Quotulatiousness

September 19, 2017

Ontario is getting exactly what they deserve in legalized marijuana

Filed under: Cancon, Government, Law — Tags: , , , — Nicholas @ 06:00

Pessimists, you can collect your winnings at the till. Optimists? Haven’t you learned yet? You expected a vibrant, dynamic free market in pot where your favourite budtender would be able to offer you a wide selection of high quality product to choose from? Forget it, Jake, it’s Ontario. Chris Selley explains why the pessimists got it right in the betting on how Ontario would choose to implement the legal marijuana market in 2018:

For nearly 15 years, I and other free market lunatics have been trying to impress upon Ontarians just how insane our liquor retail system is. Yet we still hear the same ludicrous arguments in its favour. “The LCBO makes tons of money for the province.” (Alberta makes tons of money from liquor sales too, without owning a single store.) “Public employees can be trusted to keep booze out of children’s hands.” (The Beer Store isn’t public. Nor are the scores of privately run “agency stores” in rural areas across Ontario.) “The LCBO provides good jobs.” (Not to real product experts it doesn’t — they would be far better off in a free market jurisdiction. And if the government’s role is to make good retail jobs, why not nationalize groceries?) “LCBO stores are pleasant. Liquor stores in the U.S. are gross.” (Nope! You’re just going to the wrong liquor stores.)

This hopeless mess is the foundation for Ontario’s new marijuana plan — and we’re hearing the same arguments in its favour. Last week, two columnists in the Toronto Star and one in the Globe and Mail spoke approvingly of the fact it would create “good unionized jobs.” The two Star columnists also mentioned the money that would accrue to the treasury.

“I’m fine with the profits going to the public purse instead of private businesspeople,” wrote one.

“Why wouldn’t the government seek to maximize revenues in the same way that it profits from alcohol and tobacco sales?” asked the other.

Even after all these years, it makes me want to tear my hair out: for the love of heaven, the “high-paying jobs” motive and the “profit” motive are at odds with each other. You cannot claim both as priorities. One way or the other, the government will take its cut on marijuana sales. The overhead costs of running its own stores, paying its own employees government wages, will simply eat into that cut.

If you can live with Ontario’s liquor situation, but you think your favourite budtender should be able to get a government licence to keep her “dispensary” up and running after legalization kicks in, my sympathy is non-existent. You either support consumer choice or you don’t. Ontario doesn’t, and that will never change until tipplers and tokers take up arms together.

September 13, 2017

Our Amazing Debt (Cosmos Parody)

Filed under: Economics, Government, Humour, USA — Tags: , — Nicholas @ 06:00

Published on 12 Sep 2017

The math behind the National Debt is so complex that Reason TV decided to lean on “Cosmos” to explain it.
—-
We are about to begin a journey beyond ordinary human understanding. Lost somewhere between immensity and eternity. Join me, as we explore: Our Amazing Debt

We are all made of star stuff. And in America, we are all born more than $61 thousand in debt.

The collective debt we owe as a country now stands at $20 trillion, a level of debt unfathomable to our contemptible caveman ancestors.

How can we comprehend the sheer magnitude of the national debt? With our starship of imagination.

This is the USS Dumbitdownforme and it cost $12 billion to construct: all financed through debt. We didn’t have the money to build it and we didn’t want to raise taxes to pay for it, but we really wanted it. So, like a fiscal wormhole, we’ve used debt to puncture the reality of financial constraints, connecting what we want now to even more money we promise to pay later.

$20 Trillion is not just a lot of money, it’s all the money, and then some.

If we could round up all the US currency in existence–every dollar bill, every quarter, every penny–we’d still need another $18 trillion. All the gold that has ever been mined couldn’t even cover half of our debt.

Yet our story doesn’t end here.

Like our ever-expanding universe our debt is constantly growing larger. This year we will pay more than $250 billion on interest payments. Not the debt, just the fee for borrowing money.

Much as cosmic expansion will inevitably lead to the heat death of our own universe, the debt, too, is unsustainable. As nature seeks balance, so to will our creditors.

Will the government gut spending? Defund entitlements? Devalue our currency?

One day, perhaps in our lifetime, we will discover the answers and reach the limit of our amazing debt. But for now we can only behold this awesome force that binds all Americans, bewitching us with the fascinating possibility, that maybe, just maybe, we’re all f***ed.

Written and produced by Austin Bragg, Meredith Bragg, and Andrew Heaton. Edited by Austin Bragg.

September 9, 2017

Minimum Wage: Bad for Humans, Good for Robots

Filed under: Business, Economics, Government — Tags: , — Nicholas @ 04:00

Published on 7 Sep 2017

Jacking up the minimum wage sounds like a good idea, but it comes with disastrous consequences: low-skilled workers getting canned, employers cutting hours, and, of course, robots.

September 6, 2017

When in doubt, cry “Fascist!” or “Racist!”

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

Brendan O’Neill on Facebook recently:

The left’s greatest mistake so far this century has been to accept at face value the establishment’s explanation for why people gave it a bloody nose. Stunned by Brexit, dizzied by Hillary’s loss, the establishment has gone into serious moral and political meltdown. It can only understand the various populist revolts against it as mass acts of racism, maybe even fascism, as the handiwork of demagogues who “got at” the people and twisted our minds. I mean, why else would anyone reject such wonderful institutions as the EU and the Democratic elite…? And, for shame, most of the left has embraced this propaganda, this made-up horror story. They have nodded along to this perverse politics of fear born of a wounded establishment’s fury with the “deplorable” demos. All those Antifa and commentators out there screaming “OMG, fascists everywhere!” think they’re being radical when in truth they are the unwitting spindoctors of the old establishment, bit-part players in a top-down narrative of hysteria that has no relation to reality.

September 1, 2017

The complex dance of supply, demand, scarcity, and price

Filed under: Economics, Environment, Government, Law — Tags: , , , — Nicholas @ 04:00

Tim Worstall explains why laws against “price gouging” are denials of economic fact and actually work against getting urgently needed items to the people who require them:

Those little diagrams at the start of the Econ 101 class (supply, demand, price) are not optional extras to our universe, they are instead accurate descriptions of how we humans interact with it. If and when demand rises then price rises, this in turn encouraging an expansion of supply. Thus why we desire to have price flexibility in the face of either changes in supply or demand.

Consider Houston right now in the wake of Hurricane Harvey. It seems a good bet that the tapwater supply is disrupted — flooding has a tendency to do that. We would therefore assume the demand for bottled water has risen – the sensible who normally hydrate from that wondrous invention, the municipal water supply, will not be able to do so, thus increasing the demand for the bottled stuff. Equally, on the other side, there’s going to be a certain difficulty with supply at present — roads 5 feet underwater don’t exactly help trucking.

We thus desire to do two things simultaneously. We want to restrain demand to only the really important things and we want to incentivize greater supply.

Which is exactly what a price rise does for us.

With water at (just to make up a price) $99 a case, people are only going to buy it for drinking water, perhaps only in sippy cups. Which is excellent — we want whatever limited supply of potable water (we’ve really plenty of non-potable around, that’s the basic problem) there is in place to be used for that most valuable use, being potable. We’ve achieved one of our goals therefore, by allocating that scarce resource to its most valuable use: keeping people alive.

We also want to increase supply, though, and being able to sell in Houston for $99 something bought for $9.99 in Beaumont (again, just to invent an example) might well get a few boats carrying loads in – although quite possibly not from Beaumont. Thus, by allowing prices to rise, we’ve at least potentially increased supply.

Our price system, operating without constraint, is thus achieving the two things we desire, a curtailing of demand through rationing to only truly important uses, and a rise in supply.

“But,” goes the cry, “this isn’t fair!”

Indeed it isn’t, and ain’t that a shame, fairness not being a notable feature of this universe we’re struggling to inhabit. All we can do is the best we can. Which is, again, why I insist that there should be variable prices, why there should be no laws against price-gouging. Because this really is a disaster, there really are significant shortages in Houston right now, we really do want to solve them. Which means that we should be using all of the tools at our disposal.

August 29, 2017

The benefits and costs of an “open borders” policy

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

David Thompson linked to this Ben Sixsmith article on the pro and con arguments for open borders:

No one except a militant nativist would deny that some level of immigration is beneficial and should be accepted. After that, we face a question of scale. There are those, however, on the opposite end of the spectrum, who believe that no level of immigration should ever be denied. These are advocates of “open borders”; an idea as strange as that of the nativist — yet more dangerous for being considered respectable.

The liberal Economist magazine contains an essay promoting open borders. It imagines a world in which people are free to live and work wherever they please. It is an astonishingly biased and unreflective piece, which illuminates dangerous extremes of progressive utopianism:

Perhaps I sound inhuman. Who could dislike people living and working wherever they please? It can be a splendid thing, but if everybody did it think of what that would entail. The Economist reports that if borders were opened, 630 million people would be likely to migrate. Perhaps 138 million would go to the US, expanding its population by almost a half. About 42 million would join the British, expanding their numbers by more than a half. How many would go to Australia, a country with a population of 24 million, and with infrastructure already under strain? Such influxes would pose monumental demographic changes, soon made more dramatic by the higher birth rates. It will be exacerbated by the fact that local governments will not be able to keep up with the building of roads, hospitals, schools and transport systems that citizens — both old and new — will demand.

A commenter at David’s blog quips that “It’s amazing how quickly the Economist turned into the Guardian“, but The Economist began to go in that direction quite suddenly in the late 1990s … at least, that was the point I noticed and gave up my annual subscription. As The Economist generally does not use author bylines, it’s not clear whether the change was driven by editorial diktat or staff changes over time, but what used to be a pretty staunch free market newspaper (as they prefer to call themselves) turned into a British version of typical American “liberal” magazines.

As Sixsmith points out, the masses of would-be immigrants to the west are not an undifferentiated cultural mass with broadly similar cultural, educational, and demographic profiles:

But what of proposed merits of open borders? A consistent failure of the Economist’s article is a reluctance to distinguish between different migrants. If one finds the study, it turns out that 54% of the men and women who expressed a desire to migrate came from Africa and the Middle East — with another 20% being from Central America. Yet the most successful immigrants, in terms of launching businesses and earning wealth, have been found to hail from Asia and Europe. A UCL study found that European immigrants to Britain contribute more to the economy than they take from it while the opposite is true for non-European immigrants. It is senseless, then, to claim, as the author of The Economist article does, that immigrants are “more likely than the native-born to bring new ideas and start their own businesses”. Immigrants do not come from “Immigrantland”. Population differences related to entrepreneurial and earning potential are real, and significant, and difficult to bridge.

August 27, 2017

Stop Subsidizing Sports!

Filed under: Economics, Education, Government, Sports, USA — Tags: , , , — Nicholas @ 04:00

Published on 25 Aug 2017

Let’s talk about “sports”—that thing where we gather around to watch a muscular stranger put a regulation-size ball in a specific location.

Why are taxpayers forced to pony up cash for athletic ventures that don’t benefit them? Franchise owners routinely extort massive stadium subsidies through threats of relocation and fake promises of economic revitalization. Universities jack up student rates to subsidize athletic programs that should be self-sustaining. And the Olympics is economically devastating to every municipality foolish enough to get suckered by one of the oldest scams around.

Mostly Weekly host Andrew Heaton explores the sports phenomenon and why we should quit throwing other people’s money at it.

Links, past episodes, and more at https://reason.com/reasontv/2017/08/25/stop-subsidizing-sports

Script by Sarah Siskind with writing assistant from Andrew Heaton and David Fried.
Edited by Austin Bragg and Siskind.
Produced by Meredith and Austin Bragg.
Theme Song: Frozen by Surfer Blood.

Why The Rich Like High Taxes

Filed under: Business, Economics, Government, USA — Tags: , , , , — Nicholas @ 02:00

Published on 16 Aug 2017

When politicians raise taxes on the rich, what do the rich do to protect their $$$? This Prof. shows how high taxes actually made America less equal.

The Myth of Equality in the 1950s (video): Another myth of the 1950s is that there was economic equality. Prof. Brian Domitrovic explains why this is a myth. https://www.youtube.com/watch?v=wLl9wOivHdc
How Cronyism is Hurting the Economy (video): Prof. Jason Brennan explains why cronyism, like the tax cuts for certain businesses in the 1950s, is bad for the economy and argues why limiting the government’s power would help solve the problem. https://www.youtube.com/watch?v=gSgUENZ9O94
The Good Ol’ Days: When Tax Rates Were 90 Percent (article): Andrew Syrios compares the tax rates in the 1950s to those of the 1980s and today https://mises.org/library/good-ol-days-when-tax-rates-were-90-percent

TRANSCRIPT:
For a full transcript please visit: http://www.learnliberty.org/videos/why-the-rich-like-high-taxes/

August 26, 2017

When is an archaeological artifact merely “recyclable”?

Filed under: Bureaucracy, Europe, Government, Science — Tags: , , , — Nicholas @ 03:00

In Sweden, apparently, it’s actually becoming a common practice to discard “excess” metal artifacts for literal recycling:

One of the amulet rings from the Iron Age that archaeologists are recycling. Previously, this type of object was saved, says archaeologist Johan Runer.
(Photo from Svenska Dagbladet, caption from Never Yet Melted)

Rough translation from Swedish language article in Svenska Dagbladet:

    While the debate about burning books is raging in the media, Swedish archaeologists throw away amulet rings and other ancient discoveries. It feels wrong and sad to destroy thousands of years of ritual arts and crafts, and I’m not alone in feeling so.

    “What you do is destroy our history! Says Johan Runer, archaeologist at Stockholm County Museum.

    Amulet rings from the Iron Age, like Viking weights and coins, belong to a category of objects that, as far as Runer knows, were previously always saved.

    He tried to raise the alarm in an article in the journal Popular Archeology (No. 4/2016), describing how arbitrary thinning occurs. Especially in archeological studies before construction and road projects, the focus is on quickly and cheaply removing the heritage so that the machine tools can proceed.

    He works himself in these kinds of excavations. Nobody working in field archeology wants to get a reputation as an uncooperative “find-fanatic” but now he cannot be quiet any longer.

    “It’s quite crazy, but this field operates in the marketplace. We are doing business,” says Runer.

    Often, especially in the case of minor excavations, there is a standing order from the county administrative boards that as few discoveries as possible should be taken.

    If you think it seems unlikely, I recommend reading the National Archives Office’s open archive, such as report 2016: 38. An archaeological preamble of settlement of bronze and iron age before reconstruction by Flädie on the E6 outside Lund.

    In the finds catalog, coins, knives, a tin ornament, a ring and a weight from the Viking Age or early Middle Ages have been placed in the column “Weeded Out”.

August 24, 2017

Words & Numbers: Child Labor Was Wiped Out by Markets, Not Government

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

Published on 23 Aug 2017

In 1938 the US government passed the Fair Labor Standards Act mandating a forty hour work week, establishing a minimum wage, and prohibiting child labor. Because of legislation like this, government is often credited for making the American work environment safer and more fair. Yet, as Antony Davies and James Harrigan demonstrate with historical data, market forces were already making things easier on the American worker long before the FLSA.

Learn More:
https://fee.org/articles/child_labor_was_wiped_out_by_markets_not_government
https://youtu.be/0zq-2cKENOc

http://www.politifact.com/truth-o-meter/statements/2015/sep/09/viral-image/does-8-hour-day-and-40-hour-come-henry-ford-or-lab/

https://fee.org/articles/child_labor_was_wiped_out_by_markets_not_government

Data:

http://www2.census.gov/prod2/statcomp/documents/CT1970p1-05.pdf
See page 170 for average weekly work hours.
See page 134 for child labor rates.

August 23, 2017

On the most recent figures, people do want to pay more tax … just not many of ’em, and not very much

Filed under: Britain, Cancon, Economics, Europe, Government — Tags: , , , — Nicholas @ 06:00

Last month, I posted an item on the Norwegian experiment in encouraging taxpayers to pay more than they owed in national tax. More recently, Tim Worstall reports an uptick in UK taxpayers voluntarily sending Her Majesty’s government more than they owed:

… the greater publicity of this ability to pay more has indeed led to more people making those extra voluntary payments. Further, to a more regular reporting of how many do so:

    Jeremy Corbyn’s claim that many people want to pay “more tax” to clear the national debt or fund public services has been undermined by official figures.

    Figures disclosed by the Government show that just 15 taxpayers made financial gifts worth less than £200,000 to the Government over the past two years.

15 people is of course more than 5.

    The Debt Management Office said that £180,393 in 2016/17 and £14,558 in 2015/16 was made in these voluntary payments.

    Most of this came from a single bequest of £177,700 in the last financial year. The other donated or bequeathed by the other 14 people were for relatively trivial sums. Someone gave 1p, another gave 3p and a third person handed over £1.84 to the Government.

Although not that much more then if we’re honest about it.

[…]

At which point something economists are most insistent upon. What people say is nowhere near as good a guide to their beliefs as what people do is. Expressed preferences are all very well but the truth comes from revealed preferences. Many might say they will pay higher taxes in order to gain more government. Very few do, so few that we can dismiss the expressed wish as being untrue.

It could of course be true that many would like other people to pay more in taxes, it could even be true that some to many would happily pay more if others did as well. But those are different things, the argument that people wish to pay higher taxes themselves and themselves alone has been tested and been found to be wrong–simply because when the opportunity is made available people don’t.

Once again, for my Canadian readers, it’s totally legal and acceptable to pay Her Majesty in right of Canada any additional monies you might feel are appropriate…

August 14, 2017

When did you first suspect that the world was being run by incompetent idiots?

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

Ace discusses the moment he realized there was a perfectly reasonable explanation for the otherwise incomprehensible way our government and mainstream media operate:

Here’s a question I’d like to ask. I’ll try to figure out my own answer in the comments. But this is what I’m interested in:

When did you begin to suspect that the people in charge of the government and the media were dumb, ignorant, and sometimes actually deranged, and what confirmed it for you? What were your feelings about this? That is, was it like taking the Red Pill? Was it scary?

I’m trying to remember when this happened to me. Oh, the media I knew was biased; but I didn’t realize until the last decade that it was pig-ignorant and incompetent and filled with people who are mentally unwell.

The government — well, I blithely assumed that people who ran the government (or other major institutions) were generally at least low-level qualified.

At some point I realized we are being led — or rather controlled, as we do not follow willingly, but through coercion — by misfits, morons, and maniacs.

It was both scarifying and liberating, in a dark way.

But I think these realizations came kind of slowly and I’m trying to think of major things that crystallized them.

It also changed my opinion of many of my fellow citizens and onetime allies: I now view them as fools and maniacs (or worse) themselves for apparently seeming to continue to believe that Everything’s Okay and we’re still being led (controlled) by, if not the best and brightest, certainly the somewhat good and reasonably intelligent.

August 13, 2017

QotD: The measurement problem in government

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

Now take health insurance. (Or, if you live, like me, in a country with a national healthcare system that has a single comprehensive payer, the health system.) There are periodic suggestions that we should punish bad behaviour, behaviour that increases medical costs: Scotland has an alcoholism problem so we get the Alcohol (Minimum Pricing)(Scotland) Act, 2012. Obesity comes with its own health risks, and where resource scarcity exists (for example, in surgical procedures), some English CCGs are denying patients treatment for some conditions if they are overweight.

It should be argued that these are really stupid strategies, likely to make things worse. Minimum alcohol pricing is regressive and affects the poor far more than the middle-class: it may cause poor alcoholics to turn the same petty criminality observed among drug addicts, to fund their habit. And denying hip replacements to overweight people isn’t exactly going to make it easier for them to exercise and improve their health. But because we can measure the price of alcohol, or plot someone’s height/weight ratio on a BMI chart, these are what will be measured.

It’s the classic syllogism of the state: something must be controlled, we can measure one of its parameters, therefore we will control that parameter (and ignore anything we can’t measure directly).

Charles Stross, “It could be worse”, Charlie’s Diary, 2015-10-09.

August 12, 2017

Troll the Patent Trolls

Filed under: Business, Government, Humour, Law, USA — Tags: , , — Nicholas @ 05:00

Published on 11 Aug 2017

Patent trolls are on the run. Let’s finish them off.
———
It’s been a bad year for patent trolls, from a Supreme Court decision squelching their ability to funnel lawsuits to East Texas, to this week’s ruling that Personal Audio LLC can’t claim it owns a patent on the entirety of podcasting. In the latest Mostly Weekly, Reason’s Andrew Heaton explores what patent trolls are, the damage they do, and the next step in driving them out of courtrooms and back into dank caves.

Trolls camp out on piles of weak and frivolous patents, hoping to one day sue inventors and businesses. Many of the patents they register or buy are vague, representing novel ideas only insofar as trolls are innovative at finding things they didn’t invent to claim legal ownership of. It doesn’t matter that these patents wouldn’t hold up in court, because a business is more likely to pay off a troll than to hire an expensive attorney to fight them. Trolls suck more than twenty billion dollars out of the economy each year.

The parasitical nature of “non-practicing entities” (the PC term for trolls) has raised questions about whether the modern patent system helps or hinders innovation, and if the best solution is for comprehensive reform or just to burn the whole thing down.

Heaton has an idea to hinder patent trolls. It may not be a silver bullet, but it will definitely piss them off.

Mostly Weekly is hosted by Andrew Heaton with headwriter Sarah Rose Siskind.
Script by Andrew Heaton with writing assistant from Sarah Siskind
Edited by Austin Bragg and Sarah Rose Siskind.
Produced by Meredith and Austin Bragg.
Theme Song: Frozen by Surfer Blood.

End supply management in one swell foop!

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

As always, Colby Cosh can express my thought far more eloquently than I can myself:

Mad Max tried to sugar-coat it as much as possible. They rejected that option with great vigour. Now let’s just burn the whole thing down … before Trump forces us to.

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