The earliest “empires” were Security oriented. A band of hunter-gatherers — who had no concept of individual property, and just took whatever they needed from the environment — finally settled, and became farmers. Fencing and cultivating and irrigating, and building surpluses which could be traded for items that would improve living standards. (Farmers in areas that CAN’T store surplus — mainly tropical areas with year round crops — never made it further than village level agriculture, whereas farmers in areas with storable annual crops like grain — which can be stored and TAXED — went on to found empires …)
Unfortunately the initial problem with being farmers surrounded by hunter-gatherers who don’t understand property, is that such hunter-gatherers look at those nicely fenced grains and enclosed cows and sheep and goats as wonderfully convenient places to hunter-gather … (There is a reason the boundaries between hunter-gatherers and farmers are violent places, and all the crap written about “frontier wars” and extermination and the rest is just a shorthand for — these two cultures cannot co-exist peacefully … Nomads are different … they trade, therefore they understand property, therefore they can co-exist with farmers — though they will still raid where they can, be they Mongol or Viking!)
So farmers immediately face a law and order issue, which can only be solved if there is enough surplus available to provide a tax base that will allow an authority figure (chief, king, emperor, etc.) to employ people to provide protection. At village level that is usually a warrior caste who can keep the competition at bay, but once surplus gets to a level that allows higher tech, that will mean states or empires.
To put that in perspective, if your local community collects a surplus, and can afford a local chief/lord/king to provide protection, the resulting tax system is almost always (in recorded human cultures) based on a percentage of production. (In fact the earliest versions of written communication are almost always record keeping for crops and taxation.) This means that the local lord immediately has both the majority of excess funds locally, and a strong incentive to increase local production so his take will increase.
When I ask the average class of secondary school students what sorts of things the local lord could invest in to improve productivity, they get the idea pretty quickly. Irrigation for fields; animals for farm work; blacksmiths for tools and axles; wheelwrights; roads; bridges; mills; markets; guards; etc. This list is common to most parts of Europe, Africa, Asia, Central and South America and Australasia. The only places it never develops are the very early farming communities in places like New Guinea that have no storable or taxable food items to allow such a development.
So all early farming societies that can tax — without exception — become tax based hierarchical cultures. Some are even referred to as kingdoms or empires. And they are based on the idea of keeping the farmers safe, so they can be taxed.
These early empires are all Security empires. In the Middle East they are often shown as large sprawls across the map, but such sprawls are fairly fanciful. In practice they usually refer to rich farm based river valleys, with an extended hinterland based on nomadic tribes that are trading with/employed by/or paid tribute to by the “imperial authority” simply to keep other outsiders at bay.
Traditionally they fall when their hinterland nomadic allies are not strong enough to keep outsiders at bay, or become strong enough themselves to try a bit of conquest. At which point of course the conquerors find that they have to adopt the systems of the despised lowlanders they have just conquered if they are to keep the loot coming in and the system going. (One of my favourite historical analogies is the nomadic conquerors crucifying the old king on the walls of his palace and sneering that he could watch his city burn, only for him to point out that it isn’t his city anymore, it’s their city that’s burning …)
Nigel Davies, “Types of Empires: Security, Conquest, and Trade”, rethinking history, 2020-05-02.
July 12, 2025
QotD: Ancient empires
July 9, 2025
Argentina after 18 months of Milei’s leadership
All the mainstream media folks were predicting that Argentina would be an utter economic disaster after the election of Javier Milei. A few of them are starting to come around to admitting that Argentina seems to have made the right move:
What’s happening in Argentina is super impressive, but it’s not a miracle.
Yes, Milei’s reforms are generating great results, but that is exactly what libertarians and small-government conservatives said would happen.
Let’s start with this celebration of the amazing growth of private-sector wages since Milei took office in late 2023.
Or how about the astounding way that Milei has conquered inflation (I also like how this tweet mocks the statists like Piketty who frantically and erroneously warned that Milei’s election would produce an economic catastrophe).
[…]
Let’s close with another tweet.
Here’s Noah Smith, who is not a libertarian, shared two days ago.
Give him credit for acknowledging Milei’s success.
I’ll add two comments about this tweet, one about economic data and the other about predicting whether Milei would get great results.
Regarding data, I don’t think anyone should get overly excited by one month or one quarter of economic data. Even one year of data might create a misleading impression (which is why my Anti-Convergence Club is always based on decades of data). That being said, there is every reason to expect continuing strong results for Argentina.
Regarding predictions, Smith’s tweet asserts that libertarians didn’t expect Milei to be so wildly successful. At the risk of sounding like a politician, I agree and disagree.
- The “agree” part is that many libertarians were worried at the beginning of Milei’s presidency that he might face immovable opposition from the Peronist-controlled legislature. We also worried that the special interest groups might launch massive – and successful – protests that would derail necessary reforms. So if you asked me in December 2023 for my prediction, I would not have been overflowing with optimism.
- The “disagree” part is that I have always had total and absolute confidence that radical pro-market policies will produce great results, anywhere and everywhere. And I assume other libertarians (as well as Reagan-type conservatives) share my faith that good policies lead to good outcomes. So if I was told in December 2023 what Milei would have accomplished in his first 18 months, I would have fully expected the great news we now see.
In other words, what’s miraculous is that the reforms happened. The subsequent economic renaissance has been boringly inevitable (but totally wonderful).
P.S. I am cautiously optimistic that Milei will get more allies in the legislature after Argentina’s mid-term elections later this year.
July 8, 2025
“One of the problems with being a writer is that all of your idiocies are still in print somewhere”
At the Foundation for Economic Education, Itxu Díaz considers the work of P.J. O’Rourke:
Though P.J. O’Rourke passed away three years ago, his sharp wit and defense of freedom continue to resonate in a world still tempted by interventionist solutions. Reclaiming his work is more vital now than ever. What he told us through laughs and jabs in recent decades has proven to be one of the sharpest diagnoses of the dangers of postmodern left-wing ideology — and one of the most inspired reflections on why we must root our societies in individual liberty, private property, the free market, and the Judeo-Christian values that shaped the West for centuries.
Progressives want bigger government, and often conservatives don’t want it as small as we ought to like. O’Rourke knew all too well that the larger the state grows, the smaller individuals become. He devoted much of his work to explaining this in a way anyone could understand — even those not particularly interested in politics. His words resonate today in a new light, and fortunately, they remain easy to access: the Internet is full of O’Rourke’s articles, and all his books are still in print. The ideas, the jokes — the profound, the outdated, and even the ones that haven’t aged all that well — are still out there, waiting to be discovered by any digital wanderer with a sense of humor and a thirst for sharp thinking. It’s almost frightening to realize that some of O’Rourke’s tech-related jokes would go completely over a Millennial or Zoomer’s head today. And it’s even more pitiful to think that some of his old comments would be cancelled in today’s dull, hypersensitive postmodern world. Perhaps it’s because, as he once said, “One of the problems with being a writer is that all of your idiocies are still in print somewhere”. Incidentally, that’s where O’Rourke found his only point of agreement with environmentalists: “I strongly support paper recycling”.
The hippie student he was in the ’60s lost his enthusiasm for leftist ideas the following decade, as soon as he got his first paycheck from National Lampoon: a $300 check that filled him with joy — until he was told $140 would be deducted for taxes, health insurance, and Social Security. That day, he got mad at the government, and the grudge never faded. Before that, while still sporting what he called “a bad haircut” — think John Lennon’s worst style — he’d decided to tell his Republican grandmother he’d become a communist. Her response threw him off: “Well, at least you’re not a Democrat”.
O’Rourke was never one to romanticize his drug-fueled college days. “Oh God, the ’60s are back,” he wrote. “Good thing I’ve got a double-barreled 12-gauge with a chamber for three-inch magnum shells. And speaking strictly as a retired hippie and former beatnik, if the ’60s come my way, they won’t make it past the porch steps. They’ll be history. Which, for God’s sake, is what they’re supposed to be.”
From his time as editor-in-chief of National Lampoon in the ’70s, we got his account in The Hollywood Reporter, “How I Killed National Lampoon“. The job was a blast, but the environment was hell: “Having a bunch of humorists in one place is like having a bunch of cats in a sack”. As a satirical war correspondent covering every late-century conflict, O’Rourke filled countless pages describing the struggle to find a damn glass of whiskey in the burning countries at the “end of history”. His last dangerous assignment was in Iraq. “I’d been writing about overseas troubles of one kind or another for twenty-one years, in forty-some countries, none of them the nice ones. I had a happy marriage and cute kids. There wasn’t much happy or cute about Iraq,” he wrote in Holidays in Heck.
July 7, 2025
Why the Cold War Gave Us LEGO, Credit Cards, and Video Games – W2W 35
TimeGhost History
Published 6 Jul 2025Think the 1950s were all poodle skirts and jukeboxes? Think again! From the first credit cards and modems to LEGO bricks, video games, and even skateboards, discover the surprisingly futuristic side of the Cold War era.
In this episode of War to War by TimeGhost, Sparty dives into the forgotten innovations of the 1950s that still shape our daily lives in 2025.
Topics covered:
• The first commercial credit card (Diners Club)
• The birth of the computer modem
• The first microchip and the rise of computing
• “Tennis for Two” – the 1950s’ video game
• LEGO and the System of Play
• Skateboards before Marty McFlyThe 50s were WAY more high-tech than you think!
#1950s #coldwar #inventions #historyyoudidntknow #SkateboardHistory #lego #timeghost #techhistory #Modem #microchips #creditcard #videogames
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The federal government’s EV mandate cannot stand
Following its established pattern, the Canadian government will seek any possible path other than economic reality, especially when it comes to things like mandating that all vehicles sold in Canada must be EVs by 2035:
It’s not always the unexpected that gets governments in trouble — often enough it’s their own bad judgement, poor timing or general clumsiness that gets in the way. But the unanticipated does happen a lot.
Parties and politicians put time and effort into concocting a set of policies aimed at winning votes by proposing remedies to problems identified as occupying top rungs of current voter concern. If they’re lucky they get elected, presumably intending to put those policies into effect at the earliest opportunity. Then the world shifts and pulls the rug from under them.
Former prime minister Justin Trudeau was a big fan of the attention-getting promise. Especially if it was a pledge timed well into the future when he was unlikely to still be around to be held responsible. Carbon reductions too ambitious to be realistic. Budget targets too unlikely to be believed. Statist planning projects that tended increasingly to the surreal.
Mark Carney is left with the detritus and the problem of what to do about it. As prime minister he’s already acted on a few of the problematic leftovers, ditching the carbon tax even though he’d previously supported it as a good idea; scrapping an increased tax on capital gains although the Treasury could certainly use the money; “caving,” as the Trump administration so tastefully put it, on a digital services tax that was a bad idea to begin with but pushed through by the Trudeau government anyway.
There’s an argument to be made, and not a bad one, that each retreat was the right move for the moment. And if there are mistakes that need abandoning, the early days of a new government is proverbially the best time to do it.
But righting wrongs has confronted Carney with a new predicament, in that there are so many Trudeau-era wrongs that need righting. Washington was still in the midst of its victory dance over its digital tax triumph when Canada’s auto industry came along to plead for similar treatment from Ottawa, insisting automakers couldn’t possibly meet previously-set electric vehicle targets and urging the new Liberal government to backtrack post haste.
Carney hosted the session with Canada’s chief executives for Ford, Stellantis and General Motors. Brian Kingston, chief executive of the Canadian Vehicle Manufacturers Association, was blunt in identifying the targets set for electric vehicle (EV) production as the main topic.
“The EV mandate itself is not sustainable. The targets that have been established cannot be met,” he said on arriving for the meeting. Afterwards he told Politico‘s online news site, “At a time when the industry is under immense pressure, the damaging and redundant ZEV mandate must be urgently removed”.
QotD: The mythological “perfect market” and “perfect competition”
In modern neoclassical economics, the benchmark of analysis from which real-world markets are judged is the model of perfect competition, in which a homogenous good is bought and sold by a large group of buyers and sellers, respectively, none of whom have an influence on the price. Moreover, under such conditions, there exists free entry and exit of sellers in the marketplace, defined by perfect information.
The narrative that is constructed and logically follows from this model is that observed deviations from perfect competition in the marketplace are indicative of imperfections, also known as “market failures”, associated with the existence of monopoly power, pervasive externalities, the provision of public goods, and macroeconomic instability. According to this narrative, government intervention is the deus ex machina that saves the market from its own “imperfections” through regulations, taxes, subsides, and other public policy measures. Why? To use a quote from Frank Knight often used by James Buchanan, “to call a situation hopeless is to call it ideal”. The narrative that is constructed is one in which, outside the conditions of the ideal of perfect competition, there is no hope but for government intervention to save the market from itself. Anyone who has taken an economics course is well aware of what I’ve stated thus far, and therefore this should not be surprising.
But what is the implicit meaning of the word “imperfect” that is baked into the narrative, which is constructed into the model of perfect competition? What is implied when we postulate that markets are “imperfect” in comparison to the benchmark of perfect competition is that markets are flawed, non-ideal, or otherwise sub-optimal, and therefore in need of correction through government intervention. Who could dispute the logic of this narrative?
However, if we simply reinterpret our understanding of the word “imperfect”, not only will it reframe the narrative being told about the marketplace, but also the public policy implications that flow from this narrative. If we analyze the etymology of the word imperfect, breaking it down from its Latin origins, you will learn that “im” expresses the negation, “per” comes from the Latin word meaning “thoroughly” and “fect” comes from the Latin verb “facere“, meaning “to do”. Thus, rather than saying that something, or some state of affairs, is flawed, suboptimal, or non-ideal, another way to interpret the meaning of “imperfect” is an act or process that is not thoroughly done, or incomplete. In fact, from a quick perusal of the Merriam Webster’s Dictionary, you will find a similar definition of the word imperfect: “constituting a verb tense used to designate a continuing state or an incomplete action” (emphasis added).
Rather than regarding the market as a flawed or sub-optimal state of affairs, a better understanding of an “imperfect market” reveals that the market is a process of continuous tendency towards perfection, or completion, where are all the gains from trade are exhausted and all plans between buyers and sellers are perfectly coordinated. As Ludwig von Mises states in his magnum opus, Human Action, the “market process is the adjustment of the individual actions of the various members of the market society to the requirements of mutual cooperation” (1949 [2007]: 258).
Thus, markets will always be imperfect, but that is precisely why markets exist in the first place! Markets never conform to the “ideal” of perfect competition, but this is completely irrelevant, since under such state of affairs, markets are unnecessary and redundant, since all resources are already perfectly allocated to their most valued uses. Market processes exist precisely because to generate the information necessary to better coordinate the plans and purposes of individuals in a peaceful and productive manner. The entrepreneurial lure for profit and the discipline of loss is what guides such imperfect processes in a tendency towards the creation of more complete information between buyers and sellers.
Rosolino Candela, “Are Markets Imperfect? Of Course, But That’s The Point!”, Econlib.org, 2020-05-18.
July 2, 2025
July 1, 2025
The Food Professor explains what Trump got right in his Trade War
On the social media site formerly known as Twitter, Dr. Sylvain Charlebois, aka @FoodProfessor explains how Trump’s Trade War strategy is working out for US interests, in contrast to the Trudeau/Carney governments’ approach:
The Globalism Hangover: What Trump’s Trade War Got Right
“Trump’s bombastic style aside, his nationalist approach to trade and food policy is forcing global institutions to justify their existence — and that’s a conversation Canada can no longer afford to ignore.”
For the past six months, President Donald Trump’s trade policies have been widely mocked, criticized, and condemned. Some of it is certainly warranted. The Wall Street Journal, for instance, recently likened his tariff-heavy approach to global trade as a direct path toward another Great Depression. But data out of the United States tells a more nuanced story — one that challenges conventional wisdom.
Despite persistent headwinds, the U.S. economy continues to outperform expectations. The Federal Reserve Bank of Atlanta projects second-quarter GDP growth at 3.8%. In May, the U.S. economy added 139,000 jobs, outpacing forecasts, while inflation remained subdued at 0.1% month-over-month and 2.4% annually. The U.S. trade deficit has been cut nearly in half, pointing to stronger export performance and a rebalancing of trade relationships.
Canada, by contrast, is showing signs of economic strain. The national economy is shrinking, manufacturing is struggling under U.S. trade pressure, and food inflation is outpacing general inflation. In short, our economy is not keeping pace—despite our public criticism of the Trump administration.
To make matters worse, the Trump administration has now halted all trade negotiations with Canada, signaling that our bilateral economic relationship holds little strategic value for Washington. For the U.S., Canada is no longer a priority — especially under a Carney-led government that has visibly pivoted toward Europe, a market still heavily invested in maintaining close ties with the United States. From an agri-food standpoint, this shift is consequential: access to our largest trading partner is narrowing, while Ottawa appears more focused on diplomatic optics than on securing stable, competitive trade channels for the Canadian agrifood economy.
This is the one thing the ‘Elbows Up’ crowd never understood — and still doesn’t. We’re not in a trade war with the U.S. There’s no war to be won. For Trump, this is about a realignment of the global order, plain and simple — one centered entirely on American supremacy.
Love him or loathe him, Trump is not destroying the U.S. economy — not yet, anyway. His unapologetically nationalist agenda extends far beyond tariffs. He has withdrawn U.S. support from key global institutions such as the WHO and is threatening to sever ties with others, including NATO and several UN-affiliated agencies. Among them is the Food and Agriculture Organization (FAO), the UN’s most authoritative body on food security.
At a recent event in Brazil, a senior FAO official acknowledged that fundraising dynamics have shifted. In the Trump era, governments are asking harder questions: Why should we fund the FAO? What domestic benefit does it provide? What used to be assumed support is now conditional — and arguably, more accountable.
This shift isn’t unique to Washington. Many countries are quietly aligning with the U.S. position, scrutinizing globalist institutions with renewed skepticism. Transparency and accountability are byproducts of this anti-globalist sentiment — something not inherently negative.
For decades, globalism pushed the world to believe that trade liberalization was the only viable path to growth and prosperity. It became conventional wisdom. But globalism has made some nations — and some people — richer, while leaving others behind. In the process, domestic sectors, including agriculture, were often sidelined or sacrificed in the name of global efficiency.
The problem with globalism, particularly in agri-food policy, is its tendency to pursue uniformity over relevance. Canada, for example, adopted the carbon tax under a globalist climate agenda that often overlooks the vital role food producers play in feeding people. Instead of being supported, the sector is too often vilified as a problem. But agriculture is not a liability — it is a necessity.
Trump’s message — wrapped, of course, in provocative and often abrasive language — is that one-size-fits-all global policies rarely work. Nations have different socio-economic realities, and those should come first. While cooperation is essential, so is recognizing local and regional priorities. In this sense, his “America First” approach is not without logic — especially when it seems to be yielding short-term economic gains.
For Canada’s agri-food sector, the lesson is clear: striking a better balance between global commitments and national imperatives is overdue. We should not abandon multilateral cooperation, but we must stop anchoring policy to global agendas we have little influence over. Instead, let’s define what works for Canadians — what supports our farmers, protects our food security, and reflects our unique landscape — while keeping the broader global context in view.
We are not there yet. But if this moment of disruption sparks a more realistic and regionally attuned approach to food policy, we’ll be better for it.
June 27, 2025
QotD: The dangers of “doing too much principal component analysis”
John: I’ve never read a fashion magazine or watched a runway show, so I just naively assumed that models were stunningly attractive and feminine. But as Mears points out, the models are not actually to most men’s tastes. They tend to have boyish figures and to be unusually tall.1 Is this because the fashion industry is dominated by gay men, who gravitate towards women who look like teen boys? Whatever the origins of it, there is a model “look”, and the industry has slowly optimized for a more and more extreme version of it, like a runaway neural network, or like those tribes with the rings that stretch their necks or the boards that flatten their skulls. There’s actually a somewhat uncanny or even posthuman look to many of the models. The club promoters denigrate women who lack the model look as “civilians”, but freely admit that they’d rather sleep with a “good civilian” than with a model. The model’s function, as you say, is as a locus of mimetic desire. They’re wanted because they’re wanted, in a perfectly tautological self-bootstrapping cycle; and because, in the words of one promoter: “They really pop in da club because they seven feet tall”.
[…]
By the way, the fact that models are beautiful in a highly specific way, and that there exist women who are similarly beautiful but condemned to be “civilians”, is a good reminder of the dangers of doing too much principal component analysis.2 In so many areas of life, we are obsessed with collapsing intrinsically high-dimensional phenomena onto a single uni-dimensional axis. You see this a lot with the status games that leftists play around privilege and oppression — I feel like a rational leftist would say that a disabled white lesbian and a wealthy scion of Haitian oligarchs are just incomparable, each more privileged than the other in some senses and less in other senses. But no, instead there’s an insistence that we find an absolute total ordering of oppression across all identity categories, a single hierarchy that allows us to compare any two individuals and produce a mathematical answer as to which one is more deserving of DEI grants. My hunch is a lot of the internal tensions and bickering within American leftism are actually produced by this insistence, which makes sense because it’s totally zero sum.
But the disease of trying to pin everything to a single number is hardly confined to the left. You see it on the right in the obsession with IQ, as if a single number could capture the breathtaking range of variation of cognitive capabilities across all humanity. I mean for goodness sake, Intel learned the hard way that this doesn’t even work for computers, and human brains are much weirder and more complicated than microprocessors. But the even dumber version of this is the 1-10 scale of female beauty. There’s something so sublime about seeing a beautiful human being, because so much of it is either bound up in subtle interrelationships between different features (this is why plastic surgery often makes people uglier — there’s no such thing as a “perfect nose”, and if you pick one out of a catalog you’ll probably end up with one that doesn’t fit your face), or it’s irretrievably evanescent — a fleeting glance, or the way her hair falls across her face just so, gone the moment after it happens. Taking something so ineffable and putting it on a 1-10 scale only makes sense as a form of psychological warfare. And I get it, amongst the young people relations between the sexes have degenerated to the point of more or less open warfare, but come on, this is pornbrained nonsense.
Speaking of both the DEI olympics and the classification of female beauty, some parts of this book are really charmingly naive, and I snickered a bit at Mears’s mystification at why all of the models are white and blonde. The really funny part is that she says something like: “I expected this legacy of white supremacy to be in retreat given that so many of the big spenders in clubs these days are from Asia and the Middle East”. Is she really not aware that men of other races have an even stronger aesthetic preference for white women than white men do?3
John Psmith and Gabriel Rossman, “GUEST JOINT REVIEW: Very Important People, by Ashley Mears”, Mr. and Mrs. Psmith’s Bookshelf, 2024-03-04.
1. In fact, an unusually high proportion of models are intersex individuals with a Y-chromosome and androgen insensitivity syndrome.
2. Not the only danger of too much principal component analysis!
3. Gabriel: Kimberly Hoang did an ethnography as a bar girl in several Vietnam bars. At the bar that catered to Vietnamese elites, the other bar girls made her lighten her skin with cosmetics and wear a black minidress, with the target look being tall, pale, and slender K-pop idol. When she moved to another bar catering to white sex tourists, the other bar girls told her to wear bronzer and a slutty version of traditional Asian dress with the target look being exoticized sexiness. See: Hoang, Kimberly Kay. 2015. Dealing in Desire: Asian Ascendancy, Western Decline, and the Hidden Currencies of Global Sex Work. University of California Press.
June 24, 2025
“Britain’s bill for Caribbean slavery comes to £19 trillion – fifteen times the current annual budget of the UK government”
The demands for reparations for historic wrongs will continue to grow, but the chances of any of the hustlers making the demands are remarkably slim, and thank goodness for that, because if the principle ever gets established we’ll be on a never-ending beggar-my-neighbour jag:
Britain’s bill for Caribbean slavery comes to £19 trillion — fifteen times the current annual budget of the UK government — according to the 2023 Brattle Report. And if the “Glasgow — City of Empire” display at the Kelvingrove Museum is anything to go by, Scotland owns a large share of that, since Glasgow was “one of the major port cities” involved in the slave-trade, whose profits played “a crucial role” in its economic development and prosperity.
The debt-collectors are already knocking at the door. In March 2023, Clive Lewis, MP and shadow Foreign Secretary under Jeremy Corbyn, called for the UK government to start “meaningful negotiations” over reparations with Caribbean countries. The following autumn, Lewis’s parliamentary office became the centre of a reparations-campaign, funded by Irish billionaire Denis O’Brien. And in April this year, Sir Keir Starmer received the Prime Minister of Barbados, Mia Mottley, into No. 10. “We’ve known each other many years as good colleagues and now as leaders who think alike”, said Starmer. Mottley has stated that Britain owes Barbados £3.9 trillion and it was she who pushed for reparations onto the agenda of the Commonwealth Heads of Government summit last year.
But the case for reparations doesn’t add up. Yes, some Britons were involved in inhumane slave-trading and slavery, mainly from about 1650 to the early 1800s, when they transported over 3.2 million slaves from Africa to the Americas. Yet, while campaigners portray British involvement as uniquely dreadful. It wasn’t.
Up until the end of the 18th century AD slavery and slave-trading were universal institutions, practised since the dawn of time on every continent by peoples of every skin colour. In North America, indigenous societies in the Pacific North-West were built on slave-labour, since subsistence required the rapid processing of salmon, and the quantity of work outstripped the supply of female labour. So, raiding for slaves was endemic. Thousands of miles to the south, the Comanche ran “the largest slave economy” in the 1700s — according to Oxford’s Pekka Hämäläinen. Meanwhile, on the other side of the Atlantic, Arabs had been busy slave-raiding and -trading since at least the 7th century AD. According to one authority, the Muslim trade transported 17 million slaves mainly from Africa, but also from Europe, to the southern and eastern coasts of the Mediterranean. This is one context out of which reparations-advocates like to abstract British slavery.
Another is African complicity. British slave-ships off the coast of West Africa didn’t have to raid inland to obtain their slaves. They just waited on the coast for them to be brought. Africans had been busy enslaving and trading other Africans for centuries, first to the Romans, then to the Arabs, and finally to the Europeans. As early as 1550 the Kingdom of the Kongo was exporting up to 8,000 African slaves annually to the Portuguese.
The final context that campaigners studiously ignore is the fact that Britain was among the first states in the history of the world to abolish slave-trading (in 1807) and slavery (in 1833) throughout its territories. It then used its dominant power to suppress both slave-trading and slavery from Brazil, across Africa and India, to New Zealand for the second half of the British Empire’s life. In the 1820s and ’30s, the Slave Trade Department was the Foreign Office’s largest unit. By mid-century the Royal Navy was devoting over 13 per cent of its total manpower to stopping transatlantic slave-trading. The cost of this alone to British taxpayers was at least the equivalent of up to £1.74 billion today or 12.7 per cent of the UK’s current expenditure on development aid — for half a century. According to the eminent historian, David Eltis, the nineteenth-century costs of slavery-suppression exceeded the eighteenth-century benefits.
The West Africa Squadron, which freed 150,000 African slaves.
QotD: Trade-offs
Among the oddments that sometimes appear in opinion polls are questions like, “Would you accept a lower standard of living in exchange for” … whatever policy is currently on offer. That policy might range from a climate-change shutdown of all carbon-based energy production, to reduced levels of immigration and foreign trade.
In principle, I approve this recognition of policy trade-offs, and every acknowledgement that, in the red-pilled world beyond political phantasy, “you can’t have your diamond-studded hand-sculptured fondant wedding cake, and eat it, too”. Or in the more modest, Yorkshire form of this important cliché: “You can’t have the penny and the bun”.
Any concession towards what I remember as reality is welcome at the present day, to me. As a non-economist, however, I regret that the trade-offs are only expressed in money. They apply also, and frequently instead, to things the modern world doesn’t count, because they are intangibles.
David Warren, “On juvenile delinquency”, Essays in Idleness, 2020-05-22.
June 20, 2025
June 12, 2025
Why it’s economically impossible for Walmart to “eat the tariffs” as Trump demands
At FEE, Peter Jacobsen shows the clear financial reason why Walmart and other big US retailers are passing along the price increases due to Trump’s tariffs rather than “eating them”:
Recently, a post from President Trump on Truth Social went viral. An attempt to convince retail giant Walmart to keep prices down despite the tariffs, it read:
Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, “EAT THE TARIFFS”, and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!
Trump’s demand here is, simply put, unreasonable, and it reflects a basic misunderstanding of how pricing decisions are made in a market economy. Let’s unpack why.
Walmart’s Thin Margins
The biggest problem with the President’s view is that it doesn’t pass a basic numbers test. To break it down, let’s look at Walmart’s financials.
It’s true that Walmart generates billions of dollars in revenue each year, but revenue alone doesn’t tell us how much Walmart makes.
To understand that, we need to consider profit, which accounts for the company’s costs. More specifically, we want to look at Walmart’s net profit margin, because that’s an extremely important indicator of whether Walmart could realistically “eat the tariffs”.
Depending on the source, Walmart’s net profit margin is somewhere between 2% and 3%. Let’s split the difference and say it’s 2.5%. What does that mean?
That means, if Walmart sells you $1 of goods, it only keeps 2.5 cents in profit. That’s right, 97.5 cents goes toward inventory, employee wages, store maintenance, and a variety of other operating costs.
Put another way, if you spend $100 at Walmart, they make $2.50 in profit.
Now let’s say you buy a $100 television that Walmart imports. A $20 tariff is imposed — an added cost Walmart has to pay to import the TV. Before the tariff, Walmart was making $2.50 in profits. After the tariff, it’s now taking a $17.50 loss.
The only way Walmart can still sell this TV is by raising the price.
At this point, a tariff supporter might respond: “The easy way to fix this is to buy US-made TVs instead!”
Sure — you can avoid tariffs by only buying domestic, but the problem is that domestic TVs tend to be more expensive. If they weren’t, Walmart wouldn’t be importing them in the first place. So even if Walmart pulls international TVs off the shelves and replaces them with US-made ones, the prices still increase.
Here’s the key point: “eating” the tariffs is not an option. Walmart operates on slim margins, barely making pennies on the dollar — there isn’t room to eat 20% cost increases!
There definitely used to be a gender pay gap
I’m sure activists will keep slinging around the “women are paid 82 cents for every dollar men are paid” factoid, because it’s politically useful (if statistically untrue in the way most people interpret it). But it used to be true that women were systematically paid less for doing the same work as men:

Dame Stephanie Shirley, entrepreneur, IT pioneer, philanthropist, at her 80th birthday party in September 2013.
Photo by Lynn Hart via Wikimedia Commons.
At which point enter Dame Stevie:
Dame Stephanie Shirley, 91, is a tech pioneer and philanthropist who came to Britain on the Kindertransport in 1939. She built a £3 billion business, Freelance Programmers (later renamed F International), and 70 of her staff became millionaires due to its shared ownership structure. Since retiring in 1993 she has donated more than £70 million to charity. She was made a dame in 2000 and became one of the prestigious few members of the Order of Companions of Honour in 2017.
Back when she was building F1 the sexism in industry was such that she called herself Stevie, not Stephanie. You know, deniably pretending to be male sorta thing. Also, given that background, something of a tough nut and certainly nobody’s fool. F1, among other things, did the programming on the Black Box for Concorde. Proper, serious, company.
The sexism in industry was such that there really was a gender pay gap. A general assumption — to the point of rigid rule — was that wimmins didn’t work after marriage and certainly not when they had children. So, Stevie went out and hired all those birds who had been programmers before parturition, set ’em up with a home terminal and paid ’em peanuts. Then went around winning vast contracts with her price advantage.
This worked. To the extent that Stevie is on record as saying the Equal Pay Act was the worst thing ever for her business (note, not societally wrong, but bad for her business).
Which actually gives us a nice test of something that bastard neoliberals like me insist upon. Or as Gary Becker pointed out. If it is true that wimmins is underpaid in our capitalist bastardry patriarchal society then it must also be true that it’s possible to deliberately and specifically hire women and so gain a price advantage.
Dame Stevie did this and did so very successfully. Which is a nice proof that the first part of the contention works. If women are underpaid then hire them and make a fortune. Cool!
The apparent fact that nobody else has done this is a strong indicator that there isn’t a significant gender wage gap these days.
June 11, 2025
The coming “Dissolution of the Universities”
At Postcards from Barsoom, John Carter provides a useful summary of the situation in England at the time of the Reformation which brought King Henry VIII to seize the wealth and property of the monasteries and other Christian establishments and why he was probably right to do so. Then he shows just how the modern western universities now find themselves in a remarkably similar position today:

The well-preserved ruins of Fountains Abbey, a Cistercian monastery near Ripon in North Yorkshire. Founded in 1132 until dissolved by order of King Henry VIII in 1539. It is now owned by the National Trust as part of the Studley Royal Park, a UNESCO World Heritage Site.
Photo by Admiralgary via Wikimedia Commons.
Our own university system is on the cusp of a similar collapse. This may seem outrageous, given the size, wealth, and massive cultural importance of universities, but at the dawn of the 16th century, the suggestion that monasteries would be dismantled across Europe within a generation would have struck everyone – even their opponents – as absurd.
The Class of 2026
The rot in academia is already proverbial. Scholarly careerism, declining curricular standards, the replication crisis, a demented ideological monoculture, administrative bloat … a steady accumulation of chronic cultural entropy has built up inside the organizational tissue of the academy, rendering universities less effective, less trustworthy, less affordable, and less useful than ever before in history. We see a parallel here with the moral laxity of 16th century monastic life, where religious vows were more theoretical than daily realities for many monks. Does anyone truly think that Harvard professors take Veritas at all seriously?
At the same time, universities have become engorged on tuition fees, research grants, and endowments, providing an easy and luxurious life for armies of well-paid and under-worked administrators, as well as for those professors who are able to play the social games necessary to climb the greased pole of academic promotion. Everyone knows that academia is in a bubble, and as with any bubble, correction is inevitable, and the longer correction is postponed by the thicket of interlocking entrenched interests that have dug themselves into the system, the uglier that correction was always going to be.
Just as the printing press rendered the monastic scriptoria entirely redundant, the Internet has placed universities under increasing threat of obsolescence. Libraries and academic publishing have already been rendered useless by preprint servers. It is no longer, strictly speaking, necessary to attend a university to learn things: the Internet has every tool an autodidact could desire, and insofar as it doesn’t – for instance, university presses and private journals charging outrageous fees for their books and papers – this is due to the academy jealously guarding its treasures with intellectual property law rather than any limitation of the technology. One can easily make the argument that academia has become an obstacle, rather than an organ, of information dissemination.
Still, universities have so far managed to hold on to their relevance due to their lock on credentialization: no one really cares how many How-To videos you watched at YouTube U, because – in theory – a university degree means that there was some level of human verification that you actually mastered the material you studied.
Large Language Models, however, are delivering the killing blow. Just as the printing press collapsed the cost of reproducing text, AI has collapsed the cost of producing texts. This is actually worse news for universities than Gutenberg was the monasteries: movable type made scriptoria unnecessary, but LLMs haven’t only made universities obsolete, they’ve made it impossible for universities to fulfil their function.
Universities rely on undergraduate tuition fees for a major part of their income. Large research schools derive a significant fraction from research grants, and the more prestigious institutions often receive substantial private donations, but for the majority of schools it is the fee-paying undergraduate that pays the bills. This is already a problem, because enrolment is already declining, partly for demographic reasons (the birth rate is low), and partly because academia has been increasingly coded as women’s work, leading to young men staying away.
In theory, undergraduate students are paying for an “education”. They are gaining essential professional skills that will make them employable in well-remunerated white collar professions, or they are broadening their minds with a liberal arts education that provides them with the soft skills – critical thinking, the ability to compose and parse complex texts, a depth of historical and philosophical understanding of intricate social and political issues – that prepare them for careers in elite socioeconomic strata.
Everyone, however, has long since understood that this narrative of “education” is a barely-plausible polite fiction, like those little scraps of fabric exotic dancers wear on their nipples so everyone can pretend they aren’t showing their boobs. Students know it’s a lie, professors know it’s a lie, administrators know it’s a lie, and employers certainly know it’s a lie. What students are actually paying for is not an education, but a credential: they could not possibly care less about the “education” they’re receiving, so long as they receive a piece of paper at the end of their four years which they can take to an employer as evidence that they are not cognitively handicapped, and are therefore in possession of the minimal level of self-discipline and intelligence required to handle routine tasks at the entry-level end of the org chart. Thus the venerable proverb among students that “C’s and D’s get degrees”. It doesn’t matter if you did well: employers don’t generally care about your GPA. All that matters is that you do the minimal possible level of work to squeak through. As a general rule, your time as a student is better spent grinding away in the library as little as possible while enjoying yourself to the maximum extent that you can in order to develop social networks you can draw upon later.
Until recently, graduate school ensured that there was still some vestigial motivation for genuine intellectual engagement. Corporate America might not care about your transcript, but if you wanted an advanced degree, graduate schools most certainly did. Those students with greater academic ambitions than a Bachelor’s degree could therefore generally be relied on to actually apply themselves, thereby making the professoriate’s efforts delivering lectures, preparing homework assignments, and grading exams somewhat less of a pantomime. DEI, however, was already eating its way through even this. As graduate school admission became more about protected identities and less about intellectual mastery, and as graduate programs were themselves rendered easier in order to improve retention of underqualified diversity admits, it started to become less important to study hard even if one wanted to enter grad school.
To the point. In 2022, ChatGPT became available. Almost overnight undergraduate students began using it to write their essays for them. Its abuse has now become essentially ubiquitous, and not only for essays: ChatGPT can write code or solve mathematical problems just as easily as it can generate reams of plausible-sounding text. It might not yet do these things well, but it doesn’t have to: remember, C’s and D’s get degrees.












