Quotulatiousness

September 16, 2015

Daniel Hannan on the inexplicable rise of Jeremy Corbyn

Filed under: Britain, Politics — Tags: , , , — Nicholas @ 05:00

Place your bets, folks … will the leadership of Jeremy Corbyn lead the UK Labour Party back into power or keep it far from that goal for years? Daniel Hannan is of the latter opinion:

For the first time in a lifetime of political analysis, I find myself lost for words. Nothing I write can do justice to the calamity that Britain’s Labour Party has just inflicted on itself. The best I can do, to give you a sense of the man newly elected as Leader of Her Majesty’s Opposition, is to summarize some of his opinions.

Jeremy Corbyn is happy to talk to Irish Republican Army men, avowed anti-Semites and Hezbollah militants; but he refuses “out of principle” to talk to the Sun newspaper, a right-wing tabloid.

He campaigns for the national rights of Venezuelans and Palestinians; but he opposes self-determination in Northern Ireland and the Falkland Islands.

He’d like to admit as many Syrian refugees as possible, but is curiously ambivalent about why they became refugees in the first place, telling RT that Assad’s chemical attacks may have been a Western hoax.

He is relaxed about Iran acquiring a nuclear weapon, but he can’t stand the idea of Britain having one.

He says taxpayers should be able to opt out of funding the military, but not out of funding trade unions.

He wants to re-open coal mines that have been uneconomical since the 1960s; yet, oddly, he wants to wean us off fossil fuels.

He can’t even unequivocally condemn the Islamic State without adding a “but…” to the effect that America shouldn’t have been in Iraq.

He is, in short, happy to ally with any cause, however vile, provided it is sufficiently anti-British and anti-American.

Jeremy Corbyn, whose steady and surprising march to victory runs parallel to Sen. Bernie Sanders’ unexpected success in the Democratic presidential race, is a shambling, self-righteous repository of every second-rate, lazy, 1960s Marxist nostrum. And Labour’s activists can’t get enough of him. They haven’t just picked the lowest card in the deck; they have slammed it belligerently on the table, giving Corbyn 59.5 percent of the votes in a four-candidate race. Fifty-nine point five percent for a man who has never held any office, who has spent 30 years rebelling against his party, and whose speaking style makes Ron Paul look like a mesmerising demagogue.

External Benefits

Published on 18 Mar 2015

What can the flu teach us about economics and externalities? In this video, we go over how vaccines produce positive externalities that help people stay healthy. When someone receive the vaccine, they pass along the positive benefits of the vaccine to others, generating positive externalities. However, when someone gets a vaccine, they bear all of the costs and only reap some of the benefits of the vaccine. The social value is larger than the private value, resulting in an an undersupply of flu shots. One solution to this problem is a Pigouvian subsidy — a subsidy on a good with external benefits.

The African migrants are not driven by demographic change

Filed under: Africa, Europe — Tags: , , , , , — Nicholas @ 03:00

Matt Ridley explains that demography does not explain the sudden influx of refugees from Africa to the European Union:

Even the most compassionate of European liberals must wonder at times whether this year’s migration crisis is just the beginning of a 21st-century surge of poor people that will overwhelm the rich countries of our continent. With African populations growing fastest, are we glimpsing a future in which the scenes we saw on the Macedonian border, or on Kos or in the seas around Sicily last week will seem tame?

I don’t think so. The current migration crisis is being driven by war and oppression, not demography. Almost two thirds of the migrants reaching Europe by boat this year are from three small countries: Syria, Afghanistan and Eritrea. These are not even densely populated countries: their combined populations come to less than England’s, let alone Britain’s, and none of them is in the top 20 for population growth rates.

Well then, perhaps that is even more ominous. If these three relatively small countries can cause such turmoil, imagine what would happen if say the more populous countries in Africa fell into similar chaos. Today Africa’s population (north and sub-Saharan) is about 50 per cent larger than Europe’s (East and West). By 2050, when — according to United Nations estimates — Africa’s population will have more than doubled from 1.1 billion to about 2.4 billion people and Europe’s will have shrunk from 740 million to about 709 million, there will be more than three Africans for every European.

Actually, demography is a poor predictor of migration. Nowhere in the world are people leaving countries specifically because of population growth or density. The population density of Germany is five times as high as that of Afghanistan or Eritrea: unlike water, people often move up population gradients. Tiny Eritrea, with only five million people, is a hell-hole for purely political reasons. It has a totalitarian government that tries to make North Korea and the old East Germany look tame: it conscripts every 17-year-old into lifelong and total service of the state. No wonder 3 per cent of its people have already left.

The fate of pedestrians in Chinese traffic accidents

Filed under: China, Law — Tags: , , , — Nicholas @ 02:00

At Gods of the Copybook Headings, Richard Anderson comments on a story about Chinese drivers ensuring that pedestrians they hurt in traffic accidents don’t survive to sue them … because incentives matter:

Smelling a story that was too interesting to be true, I texted a friend who lives in China. He read the article and texted back that every word was correct. This behaviour was so common that it was a kind of dark joke. The phrase “drive to kill” was considered practical life advice for young and old alike. These are not members of some obscure and barbarous cult. China is one of the oldest and most accomplished of human civilizations.

The legal explanation for this — a moral explanation I suspect is impossible — is a combination of a weak insurance system and easily bribable courts. An injured pedestrian can become a lifetime financial liability for the driver. Murder convictions, even in cases with clear video evidence, are still unusual. Faced with a choice of becoming a bankrupt or a murderer the popular choice seems to be the latter.

Homo homini lupus est. Man is wolf to man.

Mainland China is, of course, a dictatorship. It seems likely that in a functioning liberal democracy, such as those of the West, very basic legal reforms would long ago have been implemented to remove these quite literally perverse incentives. The rulers of China have deigned it beneath their notice to make such minor improvements.

QotD: A booming economy gives more power to individual workers

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

A few days ago there was a big debate about a New York Times expose on working conditions at Amazon.com. (BTW, it would have been useful for the NYT to compare labor practices at the Seattle company to working conditions at firms operating in the Amazon region of Brazil.)

Many liberals were appalled, while conservatives often wondered why, if working conditions were so bad at Amazon, people didn’t simply “get another job.” I have sympathy for both sides, but probably a bit more for the conservative side.

One liberal objection might be that it’s not easy to get another job. And perhaps that’s because monetary policy since 2008 has been too contractionary. And perhaps that’s because conservatives have complained about the Fed’s QE/low interest rate policies, which has made the Fed reluctant to do more.

Regardless of how you feel about monetary policy, it’s clear that if employers feel they have a “captive audience” of workers, who are terrified of losing their jobs, it would be easier for the employer to crack the whip and drive the employees to work extremely hard. One advantage of a healthy job market is that workers have more power to negotiate pleasant working conditions.

Scott Sumner, “How bad government policies make us meaner”, Library of Economics and Liberty, 2015-08-25.

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