The debate over the Polanyi and Finley view of ancient economic organisation — or perhaps over the Marx and Weber and Polanyi and Finley views — does not seem to have been followed with much attention by libertarians and conservatives. It is worth following, even so. Beyond a very basic level, history is as much about the present as the past. Gibbon’s Decline and Fall of the Roman Empire is a masterpiece of pure history. But it is also an account of what he saw as the long night of reason — and its attendant nightmares — between the golden age of the Antonines and his own age, and an anxious search for reassurance that there would be no second sleep. Macaulay’s History of England is in part an attempt to legitimise the Victorian settlement as the culmination of historical processes that had their local origin in the 1680s. How readers can be brought to think about the past will insensibly affect how they see the present.
Now, if it could be shown that the Aztecs had no concept of market behaviour, and that they were motivated by considerations wholly different from our own, it would be of little consequence. Everything we know about Aztec civilisation raises doubts whether it was worth calling a civilisation. The Aztecs had no writing and were ignorant of metal working and wheeled transport. Their cultural values were expressed in ritual torture, mass human sacrifice and cannibalism. The Mayans and Toltecs and all the others of their sort seem to have been no better. We may deplore the brutality of the Spanish conquest, but still conclude that it was, on balance, a blessing for the peoples of South America.
But it is different with the empires of the ancient Near East — and very different with the Greeks and Romans. These latter races are our intellectual fathers. Everything we ourselves have achieved is built on the foundations they laid. They gave us the names of all our arts and sciences. Eighty per cent of the English vocabulary is derived from Greek or Latin. Knowledge of these languages may be less widely diffused than it was until a century ago. But the general prestige of the Greeks and Romans is barely less now than it was among the mediaeval pilgrims who gaped at the crumbling remains of the Colisseum and the Baths of Diocletian. If it can be shown that they were wholly unlike us in their economic motivations, that would surely place in doubt the notion that market behaviour is natural to us.
And if few people outside the relevant university departments have read Polanyi and Finley, their conclusions are transmitted through popular histories and newspaper articles and television documentaries, and through large numbers of students who, however superficially, are exposed to these conclusions.
Sean Gabb, “Market Behaviour in the Ancient World: An Overview of the Debate”, 2008-05.
February 28, 2020
QotD: Greek and Roman views of markets
February 27, 2020
QotD: Clichés of bad travel writing
Kerry Howley, “But the People Are So Friendly“, Hit and Run, 2005-08-18.
February 25, 2020
“Canada is no longer a viable political construct. It is a dead country walking”
David Solway outlines some of the serious issues Canada needs to tackle … but many of which are issues that the current federal government is striving to avoid tackling:
Canada is presently in the throes of social and political disintegration. A left-leaning electorate has once again empowered a socialist government promoting all the lunatic ideological shibboleths of the day: global warming or “climate change,” radical feminism, indigenous sovereignty, expansionary government, environmental strangulation of energy production, and the presumed efficiency of totalitarian legislation. Industry and manufacturing are abandoning the country in droves and heading south.
Canada is now reaping the whirlwind. The Red-Green Axis consisting of social justice warriors, hereditary band chiefs, renewable energy cronies, cultural Marxists, and their political and media enablers have effectively shut down the country. The economy is at a standstill, legislatures and City Halls have been barricaded, blockades dot the landscape, roads and bridges have been sabotaged, trains have been derailed (three crude-by-rail spillages in the last two months), goods are rotting in warehouses, heating supplies remain undelivered, violent protests and demonstrations continue to wreak havoc — and the hapless Prime Minister, who spent a weak swanning around Africa as the crisis unfolded, is clearly out of his depth and has no idea how to control the mayhem. No surprise here. A wock pupper politico in thrall to the Marxist project and corporate financial interests, Justin Trudeau is generally baffed out when it comes to any serious or demanding concerns involving the welfare of the people and the economic vitality of the nation. Little is to be expected of him in the current emergency apart from boilerplate clichés and vague exhalations of roseate sentiment.
Still, Trudeau may have been right about one thing when he told The New York Times that Canada had no core identity — although this is not what a Prime Minister should say in public. Canada was always two “nations,” based on two founding peoples, the French and the English, which novelist Hugh MacLennan famously described as “two solitudes” in his book of that title. But it may be closer to the truth to portray Canada as an imaginary nation which comprises three territories and ten provinces, two of which, Quebec and Newfoundland, cherish a near-majoritarian conception of themselves as independent countries in their own right. Newfoundland narrowly joined Confederation only in 1949 and Quebec held two successive sovereignty referenda that came a hair’s breadth from breaking up the country.
Quebec separatists don’t need to do much more than sit back, put their feet up, crack a few beers, and watch Justin Trudeau drive the country toward dissolution. Their job is so much easier now…
It is often noted that America is a nation evenly divided between progressivist and conservative populations, a civil dilemma not easily resolved. But Canada is divided approximately 65-35 by these constituencies, and if one considers that the federal Conservative Party in its present manifestation can fairly be described as Liberal Lite, the breakdown is more like 95-5. This means there is no chance of reconciliation between our political disparities, such as they are, and Canada is doomed to plummet down the esker of every failed socialist experiment that preceded it and, indeed, that is presently on display in various foundering nations around the globe — North Korea, Cuba, Venezuela, and counting.
Trudeau père invoked the War Measures Act in 1970 to quell the Quebec separatist movement, the Front de Libération du Québec (FLQ), after a series of bombings and murders. It is obvious that the son has neither the political smarts nor the strength of character to act decisively against those who are busy reducing an already patchwork country into a heap of shards and rubble. And there we find the proof that, whatever Canada may once have been and whatever the talking heads may incessantly proclaim, Canada is no longer a viable political construct. It is a dead country walking.
H/T to Blazing Cat Fur for the link.
February 23, 2020
Justin’s hidden victory – “… in the fight against global warming, this has to have been Canada’s best two weeks EVER”
As Rex Murphy points out, the nattering nabobs of negativity (okay, he didn’t call ’em that) miss the key benefits of Justin Trudeau’s tour de force of ingenious diplomacy and inaction:
It was at the very heart of Justin Trudeau’s triumph in his first election, that having vanquished the Mordor orcs of Harperland, that the country was going to be served by new thinking and fresh approaches, that anger and conflict would be no more. In an era marked by respectful thinking, exquisitely careful language, above all by the ability to listen, protests would be no more. Concord would reign, all would be sweetness and light.
What few and feeble disputes that might emerge would be defused with a waving of the diversity wand, and a choir drawn from the Liberal backbenches intoning solemnly “this is not who we are as Canadians” before the Centennial Flame on Parliament Hill.
As an ultimate fillip every month a kitten and a ball of wool would be sent to every Canadian household (and Lo, a zen-like tranquillity would settle over the land). To be clear, these would be very progressive kittens, and the wood fair-trade down to the last twisted fibre.
[…]
Looked at in the cool light of reason, in the fight against global warming, this has to have been Canada’s best two weeks EVER. Keep it up and Canada, the whole wide, cold country, can soon declare itself one half-a-continent carbon-emission-free zone. Apocalypse deferred.
How do you spell Hallelujah? Greta Thunberg — Canada has heard you. Find a bamboo raft and come visit us again.
February 22, 2020
QotD: Veblen’s “leisure class” evolve into the “luxury belief class” in truly affluent cultures
Thorstein Veblen’s famous “leisure class” has evolved into the “luxury belief class.” Veblen, an economist and sociologist, made his observations about social class in the late nineteenth century. He compiled his observations in his classic work, The Theory of the Leisure Class. A key idea is that because we can’t be certain of the financial standing of other people, a good way to size up their means is to see whether they can afford to waste money on goods and leisure. This explains why status symbols are so often difficult to obtain and costly to purchase. These include goods such as delicate and restrictive clothing like tuxedos and evening gowns, or expensive and time-consuming hobbies like golf or beagling. Such goods and leisurely activities could only be purchased or performed by those who did not live the life of a manual laborer and could spend time learning something with no practical utility. Veblen even goes so far as to say, “The chief use of servants is the evidence they afford of the master’s ability to pay.” For Veblen, Butlers are status symbols, too.
Building on these sociological observations, the biologist Amotz Zahavi proposed that animals evolve certain displays because they are so costly. The most famous example is the peacock’s tail. Only a healthy bird is capable of growing such plumage while managing to evade predators. This idea might extend to humans, too. More recently, the anthropologist and historian Jared Diamond has suggested that one reason humans engage in displays such as drinking, smoking, drug use, and other physically costly behaviors is because they serve as fitness indicators. The message is: “I’m so healthy that I can afford to poison my body and continue to function.” Get hammered while playing a round of golf with your butler, and you will be the highest status person around.
Rob Henderson, “Thorstein Veblen’s Theory of the Leisure Class — A Status Update”, Quillette, 2019-11-16.
February 21, 2020
British wages to be further impacted by Brexit
As we were told for years, if Brexit happened there were going to be dire consequences to the British economy, and here’s the latest one:
Employers are complaining that without badly paid immigrant labour they’ll just not be able to get the staff. The answer to which is that they’d better start paying higher wages then, eh?
[…]
The analysis here stems from something Marx got right. It’s competition among capitalists for scarce labour which pushes wages up. If there’s a vast reserve army of the unemployed then anyone needing more straining backs just tosses a crust to those in that army and gets as many limbs and torsos to exploit as desired. But if all are already employed then any desire for extra labour requires tempting it away from current employer and occupation to the new. That means a better job offer. Some mixture of conditions, enjoyment of the job, cash and so on that makes up a more attractive package.
The combination of cheap flights and free movement of labour has meant that the reserve army lives in Wroclaw and Debrecen. It’s also been near unlimited – compared to the size of the UK economy – these past couple of decades.
The absence of free movement – what is being complained about here – will mean that to gain the desired labour those employers are going to have to offer higher wages, higher compensation rather, to those not ordinarily resident or stemming from central Europe.
[…]
But back to the basic complaint here. These employers are complaining that Brexit will mean they’ve got to raise the wages they pay. To which the correct response is “Ah, Diddums”.
February 20, 2020
Why the Nazis Weren’t Socialists – ‘The Good Hitler Years’ | BETWEEN 2 WARS I 1937 Part 2 of 2
TimeGhost History
Published 19 Feb 2020The Nazi economy appears to do well during the 1930s. But this is largely myth, as the German economy under Hitler is based on a self destructive, ideologically or selfishly fuelled irrationality driven by conquest and criminal practice.
Join us on Patreon: https://www.patreon.com/TimeGhostHistory
Hosted by: Indy Neidell
Written by: Spartacus Olsson
Directed by: Spartacus Olsson and Astrid Deinhard
Executive Producers: Bodo Rittenauer, Astrid Deinhard, Indy Neidell, Spartacus Olsson
Creative Producer: Joram Appel
Post-Production Director: Wieke Kapteijns
Research by: Spartacus Olsson
Edited by: Daniel Weiss
Sound design: Marek KaminskiSources:
Bundesarchiv_Bild:
192-269, 183-T0706-503, 183-S68029, 183-S68014,
183-S38324, 183-S33516, 183-S07227, 183-R98364,
183-H29131, 183-H25824, 183-H01704, 183-H13192,
183-H06734, 183-H00455, 183-C12671, 183-86686-0008,
183-2008-0826-506, 183-2008-0826-502, 183-2006-1128-504,
183-2004-0729-507, 183-1989-0630-504, 183-1988-0113-500,
146-2005-0191, 146-1990-048-29A, 146-1990-023-06A,
146-1984-040-26, 146-1981-124-32A, 146-1972-025-10,
102-13533, 102-12733, 102-11649, 102-06795, 102-04640,
145_Bild-P046280, 145_Bild-020683,Colorizations by:
Daniel WeissSoundtracks from Epidemic Sound:
– “Document This 1” – Peter Sandberg
– “March Of The Brave 10” – Rannar Sillard – Test
– “Ominous” – Philip Ayers
– “The Inspector 4” – Johannes Bornlöf
– “Disciples of Sun Tzu” – Christian Andersen
– “Guilty Shadows 4” – Andreas Jamsheree
– “Last Point of Safe Return” – Fabien Tell
– “Death And Glory 1” – Johannes Bornlöf
– “Easy Target” – Rannar Sillard
– “Split Decision” – Rannar Sillard
– “First Responders” – Skrya
– “The Charleston 3” – Håkan ErikssonA TimeGhost chronological documentary produced by OnLion Entertainment GmbH.
From the comments:
Spartacus Olsson
1 day ago
From an intellectual viewpoint, this is perhaps the most challenging episode I have written in this series. First of all it’s hard to make economic policy interesting, even when it’s about the Nazis. It tends to get, well … grey. Second of all it’s not that easy to simplify things without completely losing the essence of what was going on. Third of all, I’m fighting an uphill battle against a post truth, political talking point based on … let’s just call it less than ingenious purposes.Obviously that’s the idea that the Nazis were Socialists. And perhaps that is not so far fetched when you think of the name of their party, the way they framed their anti-semitic rhetoric in a way that it would sound friendly to the working class, and their absolute disregard for telling the truth about anything, and everything. But although we have painstakingly showed you the facts, I am painfully aware that it won’t make a difference to stop the nonsense out there and in here — some pundits will religiously stick to their ideas, because if they don’t, they might have to face that some of the ideas they have are mutual with the people they so desperately want to distance themselves from. The same happened with the far left between the 1930s and 1970s, when they tried with cramped desperation to frame Stalinism as a right wing, Fascist movement — Red Fascism was the term — obviously as much nonsense as the alt-right idea that Naziism is Socialism.
And is it important? Well yes and no — the dumbos will probably get worn out at some point, it’s after all quite challenging to look for ways to distort the record over, and over again. I don’t really care if the extremists try to push their mutual garbage in each other’s lap — as a supporter of democracy and humanism, I have no regard for either end. I do however have an incredible amount of respect for conservatives, liberals, and progressives who are equally dedicated to democracy and human rights — and there is where it matters.
When the far left tries to frame Stalinism as right wing, and the far-right tries to frame Naziism is left-wing, they are trying to co-opt a position of less extremism. It’s an invasive attempt for Communists and (real) Socialists to just look like regular Progressives, and Fascists and Nazis to just look like regular Conservatives. And that my friends is dangerous, to all of us, regardless of our nationality, creed, political affiliation, or opinion — because it is specifically our individual rights and democracy that is at stake in this game. That’s what they want to take away, or in some places stop from developing.
February 16, 2020
The Canadian economy taken hostage while the PM swans around the world schmoozing for a temporary Security Council seat
Chris Selley on the state of play in the stand-off between (some) First Nations protesters and their temporary fellow travellers of the various permanent protest class:
“DSC02285” by Bengt 1955 is licensed under CC BY-NC 2.0
The majority of Wet’suwet’en First Nation members support the Coastal GasLink natural gas pipeline project, and they are in an objectively peculiar situation. On the one hand, the RCMP is doing its best to clear away the protesters and let construction proceed. On the other hand, anti-pipeline protesters claiming solidarity with the Wet’suwet’en have created chaos in their name — most notably the total shutdown of CN Rail’s eastern Canadian network, the cancellation of nearly every Canadian passenger train, and the layoffs and untold economic costs that go with that.
If protesters acknowledge the diversity of opinion among the Wet’suwet’en at all, they will defer to the authority of five hereditary chiefs who oppose the project, or observe that the five elected Wet’suwet’en band councils — all of which have signed community benefits agreements — represent a form of settler democracy imposed by the Indian Act.
[…]
Clearly the Wet’suwet’en are a divided community, including on the most basic questions of how they should be governed. It’s a mess. Mind you, look at the state of Canada as a whole.
Just as the RCMP have court authorization to clear protesters and encampments along the pipeline route, the Ontario Provincial Police have court authorization to clear the Mohawk rail blockade near Belleville, Ont. Unlike the RCMP, the OPP refuses to exercise its authority. And we just have to live with that. Conservative politicians are barking at Justin Trudeau to “enforce the law,” but he doesn’t give orders to the OPP, and neither does Ontario Premier Doug Ford, and nor should we want them to.
Still, you might expect senior ministers to have moderately stern words for folks illegally causing economic harm. You might expect the prime minister, at minimum, to be in the country. Instead, Trudeau spent the week swanning around Africa drumming up support for the UN Security Council seat with which he remains unaccountably obsessed, then decamped for the Munich Security Conference, where he was photographed warmly embracing Iranian foreign affairs minister Mohammad Javad Zarif, five weeks after Iran blew an airliner full of Canadians out of the sky over Tehran.
The Little Potato is probably doubly happy to have a valid (in his own mind) excuse for not being in the country at this particular time. He loves being the centre of attention … as long as that attention is friendly. He doesn’t handle situations well if the tempers are higher and the hostility is rising … like much of Canada right now.
The pipeline is a provincial project, not a federal one, but if the OPP won’t end the blockade and the feds aren’t willing to take truly extraordinary measures, then at some point in the foreseeable future it may well make short-term economic sense to give in to their demands. Maybe the feds can buy the pipeline from Coastal GasLink and shut it down.
And what if the Mohawks do lose interest, or are somehow induced to stand down? That now counts as the best-case scenario, and it will have involved shutting down the CN railway for at least a week — maybe two, maybe three — with enormous consequences for people’s livelihoods and the economy as a whole, all in the name of killing a project supported by the vast majority of Indigenous people affected by it. And it will happen again, as many times as any group wants it to, on whatever issue they want it to, for as long as they want it to. Unless someone in power does something unusually bold and concrete in the very near future – and it’s not even clear what that thing would be — we are well on the road as a country to being terminally screwed. In the meantime, we certainly have no lessons on accountable government to give the Wet’suwet’en.
February 13, 2020
Here’s a deceptive factoid … time for you to get angry to suit someone’s political agenda
Did you know that “Three Billionaires Have More Wealth Than Half of America”!!!???!!! Are you angry now? You’re supposed to be, because this factoid was concocted specifically to make people irrationally angry. Daniel C. Jensen explains how this sound bite was created:
Amazon’s Jeff Bezos, Microsoft’s Bill Gates, and Berkshire Hathaway’s Warren Buffet.
Fox Business.
People between 0 and 24 years of age account for about 32 percent of the United States population of 320 million. Almost all of them are going to be in the bottom half of the wealth distribution for reasons including diaper rash and puberty. That means they account for about 63 percent of the “bottom half of the wealth distribution.” Should it surprise us that some kid fresh out of college does not “hold any stocks or bonds”? Or a kid fresh out of the womb?
Then we must consider people with mental and physical disabilities. They will also tend to be in the bottom half of the wealth distribution because they face greater challenges to building wealth. “About 56.7 million people — 19 percent of the population — had a disability” at last count, according to the United States Census Bureau. But there is overlap between the disabled 19 percent and the young 32 percent of the population. If we assume disabilities are evenly distributed in the population, then young people and non-young disabled people account for 45 percent of the population. So we have now accounted for 90 percent of the “160 million Americans in the bottom half of the wealth distribution.”
Next, we must think about other groups who have had limited wealth-building opportunities. What about the 2.2 million people in jail and prison? What about people in their late twenties who pursued PhDs, law degrees, medical residencies, etc., and are just beginning their careers? Now we are close to accounting for 100 percent of the “bottom half of the wealth distribution.” But this wealth distribution is not what any sensible person would expect it to be.
Maybe the factoid is true. Maybe Jeff Bezos, Bill Gates, and Warren Buffet have more wealth than all of the infants, children, students, handicapped, prisoners, and postgrads combined. But you don’t need a PhD to figure out that’s not useful knowledge. Even if the factoid is true, it’s deceitful. Whoever created it was obviously trying to manipulate people. And we uncovered this deception with nothing but some simple knowledge of the US population.
Next time you encounter an economic factoid, remember that it might be pitting a bunch of newborns against Jeff Bezos, and that hardly seems fair. Thankfully, you can save those babies from certain defeat simply by knowing some basic statistics about your country.
QotD: Libertarianism
Dierdre Nansen McCloskey, Why Liberalism Works: How true Liberal values produce a freer, more equal, properous world for all, 2019.
February 11, 2020
Leaving the Left – Part 9: PJ O’Rourke
Economics in the Media
Published 18 Aug 2016“When I got my first paycheck I found that I netted $82.27 after federal income tax, state income tax, city income tax, Social Security, union dues, and pension fund contribution. I was a communist. I had protested for communism. I had rioted for communism. Then I got a capitalist job and found out we had communism already.”
– The Baby Boom, PJ O’RourkeParliament of Whores: A Lone Humorist Attempts to Explain the Entire U.S. Government
Full Interview with Peter Robinson
https://youtu.be/keJYIkxbieg
February 10, 2020
QotD: Welfare programs as a form of subsidy to employers
But what about other programs like food stamps or housing assistance? These means tested public assistance programs are not tied to work, and we should not expect them to lower wages. Let’s take food stamps, which are available to eligible families whether or not a family member works or not. Indeed, when people are not working, they are more likely to be eligible for food stamps since their family incomes will be lower. Therefore, SNAP [Supplemental Nutrition Assistance Program] is likely to raise, and not lower a worker’s reservation wages — the fallback position if she loses her job. This will tend to contract labor supply (or improve a worker’s bargaining position), putting an upward pressure on the wage. Whether or not wages are increased is an empirical matter: there is evidence that the initial roll-out of the food stamps program across counties in the 1970s lowered work hours, consistent with an increase in the reservation wage. The key point is that it is difficult to imagine how food stamps would lower wages. And if they don’t lower wages, they can’t be thought of as subsidies to low wage employers. The same logic applies to other means tested programs like energy or housing assistance. Moreover, these conclusions hold in a wide array of models of the labor market, including ones that emphasize bargaining or efficiency wage concerns.
Arindrajit Dube, “Public Assistance, Private Subsidies and Low Wage Jobs”, Arindrajit Dube, 2015-04-19.
February 9, 2020
The lightbulb conspiracy again
I’ve banged on a few times over the years about lightbulbs, specifically about our government’s passionate desire for us to abandon the tried-and-tested (and cheap) incandescent bulbs to move first to (ultra-expensive, dim, and potentially dangerous) compact fluorescent bulbs and now to (cheaper, but still not living up to longevity promises) LED bulbs instead. Tim Worstall explains how governments were persuaded to enforce this crony capitalist plot over the years (he’s discussing the European market, but Canadian regulators were doing exactly the same thing):
We all recall when we used to use incandescent light bulbs. Simple, cheap, the result of a century’s worth of fiddling with the basic technology to make it around and about right for the use to which it was put.
A spiral compact fluorescent bulb (CFL).
Image by Sun Ladder via Wikimedia Commons.Then they were banned. Sure, there was that energy and thus planet saving argument but that was always very weak indeed. It was an excuse, not the actual reason itself. The reason was that the big three manufacturers, Phillips, Osram and GE, had invested heavily in the next generation of technology, compact fluorescents. These cost not pennies per bulb but pounds. Rather better profit margins that is. Oh, and also, not subject to that crippling competition from China.
So, we get the EU ban on incandescents, driven entirely by the manufacturers. There’s a lot of the Baptist and Bootlegger in here given the environmentalist support for it.
The problem with the technology being the use of mercury in those bulbs.
An aside, I made my living for a number of years selling weird metals that are added to that mercury. I do actually know quite a bit about the nuts and bolts here. I’m also out of the business and have been for a decade and more. So it’s knowledge driving this, not knife sharpening.
Mercury’s not good stuff to have floating around. So, what happens next? Yep, a decade or a bit more after the incandescents were banned so now they’re coming for the CFLs.
The mercury issue was not as well publicized here in Canada as it was in Australia, for example:
How many of them have looked up the Environment Department’s website to find what its bureaucrats falsely describe as the “simple and straightforward” precautions to take against poisoning should one of these lamps smash:
- Open nearby windows and doors to allow the room to ventilate for 15 minutes before cleaning up the broken lamp. Do not leave on any air conditioning or heating equipment which could recirculate mercury vapours back into the room.
- Do not use a vacuum cleaner or broom on hard surfaces because this can spread the contents of the lamp and contaminate the cleaner. Instead scoop up broken material (e.g. using stiff paper or cardboard), if possible into a glass container which can be sealed with a metal lid.
- Use disposable rubber gloves rather than bare hands.
- Use a disposable brush to carefully sweep up the pieces.
- Use sticky tape and/or a damp cloth to wipe up any remaining glass fragments and/or powders.
- On carpets or fabrics, carefully remove as much glass and/or powdered material using a scoop and sticky tape; if vacuuming of the surface is needed to remove residual material, ensure that the vacuum bag is discarded or the canister is wiped thoroughly clean.
- Dispose of cleanup equipment (i.e. gloves, brush, damp paper) and sealed containers containing pieces of the broken lamp in your outside rubbish bin – never in your recycling bin.
- While not all of the recommended cleanup and disposal equipment described above may be available (particularly a suitably sealed glass container), it is important to emphasise that the transfer of the broken CFL and clean-up materials to an outside rubbish bin (preferably sealed) as soon as possible is the most effective way of reducing potential contamination of the indoor environment.
Bastiat’s parking meters
At the Continental Telegraph, Esteban explains why nineteenth century French writer Frédéric Bastiat would be able to fully explain Atlanta’s parking meter woes even though Bastiat never saw an automobile in his life:
“Parking meter FAIL” by kingdesmond1337 is licensed under CC BY-NC-SA 2.0
One of Frédéric Bastiat’s most famous observations was the importance of recognizing “That which is seen and that which is not seen”. A government agency builds a road, some people get jobs working on the road, voila, look at all the benefits the government has brought us. What is unseen is what would have happened if the government hadn’t taken our resources to build the road, perhaps we would have spent them on something of greater value?
That people often (perhaps usually) overlook the unseen isn’t too surprising, but the inability to see is sometimes striking. A couple of years ago the City of Atlanta decided to get rid of its parking meter enforcement staff and outsource this work to a private sector company (let’s call it NewCo). Some time after the transition there were discussions at the City Council that perhaps they should reverse this decision, or at least find another provider.
What was the source of these complaints? Was NewCo inefficient? Was the City getting less revenue from the meters? No, meter revenues were actually up as were parking ticket revenues. Some misbehavior by NewCo’s employees, bribery, favoritism, kickbacks? No, no, no and no. The problem was that NewCo was doing a better job. Seriously, the City Council was inundated with complaints such as “I was, like, 2 minutes late getting back to my car and they had already ticketed me”. People who had been ticketed as well as many businesses complained about NewCo’s efficiency.
[…]
What really stood out is that no one involved in these discussions – aggrieved parkers or Council members – seemed to think about why we have meters, time limits and tickets. If enforcement is lax, more people overstay their allotted time, one consequence of which is that you have to drive around longer to find a parking space. People notice their parking ticket or the inconvenience of having to run out and feed the meter (that which is seen) but were oblivious to the shortage of parking spaces that is exacerbated by lax enforcement (that which is not seen, or perhaps not identified as connected?).
One wonders how people who live in a City where finding a parking spot is very difficult could “not see” the value of good enforcement. The time spent circling the block, rushing to turn around and grab the space that just opened up before somebody else snagged it, then just missing out and starting the dance over – nobody thought of that? Bueller, anyone?
Emphasis added.
February 8, 2020
Switching over from internal combustion vehicles to electric won’t be cheap … it really won’t be cheap!
At Spiked, Rob Lyons looks at the British government’s recent decision to ban sales of internal-combustion cars in 2035 rather than the earlier target date of 2040:
Nissan Leaf electric vehicle charging.
Photo by Nissan UK
First, at present, electric vehicles cost a lot more than those with internal-combustion engines. For example, one car-buying advice website notes that the Peugeot e-208 is as much as £6,200 more than the standard 208 model. There are government subsidies to help with the cost of electric cars (currently £3,500), but can this be sustained if we all switch? It has already been cut from £4,500 in 2018.
That said, while the purchase price of an electric car may be higher, charging is a lot cheaper than fuelling a regular car. Electric vehicles cost between £4 to £6 per 100 miles to charge at home and £8 to £10 using public charge points, while petrol and diesel cars cost £13 to £16 per 100 miles in fuel (although 60 per cent of the fuel cost is tax).
In theory, maintenance should be cheaper, too, given that electric motors have fewer moving parts than petrol or diesel engines. But to further complicate matters, batteries gradually lose their capacity to hold charge over time. They have to be replaced at the cost of thousands of pounds every few years. (The warranties covering battery replacement varies by manufacturer: Tesla, for instance, offers an eight-year warranty, but the Renault Zoe is covered for just three years.)
Electric cars may be cheaper to own overall, but this is largely down to subsidies and tax breaks, including lower vehicle duties and not having to pay charges in low-emission zones. Still, with the entire car industry throwing its efforts into making electric cars cheaper and increasing battery capacity, costs may well come down somewhat, reducing the need for such breaks. Fingers crossed.
The cost to individual owners will be higher, but the costs to build up the electric charging infrastructure will be distributed among all consumers, not just the owners of vehicles:
This brings us to perhaps the biggest problem: where will the power come from and how will it reach us? Eventually shifting all the energy for cars from oil to electricity means producing much more electricity. Greens are pleased that electricity use is currently decreasing, and a greater proportion of electricity is coming from renewable sources. But the arrival of electric cars en masse would demand a whole lot more electricity, mostly to be used at night.
Unless we want to coat the landscape in wind turbines, which are unreliable in any event, we’ll need other sources of power. More nuclear? Fine by me. But will eco-warriors stand for that? Even if we can produce the juice, having lots of cars charging in the same area may overwhelm the local electricity networks. Who is going to pay for the upgrade?
When all of these factors are considered we have to ask if all this effort will really reduce greenhouse-gas emissions anyway. Digging up the resources required to create all those batteries will be hugely carbon-intensive. Perhaps the most likely outcome of banning sales of new petrol and diesel vehicles is that demand for second-hand vehicles will go up. We could end up like Cubans, nursing venerable old cars for years, way beyond their intended lifespans.
