Quotulatiousness

April 21, 2019

QotD: High Modern city design as a tool to control the populace

Scott notes that although citizens generally didn’t have a problem with earlier cities, governments did:

Historically, the relative illegibility to outsiders of some urban neighborhoods has provided a vital margin of political safety from control by outside elites. A simple way of determining whether this margin exists is to ask if an outsider would have needed a local guide in order to find her way successfully. If the answer is yes, then the community or terrain in question enjoys at least a small measure of insulation from outside intrusion. Coupled with patterns of local solidarity, this insulation has proven politically valuable in such disparate contexts as eighteenth-and early nineteenth-century urban riots over bread prices in Europe, the Front de Liberation Nationale’s tenacious resistance to the French in the Casbah of Algiers, and the politics of the bazaar that helped to bring down the Shah of Iran. Illegibility, then, has been and remains a reliable resource for political autonomy

This was a particular problem in Paris, which was famous for a series of urban insurrections in the 19th century (think Les Miserables, but about once every ten years or so). Although these generally failed, they were hard to suppress because locals knew the “terrain” and the streets were narrow enough to barricade. Slums full of poor people gathered together formed tight communities where revolutionary ideas could easily spread. The late 19th-century redesign of Paris had the explicit design of destroying these areas and splitting up poor people somewhere far away from the city center where they couldn’t do any harm.

Scott ties this into another High Modernist creation: the collective farms of the Soviet Union. This was a terrible idea and responsible for the famines that killed millions (tens of millions?) during Stalin’s administration. The government went ahead with them because the non-collectivized farmers were too powerful and independent a political bloc. They lived in tight-knit little villages that did their own thing, the Party officials who went to these villages to keep order often ended up “going native”, and the Soviets had no way of knowing how much food the farmers were producing and whether they were giving enough of it to the Motherland.

The collectivized farms couldn’t grow much, but people were thrown together in artificial towns designed to make it impossible to build any kind of community: there was nowhere to be except in bed asleep, working in the fields, or at the public school receiving your daily dose of state propaganda. The towns were identical concrete buildings on a grid, which left the locals maximally disoriented (because there are no learnable visual cues) and the officials maximally oriented (because even a foreigner could go to the intersection of Street D and Street 7). All fields were perfectly rectangular and produced Standardized Food Product, so it was (theoretically) easy to calculate how much they should be producing and whether people were meeting that target. And everyone was in the same place, so if there were some sort of problem it was much easier to bring in the army or secret police than if they were split up among a million tiny villages in the middle of nowhere.

    Confronting a tumultuous, footloose, and “headless” rural society which was hard to control and which had few political assets, the Bolsheviks, like the scientific foresters, set about redesigning their environment with a few simple goals in mind. They created, in place of what they had inherited, a new landscape of large, hierarchical, state-managed farms whose cropping patterns and procurement quotas were centrally mandated and whose population was, by law, immobile. The system thus devised served for nearly sixty years as a mechanism for procurement and control at a massive cost in stagnation, waste, demoralization, and ecological failure.

Scott Alexander, “Book Review: Seeing Like a State”, Slate Star Codex, 2017-03-16.

April 18, 2019

QotD: Roadblocks to deregulating the US healthcare market

Filed under: Bureaucracy, Government, Health, Quotations, USA — Tags: , , , — Nicholas @ 01:00

One problem America has is simply that our government administration isn’t very good. That’s not true across the board — our government statistics are, IMHO, the finest in the world. But there’s stuff that other countries can do that we can’t, either because our government is more decentralized, or because our civil service just isn’t as prestigious (and therefore as full of competent, motivated people) as those in other countries. And our regulatory approach — rules rather than principles based, and highly adversarial — is also suboptimal, and hard to change.

Given how much the government now interferes in health care, that’s a big problem. Given our lack of administrative competency, our first step should be pulling back where we can — trying to push more ordinary expenses onto consumers, for example, who can manage those the same way they manage their aspirin and antacid purchases now. And eliminating the tax deduction for employer sponsored health care would be major. But I fear, politically impossible.

Megan McArdle, “Ask Me Anything”, Reddit, 2017-04-10.

April 17, 2019

Lee Carbine: Gunmaking is not for the Faint of Heart

Filed under: Government, History, Military, Technology, USA, Weapons — Tags: , , , — Nicholas @ 04:00

Forgotten Weapons
Published on 16 Apr 2019

This rifle is lot #13868 at Morphy’s April 2019 auction:
https://www.forgottenweapons.com/lee-…

James Paris Lee is known today as the inventor of the detachable box magazine, and the “Lee” in the “Lee Enfield” rifle system – a very significant contributor to firearms development. His first foray into the business of gun design and manufacture, however, was a rather ignominious failure.

Lee patented a single shot swinging barrel system in 1862, and hoped to win an Army contract for it. In February of 1864 he submitted a rifle version to the Army, and was promptly rejected – the Army was not interested in breechloading rifles. Lee came right back in April 1864 with a carbine pattern, and this was accepted for testing – the Army was indeed looking for breechloading cavalry carbines. It took a full year, but in April 1865 the Army came back and gave Lee a contract for 1,000 carbines at $18 each. Lee rounded up investors and capital, and created the Lee Fire Arms Company in Milwaukee to produce the guns. His first two samples were delivered in January 1866 – in .42 rimfire caliber.

At this point, there is some disagreement. Lee claims that his sample guns in .42 caliber were accepted, and thus his followup delivery of .42 caliber carbines should have been accepted. The government said that the contract specified .44 rimfire caliber, and his delivery of .42 caliber guns was unacceptable, and thus rejected. A court case would ensue, but with the rejection of the first 250 guns and the cancellation of their contract, the company had to look hard and fast for a backup plan. In March 1867 newspaper ads were placed in Milwaukee for sporting rifles and carbines from the Lee company. The parts planned for military production were used instead for civilian guns in a variety of configurations – carbines, light rifles, and heavy rifles in several barrel lengths and several calibers. By 1868 all production had ceased, and the Lee Fire Arms Company dissolved.

James Lee returned to his former profession of watchmaking, but this experience with gun manufacturing would not keep him deterred for long. By 1872 he was back working with Remington, and would go on the produce the designs that we know him for today. The lessons of this rifle? Firearms manufacturing is a risky business, not for the faint of heart. And also, sometimes you can learn from a difficult experience to do better the second time.

http://www.patreon.com/ForgottenWeapons

Cool Forgotten Weapons merch! http://shop.bbtv.com/collections/forg…

Contact:
Forgotten Weapons
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Tucson, AZ 85754

Theresa May has been brilliantly successful in achieving her (true) aims

Filed under: Britain, Europe, Government, Politics — Tags: , , , , — Nicholas @ 03:00

Theodore Dalrymple admits having misjudged Mrs. May as a failure, when in fact her plans have been coming brilliantly to fruition:

Like almost everyone else, I regarded [Theresa May] as a pygmy in courage and a giant in incompetence, but it is time for a re-assessment, especially with regard to her efforts to Britain’s exit from the European Union. After the Union granted a further delay to Britain’s departure, the President of the European Council, Donald Tusk, said that it was his secret dream to prevent Britain from leaving. It is pleasing to know that Mr Tusk’s secret dreams so entirely coincide with those of the British political class, including (I surmise) those of Mrs May. At last we have a basis for full and final agreement.

Like the great majority of the British political class, Mrs May was always in favour of remaining in the Union. This class was so confident of its ability to persuade the population that it was right that it agreed with practically no demur to a referendum which would pronounce the winner as the side which obtained 50 per cent plus one of the votes cast. Thus the matter of British membership, it thought, would be settled once and for all.

The problem for the political class was now to find a method of overriding the result of the referendum without doing so in too blatant a fashion. And here, in Mrs May, it found a perfect leader.

Needless to say, Mrs May, having been selected as Prime Minister, could not just put forward her conviction that Britain should remain in the Union and say outright that she had no intention of carrying out the will of the majority. At that stage, such a disavowal of the result would have been politically impossible and might even have caused unrest. Instead, she went through a brilliantly elaborate charade of negotiating withdrawal, in such a way that the result would not be accepted by Parliament. Her agreement would be withdrawal without withdrawal, the worst of all possible outcomes, all complication and difficulty, and no benefit.

She knew perfectly well that the European Union, having drafted this agreement unacceptable to Parliament, would not renegotiate it. Why should it, since it knew that Parliament had no intention of demanding a real and total withdrawal, since it did not want to withdraw at all? She also knew that Parliament would never agree to a withdrawal without an agreement with the Union, as Parliament has repeatedly made clear.

April 13, 2019

QotD: School vouchers

Filed under: Bureaucracy, Economics, Education, Government, Quotations, USA — Tags: , , — Nicholas @ 01:00

I am still a supporter of school vouchers. I don’t think they’ve lived up to the hopes that I (and a bunch of other folks) had for them. But that said, the best opponents can say is that they don’t do all that much better than the public schools on academic measures. Parents like them, kids like them, and they cost less. I just don’t see a good argument against them.

I think it’s telling that of the folks I know who oppose vouchers, not one of them has voluntarily kept their kids in a failing urban school. When they move, they choose a house in a good school district. I don’t see how you can morally do that and then tell some other, poorer parent that they need to lean into the strike zone and take one for the team.

That said, maybe there’s an argument for restricting them to kids in failing schools, or below a certain income. I don’t see any need for the government to subsidize Exeter. But for the kids who are trapped, I think they should get the same chance middle class kids do, even if it’s not the panacea we once hoped.

Megan McArdle, “Ask Me Anything”, Reddit, 2017-04-10.

April 12, 2019

Premier Ford “could go down in history as the premier who landed downtown Torontonians their white whale subway”

Filed under: Cancon, Government, Railways — Tags: , , , , — Nicholas @ 03:00

Chris Selley finds himself surprised at how sane Doug Ford’s GTA subway-and-light-rail expansion plans sound:

Click map to embiggenate

I’ll say this much at least about Premier Doug Ford’s big $28.5 billion transit announcement on Wednesday morning ($11.2 billion if you only count provincial money): I never thought I would see him so enthusiastically tout a much-needed transit line to and through enemy territory in downtown Toronto. Faint praise, perhaps, but when Ford said he wanted to upload Toronto’s subways to the province, I never imagined a plan even half this superficially sane.

Crowding on the Yonge line at Bloor Street presents “a clear health and safety problem,” Ford told reporters in Etobicoke, “and without action it is only going to get worse.” Thus his number-one transit priority is the same as everyone else’s: the Downtown Relief Line, which the PC government has wisely redubbed the Ontario Line.

The most basic and essential piece of that line, which Toronto city staff are already working on, would connect City Hall with Pape station on Danforth. Passengers who live in the east end and work downtown could thus avoid the bottleneck at Yonge and Bloor, relieving the alarming rush hour situation on platforms there and — assuming new TTC signalling technology works as promised — freeing up southbound capacity for folks from York Region: Ford vows to extend the Yonge line to Richmond Hill (cost: $5.6 billion).

The order here matters more than the timeline (2027, supposedly). It is undisputed that the DRL has to happen before the extension. That’s basic knowledge. But Ford is capable of ignoring or fouling up very basic knowledge when stumping for subways. This is a man who nearly promised Pickering one. On Wednesday, he sounded remarkably well briefed.

Ford’s Ontario Line wouldn’t stop at Danforth and City Hall, either. In the east it would head north across the Don Valley, through Thorncliffe Park and up to Eglinton. This idea is nearly as old as the DRL itself. And it would jog southwest from downtown to Ontario Place — a novelty, but again, not crazy. Total cost for the line: an at least semi-plausible $11.2 billion.

April 11, 2019

Ontario government unveils massive subway and light rail expansion for the GTA

Filed under: Cancon, Government, Railways — Tags: , , , , , — Nicholas @ 05:00

Doug Ford has always been a fan of subways, but now that he’s the Premier of Ontario, he’s getting to indulge his subway fetish in a vast expansion to heavy and light rail transit in and around Toronto:

Click map to embiggenate

The plans include:

  • An expanded downtown relief line, now to be called the Ontario line, running from Ontario Place on the lakeshore through downtown along Queen Street then crossing the Bloor-Danforth subway line at Pape station and running north to the Ontario Science Centre on the Eglinton Crosstown LRT line. This line is optimistically to be ready for opening by 2027.
  • The existing Sheppard Line will be extended east from Don Mills to McCowan, where it will intersect with the planned Scarborough subway extension (now to include three stops, not just the one originally announced, and to be completed by 2030).
  • The Yonge-University line will be extended north from current terminus at Finch to the Richmond Hill Centre with a hoped-for completion date soon after the Ontario line.
  • The Eglinton Crosstown line will be extended west to Pearson airport, with a target completion date of 2031.
  • New light rail lines will be created between Finch West on the Yonge-University subway to Humber College, and along Hurontario Street in Mississauga from Port Credit on the lakeshore to Steeles Avenue in Brampton.

To accomplish all of this will require financial contributions from the City of Toronto, York Region, and the federal government, as the province is only funding just over one third ($11.2 billion) of the estimated $28 billion price tag.

Of course, it’s a Doug Ford plan, so none of the usual suspects in Toronto are happy about any of it.

April 10, 2019

QotD: UBI and the “end of work”

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

I’m sort of skeptically agnostic about the end of work. Yes, this has been predicted before, and never arrived. On the other hand, history is full of stuff that was predicted and didn’t arrive, until suddenly it did. So maybe this time is really different.

And what do we do if it is? I don’t know. I don’t think UBI [Universal Basic Income] is the answer. We have a fair amount of data about what places look like where large numbers of people are subsidized not to work. The answer is “like nowhere you’d want to live”. The predicted flowering of artistic and community endeavor does not arrive; people are depressed, less social, and spend a great deal of time on activities like watching television.

To this, UBI advocates rejoinder “But what about trust fund babies and old-style aristocrats! Everyone admires their lives of leisure!” To which my answer is “Heck no, I don’t”. The lives of the idle rich are better upholstered than the out-of-work poor, but suffer the same absence of meaning and community. They are not a model to which anyone should aspire.

Megan McArdle, “Ask Me Anything”, Reddit, 2017-04-10.

April 8, 2019

Comparing the economic performance of China’s private versus state-owned companies

Filed under: Business, China, Economics, Government — Tags: , , , — Nicholas @ 03:00

If you’ve been following the blog for a while, you’ll know that I’ve long been skeptical of any official economic statistics coming out of China. The reasons for my skepticism are that vast areas of the Chinese economy were owned or controlled by the state and reporting from those entities was performed through layers of officials whose positions and personal well-being depended on those reports being as positive as possible. In a capitalist system, announcing false production or profit figures will eventually be detected (sometimes not as soon as we’d like), and the company loses the trust of customers, suppliers, and banks, making survival much more difficult. In a state-owned organization, everyone in the hierarchy has a vested interest in false information not being uncovered or reported. In a private firm, you could lose your job … in a state-run enterprise, you could be shot or sent to a “re-education camp” along with all your family. The incentive to lie is much stronger when your risks are that high.

Tim Worstall comments on a recent report that compares the performance over time of Chinese private companies, privatized state companies, and companies that are still state-run:

That China has relaxed the governmental grip upon industry in recent decades is true. That China has become very much richer in recent decades is also true. The two are not a coincidence, there’s causality there. However, we hear often enough that it’s the residual control over industry by the government that drives that success. Sure, OK, so the bureaucracy doesn’t specify prices or detailed actions but the general guidance provided by a politically driven bureaucracy explains the outperformance.

Except it doesn’t. Those former state industries still enjoying that government guidance perform worse than the free market firms sadly lacking it. State planning is keeping China poorer than it need be, not aiding its growth.

The report he’s commenting on:

Changing the tiger’s stripes: Reform of Chinese state-owned enterprises in the penumbra of the state
Ann Harrison, Marshall W. Meyer, Will Wang, Linda Zhao, Minyuan Zhao 07 April 2019

The conventional wisdom that privatisation of state-owned enterprises reduces their dependence on the state and yields positive economic benefits has not always been borne out by empirical work. Using a comprehensive dataset from China, this column shows that privatised SOEs continue to benefit from government support in the form of low-interest loans and subsidies relative to private enterprises that have never been state-owned. Although there are clear improvements in performance post-privatisation, privatised SOEs continue to significantly under-perform compared to private firms.

Much of China’s economic growth has been driven by the emergence of a vibrant private sector, today accounting for approximately 60% of GDP and 80% of employment. Conventional wisdom holds that privatisation of state-owned enterprises (SOEs) reduces their dependence on the state and yields positive economic benefits including enhanced firm performance, productivity, and innovation. The pro-privatisation argument is that the state either cannot monitor managers properly or chooses not to pursue efficiency because state interests take precedence over financial results (Boardman and Vining 1989, Vickers and Yarrow 1991, Shleifer and Vishny 1994). Empirical work, however, has produced mixed results on privatisation. For example, DeWenter and Malatesta (2001) found that, among the 500 largest firms globally in 1975, 1985, and 1995, private enterprises had significantly lower costs and higher profits than SOEs. Yet, when they examined a sub-sample of privatised firms, they found inconsistent results – performance increased post-privatisation, while leverage and employment increased mainly pre-privatisation. Market returns from privatisation also differed across countries, positive in Hungary, Poland, and the UK but insignificant elsewhere.

Our research on privatisation in China (Harrison et al. 2019) is unique in several respects. We analyse an extremely large sample of industrial firms, more than 3.5 million firm-years from 1998 to 2013, drawing on the Annual Industrial Survey conducted by the China National Bureau of Statistics. We compare privatised firms with firms that remained state-owned and firms that had never been state-owned. Most importantly, we compare both the performance and dependence on the state of privatised firms with firms having no prior state ownership. Overall, our results indicate selective performance gains from privatisation – privatised firms have greater productivity and are more likely to file patents than firms remaining state-owned even though their return on assets barely improves. The performance effects notwithstanding, privatised firms remain dependent on the state. Subsidies, concessionary interest rates, and loans granted to privatised firms remain at nearly the same levels as those to SOEs. Privatisation changes the behaviour of firms but not firms’ dependence on the state.

A graphical portrayal of the differing performance of the three types of Chinese companies from the report:

Return on assets of state-owned enterprises, privatised state-owned enterprises, and privately-owned enterprises

April 7, 2019

Justin’s SNC-Lavalin swamp … how deep does it go?

For a penny-ante scandal where there’s no hint of sexual impropriety or unmarked bundles of bills being passed along in brown paper bags, Justin’s SNC-Lavalin scandal looks more and more interesting the more we look at it:

A game-changing bombshell lies buried in the supplementary evidence provided to the House of Commons Judiciary Committee by former Attorney General Jody Wilson-Raybould.

It has gone virtually unreported since she submitted the material almost a week ago. As far as we can find, only one journalist — Andrew Coyne, columnist for the National Post — has even mentioned it and even then he badly missed what it meant, burying it in paragraph 10 of a 14 paragraph story.

The gist of the greatest political scandal in modern Canadian history is well-known by now. It’s bigger than Adscam, the revelation 15 years ago that prominent members of the Liberal Party of Canada and the party itself funneled tens of millions of dollars in kickbacks into their own pockets from federal spending in Quebec sponsoring ads promoting Canadian unity. That was just venal politicians and a crooked political party helping themselves to public money.

The Trudeau-SNC-Lavalin scandal is so much more, involving the corruption of the supposedly non-partisan civil service, and even the judiciary, for the political benefit of a disgraced political party, and a cover-up endorsed, encouraged and actively engaged in by the sitting Members of Parliament of that political party.

[…]

Which brings us to the ticking-timebomb-evidence the committee and the public didn’t get to hear.

In between the appearances by Butts and Warnick, Wilson-Raybould testified to getting a report from her chief of staff who had had a meeting with Butts and Trudeau’s chief of staff Katie Telford. They aggressively pushed the attorney general to get an “outside” opinion from someone like the retired Chief Justice of the Supreme Court, Beverley McLachlin, on dropping the criminal charges against SNC-Lavalin in favour of a non-criminal plea deal.

Wilson-Raybould took contemporary notes of what her staff member told her.

    “My COS (chief of staff…ed) asked what if the opinion comes saying “She can review it, but she shouldn’t” or simply “She can’t review it” end of story? Mr. Butts stated “It wouldn’t say that.”

BOOM!!!!!!

Read what Butts said again. And again. And again.

“IT WOULDN’T SAY THAT”

H/T to Halls of Macademia and Small Dead Animals for the link.

April 6, 2019

“The Prime Minister has repaid my loyalty with betrayal”

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

Despite the full applicability of the headline to Canadian politics, this isn’t about the Dauphin’s betrayal of cabinet ministers or the Canadian people, it’s actually Matt Ridley talking about Prime Minister Theresa May:

The Prime Minister has ignored the views of the majority of her Cabinet and ruled out No Deal. The reason, we are told, is that No Deal might lead to the re-imposition of direct rule over Northern Ireland, and might lead to a second Scottish independence referendum.

That either of these considerations should outweigh the independence of the United Kingdom from an increasingly decrepit but increasingly autocratic empire is bizarre. If No Deal causes a second referendum in Scotland – we were told that the vote itself would cause that too, remember, but it did not – then we will win that too.

But more bizarre is that these worries have existed all along. If the Prime Minister thinks the risk of direct rule in Northern Ireland (which is happening in practice anyway) trumps all other considerations, and rules out No Deal, then why did she not say so more than two years ago or at any time since? Instead, she said 108 times that we would leave the EU on 29th March, whatever happens; 50 times that she would not extend that date; and 32 times that No Deal is better than a bad deal. Not once did she say it was impossible.

[…]

Mrs May should have ruled out No Deal at the start of the negotiations, if that is what she thought, or she should have meant “No Deal is better than a bad deal” when she said it. As it is, the combination of threatening No Deal until the moment when it might actually matter in the negotiations, then dropping the threat on the feeblest of latest excuses, is about as foolish as one can imagine. And now rushing off to hand the initiative to an apologist for totalitarians, anti-Semites and terrorists instead. Thanks.

The Prime Minister and her allies are now chanting that it is all the fault of the European Research Group for rejecting her deal and are saying they have no alternative than the dismal choices of supporting her deal or no Brexit, as if amnesiac about the third option: their recent promises to leave with No Deal if necessary. Yet the truth is that ever since the debacle at Chequers in July, when everybody from half the Cabinet to the Democratic Unionists to the media to the people themselves told her quite clearly that she would never get the Chequers plan through Parliament, she has been the one at fault.

SNC-Lavalin – Justin couldn’t admit that he was wr… wr… wr… not right

Filed under: Cancon, Government, Law, Politics — Tags: , , — Nicholas @ 03:00

Chris Selley on the Prime Minister’s odd decision not to get ahead of the SNC-Lavalin scandal while he still had some credibility with the public:

It seems like another century, but was in fact only a few weeks ago, that Justin Trudeau had a plausible plan to cauterize the SNC-Lavalin wound within his party: He would apologize for … something.

Presumably he would not apologize for trying to protect 9,000 jobs, and presumably he would not admit improper interference in the attorney general’s and director of public prosecution’s roles. But perhaps he might cop to overzealousness in concern for those jobs, or for poorly communicating his entirely appropriate concerns, or for the various anonymous party sources who were slagging off Jody Wilson-Raybould to friendly journalists.

The latter, certainly, seemed downright imperative. Trudeau and his minions, either under orders or self-assigning, had snatched calamity from the jaws of bother. They were badmouthing an accomplished Indigenous female lawyer for being headstrong, “difficult to work with,” and various other descriptors commonly attached to Type A women when they behave like Type A men. When they ran out of those, they started insinuating she wasn’t a very good justice minister — which is certainly an arguable point, but which rather clashed with Trudeau’s insistence she would still hold that title if not for Scott Brison’s impending departure.

It was absolutely torching their brand. People were laughing in their faces. Something had to be done. And this stand-by-for-contrition narrative was lent some credence, fittingly enough, by anonymous sources. “A senior government official said one of the options being discussed is for Trudeau to ‘show some ownership over the actions of his staff and officials’ in their dealings with his former attorney general,” CBC reported on March 5.

Floating a trial balloon to measure potential reactions is not often prelude to the sincerest of apologies. But in the end, no real apology was forthcoming. The brand-torching continued unabated. And by Wednesday this week, the Anonymous Sources had come full circle: Wilson-Raybould had set various extraordinary conditions for remaining in Cabinet, they told various outlets.

One of them was that Trudeau apologize.

In Maclean’s, Paul Wells wonders why SNC-Lavalin has shaken the Liberals so much:

How did this scandal manage to rattle this government so profoundly? And the best answer I can find is this: Because it reveals truths about this Prime Minister that shake many Canadians’ confidence in him.

As my moral betters in the newspaper columns never tire of repeating, by many standards the SNC-Lavalin mess is quite modest. It seems probable that no money changed hands improperly in 2018 and no law was broken. The protagonists were motivated mostly by a kind of distracted hunch that jobs might be at stake. I mean, the extent to which they had zero evidence for that is breathtaking, but let’s give them the benefit of the doubt. And also by a similarly vague suspicion that it might be bad for branded Liberal candidates if SNC ran into trouble ahead of a Quebec or federal election.

[…]

Finally, all three of these scandalettes have laid bare a stubbornly ramshackle approach to running what has sometimes been a serious country. When flying to India, sure, pack your embroidered sherwani and your convicted attempted murderer, but also maybe bring along a travel plan, a sales pitch and a list of objectives worth achieving. Especially if your ineptitude is about to guarantee you will never get a second chance to visit India.

On SNC, what emerges from all the testimony is the impression that a dozen kids from the McGill debating team snuck into the abandoned ruins of Ottawa and started pretending to be the government of Canada. Jody complained to Bill that Elder and Ben were being mean to Jessica. Justin sent Michael but somehow Michael didn’t have the Section 13 ruling Jody had sent to Mathieu. Then it was Christmas and they all went home for a month.

Where the hell were the 208,000 public servants whose job was to ensure options were explored and workflows respected? Why, in September, when Wernick says everyone was distracted by NAFTA, did nobody at the weekly deputy ministers’ meeting say, “Well, there’s only room for 10 people at the NAFTA table, so why don’t the rest of us strike a working group of officials from Justice, Finance, Innovation and the Privy Council to ride this SNC puppy until we know what’s what?”

I’m pretty sure the reason this didn’t happen is that Butts found it thrilling to have all the important conversations run through his phone. That’s a bush-league reason to stumble into a government-shaking mess.

April 5, 2019

The Brexit trainwreck is “revealing to the British public the extent of its political class’s incompetence”

Theodore Dalrymple in City Journal on the scale of political tomfoolery going on in the Brexit clusterfutz:

The imbroglio over Brexit has at least had the merit of revealing to the British public the extent of its political class’s incompetence. If it is accepted that people get the leadership that they deserve, however, thoughts unflattering to self-esteem ought to occur to the British population.

Theresa May did not emerge from a social vacuum. She is typical of the class that has gradually attained power in Britain, from the lowest levels of the administration to the highest: unoriginal, vacillating, humorless, prey to the latest bad ideas, intellectually mediocre, believing in nothing very much, mistaking obstinacy for strength, timid but nevertheless avid for power. Thousands of minor Mays populate our institutions, as thousands of minor Blairs did before them.

Avidity for power is not the same as leadership, and Brexit required leadership. There was none to be had, however, from the political class. From the very first, it overwhelmingly opposed Brexit — for some, the eventual prospect of a tax-free, expense-jewelled job in Brussels was deeply alluring — but found itself in a dilemma, since it could not openly deny the majority’s expressed wish. Many Members of Parliament sat for constituencies in which a solid majority had voted for Brexit. They feared that they would not win their next election.

The opposition Labour Party was as divided as the Conservatives. Irrespective of what its MPs actually believed about Brexit—its leader was, until recently, ardent for leaving the European Union, which he believed to be a capitalists’ club, changing his mind for reasons that he has so far not condescended to disclose — its main concern was to force an election that it believed it could win, a victory that would soon make Brexit seem like a minor episode on the road to ruin. The majority of the Labour MPs wanted first to bring about the downfall of a Conservative government and second to prevent Britain leaving the European Union without an agreement — what might be called the leaving-the-Union-without-leaving option. But they wanted the first more than they wanted the second, so under no circumstances could they accede to anything that Prime Minister May negotiated. Because of her tiny majority in Parliament, the hard-line Brexit members on her own side who want Britain to leave without a deal, and the refusal of her coalition partner, the Democratic Unionist Party, to back her, May needs the support of a considerable proportion of Labour MPs — which, so far, she has not received.

But the House of Commons as a whole, including the Conservatives, deprived May of leverage with which to renegotiate, because it voted that it would not accept leaving the Union without a deal. This deprived the European Union of any reason to renegotiate anything: it was a preemptive surrender to the demands of the E.U. that makes Neville Chamberlain look like a hard-bitten poker champion.

April 4, 2019

Of course Facebook is now in favour of government regulation … it’ll keep out their competition

The recent calls for the government to regulate social media got support from Mark Zuckerberg, which seems to have surprised some in the media. It’s not at all uncommon for established firms to not only welcome government oversight but to actively support it — because it’s a highly effective strategy to strangle smaller competitors and keep new competitors from entering the field:

On Saturday, Mark Zuckerberg appealed to the government for increased regulation of the internet including his company Facebook. According to Zuckerberg, increased government action is needed to protect society from harmful content, ensure election integrity, protect people’s privacy, and to guarantee data portability. If enacted, the government would possess a wide range of control over internet businesses. For Zuckerberg, this is for the public’s best interest.

But make no mistake about it, Zuckerberg’s cries for regulation is not an appeal to his humanitarianism. On the other hand, it solves glaring issues that Facebook has faced since the 2016 election.

[…]

With increased government oversight, Facebook’s leadership will finally be able to pass the buck to someone else. The government will provide them with a clear set of rules that they will be accountable for. Any negative press coverage that occurs outside of those guidelines, will not be attributable to their company but to the rule-making body of the government. This will allow Facebook’s leadership to regain credibility within a clearly definable framework that they are not responsible for creating.

But perhaps Zuckerberg’s appeal for regulation is even more cunning. Government regulation will undoubtedly be met with higher costs. Internet companies will have to spend more on staffing to be in compliance with the increased burdens implemented by the rule-making body. We saw this play out in the banking industry after the Great Recession. A study conducted last year found that since 2009, banks have been fined a total of $345 billion dollars in penalties and noncompliance costs. Further, another study found that in 2016 banks spent $100 billion dollars on regulatory compliance alone.

Large internet companies like Facebook and Google will easily absorb the strain of increased regulatory costs. It is the smaller businesses that will feel the financial squeeze. With increased regulatory compliance spending, smaller startups will face an even bigger hill to climb to compete with the likes of Facebook.

Another “feature” of government regulation is what is known as “regulatory capture”, as the regulating body and the regulated organizations, after an initial period of ostentatious “conflict”, settle down into a cosy symbiotic relationship … in only a few years, many of the regulatory staff will find themselves working for one of the regulated organizations, and vice-versa. The regulatory body will — like all bureaucracies — start to care more about keeping itself alive and growing than about the original reason it was set up. Small organizations will stall or go extinct, and only the existing dinosaurs will carry on, protected from competition by their regulator’s powers.

LPC Omertà in action

Filed under: Cancon, Government, Law, Politics — Tags: , , — Nicholas @ 03:00

Omertà, according to Wikipedia, is “a Southern Italian code of honor and code of silence that places importance on silence in the face of questioning by authorities or outsiders; non-cooperation with authorities, the government, or outsiders; and willfully ignoring and generally avoiding interference with the illegal activities of others.” It’s also a remarkably appropriate way to describe the Liberal Party of Canada’s standard operating procedure:

“Ultimately the choice that is before you,” Jody Wilson-Raybould pleaded with her caucus colleagues, in a letter written hours before they were to pass sentence on her, “is about what kind of party you want to be a part of, what values it will uphold, the vision that animates it, and indeed the type of people it will attract and make it up.”

But they made that choice long ago. They knew what kind of party they wanted to be a part of from the moment they accepted their nominations; indeed, were they not the type of person that party attracts they would not have been recruited for it. It is the kind of party, and person, that unquestioningly puts loyalty to party before principle — and mercilessly punishes those who do not.

So on the question of whether to expel the former minister of justice and attorney general — along with the former Treasury Board president, Jane Philpott — for the crime of denouncing the attempt, by the prime minister and senior government officials, to interfere with a criminal prosecution, there could have been little doubt how they would vote.

Whether they chose to shoot the messengers so spontaneously, over Justin Trudeau’s objections, as some reports have claimed — they were “determined to take the matter into their own hands,” according to a Canadian Press story, as if MPs were so eager to prove their obedience to the leader as to be willing to defy him — or whether they did so under orders doesn’t much matter. The rotting of the soul is the same either way.

We can now see, if it were not already apparent, the moral compass by which the prime minister and his caucus steer. The scandal in the SNC-Lavalin affair is, by this reckoning, not the months-long campaign to subvert the independence of the attorney general and, through her, to force the independent director of public prosecutions to drop charges of fraud and corruption against a long-time Liberal party contributor, but the opposition to it.

Traditional political theory teaches that the executive branch of government is responsible to the legislative. It is now clearer than ever that the reverse more nearly applies: members of the Liberal caucus plainly see it as their role, not to hold the government to account, but rather their fellow MPs — on behalf of the government. When wrongdoing by those high in government is alleged by a pair of whistleblowers, their first thought is to root out the whistleblowers.

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