Quotulatiousness

June 29, 2024

Oh no! The filthy proles are getting too many calories! Let’s re-impose rationing!

Filed under: Britain, Economics, Food, Health, Media — Tags: , , , , , , , — Nicholas @ 05:00

Tim Worstall suggests that the regular “viewing with alarm” thumbsuckers about purchased meals having “too many calories” are actually an indication of a strong desire by the great and the good to stick their regulatory noses into the lives of ordinary people:

“Indian take away in Farrer Park” by Kai Hendry is licensed under CC BY 2.0 .

This headline is, of course, wrong.

    Some takeaway meals contain more calories than daily limit, UK study finds

There is no daily limit. We do not have laws stating how much food we are allowed to eat. Of course, there are those who want there to be such laws but there aren’t, as yet. What there is is a series of recommendations about the limits we should impose upon ourselves:

    Some takeaway meals contain more calories in one sitting than someone is advised to consume in an entire day, a study of British eating habits has revealed.

That’s better.

    Cafes, fast-food outlets, restaurants, bakeries, pubs and supermarkets are fuelling the UK’s obesity crisis because so many meals they sell contain dangerously large numbers of calories, it found.

That’s not better. Because a plate of food containing a lot of calories is not a danger. Eating many of them might be but that the average household can get a gutbuster for some trivial portion of household earnings is a glory of modern civilisation, the very proof we require that we’re all as rich as Croesus.

And this is actually true too. That we are gloriously rich and it’s our food supply that proves this. As Brad Delong likes to point out back 200 years (yes, about right, 1820s is as it was really changing but 300 years would be better) it took a full day’s work to be able to gain 2,000 calories a day for a day labourer. There are 800 million out there still living at that standard of living. We can buy 2,000 calories — if we go boring stodge — for 30 minutes work now.

By history and by certain geographies we are foully rich these days. Which is the complaint of the wowsers of course. They’re a revival of the puritans and their sumptuary laws. How dare it be true that people fill their bellies with food they actually like?

    Six out of 10 takeaway meals contain more than the 600-calorie maximum that the government recommends people should stick to for lunch and dinner in order to not gain weight, according to the research, which was carried out by the social innovation agency Nesta.

    One in three contain at least 1,200 calories – double the recommended limit.

And? So, folk can buy lots of food for not much money. This is the very thing that makes having a civilisation possible — cheap food. My wife and I do indeed partake of an Indian occasionally — and find the takeout portions rather large. So, we have one amount for lunch or dinner and we’ve a refrigerator in which to keep the excess for a supper or snack another day. This is not beyond the wit of man to organise.

We don’t order in food very often, but when we do we usually manage to get both dinner on the night and lunch on the morrow from a typical order. If the nosey parkers have their way, they’d limit what we were allowed to buy — for our own good, of course — so we’d almost certainly still pay the same amount for less food. Such a deal!

June 27, 2024

The Toronto Star wants Ontario to adopt Scottish booze regulation (but ignore the failure)

Filed under: Britain, Cancon, Government, Law, Liberty, Media, Politics, Wine — Tags: , , , , , — Nicholas @ 05:00

The Toronto Star always loves a good moral crusade, and if it also happens to fly in the face of whatever Premier Ford wants to do, then so much the better:

The Toronto Star is looking to Scotland to teach it how to reduce alcohol-related deaths. In an article titled “How Scotland started to kick its alcohol problem — and what Ontario could learn from it“, it pushes back on plans to liberalise Ontario’s state monopoly on alcohol retail, saying:

    Ontario officials say they are fulfilling a 2018 election promise to increase “choice and convenience for shoppers and support Ontario retailers, domestic producers and workers in the alcohol industry”.

    But Scotland has cut alcohol-related hospital admissions by 40 per cent and deaths by almost half. While in Ontario, alcohol-related admissions have risen by a third and deaths by almost half, according to the Canadian Centre on Substance Use and Addiction.

How did Scotland supposedly achieve this public health miracle?

    The key part of Scotland’s landmark policy was aimed at reducing drinking by introducing minimum unit prices to make drinking more expensive.,/p>

Ontario already has minimum pricing and Scotland doesn’t have a state alcohol monopoly, so it is not obvious what lessons Ontarians are supposed to be learning, but put that to one side for a moment and consider the main claim.

Anyone who has been following events in Scotland knows that alcohol-specific deaths have risen since minimum pricing was introduced in 2018 and have generally risen since 2012 following a significant downturn in the years prior.

It is that drop between 2006 and 2012 that the Toronto Star must be referring to when it claims that deaths fell by “almost half” (actually a third). But the Scottish government didn’t pass any anti-alcohol legislation in those six years and it certainly didn’t have minimum pricing. The newspaper mentions that the drink-drive limit was cut, but that didn’t happen until 2014 and the evidence is clear that it had no effect on road accidents.

Since the Toronto Star doesn’t mention when the decline in alcohol-specific deaths took place, it is leading its readers to believe that it coincided with the introduction of minimum pricing and the lowering of the drink-drive limit. I call that lying.

It is strangely fitting that Canadians are being lied to about the “success” of Scotland’s alcohol strategy since the Scottish public were conned into accepting minimum pricing, in part, on the basis of lies told about the “success” of minimum pricing in Canada. The neo-temperance academic Tim Stockwell, who is quoted in the Star article, published a series of studies in the 2010s making some absurd claims about minimum pricing that were parroted by campaigners in the UK.

June 23, 2024

The amazing range of things Britain’s Ofcom gets its tentacles into

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

Earlier this week, Mark Steyn discussed the British government’s Office of Communications (Ofcom) and the way it rigs regulates who can say what during British election campaigns:

Why do I think the UK state censor Ofcom should be put out of business? Because there are very few areas of British life that this strange, secretive body does not “regulate”. Take, for example, this current UK election campaign, which the media are keen to keep as a torpid Potemkin struggle between TweedleLeft and TweedleRight. So, on Thursday night, BBC bigshot Fiona Bruce will host a debate between the four party leaders – that’s to say, the head honchos of the Conservatives, Labour, the Liberal Democrats and the Greens.

Wait a minute: what about Nigel Farage, leader of the Reform party? Since the beginning of the year, Reform has been third-placed in the polls, ahead of the LibDems and Greens, and last week they rose to second place ahead of the unlovely Tories.

So why wouldn’t the second-place party get a spot in the leaders’ telly debate?

Ah, well, you’re looking at it all wrong, you hick. Here’s how the Beeb explain it:

    The Ofcom guidance gives “greater weight on the actual performance of a political party in elections over opinion poll data” taking into account the “greater uncertainty associated with support in opinion polls”.

The “actual performance of a political party” refers to their results in the two previous elections — 2019 and 2015 — when Reform didn’t exist. A lot of other things didn’t exist in 2015: Brexit, Covid, lockdown, the Ukraine war, legions of vaccine victims, the massed ranks of Albanian males occupying English country-house hotels …

But, per “Ofcom guidance”, Campaign 2024 has to be conducted on the basis of how things stood a decade ago.
You know who would also be ineligible to participate under Ofcom’s rules? Everyone’s favourite Lana Turner sweater-girl in Kiev, Volodymyr Zelenskyyyyy. He only formed his Servant of the People party in late 2017, so no election debates for you, sweater-girl. And don’t try blaming it on Putin, because it’s “Ofcom guidance” so we all know it’s on the up-and-up.

Because, as their barrister assured the High Court, Ofcom are “expert regulators”. Lord Grade and Dame Melanie Dawes probably did a module in regulation at Rotherham Polytechnic or whatever.

I can see why the likes of Naomi Wolf’s creepy stalker-boy Matthew Sweet like this system: it’s a club and they get to decide who’s admitted. It’s less obvious why the generality of the citizenry put up with it. At any rate, get set for another thrilling BBC election debate in which all four “opponents” agree on Covid, climate, Ukraine, the joys of mass Muslim immigration and the inviolability of the NHS … but ever more furiously denounce each other for not tossing enough money that doesn’t exist into the sinkhole.

Don’t get me wrong, I quite like that pixie Green leader who describes herself as a “pansexual vegan”, and I certainly don’t have the personal baggage with her that I have with Nige. But under what rational conception of media “regulation” does the six per cent basement-dweller get guaranteed a seat at the table but not Reform?

And you wonder why nothing changes?

June 15, 2024

W.H.O. the hell do they think they are?

Filed under: Britain, Bureaucracy, Business, Health, Politics — Tags: , , , , , — Nicholas @ 04:00

Christopher Snowden on what he calls a “new low” for the World Health Organization (WHO) in a report issued earlier this week that sounds like Karl Marx was one of the writers:

The WHO European Region published a new report today, written mostly by British ‘public health’ academics. It is quite revealing. For example …

    This requires, at a minimum, that governments recognize that the primary interest of all major corporations is profit and, hence, regardless of the product they sell, their interests do not align with either public health or the broader public interest. Any policy that could impact their sales and profits is therefore a threat, and they should play no role in the development of that policy. Similarly, governments must also recognize the now overwhelming evidence (see also chapters 4, 6 and 7) that HHIs [“health-harming industries”] engage in the same political and scientific practices as tobacco companies and that voluntary or multistakeholder partnership approaches do not work where conflicts of interest exist. Instead, they must regulate other HHIs [“health-harming industries”], their products and practices, as they do tobacco.

That’s just one paragraph, but there’s a lot it in.

Firstly, they are clearly not just opposed to “health-harming industries” but to private industry and the free market in general.

Secondly, they want to exclude all industries from the policy-making process, as already happens with the tobacco industry.

Thirdly, they want to regulate all “health-harming industries” in the same way as they regulate tobacco. These industries include alcohol, food and fossil fuels, but the report also mentions pharmaceuticals, infant formula, gambling, firearms, healthcare (!) and sugary drinks. As the quote above makes clear, they think that all private industry damages health in some way.

This is all there in black and white and there is much more of the same in the report. This is not scaremongering or the slippery slope fallacy. It is in an official WHO document.

When people show you who they are, believe them.

I have written about this for The Critic …

    If this sounds to you like Bolshie talk, you might be onto something. It is further confirmation that the modern “public health” movement is an arm of the hard left presented as an arm of medicine. It would be tempting to tell the authors to stay in their lane, but anti-capitalist nanny statism is their lane. For over a decade, such academics, mostly from Britain and Australia, have been pumping out studies about the “commercial determinants of health” and the “corporate political activity” of “unhealthy commodity industries”. The new WHO report is a sort of greatest hits collection. Last year they published a whole series of articles in the Lancet in which they claimed that there is “growing evidence that neoliberalism has been damaging to health” and called for “a normative shift away from harmful consumptogenic systems”.

    Half-baked Marxist rhetoric has been rife in the social sciences for decades, but these people have a vaguely coherent point to make and are pursuing a serious, if terrifying, agenda. Since they do not believe in human agency, they assume that people only make “unhealthy choices”, such as eating processed ham, because the system that controls them has been rigged by big corporations. They say in today’s report that “consumers do not have capacity (time or resources) to make the ‘right’ choice”. Fortunately, public health academics know what the right choice is and could impose it on a grateful population if it were not for the pesky free market. Hence their rage against capitalism, which extends to suspicion of intellectual property, international trade, share buybacks, impact assessments (because they allow businesses to engage with policy-makers) and even the EU single market.

Further to what I say in the article, I’d add that it is to the UK’s shame that so many of the authors of this report are British. They include quackademics that I have been making fun of for years, such as Anna Gilmore, Mark Petticrew and May van Schalkwyk. Between them, they constitute a small clique of talentless, fanatics and/or grifting social scientists who have constructed a world of unreality for themselves by publishing endless low quality journal articles which they and their colleagues then reference and self-reference. It is profoundly depressing that they are now dangling the corpse of the WHO — which was once a great institution — on pieces of string.

June 10, 2024

The FDA has a jaundiced view of psychotherapy involving the use of MDMA (aka “Ecstasy”)

Filed under: Bureaucracy, Government, Health, USA — Tags: , , , — Nicholas @ 03:00

Colby Cosh indulges in a minor “I told you so” after the FDA’s expert panel recommended against the agency permitting any medical use of MDMA, despite some experiments indicating it does have therapeutic value:

Ball-and-stick model of the 3,4-methylenedioxy-methamphetamine molecule, also known as MDMA, or ecstasy, a well-known psychoactive drug. Based on the crystal structure of MDMA hydrochloride, as determined by X-ray diffraction.
Color code: Carbon, C: black, Hydrogen, H: white, Oxygen, O: red, Nitrogen, N: blue.
Image by Jynto via Wikimedia Commons.

Hopes for research into therapeutic uses of psychedelic drugs received a setback last week, one that your correspondent saw tripping (geddit?) up the road in advance. An expert panel published its official advice to the United States Food and Drug Administration (FDA) on permitting medical use of MDMA, the synthetic nightclub enhancer that we’re afraid the kids probably still aren’t calling “ecstasy” or “molly”.

There is long-recognized potential for MDMA to be combined with classical psychotherapy in treating emotional disorders, notably post-traumatic stress (PTSD), and now there are some small, limited studies showing evidence of positive effects.

But the FDA’s scientists weren’t very impressed with this evidence, and they voted almost unanimously against creating a therapeutic exception to the illegality of ecstasy, which the U.S. Controlled Substances Act classifies as a “Schedule 1” drug, right next to heroin. The panel’s advice isn’t binding on the agency, which is crawling in somewhat good faith toward recognizing the understudied medical potential of psychedelics. But the vote emphasizes the inherent problems that drugs face, once they are defined in law as “recreational”, in winning over skeptical scientists.

Reason magazine’s great drug-war correspondent Jacob Sullum has a thorough discussion of the issues. The existing research, despite some impressive headline results, has garden-variety issues with dropout rates, follow-ups and occasional researcher shenanigans. But the big problem, which defies easy technical solution, is with scientific blinding of the research subjects.

Scientific trials of the modern kind are predicated upon separating illusory placebo effects from genuine treatment effects. Researchers expect that a high-quality study will have a control group that receives sham treatment or none at all, and good practice requires that experimenters and their guinea pigs are both blind to who is in what group.

News flash: most people can tell whether they’ve been really given a psychedelic drug. Indeed, most doctors can tell whether they’ve given a patient a genuine psychedelic drug, and how much of it. Many placebo-controlled trials on psychoactive drugs, perhaps most of them, thus suffer from an alleged problem of broken blinding. (Have a glance, for example, at Table 2 in this review of blinding procedures in psychedelic studies.)

June 7, 2024

Since 2015, the Trudeau Liberals have done a fantastic job of suppressing the Canadian economy

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

If Canadians elected Justin Trudeau and the Liberal Party to make major changes from what had gone on under Stephen Harper’s Conservatives, then they got their wish in so many different ways, but especially economically:

Reports of Canada’s dismal economic outcomes seem never to end. Why should they? For years Canadians have had the same federal government delivering the same deleterious economic policies and the same expansion in regulatory initiatives and spending that have invariably depressed economies and reduced standards of living whenever and wherever they are imposed. Therefore, until the federal government or its policies change, we should not expect the miserable results to materially improve.

The latest negative report is the release of Canada’s 2024-Q1 GDP numbers on Friday, which again showed sluggish growth relative to population, resulting in yet another quarterly decline in real GDP per capita. Relative to 2015-Q3, the last full quarter before the Trudeau government took office, cumulative real GDP per capita is up only about 0.7 per cent. A recent RBC Economics analysis showed from around 1991 to 2015, cumulative real GDP per capita growth in Canada approximately tracked with the U.S., but not since Justin Trudeau took office. Compared to 0.7 per cent growth in Canada from 2015-Q3 to 2024-Q1, real GDP per capita is up 15.7 per cent in the U.S. in the same time period.

Where the 0.7 per cent comes from matters, too. In real per capita terms, some components of GDP — mainly government — expanded while others contracted. Alarmingly, business investment, which drives productivity and standards of living, is down 13.9 per cent. This includes real per capita reductions of 15.2 per cent in residential structures, 18.4 per cent in machinery and equipment, and 19.3 per cent in non-residential structures, with an increase in intellectual property investment not nearly enough to offset the reductions in other categories.

To understand why business investment and economic performance in Canada are so poor under the Trudeau government, let us consider the following representative example of its economic strategy.

The government believes many families struggle with the cost of caring for young children, which is a legitimate concern. A reasonable solution, which the Harper government implemented in 2006, is to send money to families with young children and let parents buy for their children what they need. After the Liberals expanded that program, they could have left it at that, but what have they done instead? The government initiated a national takeover of child care, effectively expropriating child care entrepreneurs’ businesses by flooding their sector with public money and then controlling private companies’ revenues and operations. The result is child care entrepreneurs’ investments have been wiped out or severely reduced, control of their business operations have been wrestled away by government, and they are unable to properly serve their customers (the families), as evidenced by the drastic reduction in parental options and widespread shortages.

June 3, 2024

QotD: Economic feedback

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

Well, now I think about it, most feedback is annoying.

Economics is full of it — as are other economic systems — and humans find it so annoying they have devised various means of shutting it down, and then become puzzled and do crazy stuff when the system goes out of control.

Take price controls. They deliberately shut down feedback. The idea is “people need to eat and the essentials should be cheap”. We went tons of rounds on this in the seventies in Portugal. It was FUN — not — and responsible for empty grocery shelves and problems getting the essentials. Because when cooking oil was dirt cheap by price control, everyone who had ridden this pony before (with bread, with toilet paper, with …) would buy everything in the grocery shelves. Meanwhile, because it was impossible for merchants to make a profit on the thing, they didn’t stock it. Which was okay, because the factories that made it couldn’t afford to at that price, so they stopped. And all the way down the line.

This is because what the idiot politicians were shutting down was the feedback. Prices are many things — and sometimes annoying when you really want a good pair of noise-cancelling headphones but your bank account is crying, to use a totally random example — but MOSTLY? They’re information. They’re feedback.

Because, yes, people work for profit, and profit — things that Warren and Sanders will never get — is not dirty, it’s what people live on, when prices go up — meaning there’s more demand than supply — people go “hey, you can make a profit in this” and start making more, until the supply and demand match, and you can’t make as much money, so people wander off to do other stuff.

You shut down the signal, and things go insane. You keep it shut down long enough while handing down lists of things that the government wants you to make, and vast famines sweep the land but you have a surplus of size 35 shoes for the left foot only. Because the directive handed the factory made that the easiest thing to do.

But it is not just in economics (though eh, everything is a branch of economics, as my reading in my 30s informed me. Which means that’s probably when I started going insane) that humans love shutting down feedback.

The truth is we don’t like reality very much, and are more or less perpetually at war with it.

We have this image of how things should be, and because we imagine it so clearly we think it’s a moral imperative.

Sarah Hoyt, “Shutting Off Feedback or How We Got Into This Fine Mess”, According to Hoyt, 2019-11-04.

May 25, 2024

Justin Trudeau – “a large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes”

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

Even before he became Prime Minister, the signs were there that Justin Trudeau was instinctively anti-small-business and that this would inform his approach to taxation and regulation of the private sector:

Changes to capital gains tax in this year’s budget were aimed at the wealthy, said the Trudeau Liberals, but the move has angered small businesses owners who have been snared by the increase.

Maybe that was part of the plan, since Justin Trudeau appears to view small business owners as rich Canadians trying to dodge taxes.

In an illuminating interview with the CBC’s Peter Mansbridge in 2015, Trudeau didn’t directly answer a question about whether he would lower taxes for small businesses.

But he did say, “We have to know that a large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes and we want to reward the people that are actually creating jobs and contributing in concrete ways.”

It was a remarkable denigration of small business owners and may have passed unnoticed because Trudeau was still a month away from becoming prime minister.

For the record, businesses with fewer than 100 people employ almost 12 million private workers in this country.

And the government’s own statistics state that in the 20 years up to 2020, the number of small businesses increased every year except for three — 2013, 2016 and 2020 — so a decrease in two of the Trudeau years.

Meanwhile, Trudeau’s apparently tax-dodging wealthy small businesses seem to be having a hard time of it. Businesses that began with four or less employees were only 62 per cent likely to still be operating five years later.

Earlier this year, Reuters news agency warned that a 38 per cent spike in bankruptcies of small businesses in the first 11 months of 2023 could rise even further.

Small businesses are “an integral engine of Canada’s economy,” said the budget, but 72 per cent of the owners fear that the new changes to capital gains tax will harm the climate for investment and growth.

Interestingly, when Trudeau was asked in that 2015 interview how he planned to balance the budget by 2019, because that was what he promised, it was investment and growth that was the answer.

Then prime minister Stephen Harper had tried to cut his way out of the deficit, said Trudeau. “That doesn’t work.”

“He has been unable to create growth. He has the worst record on growth of any prime minister in 80 years.”

But as the Fraser Institute has pointed out, in the last nine years under Trudeau, Canadian living standards have declined.

May 24, 2024

Bernie Sanders finally finds a group of rich people who he thinks shouldn’t have to pay

Filed under: Business, Europe, Government, Health, Politics, USA — Tags: , , , , , , — Nicholas @ 04:00

As Tim Worstall points out, Bernie Sanders’ latest campaign is starkly at odds with his usual “make the rich pay” schtick:

“Bernie Sanders” by Gage Skidmore is licensed under CC BY-SA 2.0 .

It’s possible to think that Bernie Sanders, Senator that he is, is more than a little confused. Well, he’d not be the first elderly politician to suffer that fate. Nor the first socialist. It is necessary for me to be fair here though — one of his honeymoons he took in the Soviet Union. Which makes perfect sense to me — after all, there was bugger all else to do there other than your own wife.

However, here we’ve got him complaining about the cost of the new miracle drugs:

    Bernie Sanders has urged Denmark to rein in its most valuable company, Novo Nordisk, and force it to slash prices on popular weight loss and diabetes treatments Ozempic and Wegovy, taking his fight to lower “outrageously high” drug prices in the United States to the company’s doorstep as its profits soar amid ongoing struggles to meet booming appetite for the revolutionary drugs.

Hmm, dunno how well that’s going to work with the Danes really. Yes, to some extent they’re milder than when they tried to rape and pillage the entirety of Europe but not wholly. My brother worked out in Afghanistan (feeding the troops) and he had a Danish unit rotate through. So he tells me their senior sergeant type carried a double bladed axe on his backpack — it didn’t come back clean from every patrol either. They’re not all equality and gender rights these days, you know?

So, we can imagine a certain portion at least of the Danish population celebrating this rapine of Medicare’s pockets by the simple expedient of selling a weight loss drug that actually works — which is, when we come to think of it, something of an innovation. Fen-Fen didn’t work after all. Hey, you know, Vinland failed but we’ll get ’em this time? We’re charging high prices because we can?

A second pass at the argument would be that the drugs are in fact incredibly cheap. When it was shown that the same drug — semaglutide — works in stopping (that’s “stopping” as in ceased, stopped, dead, like Bernie’s career would if it were ever proven he had taken part in an act of voluntary capitalism) chronic kidney disease. So much so that the very day they announced the trials on the drug were being stopped a year early, so obvious was the success, the share prices of all the dialysis provision companies dropped 20 and 30%. That is, at near whatever price, this drug is a money saver. Which is, you know, good. J Foreigner turns up with this thing that saves America, Americans, lives and money and yet Bernie whines — so like a socialist, eh? Capitalism with markets makes us the humans who are living highest on the hog, ever, but they really never do stop whining about it, do they?

But Bernie’s real complaint is that Americans are paying more to burn off the cheeseburgers than everyone else has to. But from everything else Bernie says about anything at all this is at it should be — the rich should pay.

Back to our basics. The basic drug development problem is that the development of a drug is a public goods problem. It costs $2 billion to get a drug through the FDA and gain approval to actually sell it. Yes, of course we should slaughter much of the regulation that makes it cost that much (personally, against character type, I only recommend capture and humane release for the actual bureaucrats) but that’s another matter. It does. But if everyone can just copy the drug at that point then no one will spend $2 billion. So, OK, patents, so the developers have a decade (the patent is two decades, it takes a decade to gain approval) to make their $2 billion back then anyone can copy it. The price falls to manufacturing cost plus normal profit level and we’re about as good as we can get. This is not a perfect system but for mass market drugs it’s about as good as we’re going to get.

May 22, 2024

QotD: Are western democracies moving uniformly in the direction of “surface democracy”?

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

I joked before about refusing to tolerate speculation about the US being a surface democracy like Japan, but joking aside I think even the staunchest defender of the reality of popular rule would concede that things have moved in that direction on the margin. Compare the power of agency rulemaking, federal law enforcement, spy agencies, or ostensibly independent NGOs now to where they were even 10 years ago. It would be a stretch to say that the electorate didn’t have influence over the American state, but can they really be said to rule it? Regardless of exactly where you come down on that question, it’s probably safe to say that you’d give a different answer today than you would have twenty, fifty, or a hundred years ago. Moreover, the movement has been fairly monotonic in the direction of less direct popular control over the government. And in fact this phenomenon is not unique to the United States, but reappears in country after country.

Is there something deeper at work here? There’s a theory, popular among the sorts of people who staff the technocracy, that this is all a perfectly innocent outgrowth of modern states being more complex and demanding to run. The thinking goes that it was fine to leave the government in the hands of yeoman farmers and urban proles a century ago, when the government didn’t do very much, but today the technical details of governance are beyond any but the most specialized professionals, so we need to leave it all to them.

I think this explanation has something going for it, I admire the structure of its argument, but it also can’t be the whole story. For starters, it treats the scope and nature of the state’s responsibilities as a fixed law of nature. Another way to frame this objection is that you can easily take the story I just told and reverse the causality — the common people used to rule, and so they created a government simple enough for them to understand and command; whereas today unelected legions of technocrats rule, and so they’ve created a government that plays to their strengths. There’s no a priori reason to prefer one of these explanations over the other. There needs to be a higher principle, a superseding reason that results in selecting one compatible ruler-state dyad over another. I think there is such a principle, we just have to get darker and more cynical.

John Psmith, “REVIEW: MITI and the Japanese Miracle by Chalmers Johnson”, Mr. and Mrs. Psmith’s Bookshelf, 2023-04-03.

May 17, 2024

Canada Post is in deep, deep trouble

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

I was vaguely aware that Canada Post has been in financial difficulties for a while, but I had no idea things were quite this dire:

You’d better believe that the Canada Post Corporation is in very deep trouble. Here’s how they phrased it in their 2023 annual report:

    Canada Post’s financial situation is unsustainable.

“Unsustainable”. Well that doesn’t sound good. Think they’re just putting on a show to carve out a better negotiating position? Well, besides for the fact that they’re not currently negotiating with anyone, the numbers do bear out the concern:

    For 2023, the Corporation recorded a loss before tax of $748 million, compared to a loss before tax of $548 million in 2022. From 2018 to 2023, Canada Post lost $3 billion before taxes. Without changes and new operating parameters to address our challenges, we forecast larger and increasingly unsustainable losses in future years.

In other words, it’s madly-off-in-all-directions panic time.

Hey! You know I can hear your condescending sniff: “I’m sure this is just a temporary disruption. They’ll figure out how to fix the leak and get themselves back on the road like always. They’re too big to fail.”

Yeah … not this time. The competition from digital communications (i.e., the internet), FedEx, and UPS isn’t going anywhere. Letter delivery nosedived from nearly 5.5 billion pieces in 2006 to just 2.2 billion in 2022. And vague references to “major strategic changes to transform our information technology model” don’t sound much like magic bullets for reversing the decline.

But Canada Post’s labour and pension costs sure are marching bravely forward. In fact, if it wasn’t for Parliamentary relief in the form of Canada Post Corporation Pension Plan Funding Regulations, the Corporation would have had to pay $354 million into the pension plan in 2023 alone. But that $354 million — plus whatever additional amounts show up in 2024 and besides the $998 million in existing general debt — are still liabilities that’ll eventually need paying.

April 26, 2024

Economic inefficiencies in the water market? Don’t worry, here’s the government to make it much worse

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

Tim Worstall discusses the economics of water markets in the US … that Senator Elizabeth Warren and Representative Ro Khanna seem determined to make far less efficient if their plans come to fruition:

Senator Elizabeth Warren speaking at the Iowa Democrats Hall of Fame Celebration in Cedar Rapids, Iowa, on 9 June, 2019.
Photo by Lorie Shaull via Wikimedia Commons.

Aficionados for truly stupid political interventions into matters economic will already be aware of the idiocies perpetrated by Senator Elizabeth Warren and Representative Ro Khanna. The two seem to end up as if someone rolled together the ideas of Professor Richard J Murphy and The Guardian opinion page then removed all the insight, subtlety and sensibility. True, not an arduous task removing those three but …

The basic water problem out in the Western US is that the wrong people currently own the water rights. We would therefore like to see more trade in those rights. Warren and Khanna are insisting upon further limitations upon the trade in those rights. This is rampant idiocy.

To set the scene, as folk moved out there they realised that water was not one of those things in great surplus in the area. So, those who got there first made sure that the property rights to the water were assigned to them. Nothing odd about this and rights to a scarce resource do need to be allocated. Otherwise we just end up with the commons problem and the resource is exhausted.

OK. And, y’know, quite a lot of things have changed in the century, century and a half since that Wild West was properly populated. But the descendants of those original farmers still own near all the water rights. Hmm, bit of a problem.

That’s OK, we’ve Coase to advise us here:

    Ronald Coase (1960), “The Problem of Social Cost”

    In the absence of transaction costs, if property rights are well-defined and tradable, voluntary negotiations will lead to efficiency.

    It doesn’t matter how rights are allocated initially …

    … because if they’re allocated inefficiently at first, they can always be sold/traded …

    so the allocation will end up efficient anyway

Now, the distribution — who gets the cash from all of that — is dependent upon that first distribution. But that’s a minor problem compared to the efficient use of water.

So, we want lots of buying and selling. The idiots using $300 of irrigation water to grow $100 worth of alfalfa (pretty much my first English-world piece was on exactly this subject, near 30 years back) can instead sell that same acre-foot to a city, where the two households will happily each pay $500 a year for the half an acre-foot they require.

The asset — the water — has moved from a lower valued (actually, value destructive) use to a higher, the world is richer in aggregate. It doesn’t matter that the farmers get the money because Grandpappy shot all the Injuns. Even without the who gets the money we’re all richer — we’re getting $1k not $100 from the same acre-foot of water.

Coolio!

Enter Warren and Khanna:

    With private investors poised to profit from water scarcity in the west, US senator Elizabeth Warren and representative Ro Khanna are pursuing a bill to prohibit the trading of water as a commodity.

Idiots. Damn fools. Politicians, but I repeat myself triply.

Now, do note they’re not trying to insist that water cannot be bought and sold — not because they don’t want to, they do, but because as Federal politicians they’ve no power whatever over within state markets. However, as Federal politicians they can claim power over commodity markets — the speculators will come from around the country, over state lines and interstate commerce is Federal.

So, as with onion futures, they want to ban water futures.

April 12, 2024

Busybody Alberta cabinet minister claims cheap booze is not in “compliance with … the spirit of Albertans”

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

Chris Selley points and laughs at Dale Nally, Alberta cabinet minister with responsibility for the regulation of gambling, booze, and cannabis:

Lauren Boothby on Twit, er, I mean “X” – https://twitter.com/laurby/status/1776437318435422493/photo/1

The latest prude eruption comes from Alberta — Canada’s freedom capital, by some accounts. Over the weekend, Edmonton Journal reporter Lauren Boothby quite rightly informed her social-media followers of an extraordinary bargain she had discovered at Super Value Liquor in Edmonton’s Mill Woods neighbourhood: $49.99 for four litres of store-brand “Value Vodka”, produced at the T-Rex distillery in St. Albert, sold in a clear plastic jug, and labelled roughly as you might label a jug of vinegar or bleach (appropriately, per the vodka snobs on X).

“Alberta rules”, Boothby reported, and in many respects I agree.

Alas, a very Canadian scene then unfolded. Dale Nally, the minister responsible for Alberta Gaming, Liquor and Cannabis (ALGC), declared himself not OK with these vodka jugs. Not even slightly tolerant was Nally of these jugs; no sirree, Bob. He conceded the vodka was perfectly legal to sell — a minor but important detail — but claimed the jugs were somehow not in “compliance with … the spirit of Albertans”.

That’s not bad as an accidental pun, but you’ll notice that it’s absolutely meaningless as an explanation or justification for a policy. (Ironically, Nally is also Alberta’s minister responsible for eliminating red tape.) In my experience, when a politician or activist tells you something is against your society’s values or “spirit”, chances are they’re somewhere between 30 and 180 degrees wrong about it. I certainly tend to trust a distillery, a liquor store chain and the people of Alberta over a government minister on the question of whether there’s a market for cheap vodka.

Now to be fair, by any Canadian standard at least, Super Value Liquor is selling some astonishingly cheap hooch. Had someone other than a credible journalist posted that photo on X, I would have disbelieved my eyes. You can’t legally sell a four-litre vessel of vodka in Ontario for less than $144, and in practice it will cost you considerably more than that.

Ontario will always be the capital of Canadian prudery, but that’s almost three times as much! Canadian provinces have their policy and pricing discrepancies, but not many that big.

I’m all for reasonably cheap booze and a wide-open market in pretty much everything that doesn’t inherently harm other people. But in the wrong hands, certainly, alcohol does harm other people, in addition to its consumer. I wish it weren’t true, but it is. Curbing excessive alcohol consumption is a reasonable public-health goal that every serious government and opposition party in the developed world shares to some extent. And the simplest, most efficient and therefore most lucrative way for governments to accomplish that goal is through pricing.

(We’ll leave aside for now the howling conflict of interest inherent in governments selling alcohol — and casino gambling, lottery and sportsbooks, for heaven’s sake — while officially trying to dissuade people from partaking.)

April 3, 2024

QotD: Optional economic reality

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

A majority of politicians and pundits believe that economic reality is optional. Of course, they don’t express this belief in any manner so direct. But one can logically infer this belief from their policy proposals.

Take, for example, support for rent control. Having the state keep the monetary prices of rental units below the values that would arise in free markets is believed by many pols and pundits – and by nearly all “Progressives” – to effectively keep the actual market values of rental units at whatever low prices the state sets. In this reality-is-optional world, when the state pushes down nominal rental prices, the quantity of rental units supplied not only does not fall, it increases to match the increase in the quantity of rental units demanded.

    Want more housing for folks with modest incomes? No problem! We’ll just push the rental prices lower to increase ordinary folks’ access to housing. See, the world is such a simple place!

Similar reality-is-optional “solutions” are minimum-wage statutes (for increasing the pay of low-skilled workers) and mandated paid-leave (for increasing the welfare of all workers).

Pondering this strange notion that the state can make market values be whatever the state wants them to be merely by dictating changes in the names of market values – that is, changes in nominal prices – I wondered what the world would be like if miracles more broadly could be worked merely by changing nominal designations. […]

Of course, all such scenarios are ludicrous. Reality isn’t changed merely by reporting that reality is other than what it is. In fact, reality is made worse by false reports because, unable to learn the truth about reality, people act in ways that are inconsistent with reality, thus worsening their situations.

Yes – but why, then, do so many people believe that economic reality is optional? Why do so many people believe that economic reality can be made to be whatever the state wants it to be merely by having the state order that reports of economic reality lie about that reality? All state-imposed price controls – rent control, minimum wages, you name it – are state-dictated lies about reality.

Don Boudreaux, “What if All Reality Were Optional?”, Café Hayek, 2019-09-13.

March 28, 2024

Why European farmers are revolting

Filed under: Bureaucracy, Economics, Environment, Europe, Government, Liberty, Politics — Tags: , , , , — Nicholas @ 04:00

spiked
Published Mar 27, 2024

Europe’s farmers are rising up – and the elites are terrified. From the Netherlands to Germany to Ireland, farmers are taking to the streets, parking their tractors on the establishment’s lawn, spraying buildings with manure and bringing life to a standstill. The reason? Because unhinged green regulations, dreamt up by European Union bureaucrats, are immiserating them. In this spiked video polemic, Fraser Myers explores the roots of the farmers’ revolt across the continent – and explains why it must succeed. Watch, share and let us know what you think in the comments.

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