A parallel case may be found in the “civil” services, regulating authorities, non-profits, &c. Jobs in these areas, which command high salaries and pensions, and present delicious opportunities for graft, are outwardly the opposite of productive. They parasitically consume, on a colossal scale, the resources of the productive.
Look into almost any kind of “charitable” activity, such as social work, and one will find that only a tiny proportion of the cash “trickles down” to the characteristically desperate “clients”. And when it does, they use it to buy not only drugs and licker, but truly useless things, such as lottery tickets.
“Education” systems, in the modern West, exist chiefly to enrich semi-literate, unionized schoolteachers. In many parts of Ontario, for instance, a teacher will make at least double what the average parents make, and therefore feel justified in sneering. The teachers naturally consider that the little ones belong to them, for they are the necessary source of their income. What rights should parents have to interfere in their upbringing?
My best argument for the parasite class (always granting that some may be sincere), is that they protect society from gathering excessive wealth, or living lives of too much ease. Without them, we might easily suffer from the vices associated with too much freedom.
How I preferred the deadbeat, layabout, very English London of the Labour Party, when I lived there in the ‘seventies — to the cosmopolitan, rich, over-swept London of the Thatcher years. There are some advantages to socialism.
And there are other arguments, too, for putting depraved Leftists in power, though on examination they reveal special pleading. For instance, teachers may claim to offer child-minding services, so that mothers, especially, can go to work. But it is because heavy taxation requires the dual income, or women to do horrible and demeaning paid work when their husbands run away, that these services were ever made necessary.
The government does, arguably, “create” employment. Among the most farcical examples are the tax lawyers and consultants. Taxpayers need these to navigate incredibly elaborate tax codes, for their own protection. Only a professional can find the loopholes. Whereas, a comprehensible, flat tax system would put all these “experts” out of business. It would shrink revenue departments spectacularly, and by extension, threaten to shrink taxes. To a professional politician, this would never do. It would shrink his power.
David Warren, “Answering to a ‘need'”, Essays in Idleness, 2020-06-18.
July 21, 2025
July 18, 2025
The Napoleonic-era Royal Navy
David Friedman on some of the aspects of Britain’s Royal Navy in the late eighteenth and early nineteenth century which may be incomprehensible to modern readers who encounter it in works of historical fiction (like the books of C.S. Forester or Patrick O’Brian):
“HMS Victory in Portsmouth Harbour”
Painting by Charles Edward Dixon (1872-1934) via Wikimedia Commons.
I have read and enjoyed several series of novels set in the British navy during the Napoleonic wars, most recently one by Naomi Novik that departs a little further from history than its predecessors by providing the British and their enemies with dragons. The internal structure and the associated rules and customs of the navy seem very strange to a modern eye, yet it was a strikingly successful institution.
One feature likely to catch an economist’s eye was prize money. If a naval vessel captured a legitimate prize, an enemy warship or merchantman, and brought it back to port, the vessel and its contents were sold and the money distributed among those responsible. One large chunk went to the captain, another was distributed among his officers, a third among the crew, a fourth to the admiral under whose orders he was operating.
Another feature of the system was the role of patronage, political influence both within the navy and outside it in the career of an officer, especially a young officer. The critical step of promotion from lieutenant to captain depended in part on performance, in particular on the opinion of the captain under whom a lieutenant was serving. But it depended also on things that seem, to us, irrelevant.
One of Patrick O’Brien’s novels contains a conversation between Maturin, one of his protagonists, and a friend, a young officer of aristocratic birth. The officer has been having an affair with the separated wife of a high naval official and wants to know whether he should live openly with her. Maturin’s response is that, moral issues aside, it might be imprudent for him to offend a powerful official and so risk his future career. His friend replies that he has considered that matter but his family controls a significant number of seats in both houses of parliament and he thinks their influence will be sufficient to balance that of the man he will be offending.
Neither party sees anything strange in either the assumption that giving personal offense to someone within the bureaucracy will make it harder for a competent officer to be promoted or that having a politically influential family will make it easier; that is just part of how the system works. It was a system that produced extraordinarily successful results, a navy that, from the late 18th century to the early 20th won almost every ship to ship or fleet to fleet battle it fought at anything close to even odds.1
A third feature was the seniority system. Once a lieutenant was promoted to captain, his future rank depended only on how long he survived. His name was on the list of captains, the list was ordered by strict seniority, and the next captain to be promoted to admiral would be the one at the top of the list. When two or more captains were working together it was the senior who commanded. That provided an unambiguous rule for allocating command, since every captain knew where he was on the list and knew, or could readily find out, where any other captain was. But it was a rule that had nothing to do with the relative competence of two officers of the same nominal rank.
Promotion beyond captain was entirely determined by seniority; what the officer got to do with his rank was not. An insufficiently competent captain who made it to admiral would end up as an admiral of the yellow, an admiral without a fleet, effectively retired on half pay. A sufficiently competent captain could be assigned particularly important duties, including the command of a group of ships with the temporary position of commodore — provided none of the other captains in the squadron was senior to him. A sufficiently incompetent captain could end up without a ship, on half pay with no chance of prize money. In peacetime, when there was no shortage of competent captains, a minor failing might do it.
[…]
Consider the case of the pre-modern British navy. Prize money was a property solution. The admiralty wanted captains to have an incentive to capture enemy merchant ships, defeat and capture enemy warships, even at risk to their lives. Most of the relevant decisions were made by the captain, so he got the largest part of the reward, but other people, including the admiral whose orders determined what opportunities the captain had to earn prize money, got some of it. A pattern that shows up in the novels, and presumably in the real history, is an admiral who puts an unusually competent and aggressive captain in places where he is likely to encounter enemy warships not because he likes the captain but because he hopes to profit from successful encounters.
Allen argues that prize money was an imperfect property solution because capturing a warship was much riskier, more likely to get the captain killed, than capturing a merchant ship, but prize money was awarded for both. One puzzle he does not consider is why the navy did not solve the problem of misaligned incentives by lowering the prize money awarded for merchant ships or raising it for warships, which should have been easy enough to do.
Allen offers the imperfect alignment of incentives, such as the temptation for a captain in a fleet action to hang back and let other ships and their captains take the risk, as a reason why the property solution had to be supplemented with elements of the other two systems. The admiralty had detailed information on what a captain did through a system of three different logs, one by the captain, one by his first lieutenant, one by the sailing master, the ship’s senior warrant officer. A captain whose career showed him to be incompetent or too inclined to go after merchant ships and avoid warships might end up spending the rest of his career on shore with no ship, hence no opportunity for prize money. A captain who declined a clear opportunity for combat with a ship of the same class was subject to trial by court martial; one admiral ended up convicted and executed for failing to pursue the enemy fleet after an engagement.
1. With the possible exception of the War of 1812.
Argentina’s self-described anarcho-capitalist president
J.D. Tuccille says that Argentinian President Javier Milei may be the politician who has most successfully “defied the expectations of the chattering class” by not only winning the presidency but also by the completely unexpected turnaround of the national economy:
Drawing on official data, Reuters reports that Argentina’s “economic activity rose 7.7 per cent in April compared with the same month last year”. That was higher than expected and a welcome addition to news that the economy had grown by 5.8 per cent during the full first quarter relative to the same quarter the previous year. Early numbers put Argentina’s second-quarter growth at 7.6 per cent. By contrast, Canada’s economy grew at an annual 2.2 percent in the first quarter and the U.S. economy shrank a bit.
In equally encouraging news, Argentina’s “monthly inflation rate has fallen below two per cent for the first time in five years,” according to the Financial Times. That’s still high in North American terms, but Argentina’s governments have a history of wildly expanding the money supply to pay off debt and finance expenditures, resulting in inflation rates in the hundreds and even thousands per cent per year. Inflation slowed somewhat in recent years, but it was over 200 per cent in 2023 and Milei was elected on a promise to stabilize prices — even if it meant adopting the U.S. dollar as the country’s official currency.
Importantly, the poverty rate in Argentina has also fallen to 38.1 per cent of the population at the end of 2024 from 41.7 per cent when Milei took office. Again, that remains very high, but it’s an improvement in a country where politicians have long seemed committed to keeping people poor and dependent on the state.
This wasn’t supposed to happen. In a November 2023 open letter, over 100 economists warned that Milei’s economic “proposals, rooted in the economy of laissez-faire and which include controversial ideas such as dollarization and significant reductions in public spending, are fraught with risks that make them potentially very harmful to the Argentine economy and people”.
The economists — including such academic luminaries as Thomas Piketty and Jayati Ghosh — warned of havoc if Milei implemented his free-market plans. Voters weren’t impressed by the forecast of doom; they chose the self-described “anarcho-capitalist” economist and his upstart political coalition over the standard-bearer of the dominant Justicialist Party.
The Justicialists have been the strongest force in Argentine politics since their launch in the 1940s by Juan Peron. Peron served as a military observer in Europe and apparently combined the worst ideas he encountered into a peculiarly Argentine ideology he called “justicialism”, better known as Peronism. At its heart, the ideology drops the pretense of any practical difference between socialism and fascism and promotes a brutal mélange of statist economic schemes. This means that, while most property and business activity is in private hands, it’s subject to government dictates, distortions, and control.
July 12, 2025
Noah Smith on how surprisingly well free market policies are working in Argentina
In the headline, you should read the unstated “surprising to far too many mainstream economists and political commentators”, but full credit to Noah Smith for admitting that Milei’s radical agenda has started to make life much better for ordinary Argentinians:
Javier Milei at CPAC in National Harbor, Maryland 20 February, 2025.
Photo by Gage Skidmore via Wikimedia Commons.
So to be clear, when I say that criticism of free markets has been overdone, I’m partly talking to myself. A couple of months ago, horrified by Trump’s tariff policies, I wrote an apology to libertarians, admitting that I had failed to see the political usefulness of their project in terms of maintaining economic sanity on the Right.
But it’s not just the political benefits of free markets that have been undersold; I think the purely economic advantages are also too often ignored.
Exhibit A is Javier Milei’s track record in Argentina. A year and a half ago, when Milei was elected President of Argentina, a bunch of left-wing economists warned darkly that his radical free-market program would lead to economic devastation:
The election of the radical rightwing economist Javier Milei as president of Argentina would probably inflict further economic “devastation” and social chaos on the South American country, a group of more than 100 leading economists has warned … [S]ignatories include influential economists such as France’s Thomas Piketty, India’s Jayati Ghosh, the Serbian-American Branko Milanović and Colombia’s former finance minister José Antonio Ocampo …
The letter said Milei’s proposals – while presented as “a radical departure from traditional economic thinking” – were actually “rooted in laissez-faire economics” and “fraught with risks that make them potentially very harmful for the Argentine economy and the Argentine people” … [T]he economists warned that “a major reduction in government spending would increase already high levels of poverty and inequality, and could result in significantly increased social tensions and conflict.”
“Javier Milei’s dollarization and fiscal austerity proposals overlook the complexities of modern economies, ignore lessons from historical crises, and open the door for accentuating already severe inequalities,” they wrote.
Milei won anyway. His first big policy, and the one the lefty economists fretted about the most, was deep fiscal austerity. Argentina’s long-standing economic model, created by dictator Juan Peron in the 1950s, involved a large and complex array of public works projects and subsidies for various consumer goods like energy and transportation. Milei slashed many of these, as well as cutting pensions, civil service employment, and transfers to provinces. Overall, he cut public spending by about 31%, resulting in a near-total elimination of Argentina’s chronic budget deficit:
The point of all this cutting wasn’t just to remove state intervention in the economy — it was to stop inflation. Basically, macroeconomic theory says that if deficits are high and persistent enough, then they convince everyone that the government will eventually inflate its debt away by printing money (which becomes a self-fulfilling prophecy). And most or all countries that experience hyperinflation end up escaping it only when they get their fiscal house in order. Perpetual deficits were part of Argentina’s “Peronist” system, and it’s probably a good bet that this has been responsible for the periodic bouts of hyperinflation that it experiences.
[…]
But still, Milei’s success so far should make us somewhat more confident about free-market policies — especially when we evaluate them against the new socialist ideas that have been gaining currency in the U.S. In the past, socialists and other left-leaning economic thinkers advocated central planning and nationalization of industry; in recent years, they have taken to calling for expansion of the state through fiscal policy, mixing macroeconomic justifications with micro. At all times, they call for deficit-financed expansion of social programs; when fiscal hawks want to tame the deficits, the lefties warn of the short-term macroeconomic harms of austerity.
If you’re always more terrified of austerity than you are of deficits, expansion of the state — and of the deficit — becomes a one-way ratchet. This approach is very different than Keynesianism, which advocates stimulus to overcome recessions, followed by austerity during boom times. You’ll recognize it as bearing a distinct similarity to MMT; that pseudo-theory has largely fallen out of favor, but there are plenty of more respectable progressive types whose ideas nonetheless have a lot of this “macroleftist” flavor.
QotD: Ancient 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 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
(more…)
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:
Nissan Leaf electric vehicle charging.
Photo by Nissan UK
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”
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
QotD: The bane of socialism — boredom
Most “bad” dogs aren’t actually bad. They’re not misbehaving because they’re willful, or mean, or whatever. They’re just bored out of their fucking skulls, because the kind of bugman who gets a dog these days has no idea that you actually have to play with it, and pet it, and interact with it, in much the same way you have to interact with a young human. Given a dog’s limited intellect, the only thing it can think of to do to alleviate its boredom is chew on things, or dig in the yard, or piss on the rug, or, if all else fails, chew its own fur off.
Being slightly more complex critters, humans have more options, but bore a human enough — overfill his material needs, so that he’s stuffed to somnolence, but take his sense of purpose away — and you’ll see the exact same dog behaviors. Why do you think they shove all that metal shit in their faces? And no, I am absolutely not joking. Why all the huge, gaudy, gross tattoos? The constant changes of hair color and style?
Have you ever asked them?
Again, I’m 100% not joking. I know most of y’all avoid SJWs like the plague, and that’s a smart move, can’t blame you for it, but if you do, you’ll just have to trust me: I was in academia for a long time, so I was around not just SJWs, but bleeding-edge lunatic SJWs, and I asked them about it. One must be discreet about this, of course — hey, I’m thinking of getting a roll of toilet paper tattooed on my bicep, to remind me that We’re In This Together, what do you think? — but it’s fairly easy to do. And every time, they’d spin me some elaborate tale of how deep and meaningful it all is.
No, really. By some mental process I can’t begin to reproduce, getting Ruth Bader Ginsburg’s face tattooed on your calf is, to them, striking a blow at ambient civilization. That is the literal truth of their motivation. It’s the same reason the dog digs in the backyard, or pisses on the rug, or chews its own fur off: That’s the only agency it has, the only purpose it can find.
Severian, “Purpose”, Founding Questions, 2021-12-06.
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”
[…]
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 Tall Ship in Glasgow Harbour
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
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.
