if they could get rid of the vicious predatory communist regime that enslaves every man, woman and child. And not in the sense that they are “taking over”.

The mop-up will take decades. But unpicking the bad regs and shooing the bad legislators off to permanent exile, prosecuting the army of government thieves, and creating a multi-polar world, will be more absorbing than our endless self-cherishing, self-indulgence. Have we not all shopped enough? We have powerful enemies, but they are fully aware of how destructive they have been, their guilt written on their exhausted pouchy faces.


Trump is a symptom, not a cause


People fighting the Borg wish for leaders but this is not a movement that requires leadership by anyone but each and every one of us. Trump is a symptom, not a cause. This is multi-headed, like Medusa, representing tens, hundreds of millions of individuals saying NO. Real politicians like Mike Johnson, Geert Wilders, Pierre Poilievre, Javier Milei, and Danielle Smith are listening to us and stepping up.

Ontario’s beer market may see radical changes soon

Filed under: Business, Cancon, Government, Wine — Tags: , , , , , — Nicholas @ 03:00

For beer drinkers outside Ontario, the province’s weird beer retailing rules may seem to be from a different time, but that’s only because they are. Until fairly recently, the only place to buy beer was from one of two quasi-monopoly entities: the provincially owned and operated LCBO or the foreign brewery owned Beer Store. LCBO outlets were limited to single containers and six-packs, while Beer Stores sold larger multipacks and also handled bottle deposits and returns. In the last few weeks, the Ontario government has indicated that long overdue changes are coming:

“The Beer Store” by Like_the_Grand_Canyon is licensed under CC BY-NC 2.0

The only thing we really know at this point (and it’s been reported by the Toronto Star and now CBC, and earlier by this website, all from sources) is the horribly unfair deal The Beer Store has had since 1927 in Ontario is about to come to an end. It’s expected that The Beer Store will be given notice by the end of December under the Master Framework Agreement (MFA) that the deal will be all but dead. They will have two years to wrap things up while a more modern system of booze retailing is fine-tuned and prepared for implementation. There’s a new era dawning in Ontario, one that would seemingly benefit grocery and convenience stores, local brewers, Ontario wineries, and obviously consumers who will get wider selection, more convenience and competitive pricing.

“The MFA has never been about choice, convenience or prices for customers, it has always been about serving the interests of the big brewing conglomerates, and that’s what needs to be addressed,” Michelle Wasylyshen, spokesperson for the Retail Council of Canada, whose board of directors includes members from Loblaw, Sobeys, Metro, Walmart, and Costco, told Mike Crawley of the CBC.

The end of The Beer Store MFA in whatever iteration it will look like will have a cascading impact on local VQA wine. Ontario wineries hope that it’s a positive impact and are cautiously optimistic that wide open beer and wine sales at grocery and convenience stores means more sales and less levies for their products.

As the CBC pointed out in its story, the looming reforms “pit a range of interests against each other, as big supermarket companies, convenience store chains, the giant beer and wine producers, craft brewers and small wineries all vie for the best deal possible when Ontario’s almost $10-billion-a-year retail landscape shifts. And — this is a biggie — the LCBO lobbying efforts to keep its antiquated system of monopoly retailing intact, which seems to be a big ask with what we now know from sources. Something must give.

Some key bullet points from the CBC report:

  • Will the government shrink the LCBO’s profit margins, including its take from products that other retailers sell?
  • Will retailers such as grocery and convenience stores be required to devote a certain amount of shelf space to Ontario-made beer and wine, or will they have total control over the inventory they stock?
  • Will small Ontario wineries get any help in competing against big Ontario wineries whose products can contain as much as 75% imported wine?

The government has been listening to all stakeholders in the booze industry in Ontario for over a year now. Three key associations — Ontario Craft Wineries, Tourism Partnership Niagara, and Wine Growers Ontario — joined together to commission a report titled Uncork Ontario. That report, which concludes that the Ontario wine sector is well positioned to drive sustainable economic growth for the region, the province, and the country and has the potential to drive at least $8 billion in additional real GDP over the next 25 years, launched a campaign to lobby the government for radical changes to reach those lofty goals, or at least put the wheels in motion.

One of the big issues for Ontario wineries is a punishing 6.1% “sin” tax charged on every wine made in Ontario but not foreign wines. It’s a tax that’s been hurting Ontario wineries for years even though a grant was issued to wineries to help pay that tax back. To this date, the tax has not been cancelled and wineries keep remitting the tax owed monthly and can only hope the grant keeps getting extended. Ontario wines are among the highest taxed in the world with up to 73% of every bottle sold going to taxes and severe levies at the LCBO.

November 2, 2023

The carbon tax has been murdered, by Justin Trudeau, in the House, with a blatant self-interest

Rex Murphy believes the much-hated carbon tax — the Laurentian Elite’s revenge on working Canadians — has been dealt its mortal blow by the least likely suspect:

Justin Trudeau came into office on the spume of Canadian-level celebrity, built on a persona of ostentatious, idle gestures and token cheer (selfies, socks, costumes), the endless vocalization of woke crackerjack-box slogans and a smile cemented in place that had all the warmth of well-gelled cement. Just style. Style, understood as the adoption of surface mannerisms in place of deeply settled convictions, convictions built on a real attempt to understand Canada, to relate to all its regions, and an appreciation (which does not mean agreement) of the ideas, lifestyles and situations of mainstream Canadians: style adopted as a campaign dynamic.

It’s worth reminding that from the moment of its first swearing-in, the Liberal government has been an administration of show and tactics: tactics have been its policy, tactics have been its governing lifeblood. Policies — in so far as it can be said to have had policies — have been merely (temporary) scaffolding or window displays meant to shore up the tactics. They have not been, as with an honourable government, needful measures for Canadian well-being, shored up not by tactics but by their obvious benefit and their consonance with what Canadians made clear were their concerns.

Canada’s predominant commitment these past eight painful years, the “one ring to rule them all”, the only government commitment held with deepest conviction we have been told, has been combatting global warming. It is different. It is real policy. It is the core principle. It is immutable because its cause is existential. It has been Canada’s passport to an admiring progressive world. Above all it has absolutely glowed with virtue-signalling and superior progressive sensibility. It has been as good as a wristband was at a rock concert years back.

For all of his eight years Trudeau has incessantly promoted and promulgated his single cause. At home he has out-Suzukied David Suzuki, out-Mayed Elizabeth May, and there have been moments when he “out-dared” Greta. Abroad, he has been climate alarmism’s smiling Galahad.

Global warming has been his religion, and what he calls the carbon tax both eucharist and passport to net-zero paradise. To an increasingly skeptical Canadian public, anxious and distrustful of a government regularly racked by scandal and heroic mismanagement, he said (I paraphrase): “I know I’m taxing a necessity — heat for homes in northerly Canada — and I know it must hit the poor first and worst. But it’s to save the world! Saving the world keeps me up at night. And I want Canada to lead the way in saving it. And for that, there must be a tax on energy, on gas and oil, on heating. It must be done. It’s a sacrifice poets will write in praise of in the lower-temperature world we will be key to making happen.”

The tax on carbon dioxide — the great comedians of the Liberal party called it a “tax on pollution” — had to be imposed, even as inflation ravaged the country and further immiserated the already sufficiently immiserate, because Trudeau had a whole world to save. It was the signature element of the signature policy of Trudeau’s showcase government. It was the indispensable girder in building a post-oil-and-gas future for a post-nationalist Canada, the indestructible bridge to a golden net-zero tomorrow for our country. And, incidentally, a great shiny glittering Last Spike to doom Conservative Alberta’s economy and government, and no little whack for Saskatchewan.

This was principle as policy, and policy as principle. For seven plus years.

And now. A few fingers snapped somewhere and suddenly, Mr. Trudeau … cancels the carbon tax. Cancel for one and you must cancel for all.

September 22, 2023

“The Online News Act … has been an utter disaster”

Filed under: Cancon, Government, Law, Media, Politics — Tags: , , , , — Nicholas @ 03:00

Michael Geist on the ongoing disaster the federal government created with the Online News Act:

Prime Minister Justin Trudeau was asked this week about concerns with the implementation of Bill C-18, to which he responded that other countries are quietly backing Canada in its battle against tech companies. I posted a reality check tweet noting that Meta is not returning to news in Canada, the law’s regulation stipulating a 4% fee on revenues is not found anywhere else, and that Bill C-18 has emerged as a model for what not to do. With the House of Commons back in session, it is worth providing a more fulsome reality check on where things stand with the Online News Act. While the government is still talking tough, the law has been an utter disaster, leading to millions in lost revenues with cancelled deals, reduced traffic for Canadian media sites, declining investment in media in Canada, and few options to salvage this mess.

For those that took the summer off, Bill C-18 received royal assent in late June. Over the past three months:

1. Meta has blocked all news links in Canada and cancelled existing deals with Canadian news outlets. The blocked links covers both Canadian and foreign news in light of the broad scope of the law. While the Australian experience lasted a few days, the blocking in Canada has now gone on for weeks and there is little reason to believe that the company will reverse its position to comply with the law by simply not linking to news.

2. The government responded to the blocked news links by stopping to advertise on Facebook and Instagram and encouraging others to do the same. The boycott has had little effect as the Liberal party is still advertising on the platforms with a new round of ads this week, the Prime Minister is still posting on the platforms, and reports indicate that Facebook has not experienced a reduction in user activity. In fact, reports suggest that the experience on Facebook without news has improved. Further, a Competition Act complaint has not sparked any action.

3. Google responded to Bill C-18 by advising it too would remove news links from its services before the law takes effect in December. That position enabled it to wait for the government to release draft regulations that provide further detail on the application of the law and the standards for obtaining an exemption from the mandatory bargaining process that can lead to final offer arbitration overseen by the CRTC.

Several more items of concern at the link.

September 10, 2023

QotD: The hill people and the valley people

Filed under: China, Europe, History, Liberty, Quotations — Tags: , , , , , — Nicholas @ 01:00

There’s a clichéd history of civilization which goes something like: once upon a time all human beings lived in wandering hunter-gatherer bands where everybody was directly involved in food production. Then while sojourning through a fertile river valley, some of these groups discovered agriculture. The relative predictability and reliability of farming, coupled with the much higher caloric yield per hour of labor,1 made it possible to support a denser population, and for only a portion of it to be directly involved in food production. The rest of them could become soldiers, artisans, priests, and scribes. They could develop technology, pass on their knowledge through writing, and develop complex systems of taxation, bureaucracy, and forced labour. Along the way, they made picturesque little walled farming villages […]

This is not their story. Instead it’s the story of the people who live in the hills behind that village. Without knowing anything at all about the place that picture depicts, you can probably tell me a lot about the people in those hills. Hill people are hill people, the world over. What are the odds that they’re clannish? Xenophobic? Backwards! Unusual family structures. Economically immiserated (probably due to their own paranoia and indolence). Deviant in their religious, commercial, and sexual practices. Illiterate, or at best poorly-read. They also probably talk funny. Basically they’re barbarians, but not the impressive kind who ride out of the steppe to massacre and enslave the soft city-dwellers. No, something more like living fossils — our ancestors were once like that, but then they got with the program. Well if they could do it, why don’t those hill dwellers move down here too, like normal people?2 They’re up to no good up there.

That’s certainly been the traditional view from the valleys, and there’s some truth to it, but there’s one important detail that we valley-dwellers get wrong. Far from being aboriginal holdovers of some previous phase of humanity, it’s relatively easy to determine from genetic, linguistic, and archaeological evidence that the hill people are largely descended from … the valley people!3 But … that would mean that there are people who look around at our beautiful civilization and reject its fruits — you know, art, technology, fusion cuisine, and uh … taxation, conscription, epidemic disease, corvée labour … How dare they!

You would never know it from reading the reports of the valley-bureaucrats, but the great agricultural civilizations of classical antiquity were in a near-constant state of panic over people wandering away from their farms and becoming barbarians.4 There are estimates that over the course of the empire something like twenty-five percent of the inhabitants of Roman border provinces quietly slipped across the limes for the proud life of the savage. In Ancient China, the movement was more cyclical — in times of war, or epidemic, or famine, entire villages might give up rice agriculture and vanish into the hills. Then, when the situation had stabilized, the human tide would reverse, and the hills would disgorge barbarians eager to be Sinicized (or really re-Sinicized, as their parents and grandparents had been). In both these cases and more, the boundary between “civilized” and “savage” was a great deal more porous, and the flow a great deal more bi-directional than we might realize. Like a single substance in two phases, now boiling, now condensing, changing back and forth in response to changes in the temperature.

So why then is it that hill people5 the world over have so much in common? Scott argues pretty convincingly that something like convergent cultural evolution for ungovernability is at work — that is, the qualities we stereotypically associate with backwards and barbarous peoples are precisely the traits that make one difficult to administer and tax. Some examples of this are very obvious to see — for instance physical dispersal in difficult terrain makes it harder to be surveilled, measured, or conscripted. Scott also talks a lot about the crops that hill people like to grow, and how the world over they tend to be either crops that are amenable to swiddening and don’t require irrigation, or things like tubers that mature underground and can be harvested at irregular times. Both patterns make it easy to lie about how much food you’ve planted and where, hence difficult for others to tax or control you.

What about illiteracy? Scott finds that many hill people around the world have oral legends about how they once had writing, but no longer do. Of course this is exactly what we would expect if, contrary to the usual story, the hill people are not the ancestors of the valley people, but their descendants. Yet the question remains, why give up writing? Scott posits several benefits of illiteracy: one is just that the inability to write removes any temptation to keep written records of anything, and written records are the kind of thing that can be used against you by a tax collector or an army recruiter.

But more fundamentally, a reliance on oral history and genealogy and legend is powerful precisely because these things are mutable and can be changed according to political convenience. Anybody who’s read ancient Chinese accounts of the steppe peoples or Roman discussions of Germanic barbarians has probably recoiled from the confusing profusion of tribes, peoples, and nations; the same ethnonyms popping in and out of existence over a vast area, or referring to a band of a few hundred one year and a nation of millions a decade later. Scott argues that the reason we see this is that the very notion of stable ethnic identity is a fundamentally “valley” conceit. Out in the hills or on the far wild plains, people exist in more of a quantum superposition of identities, and the nonsensical patterns you see in the histories come from imperial ethnographers feverishly making classical measurements in a double-slit experiment and trying to jam the results into a sensible form.

John Psmith, “REVIEW: The Art of Not Being Governed by James C. Scott”, Mr. and Mrs. Psmith’s Bookshelf, 2023-01-16.


    1. Scott has yet another book about how this important detail of the stock story is totally false. In Scott’s telling, early agriculture produced fewer calories per hour of work than hunting and foraging. The entire increase in social complexity associated with primitive agriculture came not from a food surplus, but from the fact that it was easier to measure how much food everybody was producing and confiscate a portion of it.

    2. Maybe then one of their descendants can go to Yale Law School and write a book about it.

    3. Next time you’re driving through Montana, try to count how many people are transplants from New York or California.

    4. Once you know this fact, you can go back and read those classical texts esoterically, and nervous panic over people defecting from civilization is practically all you will see.

    5. I’ve used “hill people” throughout this review as a synecdoche for groups that have rejected a life-pattern involving settled agriculture and tax-paying, but as Scott points out there are many kind of terrain unsuitable or difficult for state administration. Marshes have historically been another magnet for those rejecting polite society, as have deserts and open plains.

September 8, 2023

QotD: Rents and taxes in pre-modern societies

In most ways […] we can treat rent and taxes together because their economic impacts are actually pretty similar: they force the farmer to farm more in order to supply some of his production to people who are not the farming household.

There are two major ways this can work: in kind and in coin and they have rather different implications. The oldest – and in pre-modern societies, by far the most common – form of rent/tax extraction is extraction in kind, where the farmer pays their rents and taxes with agricultural products directly. Since grain (threshed and winnowed) is a compact, relatively transportable commodity (that is, one sack of grain is as good as the next, in theory), it is ideal for these sorts of transactions, although perusing medieval manorial contacts shows a bewildering array of payments in all sorts of agricultural goods. In some cases, payment in kind might also come in the form of labor, typically called corvée labor, either on public works or even just farming on lands owned by the state.

The advantage of extraction in kind is that it is simple and the initial overhead is low. The state or large landholders can use the agricultural goods they bring in in rents and taxes to directly sustain specialists: soldiers, craftsmen, servants, and so on. Of course the problem is that this system makes the state (or the large landholder) responsible for moving, storing and cataloging all of those agricultural goods. We get some sense of how much of a burden this can be from the prominence of what seem to be records of these sorts of transactions in the surviving writing from the Bronze Age Near East (although I should note that many archaeologists working on the ancient Near Eastern economy are pushing for a somewhat larger, if not very large, space for market interactions outside of the “temple economy” model which has dominated the field for quite some time). This creates a “catch” we’ll get back to: taxation in kind is easy to set up and easier to maintain when infrastructure and administration is poor, but in the long term it involves heavier administrative burdens and makes it harder to move tax revenues over long distances.

Taxation in coin offers potentially greater efficiency, but requires more particular conditions to set up and maintain. First, of course, you have to have coinage. That is not a given! Much of the social interactions and mechanics of farming I’ve presented here stayed fairly constant (but consult your local primary sources for variations!) from the beginnings of written historical records (c. 3,400 BC in Mesopotamia; varies place to place) down to at least the second agricultural revolution (c. 1700 AD in Europe; later elsewhere) if not the industrial revolution (c. 1800 AD). But money (here meaning coinage) only appears in Anatolia in the seventh century BC (and probably independently invented in China in the fourth century BC). Prior to that, we see that big transactions, like long-distance trade in luxuries, might be done with standard weights of bullion, but that was hardly practical for a farmer to be paying their taxes in.

Coinage actually takes even longer to really influence these systems. The first place coinage gets used is where bullion was used – as exchange for big long-distance trade transactions. Indeed, coinage seemed to have started essentially as pre-measured bullion – “here is a hunk of silver, stamped by the king to affirm that it is exactly one shekel of weight”. Which is why, by the by, so many “money words” (pounds, talents, shekels, drachmae, etc.) are actually units of weight. But if you want to collect taxes in money, you need the small farmers to have money. Which means you need markets for them to sell their grain for money and then those merchants need to be able to sell that grain themselves for money, which means you need urban bread-eaters who are buying bread with money, which means those urban workers need to be paid in money. And you can only get any of these people to use money if they can exchange that money for things they want, which creates a nasty first-mover problem.

We refer to that entire process as monetization – when I talk about economies being “monetized” or “incompletely monetized” that’s what I mean: how completely has the use of money penetrated through this society. It isn’t a one-way street, either. Early and High Imperial Rome seem to have been more completely monetized than the Late Roman Western Empire or the early Middle Ages (though monetization increases rapidly in the later Middle Ages).

Extraction, paradoxically, can solve the first mover problem in monetization, by making the state the first mover. If the state insists on raising taxes in money, it forces the farmers to sell their grain for money to pay the tax-man; the state can then take that money and use it to pay soldiers (almost always the largest budget-item in an ancient or medieval state budget), who then use the money to buy the grain the farmers sold to the merchants, creating that self-sustaining feedback loop which steadily monetizes the society. For instance, Alexander the Great’s armies – who expected to be paid in coin – seem to have played a major role in monetizing many of the areas they marched through (along with breaking things and killing people; the image of Alexander the Great’s conquests in popular imagination tend to be a lot more sanitized).

Bret Devereaux, “Collections: Bread, How Did They Make It? Part IV: Markets, Merchants and the Tax Man”, A Collection of Unmitigated Pedantry, 2020-08-21.

September 2, 2023

The 4% non-solution

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

Michael Geist updates us on the Canadian government’s latest blunder in the Online News Act saga:

The government is releasing its draft regulations for Bill C-18 today and the chances that both Google and Meta will stop linking to news in Canada just increased significantly. In fact, with the government setting an astonishing floor of 4% of revenues for linking to news, the global implications could run into the billions for Google alone. No country in the world has come close to setting this standard and the question the Internet companies will face is whether they are comfortable with the global liability that would see many other countries making similar demands. The implications are therefore pretty clear: there is little likelihood that Meta will restore news links in Canada and Google is more likely to follow the same path as the Canadian government establishes what amounts to 4% link tax from Bill C-18 on top of a 3% digital services tax and millions in Bill C-11 payments.

The estimated revenues from Bill C-18 or the Online News Act have always been the subject of some debate. The Parliamentary Budget Officer set the number at $329 million, using a metric of 30% of news costs for all news outlets in Canada. Under that approach, over 75% of the revenues would go to broadcasters such as Bell, Rogers, and the CBC. The Canadian Heritage estimates were considerably lower, with officials telling a House of Commons committee last December that they expected about $150 million in revenue:

    I won’t speak to the PBO report which is the source of the numbers that you cited. That was not a department-led initiative. The internal modelling that we did when we tabled the bill and mentioned in our technical briefings was more around $150 million impact. That was based again in terms of how this played out in Australia and making some assumptions about how it might play out here. With respect to the PBO report, any questions about that particular number would have to be directed towards them.

By the time the bill reached the Senate several months after that, the number had grown to $215 million.

With the release of the draft regulations, the government has established a formula with an even bigger estimate. The creation of a formula is presumably designed to provide some cost certainty to the companies and represents a change in approach in Bill C-18, given that the government had previously said it would not get involved private sector deals but it is now setting a minimum value of the agreements. Officials told the media this morning that it believes Google’s contribution would be $172 million and Meta’s would be $62 million, for a total of $234 million. However, that may understate the revenues by focusing on search revenues alone. If based on total revenues, with a 4% minimum floor, the requirement would exceed C$300 million for Google. Either way, the number is more than 50% higher than the $150 million estimate the department gave the Heritage committee just eight months ago.

The draft regulations will also provide some additional clarity on several issues. The standard for a digital news intermediary has been fleshed out to include $1 billion in global revenues and 20 million Canadian users. As for the process, those companies subject to the rules are required to conduct a 60 day open call for negotiations. To meet a fairness standard, the resulting deals must be within 20% of the average and cover a wide range of news outlets. Contributions can include non-monetary items but it seems unlikely the resulting deals would grant links significant value. The CRTC would then pass judgment on the deals and determine whether the companies are exempt from a final offer arbitration process. The timing on this includes a 30 day consultation process on the regulations, before they are finalized prior to the December deadline. But with the CRTC not having established a bargaining framework before 2025, the liability issues start arising well before any deals are concluded or approved.

September 1, 2023

Grassroots protests continue against London’s expanded ULEZ

Filed under: Britain, Environment, Government — Tags: , , , , , , , — Nicholas @ 03:00

London mayor Sadiq Khan’s “Ultra Low Emission Zone” expansion is not sitting well with the people who see it as an undemocratic imposition on the poorest Londoners:

Nigel Farage at the ULEZ protests in London, 30 August 2023.
Image from JoNova.

This week many Londoners are waking up to the impact of living in an Ultra Low Emission Zone as the £12.50 daily charge for unfashionable cars begins in the outer poorer suburbs.

Normally “climate change” costs are secretly buried in bills, hidden in rising costs and blamed on “old unreliable coal plants”, inflation or foreign wars. Your electricity bill does not have a category for “subsidies for your neighbors’ solar panels”. But the immense pain of NetZero can’t be disguised.

For a pensioner on £186 a week it could be as much as an £87 a week penalty for driving their car — or £4,500 a year. The Daily Mail is full of stories of livid and dismayed people who served in the Navy or worked fifty years, who can’t afford to look after older frail Aunts or shop in their usual stores now, or who will have to give up their cars. People are talking about the “end of Democracy”. The cameras are expected to bring in £2.5 million a day in ULEZ charges to City Hall. But shops inside the zone may also lose customers, and everyone, with and without cars will have to pay more for tradespeople and deliveries to cover the cost of their new car or Ulez fee.

Protests have reached a new level of anger and hooded vigilantes in masks carry long gardening clippers, or spray cans and lasers to disable cameras that record number plates for Ulez. In one photo the whole metal camera pole has been sheared by an electric saw of some sort. There chaos.

Interactive maps have sprung up to report where the cameras are, and help people “plan their trips”. The vigilante group called Blade Runners have vowed to remove or disable every ULEZ camera in London. Nearly nine out of ten cameras have been vandalized in South-east London.

The Transport for London website was overwhelmed with searches from people wondering if their car was compliant and they would have to pay just to drive on the roads their taxes and fees built. Some people have bought old historic cars to get around the fee, but apparently a lot of people hadn’t thought much about what was coming. Sadiq Khan probably didn’t mention this in his election campaign. Presumably there are others in London who will get a nasty surprise bill in the mail.

As Nigel Farage says: “I’ve never seen people so angry about this new tax on working people. “And people are not just furious at Sadiq Khan, the Mayor of London, they’re angry at the Prime Minister and the Conservatives for not stopping the scheme.

August 23, 2023

QotD: “Megacorporations” of the Roman era

The definition of a megacorp differs a bit, work to work. They are, of course, megacorporations in the literal sense; massive, vertically integrated companies that often have monopolistic control over multiple markets. But more fundamental to the definition of the megacorp is that they typically employ their own armed forces and either enforce their own law or are at least able to ignore the law more generally. It is not enough for a company to be big, it has to generate the sort of wealth to which M. Licinius Crassus famously quipped “no one was truly rich who could not support an army at his own expense” (Plut. Cras. 2.7).

Which is to say that what really defines a megacorporation is that it trespasses into domains usually occupied by the state: military, police and judicial functions – the use of force. A megacorporation is, simply put, a corporation so large and powerful that it begins to act as a state, be that in the form of the private armies of Cyberpunk 2077, the privatized police force of the Robocop franchise, or the straight-up corporate governments of Stellaris (which in turn channel things like the Spacer’s Guild or the Ferengi Alliance) And that is core to the generally dystopian leaning of megacorporations – they are meant to reflect capitalism and corporate empire building taken to an extreme, to the point where it has swallowed the entire rest of the society.

Taking that definition to history, we can actually see a fair number of megacorporations; they are by no means common, but they do exist. Going very far back, the Roman societates (lit: “fellowships”, but “business association” or “company” is an accurate enough rendering) of the publicani (businessmen who filled public contracts) exercised close to this sort of power in some of Rome’s early provinces. During the Middle and Late Roman Republic, the job of extracting tax revenue from the provinces was too administratively complex for the limited machinery of the Republic, so instead the senate directed the censors to auction the right to collect taxes. Groups of Roman businessmen (and often silent patrician partners) would group resources together to bid for the right to collect taxes from a province – any taxes they took in excess of that figure would be their profit.

These companies could be very large indeed. For instance, parts of the lex portorii Asiae (the customs laws for the Roman province of Asia) survive and include regulations for the relevant company including a slew of customs houses and guard posts (the law is incomplete, but mentions more than 30 collection points – all major ports – to which would also need to be added posts along the land routes into the province). From other evidence we know that the staff at customs posts included armed guards along with the expected tax collectors and bookkeepers. And we know that publicani were sometimes delegated local or Roman forces to do their work (e.g. Cic. Ad Att. 114, using Shackleton Bailey’s numbering). They also maintained the closest thing the Roman Republic had to a postal service (Cic. Ad Att. 108). It’s not clear exactly how many employees one of the larger tax collection companies might have had (and those for the province of Asia – equivalent to the west coast of Anatolia – would have been some of the largest), but it was clearly considerable, as were the sums of money involved.

To the cities and towns of a province, such Roman companies must have seemed like megacorporations, especially if they were in with the governor (which they generally were) and thus could call down the forces of Rome on recalcitrant taxpayers. And we certainly know that these publicani often collected substantially far more than was due to them under the law (the reason why “tax collector” and “sinner” seem to be nearly synonymous in the New Testament, a fact that gave Ernst Badian’s study of them, Publicans and Sinners, its title). At the same time, we see the clear limitations too: such companies were clearly subservient to the governor and to the Roman state. Administrative changes beginning under Julius Caesar and brought to completion under Augustus did away with some of the largest tax contracts and the influence of the societates publicanorum with them.

Bret Devereaux, “Fireside Friday: January 1, 2021”, A Collection of Unmitigated Pedantry, 2021-01-01.

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