Quotulatiousness

February 25, 2025

Argentina’s experience of life with high tariffs

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

Marcos Falcone explains how Argentina’s unusually high tariff barriers distort ordinary economic activity for Argentines every day:

When Argentines go abroad, they usually go shopping. Many of the products they want cannot be bought at home, ranging from clothes to smartphones and all kinds of home appliances. Because of this, it has become a tradition to return from a trip with one or two extra suitcases filled with smuggled goods. Did you know that it is more expensive to buy an outdated iPhone in Argentina than it is to fly from Buenos Aires to Miami, stay for three days, and get the newest one?

[…]

Tariffs do not just make it difficult to get phones at home — they can make life dangerous as well. Argentina’s most sold car, which is artificially expensive because of protectionist measures, got 0 (zero) stars on one of Latin America’s most renowned safety tests. Cars in Argentina are not only more expensive than elsewhere in the region, but also markedly less safe.

To achieve these terrible results, the only thing Argentina had to do was enact tariffs, and now the US seems to be heading in the same direction. But in the past, protectionism has caused the same damage in the north as it caused in the south. Back in the first Trump administration, protecting the steel-production industry saved some jobs, but eliminated many more. Tariffs have also hurt businesses that rely on imports within the US and can continue to do so in a world of globally integrated supply chains. More generally, the 1933 Buy American Act, which forces the government to pay more for US-made goods, has been proven to be both ineffective and costly.

There is no escaping the negative effects of blocking outside competition. The more barriers a country enacts, the more damage it causes to itself. If we, as individuals, acted in a protectionist way, we should aim to grow our own food, build our own house, or make our own cars. But how does that make any sense? Economist Robert Solow once said, “I have a chronic deficit with my barber, who doesn’t buy a darned thing from me”. He meant it as a joke, but he had a point: What matters is to create wealth, which can be done both by selling and buying from others.

The revival of protectionism in the US is worrisome. To avoid it, Americans should take a look at the enormous destruction of wealth that tariffs have caused in other countries. Despite President Milei’s recent efforts to lift tariffs and take Argentina out of the “prison” in which it exists, the fact that the country shot itself in the foot decades ago has put it in a very delicate economic position. The US should not follow its path.

Likely trajectories of the victims of DOGE

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

Bruce Ivar Godmundsson identifies the most probably career dislocations of civil servants winkled out of their expected life sinecures by the minions of Elon:

To put things another way, the status deprivation experienced by erstwhile feeders at the Federal trough will eventually lead to a great deal of radicalization. After all, if history is any guide, it is not the victims of sustained oppression who raise the banner of revolt, but those who lost advantages that they had earlier expected to enjoy for the rest of their days. (It was not, after all, agricultural laborers, let alone vagabonds, who enlisted in the machine-smashing armies of General Ludd, but practitioners of “decent trades” who had previously occupied lucrative bottlenecks in supply chains.)

As they LARP as extras in the street fighting scene of Les Misérables, the outcasts will find, standing beside them on the barricades, youngsters who, as recently as the autumn of 2024, had expected to parley their ability to paraphrase (or, at the very least, parrot) the Party Line into an internship with an agency, a poorly paid (but prestigious) place in an NGO, or, for those especially adept at symbolic manipulation, a job with a name-brand consulting firm.

Leaving aside the cinematic metaphors, some of the dispossessed will, no doubt, resort to rioting. More will ride the protest circuit, which will do for them what comic-book conventions do for fancy-dressed fans of manga and anime. Most, however, will do little more than haunt the margins of the middle class, muttering about their masters degrees in public policy as they wait for the next command to appear on the screens above their grills.

Repeated encounters with the fallen may drive the final nail into the coffin of the assumption, once central to the world view of so many Americans, that possession of a sheepskin entitled its holder to a desk job. No longer will parents dining at McDonalds whisper to their children “if you don’t go to college, you’ll end up like that”. Rather, they will point to the technician repairing a self-service kiosk and say “that’s the sort of thing that you want to do”.

German election results

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

Germany voted on Sunday (on paper, and the votes all got counted in less than 24 hours) and the most likely result will be a coalition between the centre-right CDU and the social democratic SPD, excluding the second-largest party, the extremely extreme extreme right-wing AfD:

The federal elections in Germany are over, and the preliminary count is in. The CDU/CSU have narrowly avoided the Kenyapocalypse, as the Bündnis Sahra Wagenknecht failed to meet the 5% hurdle for representation in the Bundestag by a mere 13,435 votes. In consequence, the Social Democrats and the Union parties together will command a thin but workable parliamentary majority of 328 seats. In all likelihood, we will have a black-red government under CDU Chancellor Friedrich Merz – a not-so-grand coalition of the kind we grew used to under Angela Merkel.

Here is a district-by-district map of the election results, with each district coloured according to the winning party. Black is CDU/CSU, blue is AfD, red is SPD and green is Green:

My district is the one all the way due south of Munich on the Austrian border. The CSU got 41.9% of the party vote here – one of their best showings in all of Bavaria.

The Losers

The preliminary results of each party compared to the last elections in 2021 reveal last night’s losers clearly enough:

This vote was as poignant a rejection of Olaf Scholz’s parodically bad traffic light coalition as anyone could imagine. Everybody has improved at the expense of red-green-yellow, but it is interesting to observe who has done the worst.

The Greens dominated the traffic light, and voters have dealt them the lightest punishment of all. Imagine how crazy you have to be ever to enter a government with this toxic party: They get their way on all major political issues and you get punished for it. Even so, the Greens did much worse than I thought they would. Almost everybody beyond their hardcore devotees has abandoned them, and Green Chancellor Candidate Robert Habeck (who also lost his direct mandate in Flensburg-Schleswig) has announced he will never again seek a leading role in the party. We have finally rid ourselves of his Majesty the Sun Chancellor, the champion of speech crime charges, and that alone is worth a stiff celebratory scotch.

The FDP lost far harder than the Greens. Last night was their worst showing of all time – worse even than the last time they were chased out of the Bundestag in 2013. Party chief Christian Lindner will resign and withdraw from politics, and he should. The FDP stood idly by and waved through ruinous Green policies like the building heating ordinances, all the time pleading that things would be even worse if the FDP weren’t in government. After the constitutional court in Karlsruhe killed the budgetary schemes of the traffic light, the FDP could have left the coalition, but they subjected all of us to another year of Scholzian incompetence and insanity. If there is any justice in the world the FDP will become a minor West German party that nobody thinks about anymore.

The next biggest loser of the night was the Social Democrats, who likewise booked their worst electoral result in history, and also achieved the worst-ever electoral collapse of a chancellor party in the 80-year history of the Federal Republic. Olaf Scholz has said he will not participate in any future government or coalition negotiations, and party co-chair Lars Klingbeil spoke last night of a “caesura” in the history of the SPD, promising substantial changes in party leadership. The first such change happened almost immediately, with the resignation of SPD faction leader Rolf Mützenich. Klingbeil will replace him. Many expect that Klingbeil’s co-chair, Saskia Esken, will also be forced out before long, although she is clinging to her job for the moment.

Looking from the US, CDR Salamander notes the very high turnout for a federal election with approval:

Sunday, Germany held national elections for the parliament, the Bundestag. Congrats to the German people and their ~83% turnout, the greatest I believe, since unification.

The previous government led by SPD and hobbled the the Greens was unstable at best, and was not doing great things for the German people. That would be why the SPD’s results were the worst since 1887.

    Defense Minister Boris Pistorius has clear words for the performance of his SPD. “This is a devastating, catastrophic result,” he said. “There is no way to sugarcoat it.” He congratulated the Union on its election victory. “I hope that — especially in view of Friedrich Merz’s speech in Munich yesterday — they will now strike the right tone and understand that it is about keeping the democrats together and not playing them off against each other.” An AfD at 20 percent cannot leave the Social Democrats in particular at rest.

Nuff said.

The above numbers were from Sunday night and are not final, but we can safely assume that they are roughly where the final count will be.

You need 316 seats to control, and you need 5% to enter government. That last bit puts FDP and BSW out of the picture. I’ll chat a bit about that at the bottom of the post, but let’s focus on the big boys.

First things first, Germany voted for right-wing governance. CDU/CSU (Union), and AfD got 49.2% of the vote. However, no one will form a government with them, so the Germans will not be getting what they voted for.

[…]

AfD broke into the former West Germany. Both Kaiserslautern and Gelsenkirchen voted for AfD. I also find it interesting that in addition to the West Germany/East Germany divide, the East Berlin/West Berlin divide is still there.

History is sticky.

I lived with Germans for four years, yet I don’t fully grasp German politics. Still, some political constants hold true everywhere.

Again, the Germans voted for a right-wing government. With Union having to partner with SPD, that will pull the center of the government to the left, further away of the center of the electorate … again.

Were I a German, I would want a few things, in this order:

  1. Cheaper energy — lower monthly bills and prices across the board. It will also make German manufacturing more competitive. Yes, the only way to do that is to restart the nuclear power plants. With the Greens gone, no reason not to.
  2. Stop migration. Expel illegal migrants. If someone has vacationed in the nation they claimed to seek asylum from, deport them. Etc.
  3. Be a player in ending the war in Ukraine, if it can be ended. If Russia refuses to be reasonable at the table, then fully back the Ukrainian fight. As this is aligned with the general direction of the USA and other allies, it makes sense.
  4. Redouble spending on national defense. 2% will not do. 2.5% is the floor, and must be reached faster.

All the four above will be more difficult with SPD in government. Remember my long-held position that applies everywhere, not just in Germany:

    When the center-right and center-left refuse to address the legitimate concerns of the people, especially in issues of migration and culture, then the people will look elsewhere for their concerns to be met.

If AfD were brought into government, they would be forced to moderate and to be held accountable for the action of government. With AfD in opposition — with a bone in their teeth — they will most likely, if they do not implode due to their well-known “personnel challenges”, they will increase their popularity with voters.

Surviving the Titanic – Dining on Carpathia

Filed under: Britain, Food, History — Tags: , , , , — Nicholas @ 02:00

Tasting History with Max Miller
Published 15 Oct 2024

Purée Crécy (Creamy carrot and potato soup)

Beautifully vibrant carrot and potato soup garnished with homemade croutons and chervil

City/Region: Carpathia | United Kingdom | France
Time Period: 1903 | 1912

While I don’t know if this is the exact soup that was served to the Titanic survivors once they were on board the Carpathia, the captain, Arthur Rostron, ordered for coffee, tea, and soup to be readied for the survivors. The menu from the last meal served aboard the Carpathia before it docked back in New York on April 18th lists Potage Crécy as one of the soups, so if this wasn’t the soup that was first served to survivors, it was at least in the Carpathia‘s repertoire.

Dishes featured on the channel rarely make it into my rotation, but this is one of them. It’s simple, quick, and has such a wonderfully rich, buttery, creamy texture and flavor. I was really surprised at how developed the flavors were after such a short cook time, and while it’s carrot-forward, there’s a little of the potato and the butter and cream are so delicious. A high-quality butter can really make the difference in this.

Smooth, rich, creamy. A perfect fall and winter soup.

    Stew the carrots in butter with onions as for Purée Crécy but replace the thickening of rice with 250g potatoes and moisten with 1 litre water; season with salt. When cooked pass through a fine sieve and adjust the consistency with 2 dl very fresh cream; pass through a fine strainer at the last moment and add 150g butter. This soup does not now require any further simmering or skimming. Garnish with chervil and small Croutons of bread fried in butter.
    — Le Guide Culinaire by Auguste Escoffier, 1903.

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QotD: Identity politics as a secular religion

Filed under: Books, Politics, Quotations, Religion — Tags: , , , , , — Nicholas @ 01:00

Tom Holland, in his book Dominion, The making of the Western Mind, identifies the “trace elements” of Christianity in the woke world. The example he used was the intersectional feminists in the #MeToo movement offering white feminists the chance to “acknowledge their own entitlement, to confess their sins and to be granted absolution”.

But the problem with identity politics as a secular religion is precisely its failure to allow for absolution. The faith that Saad espouses is utterly bleak, even cloaked as it is in words of love. It utterly fails to allow for redemption, and its most direct religious antecedent is found in Calvinist predestination.

Under this doctrine, God has predetermined whether you are damned or elect. From the second that the right sperm hit it lucky with the most fecund egg, your place in the woke hierarchy was decided. In the modern progressive world, informed by intersectional feminists, it does not matter what you say or do, the only defining factor in your state of grace is your skin, gender and sexuality.

This is a profoundly depressing outlook for three main reasons. The first is the essential nihilism in the creed. Your intent? Irrelevant. Your deeds? Likewise. The sum of your experience, desires, longings, beliefs? Your humanity itself? Nah, not relevant.

The second dispiriting message is that the problems its aims to address are insoluble. White people are racist by their nature, and inherently incapable of seeing their own racism or addressing it. Men are misogynists, by default, witting or unwitting bulwarks of the patriarchy. If they don’t believe they are individually at fault they are in denial. And if they try to say, actually, I’m not sure the patriarchy exists, they are mansplaining misogynist bastards. This is the politics of perpetual antagonism, of a kind of bleak acceptance that all relationships between different categories of human are necessarily fractious.

[…]

The third problem with Puritan wokeness is that it [has] sinister echoes in the history of predestination. When the creed reached its zenith in the seventeenth century, the logical hole at its centre became insanely obvious. If it does not matter to God how you behave, because your salvation was pre-determined at birth, why not behave however the hell you want to?

Antonia Senior, “Identity politics is Christianity without the redemption”, UnHerd, 2020-01-20.

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