Perhaps the most fascinating component of [Prof. Thomas] Courchene’s paper is his subtle discussion of what, precisely, equalization is for. Is it meant to render every province in Canada equally well off in general? Or is it meant only to correct inequities introduced by the provinces’ different geographic and natural circumstances? Or is it meant even more narrowly, as a scheme to ensure that the federal government doesn’t accidentally worsen those inequities? Or it is meant merely to discourage culturally harmful labour migration?
There is no official answer to this question, and all the possible answers lead to moral and mathematical absurdities. It’s not just that we don’t know whether equalization works, as Terence Corcoran observed in the Financial Post yesterday. We literally don’t even know what it’s meant to accomplish
Colby Cosh, “Economist plays ethicist”, National Post, 2005-09-01.
September 15, 2025
QotD: Federal equalization payments
August 25, 2025
QotD: The rise of the state … the rise of the egregore
You may have noticed that [Against the Grain author] James C. Scott is not a fan of the state. He tends to describe it as a sort of alien intrusion into the human world, an aggressive meme that’s colonized first our material environment and then our minds, imposing its demands for legibility in order to expropriate innocent peasants:
Peasantries with long experience of on-the-ground statecraft have always understood that the state is a recording, registering, and measuring machine. So when a government surveyor arrives with a plane table, or census takers come with their clipboards and questionnaires to register households, the subjects understand that trouble in the form of conscription, forced labor, land seizures, head taxes, or new taxes on cropland cannot be far behind. They understand implicitly that behind the coercive machinery lie piles of paperwork: lists, documents, tax rolls, population registers, regulations, requisitions, orders — paperwork that is for the most part mystifying and beyond their ken. The firm identification in their minds between paper documents and the source of their oppression has meant that the first act of many peasant rebellions has been to burn down the local records office where these documents are housed. Grasping the fact that the state saw its land and subjects through record keeping, the peasantry implicitly assumed that blinding the state might end their woes. As an ancient Sumerian saying aptly puts it: “You can have a king and you can have a lord, but the man to fear is the tax collector”.
This “state as egregore” language recurs throughout the book. Scott writes that the state “arises by harnessing the late Neolithic grain and manpower module as a basis of control and appropriation”. It “battens itself” on the concentration of grain and manpower to “maximiz[e] the possibilities of appropriation, stratification, and inequality”, and with its birth “thousands of cultivators, artisans, traders, and laborers [are] … repurposed as subjects and … counted, taxed, conscripted, put to work, and subordinated to a new form of control”.1 But it’s vital to remember that this metaphor is just a metaphor: the state isn’t actually an alien brainworm or a memetic infohazard that will hijack your neocortex the moment you set eyes on a triumphal arch and force you to spend the rest of your life making lists of things and renaming roads with numbers;2 it’s just an institution that people have invented, because hierarchy and inequality are inescapable facts of life in a society of any scale and the state is a particularly effective bundle of social technologies to leverage those hierarchies. There’s a reason that, after states had their “pristine” invention at least three separate times, they’ve proliferated across every part of the world that can support them!
But more interesting than “are we better off with the state?” is to ask ourselves, as Ronald Blythe does in Akenfield, what has been lost. Here Scott offers some fascinating musings on the way not merely the state but the entire agriculturalist life-world limits us:
We might … think of hunters and gatherers as having an entire library of almanacs: one for natural stands of cereals, subdivided into wheats, barleys and oats; one for forest nuts and fruits, subdivided into acorns, beechnuts, and various berries; one for fishing, subdivided by shellfish, eels, herring, and shad; and so on. … one might think of hunters and gatherers as attentive to the distinct metronome of a great diversity of natural rhythms. Farmers, especially fixed-field, cereal-grain farmers, are largely confined to a single food web, and their routines are geared to its particular tempo. … It is no exaggeration to say that hunting and foraging are, in terms of complexity, as different from cereal-grain farming as cereal-grain farming is, in turn, removed from repetitive work on a modern assembly line. Each step represents a substantial narrowing of focus and a simplification of tasks.
The Neolithic Revolution, he argues, was like the Industrial Revolution, a great boost to human productivity and social complexity but at the same time a de-skilling. The surface area of our contact with the world shrank from hundreds of plants and animals, used in different ways at different times of year, to a mere handful of domesticates whose biological clocks became the measure of our lives. Of course, the modern contact area is smaller still — dimensional lumber purchased from a store in place of felling and milling your own trees, natural gas at the turn of a knob with nary a need to build a fire — and is sometimes reduced all the way to your fingertip on a smooth glass screen. The ease and efficiency are undeniable, and I’m sure a forager or premodern farmer would kill for Home Depot and seamless pizza delivery (I certainly wouldn’t want to give them up). But there has been “a contraction of our species’ attention to and practical knowledge of the natural world” because that knowledge and attention is no longer necessary, and I think that Scott is right to suggest that there is something richer about a more extensive involvement with the world. That said, Scott’s case is somewhat overstated: after all, even hunter-gatherers have specialized craftsmen who engage deeply with particular materials at the expense of other endeavors, and farmers3 have a far more intimate relationship with their animals than a hunter does with his many different kinds of prey. Similarly, farmers may be on one particular bit of land but (especially in a preindustrial context) all that plowing and hedging and draining and spiling, not to mention the gathering of various woodland foodstuffs, can rival forager familiarity when it comes to their bit of landscape. (My new favorite poem is Kipling’s “The Land“, on just this idea.)
Scott closes the book with an elegy for the “late barbarians”, who had the best of both worlds: healthier and longer-lived than farmers, and with greater leisure, they were “not subordinated or domesticated to the hierarchical social order of sedentary agriculture and the state” but were still able to benefit tremendously from lucrative trade with those states. Unfortunately, much of that trade was in weaker non-state peoples whom they captured and sold as agricultural slaves, thereby “reinforc[ing] the state core at the expense of their fellow barbarians”, and much of the rest was in their own martial skills as mercenaries (which of course also served to protect and expand the influence of the state). It’s a salutary reminder for the aspiring modern barbarian: the best place to be is just outside the purview of the state, where you can reap its benefits4 without being under its control. But beware, because in a world of states even those “outside the map” must fill niches created by the state. It’s great to have a cushy work-from-home laptop job that lets you live somewhere nice, with trees and no screaming meth-heads on your subway commute, but more land comes under the plow every year, and your time, too, may come.
Jane Psmith, “REVIEW: Against the Grain, by James C. Scott”, Mr. and Mrs. Psmith’s Bookshelf, 2023-08-21.
- And of course Scott argues that the state is a parasite in the most literal way, since the word derives from the Greek παρά “beside” + σῖτος “grain.”
- Although this would be a pretty sweet novel, sort of a Tim Powers alt-history: anarcho-primitivist occultists go back in time to ancient Mesopotamia to destroy the me of kingship and render the state metaphysically impossible. Someone write this.
- Like Scott, in fact, who keeps sheep on 46 acres of Connecticut. There’s a funny little aside in the book where he complains about people using “sheeplike” in a derogatory sense, given that we’ve spent several millennia selectively breeding sheep to behave that way.
- Better yet, wait for the peasants to do the reaping then ride in on your shaggy little ponies and take it all. Uh, metaphorically.
August 9, 2025
Carney hints at backing away from Trudeau’s digital policy catastrophes
Michael Geist on the possibility that Prime Minister Mark Carney is starting to recognize just how damaging to Canadian interests the previous government’s various online bills have been:
Digital policies did not play a prominent role in the last election given the intense focus on the Canada-U.S. relationship. Prime Minister Mark Carney started as a bit of a blank slate on the issue, but over the past few months a trend has emerged as he distances himself from the Justin Trudeau approach with important shifts on telecom, taxation, and the regulation of artificial intelligence. Further, recent hints of an openness to re-considering the Online News Act and heightened pressure from the U.S. on the Online Streaming Act suggests that a full overhaul may be a possibility.
This week’s decision to let the CRTC’s decision on wholesale access to fibre broadband networks stand is a case in point. Last November, the Justin Trudeau-led government sent the CRTC’s initial ruling back to the Commission for reconsideration, noting that it “has concerns about future and ongoing investments in broadband infrastructure and services in Ontario and Quebec, including in rural, remote and Indigenous communities, and concerns that those investments could, if they are unprofitable, lead to a decline in quality and consumer choice in the retail Internet services market”. Nine months later, the CRTC came back with the roughly same ruling. That led to yet another request for a cabinet review but this time the government stood by the CRTC despite significant industry opposition. New leader, dramatically new approach.
The CRTC is example was preceded by the decision to eliminate the digital services tax. While the strategic approach seemed misguided – dropping the DST should have garnered more than just an agreement from the U.S. to return to the bargaining table – some noted at the time that perhaps Carney wasn’t a supporter of the DST and had few qualms with rescinding it. The tax had been a foundational part of the government’s campaign to “make web giants pay” but in a matter of 72 hours in late June it was gone.
The government has also shifted its approach on AI regulation. After months of supporting Bill C-27 and the EU-style AI regulatory approach, a new government brought a new minister and a new approach. Evan Solomon, the newly installed AI and Digital Innovation Minister, used his first public speech as minister to pledge that Canada would move away from “over-indexing on warnings and regulation” on AI. That too represents a significant shift in approach, particularly since Trudeau had embraced the EU style regulatory model.
Then there is the Online News Act and Online Streaming Act. When asked about the Online News Act this week, Carney seemed to suggest he was open to change, stating “this government is a big believer in the value of … local news and the importance of ensuring that that is disseminated as widely and as quickly as possible. So, we will look for all avenues to do that.” While that isn’t a clear commitment to change, it is far from an ironclad commitment to legislation is viewed by many to have done more harm than good. Further, reports indicate that the U.S. Congress is escalating pressure to rescind the Online Streaming Act, which may put that law on the chopping block, particularly if a court appeal strikes down elements of the bill or the CRTC’s implementation of the law puts the bill on the Trump radar screen.
July 21, 2025
July 12, 2025
QotD: Ancient empires
The earliest “empires” were Security oriented. A band of hunter-gatherers — who had no concept of individual property, and just took whatever they needed from the environment — finally settled, and became farmers. Fencing and cultivating and irrigating, and building surpluses which could be traded for items that would improve living standards. (Farmers in areas that CAN’T store surplus — mainly tropical areas with year round crops — never made it further than village level agriculture, whereas farmers in areas with storable annual crops like grain — which can be stored and TAXED — went on to found empires …)
Unfortunately the initial problem with being farmers surrounded by hunter-gatherers who don’t understand property, is that such hunter-gatherers look at those nicely fenced grains and enclosed cows and sheep and goats as wonderfully convenient places to hunter-gather … (There is a reason the boundaries between hunter-gatherers and farmers are violent places, and all the crap written about “frontier wars” and extermination and the rest is just a shorthand for — these two cultures cannot co-exist peacefully … Nomads are different … they trade, therefore they understand property, therefore they can co-exist with farmers — though they will still raid where they can, be they Mongol or Viking!)
So farmers immediately face a law and order issue, which can only be solved if there is enough surplus available to provide a tax base that will allow an authority figure (chief, king, emperor, etc.) to employ people to provide protection. At village level that is usually a warrior caste who can keep the competition at bay, but once surplus gets to a level that allows higher tech, that will mean states or empires.
To put that in perspective, if your local community collects a surplus, and can afford a local chief/lord/king to provide protection, the resulting tax system is almost always (in recorded human cultures) based on a percentage of production. (In fact the earliest versions of written communication are almost always record keeping for crops and taxation.) This means that the local lord immediately has both the majority of excess funds locally, and a strong incentive to increase local production so his take will increase.
When I ask the average class of secondary school students what sorts of things the local lord could invest in to improve productivity, they get the idea pretty quickly. Irrigation for fields; animals for farm work; blacksmiths for tools and axles; wheelwrights; roads; bridges; mills; markets; guards; etc. This list is common to most parts of Europe, Africa, Asia, Central and South America and Australasia. The only places it never develops are the very early farming communities in places like New Guinea that have no storable or taxable food items to allow such a development.
So all early farming societies that can tax — without exception — become tax based hierarchical cultures. Some are even referred to as kingdoms or empires. And they are based on the idea of keeping the farmers safe, so they can be taxed.
These early empires are all Security empires. In the Middle East they are often shown as large sprawls across the map, but such sprawls are fairly fanciful. In practice they usually refer to rich farm based river valleys, with an extended hinterland based on nomadic tribes that are trading with/employed by/or paid tribute to by the “imperial authority” simply to keep other outsiders at bay.
Traditionally they fall when their hinterland nomadic allies are not strong enough to keep outsiders at bay, or become strong enough themselves to try a bit of conquest. At which point of course the conquerors find that they have to adopt the systems of the despised lowlanders they have just conquered if they are to keep the loot coming in and the system going. (One of my favourite historical analogies is the nomadic conquerors crucifying the old king on the walls of his palace and sneering that he could watch his city burn, only for him to point out that it isn’t his city anymore, it’s their city that’s burning …)
Nigel Davies, “Types of Empires: Security, Conquest, and Trade”, rethinking history, 2020-05-02.
July 1, 2025
Like a cheap suit, Canada folds under Trumpian pressure on the Digital Services Tax grab
A couple of days back, I characterized Prime Minister Mark Carney’s determination to push ahead with the Digital Services Tax “insane”, as it was overwhelmingly likely to trigger a strong reaction from the Trump administration. As it did. So, finally recognizing they were in a no-win situation, the federal government announced at the last minute that they wouldn’t be demanding the literally billions of dollars from the US “tech giants” after all. Michael Geist can legitimately say “I told you so” on this issue:

President Trump Attends G7 Summit in Canada by White House https://www.whitehouse.gov/gallery/president-trump-attends-g7-summit-in-canada/ CC BY 3.0 US
After years of dismissing the warnings of likely retaliation, the Canadian government caved last night on the digital services tax. Faced with the prospect of the U.S. suspending trade negotiations, Finance Minister François-Philippe Champagne announced that the government would drop the DST altogether, payments scheduled for Monday would be cancelled, and legislation will be forthcoming to rescind the legislation that created it in the first place. Over the weekend, I wrote about the repeated warnings that the DST was a serious trade irritant with the U.S. that cut across party and presidential lines. While ignoring the risks was bad enough, I argued that Canada played its DST card too early. Rather than delaying implementation in the hopes of incorporating it into a broader trade deal with U.S., it marched ahead, leading to an entirely predictable response from U.S. President Donald Trump. That left Canada in a no-win situation: stick with the DST but face the prospect of higher tariffs or embarrassingly drop the DST (and $7.2 billion in revenue over five years) with only restarting negotiations that were on until government overplayed its hand to show for it.
It is hard to overstate how badly the government managed the DST issue over the past five years. It alienated allies by pushing ahead with the DST despite efforts at an international deal at the OECD, stood alone in rejecting an extension of a moratorium on new DSTs, made the DST retroactive which solidified opposition, and continually downplayed the concerns of successive U.S. Presidents and Members of Congress from both sides of the aisle. Meanwhile, when companies began passing along the costs of the DST to Canadian businesses, it did nothing. And when they urged the government to delay implementation to at least allow for the issue to be incorporated into a broader trade pact, it ignored the advice.
At every step, there were better options. This year, the likelihood that the DST would come to a boil was obvious to anyone who was paying attention. But rather than following the UK strategy, which managed to salvage a smaller DST (2% rather than 3%) as part of a bigger agreement that includes a commitment to support UK digital access to the U.S. market and to negotiate a larger digital trade deal, Canadian officials seemingly assumed that the U.S. was bluffing and would not retaliate.
If this sounds familiar, it is because the Canadian government misreading the tech sector has become a hallmark of its policy. Talk tough, practically dare companies and foreign governments to respond, and then frantically seek an exit strategy when they do. This was the case with the Online News Act and Meta’s blocking of news links, with the government’s AI regulation which new Minister of AI Evan Solomon says will not be re-introduced, with the Online Harms bill, and now with the DST.
June 30, 2025
DOGE couldn’t address the structural problems with the US government
At the Foundation for Economic Education, Mohamed Moutii looks at the reasons DOGE was unable to come close to achieving the lofty goals it was launched with:
DOGE’s biggest failure was its inability to deliver its promised sweeping transformation. From the start, its $2 trillion savings target was unrealistic. Cutting nearly 30% from a $7 trillion budget was never feasible, especially with politically untouchable programs like Social Security, Medicare, Medicaid, and Defense off the table.
Musk’s claim that eliminating waste alone could close the gap didn’t hold up. While most budget experts support cutting inefficiencies, they agree that waste isn’t the main driver of the fiscal crisis. Even slashing all discretionary spending would save only $1.7 trillion. The real pressure comes from mandatory programs, which account for nearly two-thirds of the budget, leaving only a quarter of spending truly up for debate.
As reality set in, Musk’s savings claims shrank from $2 trillion to just $150 billion. While DOGE cites $170 billion saved, independent estimates suggest closer to $63 billion, less than 1% of federal spending, with many claims either inflated or unverifiable. Some savings were credited to long-canceled contracts. Though headline-grabbing layoffs and cuts were made, they were often botched, forcing agencies to rehire staff or reverse course. Meanwhile, federal spending rose by $166 billion, erasing any gains. Trump’s fiscal agenda worsens the outlook with the first-ever $1 trillion defense budget, sweeping tax cuts, and protected entitlements — all while annual deficits approach $2 trillion.
Yet DOGE’s failures ran deeper than mere fiscal naiveté. What began as Musk’s role as a “special government employee” quickly expanded into an unchecked exercise of executive power, raising constitutional alarms. His team reportedly accessed classified data, redirected funds, and sidelined entire agencies — actions taken without Senate confirmation, potentially in violation of the Appointments Clause of the Constitution. Legal pushback swiftly followed, with fourteen states suing Trump and Musk over the constitutionality of Musk’s White House-granted authority.
Meanwhile, glaring conflicts of interest became impossible to ignore. Musk’s companies — X, SpaceX, and Tesla — hold $38 billion in federal contracts, loans, tax breaks, and subsidies while facing over 30 federal investigations. His push to dismantle regulatory agencies like the Consumer Financial Protection Bureau (CFPB) — while X launches the “X Money Account“, a mobile payment service subject to CFPB oversight — only deepened concerns. Musk was legally obligated to separate his business dealings from government decisions. One major result has been the impact on Musk’s reputation. Once hailed as a visionary for his promotion of electric cars, he is now viewed unfavorably by many former fans.
June 29, 2025
Carney’s insane determination to keep the Digital Services Tax
One of the most noted features of Prime Minister Mark Carney’s attitude toward, well, everything is his unwillingness to take the concerns of his opponents into account. He seems to feel that he always knows best and therefore any opposition is therefore, by his definition, wrong. The government had been warned by pretty much every observer that the attempt to impose a protectionist digital service levy had incredibly high chances of triggering blowback … and it has:
In other words, you can have many reactions to the current DST battle, but surprise should not be one of them. Canada pushed ahead despite efforts at an international agreement on the issue and later dismissed the increasing friction over the issue with the U.S., which has been signalling its opposition to the DST for many years. Donald Trump has taken action, but his views are not dissimilar from Joe Biden’s on the issue nor Members of Congress from both parties. Further, the companies directly affected by the rules have been similarly responsive. For example, Google began levying a 2.5% DST fee on Canadian advertisers last year in anticipation of the DST taking effect in 2025, thereby passing along much of the DST cost to Canadian businesses and consumers.
To be clear, Canada is free to adopt whatever tax policies it wants and tech companies should pay their fair share of taxes. Ensuring tech companies collect and remit sales taxes on digital sales and services is now well established in Canada. But the government’s policy of “making web giants pay” by going above taxes all companies pay with a percentage of revenues to support Canadian film and television, millions for the news sector, and now the DST was always going to spark a reaction.
Further, the Canadian DST is exceptionally complex, covering a wide range of digital revenues that occur in Canada. The baseline applicability is for companies that generate 750 million euros (about C$1.1 billion) in global revenue of which at least $20 million is digital services revenue in Canada. Digital services revenue can arise from (1) online marketplace services revenue (which would cover an Ebay, Airbnb or Uber), (2) online advertising services revenue (Google or Microsoft), (3) social media services revenue (Facebook or TikTok), and (4) user data revenue (any company that collects and sells user data). Targeting these services means there is a lot stake, estimated by the Parliamentary Budget Officer at $7.2 billion over five years.
Other countries have DSTs, but Canada was the only one to introduce one despite an agreement to institute a moratorium on new DSTs years ago at the OECD. And then it was one of the only countries to reject an extension of that moratorium. The government insisted it would move ahead without delays and indicated it was confident it could avoid retaliation.
Given the trade tensions with the U.S. since the election of Donald Trump, unilaterally dropping the DST in the midst of a trade battle did not make much sense as we needed policy certainty under a broader deal. In other words, the DST was a card we had to play as part of a negotiation. But once we played that card by announcing the tax would take effect next week, it virtually guaranteed the U.S. would respond as it did. The priority should have been a broader deal. The government could have adopted a Trump-style delay for a month to give more time for negotiations. It could have have followed the UK model of weaving it into a broader agreement and committing to a larger digital trade deal. Instead, the government continued years of dismissing the trade risks associated with the DST, potentially creating bigger economic problems in the process.
Dan Knight on how Ottawa deliberately baited Trump, despite all the warnings that this was an incredibly stupid idea:
Donald Trump has officially walked away from the negotiating table. The trigger? Canada’s ill-conceived Digital Services Tax (DST) — a reckless, retroactive grab for revenue targeting U.S. tech firms. Trump isn’t mincing words: he’s calling it a “blatant, discriminatory attack” on American innovation, and now he’s moving to punish Canada economically for it.
So what exactly is this tax?
The Digital Services Tax, passed by the Liberal government and implemented under Mark Carney’s leadership, applies a 3% levy on revenue — not profits — earned by large digital firms operating in Canada. And it’s retroactive. That means it’s being applied to earnings from as far back as January 1, 2022, with companies forced to make lump-sum payments by June 30, 2025.
This tax specifically targets companies with global revenue of at least 750 million and Canadian digital revenue of at least CAD 20 million. Translation: It’s a direct hit on American giants like Google, Amazon, Meta, Airbnb, and Uber, and it spares Canadian firms and EU-based entities from equivalent exposure. It’s not tax fairness — it’s protectionism with a smiley-face sticker.
Trump has responded in kind. As of June 27, all trade negotiations with Canada are suspended. Retaliatory tariffs — already mounting since February — are set to escalate. Trump is drawing a red line, and he’s daring Canada to cross it.
What’s at stake?
Everything. Canada sends over 75% of its exports to the United States. We’re talking about nearly a trillion dollars in annual trade. With Trump now actively leveraging tariffs and ending negotiations, entire sectors — from automotive to agriculture, energy to manufacturing — are in the crosshairs.
Already this year, Trump has slapped 25% tariffs on Canadian imports, with specific hits to steel, aluminum, vehicles, and auto parts, and 10% tariffs on Canadian oil, gas, and potash. These moves have already disrupted markets. Ending trade negotiations is a body blow to an already wobbly Canadian economy — still reeling from Trudeau-era mismanagement and Carney’s corporate globalist agenda.
So who could have seen this coming?
Almost everyone.
June 13, 2025
QotD: The Subaru BRAT
Imagine, if you can, a truck with factory-mounted seats in the bed — and spotlights the size of a 747’s landing lights mounted on its T-topped roof.
If you know this truck, you also know why it’s no longer available.
Such fun things are no longer allowed.
They are not saaaaaaaaaaaaaaaaafe! “Moms” are “concerned”!
But in 1977, the Safety Cult — which ended such fun things — was still a backwater aberration, like dancing with rattlesnakes — and most people still esteemed fun over fear. There were roofless Broncos and K5 Blazers — and cars with beds.
You could buy all kinds of different stuff back when America was still a fairly free country — and the Subaru BRAT was as different as it got.
BRAT — all caps — was short for Bi-Drive Recreational All-Terrain Transporter. It was superficially similar to other small import pickups of the ’70s, such as the Datsun 620 and similar models from Toyota (SR5), Mazda (B210), and Chevy (via Isuzu) Luv.
But unlike them, it was a four seater — with two of the four in the bed, facing the other way. The seats were made of all-weather plastic and far from the most comfortable — but the view was spectacular. Watching the world recede as you progressed is another one of many freedoms denied today in the name of “safety”.
Subaru wasn’t “unconcerned” about “safety”. Grab handles — to keep passengers from bouncing out of the bed — were included. Though holding onto them made it harder to reach for a cold one in the cooler. That was another fun thing people did in pickups back in the day — before the Safety Cult put the kibosh on that, too.
The seats were actually a dodge — of a federal fatwa known as the “chicken tax”, which was a retaliatory tariff of 25 percent applied to import-brand pickups manufactured outside the United States as tit-for-tat for tariffs applied by foreign countries to American chicken exported outside the United States.
The “chicken tax” hit trucks with just two seats — at the time almost exclusively the small import models, which didn’t offer the extended and crew cab configurations that are commonplace today.
By adding the extra seats in the bed, BRAT qualified as a passenger vehicle rather than a “light truck”, and thus Subaru evaded the chicken tax on a happy technicality — and was also able to sell the BRAT for less than two-seater rivals that had the cost of the tax folded into their MSRP.
Eric Peters, “Doomed: Subaru BRAT (1977-87)”, The American Spectator, 2020-04-26.
June 10, 2025
QotD: From Witan to Magna Carta
About 1,500 years ago, in Saxon England, the nobles of the realm, the bishops, abbots (and abbesses) and the ealdormen and thegns and others would gather, fairly regularly, in an assembly to advise and, sometimes, to constrain the king. In a very typically English manner, they hit upon the notion that the kings were not, generally, wicked or stupid, but they did too many dumb things just because they could. The reason that kings could, too often, do whatever they wanted was simple: they had an almost unlimited power to levy taxes.
After a few hundred years of trial and error, and given a king who really was wicked and stupid, too, they, the barons as they were then known, went to war with their king and bent him to their will by forcing him to agree to a great charter of their rights. There was a bit of ringing language about no free man being taken except after a trial by a jury of his peers, but, basically, in very typically English fashion, the rights about which the great charter was most concerned were property rights because the barons had learned, over the centuries that only by controlling the pursestrings could they really control the king.
A few hundred years later, one of liberalism’s and democracy’s greatest voices told us that we have three absolutely fundamental, natural rights: to life, to liberty and to property. These rights were not and still are not unlimited. There were and are ways to lawfully and properly deprive a person of his property and his liberty and, in some countries, even his life.
A few centuries after John Locke another philosopher wanted to do away with the right to property: “From each according to his ability, to each according to his need”, Karl Marx wrote, and many, far too many, believed. The only real problem with Marx’s notion is that it requires that humans are perfect … and most of us know how rare that is. Here in Canada, especially since the early years of the 20th century, we have had far too much Marx and far too little Locke.
Ted Campbell, “Democracy is in peril”, Ted Campbell’s Point of View, 2020-06-12.
May 19, 2025
The Roman Empire and climate change
Sebastian Wang considers “what we all know” about the rise and fall of the Roman Empire in the light of more recent research (not all of it politically motivated) into climate change:
Before we get into climate, and for those who tend to the wholly ignorant spectrum of my readers, we need a quick sketch of Roman history. The Empire officially began in 27 BC, when Octavian — better known as Augustus — became the first emperor. It ended in the west in AD 476, when the last western emperor was kicked out. As said, the eastern half, based in Constantinople, carried on for another thousand years.
Broadly, we can divide Roman history as follows:
- 27 BC – AD 180: The golden age. Augustus and his successors took over and further expanded a huge empire. There was peace (mostly), trade flourished, and cities grew. People call it the “Pax Romana“.
- AD 180 – 284: Everything starts to fall apart. This is called the Crisis of the Third Century. Civil wars, foreign invasions, plagues, and economic collapse all hit at once.
- AD 284 – 395: The empire pulls itself together. Emperors like Diocletian and Constantine bring in reforms. But the empire is now divided for administrative convenience — east and west.
- AD 395 – 476: The west goes under. It’s invaded. It’s conquered and broken up. Very quickly, it disappears. Though, once again, a parochial view of history, we call this the Fall of the Roman Empire.
The standard histories still blame bad rulers or too many wars. That’s fair enough. There were some very bad rulers, and the wars without number. But if you look at the climate data — tree rings, ice cores, sediment levels — you start to see another pattern underneath what may be called the political and economic superstructure of Roman history.
When Rome came to greatness, the climate was unusually good. From around 200 BC to AD 150, there was a long phase of stable, warm, and mostly wet conditions. Scientists call this the Roman Climate Optimum. In Egypt, the Nile flooded regularly and well. That meant lots of grain. In the Alps, glaciers shrank. In northern Europe, people were growing grapes in places too cold for vineyards today. In the Middle East, the Dead Sea stayed high, showing good rainfall.
This kind of weather made everything easier. Crops were reliable. Surpluses could be taxed. Cities could be fed. Roads and aqueducts could be built and maintained. And because the army was well supplied, the Empire was protected, and could even continue a modest expansion. But, as McCormick and his team point out, the high phase of Nile flooding correlates exactly with the high point of Roman prosperity — and once those floods became less predictable, problems followed.
The good times came to an end. By the mid-second century, a wave of volcanic eruptions thew great masses of dust into the atmosphere, blocking sunlight. Solar activity dropped. The climate became less stable. Then came the Antonine Plague in AD 166. It probably started in the east and spread quickly. Some think it was smallpox. Whatever it was in terms of microbiology, it was almost certainly brought on by changes in the climate. It may have killed a third of the Empire’s population.
Worse was coming. By AD 200, climate records show more erratic rainfall and cooling. In Gaul and the Balkans, harvests became less predictable. Glaciers began to advance again. Speleothem data from Austrian caves shows sharp shifts in rainfall patterns.
At the same time, the empire started to shake. Between 235 and 284, Rome had over twenty emperors. Most were generals who seized power, then got killed. Civil wars broke out. Trade declined. Foreign tribes pushed harder at the frontiers. Coin hoards — money buried for safety — increased in number. That’s usually a sign of fear and instability. Cities shrank. The economy shrivelled.
Was this all because of climate? No — not wholly. A good definition of historical crank is someone who tries to explain everything in terms of one cause or set of causes. But as McCormick et al. argue, bad weather made everything worse. It weakened agriculture, strained supplies, and made people more likely to panic or rebel. In a world without modern logistics, you couldn’t afford bad harvests two or three years in a row.
The empire buckled in the third century, but didn’t collapse. And its survival probably was an effect of human agency. A line of competent Emperors rose from the army and stabilised the frontiers. This line culminated in the reigns of Diocletian and Constantine, who restructured the Empire. They fixed taxes. They reorganised the army. Constantine built his new capital in the east. His successors found Constantinople safer and more strategically useful than Rome.
This being said, around AD 290, climate records suggest a small rebound. Warmer temperatures and better rainfall returned — especially in the east. That helped the eastern provinces recover faster. They had stronger governments and better infrastructure. But climate helped. Dead Sea levels remained relatively high, which meant steady rain in the Levant.
The west wasn’t so lucky. Italy and parts of Gaul stayed unstable. In Britain, pollen records show that farmland was being abandoned. The archaeology matches this, with fewer building projects and shrinking urban centres. The killing shock for the west came in the fifth century. In Central Asia, a long drought began around AD 370. Steppe tribes like the Huns were hit hard. They migrated west, pushing other tribes like the Goths ahead of them. In AD 376, the Goths crossed the Danube into Roman territory. Two years later, they crushed a Roman army at Adrianople. This all happened in the eastern half. But greater wealth and better leadership allowed the government in Constantinople to push the barbarians west. Over the next century, the western empire was hit again and again.
Meanwhile, the weather got worse. Europe cooled. Rainfall patterns shifted. Flooding and crop failures increased. Volcanic sulphur levels spike in the ice core record from Greenland.
Rome was sacked in AD 410. Again in 455. Finally, in 476, the last western emperor was deposed. That was it. The western Roman Empire was gone.
The east survived. But was hardly untroubled. In AD 536, a huge volcanic eruption darkened skies around the world. The sun barely shone. Crops failed. Famines spread.
A few years later, the Plague of Justinian broke out. It probably started in Egypt and spread through trade routes. Some say it killed half the population in affected areas.
Climate and disease worked together. Hunger weakened people. Infection finished them off. As McCormick et al. put it, the event of 536 and the plague that followed created one of the worst demographic shocks in recorded history.
May 12, 2025
The rise of the Hansa
At Works in Progress, Agree Ahmed describes the conditions in northern Europe in the Middle Ages that helped create the Hanseatic League:
Today, we typically think of coalitions in the context of modern electoral politics. So it might be surprising that one of the greatest case studies in the history of coalitions is a community of medieval German merchants known as the Hansa.
Starting as individual traveling traders, the Hansa built up coalitions for collective bargaining, collective action, and collective security. Through this process, they formed Northern Europe’s first ever long-distance trade network.
Without corporate structures, they built supply chains that distributed goods between Northern Europe’s major ports, with capillaries that spread into each city’s hinterlands. Without formal territory, their laws governed trading hubs spanning thousands of miles, from London all the way to Western Russia. And, despite being composed of hundreds of member cities, the Hanseatic League had no head of state. Yet the Hansa still managed to sign treaty after treaty with foreign rulers and, a few times, even fought (and won!) wars.
[…]
Better climate, more arable land, and better farming techniques lifted Europe’s crop yields to above subsistence levels for the first time since the Roman period. After several centuries of decline, Europe’s population grew from 18 million in the 600s to over 70 million by the 1300s – nearly triple the population of the Roman period. The nutritional surplus allowed for Europe’s first significant artisan class since the Roman empire. Each town had common craftsmen like blacksmiths, leatherworkers, and carpenters. But local skills and resources allowed for the emergence of specialized crafts, which were unique to specific regions and could therefore be traded.
Tax-hungry lords across Europe began to set up permanent marketplaces for their growing communities. And so hundreds of towns formed in Europe, filled with workers who had flocked from countryside manors. These towns were the first substantial permanent markets in Northern Europe’s history.
As production accelerated, so did shipping. The warmer climate meant waterways in the North and Baltic Seas were navigable for longer stretches of the year. Meanwhile innovations in boatmaking dramatically improved shipping capacity. Excavations of the few surviving ships from this era show that, in the span of a few centuries, vessels tripled their average tonnage from 10 to 30 while dropping the number of rowers required by a factor of four.
The breakthrough in tonnage starting in 900 can be credited to the knarr, a Viking-style ship that was shorter and wider than the longboat that preceded it, allowing it to load substantially more cargo with a smaller crew. Prior to the knarr, trade convoys had to carry cargo on longboats, which were agile but could only carry small fractions of what the knarr could.
When Northern Europe’s first long-haul merchants set off on their voyages, they faced a world that had not yet been ordered for trade. Sailors had to worry about pirates in the Baltic and shipwrecks at icelocked winter ports.
Riverways gave merchants access to inland communities, where they could find products at lower prices to then sell for a profit in major port cities. But riverside towns were more interested in their own engineering projects or grinding their grain and so would block rivers with dams and water mills, and they would redirect water to irrigate fields.
And even if a river were clear of obstructive mills or dams, it might be heavily punctuated by toll stations. The Rhine River, a key shipping artery that connected inland Germany with the Baltic coast, had tolls approximately every five kilometers.
Under the laws of the Holy Roman Empire, the right to collect tolls on the Rhine could only be granted by the Emperor. But unauthorized tolling stations, or tolls levied in excess of what was authorized, were so rampant that the malpractice had a name: the lonia iniusta (Latin for “unjust tolls”). Some local authorities enforced toll collections along rivers by running chains from bank to bank, making it impossible for a boat to pass without paying. Others would patrol the river on their own boats and deny vessels passage until they paid up.
In the first four years of the Great Interregnum Period (1250–73), when the Empire had no emperor, the number of toll stations on the Rhine doubled to 20. This is the origin of the term “robber baron”: local barons, operating out of riverside castles, would set up illicit toll stations and demand significant shares of merchant cargo in order to pass.
The journey on land wasn’t much easier. Toll booths were similarly common. Nominally, these were to pay the landowner for the maintenance of the roads and bridges but in reality they were usually left dilapidated. Merchants voyaging on land had to load their wares on the backs of mules and horses (which were about a third the speed of ships). The narrow widths of medieval roads meant these caravans stretched out in long lines, leaving animals and cargo physically exposed. These vulnerable, slow moving, value-dense caravans attracted bandits who roamed the isolated roads between towns. It was nearly guaranteed a caravan would face an attempted robbery – either illegally by bandits or (somewhat) legally in the form of a toll shakedown – over the course of a sufficiently long trip.
As a matter of safety, Northern European merchants learned to move together in armed groups. These traveling merchant bands were called hansas, a Lower German word meaning “company” or “troop”. When a hansa formed for a trip, they elected an alderman (literally “elder man”) who would speak on behalf of the group to the various authorities – lords, princes, bishops, and other rulers – they might encounter along the way.
Once they completed the arduous journey, the merchants had to deal with the local governments of their destination cities, each of which had different and constantly changing laws. To protect the local merchants and craftsmen within their city walls from competition, princes might demand exorbitant taxes from foreign merchants or deny them access to the city altogether. Merchant bands had to negotiate collectively to secure the right to trade within each city in which they wished to conduct business. And if they made it into the city walls, they might not make it out: capricious lords might suddenly imprison foreign merchants (as happened to German merchants in England in 1468 and Novgorod in 1494), raid their offices, or seize their merchandise.
Local laws threatened foreign merchants more than they protected them. Most town courts, themselves newly formed, had minimal experience adjudicating long distance commercial disputes. When such disputes did arise, courts could take weeks or months to arbitrate them, and were heavily biased towards locals over foreign traders. Without sovereign states, merchants were left dealing with a fractured landscape of town courts, where each market had its own idiosyncratic laws. And because foreign traders could evade punishment by fleeing overseas, courts in England, France, Italy, and the Holy Roman Empire often collectively punished foreign merchant communities for the unpaid debts of their countrymen.
The lack of early medieval records makes it difficult to quantify just how much Northern European commerce grew as a result of continuous long distance trade. Before the late medieval period, Northern Europe’s archaeological record of trade shows just several dozen sites known as emporiums: small, temporary settlements outside of towns where foreign merchants traded with locals. But starting in the late medieval period (1300 to 1500), Lower German merchants began to change this.
H/T to Niccolo Soldo for the link.
May 11, 2025
QotD: Corporate taxes
Many politicians, pundits and some economists would have us believe that corporations pay taxes, but do they? Economists distinguish between entities who ultimately bear the tax burden and those upon whom tax is initially levied. Just because a tax is levied on a corporation doesn’t mean that the corporation bears its burden. Faced with a tax, a corporation can shift the tax burden by raising its product prices, lowering dividends or laying off workers. The lesson here is that only people pay taxes, not legal fictions like corporations. Corporations are simply tax collectors for the government. Similarly, no one would fall for a politician telling a homeowner, “I’m not going to tax you; I’m going to tax your property”. I guarantee that it will be a person, not the property, writing out the check to the taxing authority. Again, only people pay taxes.
Walter E. Williams, “Economics Reality”, Townhall.com, 2020-02-04.
April 30, 2025
After the votes were counted
John Carter suggests that votes should be allocated to reflect the costs imposed on the voters by taxation, that is to ensure that those with the most “skin in the game” at least have their votes weighted more than those who pay little or no taxes but can still vote themselves more benefits:
Have you ever noticed how election results are regularly broken down geographically, as well by the demographic categories of age, sex, and – depending on the country – race, yet we almost never see the results separated into taxpayer vs taxeater status?
So anyhow.
For my American readers, in Canadian elections the Liberal Party is denoted by red, as the Devil and Karl Marx intended.
It is absolutely no surprise that Ottawa voted solidly for the Liberal Party of Canada, whose base consists of three primary groups: migrants, public sector workers, and baby boomers, all of whom are regime client groups, and all of whom are tightly packed into the nation’s capital.
Perhaps it’s that it’s tax season and I’m in a grumpy mood because I just got the bad news, but I can’t help but wonder about how electoral politics would change if only taxpayers were allowed to vote. It’s common for “taxpayers” to be used as a synonym for “the voting public”, but this is a bit of linguistic legerdemain which obscures a core dynamic rotting the heart out of every liberal democracy: most of the population are not, in fact, taxpayers. First there are those who don’t earn enough to pay taxes, such as university students; then there are those receiving direct welfare payments of one form or another; then there are public employees, who although they pay tax on paper, are clearly net recipients of government largess since their paychecks come from taxes in the first place.
The most successful parties in country after country are the parties that mobilize client groups by promising to steal money from productive citizens and transfer that wealth to their non-productive clients. This dynamic is baked into the cake of any universal suffrage democracy, which is why Universal Suffrage is a Suicide Pact. Parties need client groups for electoral support; wealth can only be plundered from the productive; therefore the only available relationship is to cultivate non-productive clients.
The problem, of course, is that over time this destroys the economic productivity of the liberal democracy, because the productive groups will become less productive because what’s the point, or they’ll just look for the exits, while the client groups will swell, becoming simultaneously too expensive to maintain and to electorally heavy to dislodge.
I suspect you could fix all of this by simply tying votes to tax receipts, with only those who are net taxpayers being given the franchise in any given election. At a stroke this would disenfranchise the welfare underclass, government bureaucrats, and university students, all of whom should be prohibited from voting as a matter of principle. If you wanted to be really fancy, you could implement a tax-weighted vote: the more taxes you pay, the more your vote counts.
In addition to the salutary effects of reducing the electoral weight of female voters (since men tend to pay more in taxes), weighting votes by tax receipts would lead to a very interesting incentive structure. On the one hand, everyone hates paying taxes, and wants to minimize the taxes they pay; if only taxpayers were voting, this would place a strong downward pressure on taxes and, hence, on the size of government (thus forcing states to find other ways of funding themselves, via e.g. tariffs or service fees). On the other hand, people like to vote, so there would be a strong incentive not to evade taxes. On the gripping hand, since paying more tax means your vote counts for more, there would be a countervailing incentive to pay as much tax as you can afford. One might imagine a state functioning as a sort of de facto oligarchy, with the billionaires happily paying obscene levels of tax in order to gather as much political power to their class as possible, and enforcing their tyranny by voting to keep taxes on everyone else to the absolute bare minimum. This would be a truly dystopian brier patch to be thrown into.
Alas, we do not inhabit such a political experiment. Returning to the ostensible topic of yesterday’s Canadian election, however, it would probably not be an exaggeration to posit that if we did inhabit such a system, Canada’s Conservative Party would have rolled the Liberals in this and, in all likelihood, almost every other election.
That is not, however, what happened.
The high-level outcome is that, after running the country into the ground for the last decade, the Liberal Party has been elected for the fourth consecutive time, with a mandate to complete the project of crashing the plane of Dominion with no survivors. It brings me absolutely no pleasure to report that I predicted the Liberals would win before the election was even called. The Liberals are four seats short of forming a majority in parliament, meaning they cannot quite form a stable government on their own. This is not a problem for the Liberals, however. Despite the glorious collapse of the New Democratic Party – which plummeted from 25 seats in the last federal election to 7 in the current election, by far their lowest in 30 years – the NDP retains just enough seats for them to form a stable coalition government with the Liberals. In other words, the outcome of this election is that Canada will be in essentially the same situation it was in before the election, with the only meaningful difference being that the Liberals have a few more seats than they did before.
April 7, 2025
QotD: The new Neolithic agrarian villages allowed for the development of the parasitic state
… despite all these drawbacks, people whose distant ancestors had enjoyed the wetland mosaic of subsistence strategies were now living in the far more labor-intensive, precarious confines of the Neolithic village, where one blighted crop could spell disaster. And when disaster struck, as it often did, the survivors could melt back into the world of their foraging neighbors, but slow population growth over several millennia meant that those diverse niches were full to the bursting, so as long as more food could be extracted at a greater labor cost, many people had incentive to do so.
And just as this way of life — [Against the Grain author James C.] Scott calls it the “Neolithic agro-complex”, but it’s really just another bundle of social and physical technologies — inadvertently created niches for the weeds that thrive in recently-tilled fields1 and the fleas that live on our commensal vermin, it also created a niche for the state. The Neolithic village’s unprecedented concentration of manpower, arable land, and especially grain made the state possible. Not that the state was necessary, mind you — the southern Mesopotamian alluvium had thousands of years of sedentary agriculturalists living in close proximity to one another before there was anything resembling a state — but Scott writes that there was “no such thing as a state that did not rest on an alluvial, grain-farming population”. This was true in the Fertile Crescent, it was true along the Nile, it was true in the Indus Valley, and it was true in the loess soils of “Yellow” China.2 And Scott argues that it’s all down to grain, because he sees taxation at the core of state-making and grain is uniquely well-suited to being taxed.
Unlike cassava, potatoes, and other tubers, grain is visible: you can’t hide a wheatfield from the taxman. Unlike chickpeas, lentils, and other legumes, grain all ripens at once: you can’t pick some of it early and hide or eat it before the taxman shows up. Moreover, unhusked grain stores particularly well, can be divided almost infinitely for accounting purposes (half a cup of wheat is a stable and reliable store of value, while a quarter of a potato will rot), and has a high enough value per unit volume that it’s economically worthwhile to transport it long distances. All this means that sedentary grain farmers become taxable in a way that hunter-gatherers, nomadic pastoralists, swiddeners, and other “nongrain peoples” are not, because you know exactly where to find them and exactly when they can be expected to have anything worth taking. And then, of course, you’ll want to build some walls to protect your valuable grain-growing subjects from other people taking their grain (and also, perhaps, to keep them from running for the hills), and you’ll want systems of measurement and record-keeping so you know how much you can expect to get from each of them, and pretty soon, hey presto! you have something that looks an awful lot like civilization.
The thing is, though, that Scott doesn’t think this is an improvement. It certainly wasn’t an improvement for the new state’s subjects, who were now forced into backbreaking labor to produce a grain surplus in excess of their own needs (and prevented from leaving their work), and it wasn’t an improvement for the non-state (or, later, other-state) peoples who were constantly being conquered and relocated into the state’s core territory as new domesticated subjects to be worked just like its domesticated animals. In fact, he goes so far as to suggest that our archaeological records of “collapse” — the abandonment and/or destruction of the monumental state center, usually accompanied by the disappearance of elites, literacy, large-scale trade, and specialist craft production — in fact often represent an increase in general human well-being: everyone but the court elite was better off outside the state. “Collapse”, he argues, is simply “the disaggregation of a complex, fragile, and typically oppressive state into smaller, decentralized fragments”. Now, this may well have been true of the southern Mesopotamian alluvium in 3000 BC, where every statelet was surrounded by non-state, non-grain peoples hunting and fishing and planting and herding, but it’s certainly not true of a sufficiently “domesticated” people. Were the oppida Celts, with their riverine trading networks, better off than their heavily urbanized Romano-British descendants? Well, the Romano-Britons had running water and heated floors and nice pottery to eat off of and Falernian wine to drink, but there’s certainly a case to be made that these don’t make up for lost freedoms. But compare them with the notably shorter and notably fewer involuntarily-rusticated inhabitants of sub-Roman Britain a few hundred years later and even if you don’t think running water is worth much (you’re wrong), you have to concede that the population nosedive itself suggests that there is real human suffering involved in the “collapse” of a sufficiently widespread civilization.3
But even this is begging the question. We can argue about the relative well-being of ordinary people in various sorts of political situations, and it’s a legitimately interesting topic, both in what data we should look at — hunter-gatherers really do work dramatically less than agriculturalists4 — and in debating its meaning.5 And Scott’s final chapter, “The Golden Age of the Barbarians”, makes a pretty convincing case that they were materially better off than their state counterparts, especially once the states really got going and the barbarians could trade with or raid them to get the best of both worlds! But however we come down on all these issues, we’re still assuming that the well-being of ordinary people — their freedom from labor and oppression, their physical good health — is the primary measure of a social order. And obviously it ain’t nothing — salus populi suprema lex and so forth — but man does not live by
breada mosaic of non-grain foodstuffs alone. There are a lot of important things that don’t show up in your skeleton! We like civilization not because it produces storehouses full of grain and clay tablets full of tax records, but because it produces art and literature and philosophy and all the other products of our immortal longings. And, sure, this was largely enabled by taxes, corvée labor, conscription, and various forms of slavery, but on the other hand we have the epic of Gilgamesh.6 And obviously you don’t get art without civilization, which is to say the state. Right?Jane Psmith, “REVIEW: Against the Grain, by James C. Scott”, Mr. and Mrs. Psmith’s Bookshelf, 2023-08-21.
1. Oats apparently began as one of them!
2. It was probably also true in Mesoamerica and the Andes, where maize was the grain in question, but Scott doesn’t get into that.
3. No, the population drop cannot be explained by all the romanes eunt domus.
4. That famous “twenty hours a week” number you may have heard is bunk, but it’s really only about forty, and that includes all the housekeeping, food preparation, and so forth that we do outside our forty-hour workweeks.
5. For example, does a thatched roof in place of ceramic tiles represent #decline, or is it a sensible adaptation to more local economy? Or take pottery, which is Bryan Ward-Perkins’s favorite example in his excellent case that no really, Rome actually did fall: a switch in the archaeological record from high-quality imported ceramics to rough earthenwares made from shoddy local clays is definitely a sign of societal simplification, but it isn’t prima facie obvious that a person who uses the product of an essentially industrial, standardized process is “better off” than someone who makes their own friable, chaff-tempered dishes.
6. Or food rent and, uh, all of Anglo-Saxon literature, whatever.












