Thursday, 2 March 2017
Monday, 16 January 2017
Wednesday, 28 December 2016
The interlocking webs of policy which 'politics' seeks to knit are complicated. Whole books can be written on how two individual policies interact. PhDs in Economics are awarded for small snapshots of the whole cloth. Most people don't have the time to keep abreast of developments or read sufficient history to understand why some policies are bad. Thus, people use heuristics - rules of thumb - to make decisions about that which they aren't expert. "Is this person trustworthy" is a key issue, and we tend to overweight the opinion of those near us. "He is my brother, and I say he's ok" says a friend, you are more likely to believe a mutual friend, than the opinion of a stranger on the same issue.
In the evolutionary past, such a question was a matter of life and death. People only really had to trust those with whom they shared a close genetic relationship. Since the development of agriculture, we've been steadily widening that circle of trust. The wider you spread that circle of trust, the richer your society will be. Even before it had a name, Free market economics allowed people to become blacksmiths, knowing others have water, food, shelter and so forth covered in return. More specialisation, greater productivity, means greater wealth.
Eventually, this requires trust in people we've not met. Towns' food supplies require that farmers unknown and distant supply the basics of existence. Nowadays, It's unlikely the west could quickly supply all available plenty currently manufactured in China. Nor could China supply quickly the complex components and tools shipped from Japan, Europe and USA. Both China, and "the west" are richer from the exchange. And yet, we still don't trust "globalisation".
Most persistent fallacies in political economics are the result of simple policies that appeal to some base heuristics, but which when applied to the larger and wider society, fail catastrophically. Thus egalitarianism in one form or another pops up every 3 generations or so and succeeds in making everyone equal, but some more equal than others, and even more, dead. Then nationalism comes along, and says it's all [another, arbitrarily defined group of humans with slightly different modes of speech] fault, leading to more waste and piles of corpses. And even when the results aren't catastrophic, we seek out the views of those who agree with us on say, Nationalism to inform our opinion on, say, whether or not people are responsible for climate change.
Which political tribes stumble into being right or wrong on any given issue appears arbitrary, because no-one's asking for the evidence before they decide on the policy. Instead of asking "what's right", we're asking what's popular (amongst the coalition of tribes that voted for me) right now. That an opponent comes out with an identical policy, for different reasons is reason enough to oppose something, forgetting completely prior support for it. After all, whatever [another political tribe] thinks must be wrong, right.
The Labour party opposes ID cards. The Labour party has always opposed ID cards. The Tory party is for the Free market and was never in favour of the Corn Laws. We have always been at war with Eastasia. Perhaps if we could think for ourselves rather than just accepting tribal dogma, we'd get better governance. But none of us have the time. So "Democracy" is merely a means to give temporary permission to one coalition of tribes to push through dogmas over many issues, until either the population notices, or the coalition of tribes breaks up, and the electorate takes a punt on the other tribe's prejudices for a bit, and then gets on with whatever they were doing before.Remarkable to see Labour people oppose ID at polling stations when they wanted to introduce ID cards 10 years ago— Ben McCabe (@bernardmccabe) December 28, 2016
Society ultimately advances by eliminating prejudices it's acceptable to hold thus widening the circle of trust, and increasing riches. By falling back on ancient heuristics to answer the wrong question ("who's fault?" is the wrong question) 2016 democracy has delivered the worst political outcomes on a broad front, as a result of which, we are poorer, and more likely to start fighting as a result of the collapse in political trust we have seen over this year. The post Cold-War 'Belle Époque', which saw half of humanity, 3 billion people, lifted out of poverty, is over.
Monday, 19 December 2016
The UK markets have been hit hard by the threat of leaving the EU. The consequences, at least in the short-term would be a short sharp fall in UK stocks and Sterling. Depending upon what happens to the necessary capital flows which fund our current account deficit, (as well as our trade and fiscal ones), we might suffer an interest rate shock too. If the Foreign direct investment dries up, the UK may suffer a prolonged period of stagflation, falling currency and higher interest rates, choking off the recovery. If foreign capital flows do not dry up, then the recession or slowdown will be much milder. The fear of this outcome therefore has held markets back, even as US jobs data, and even Chinese numbers have surprised on the upside.
It is unusual for political events to so impact the markets, but we don't even know if 'Leave' would mean leaving the Single Market (Gove and the EU seem to say 'yes', a lot of Leave campaigners say 'No') and the government's contingency planning is silent on the issue. It is possible we could leave the EU but remain in the EEA which would be far less disruptive. Markets do not react well to not knowing such crucial bits of information.
So, the outlook is utterly dependent upon a "Known unknown" (the referendum) followed by an "unknown unknown" (how foreign capital reacts) to use Donald Rumsfeld's unfairly mocked phrase. It's not even clear overvalued gilts would make a safe haven in the event of brexit, as if Foreign Direct Investment dries up, interest rates will have to rise. Only index-linked offer much of a safe-haven, but they seem overpriced. There is much else to report, but this month, it simply doesn't matter.
Tuesday, 13 December 2016
Everyone knows how driverless cars will work: they will be like ordinary cars, except you read a book rather than acting as pilot. And so, people's understanding of what a technology can do is clouded by what the old technology it replaces does. Which means people without imagination, Head of IBM Thomas Watson, for example, say things like
"There may be a world market for maybe five computers"and get it wrong. In 1943, computers were used for cryptography, and that's it. (At least he knew what a "computer" was, which few did back then). Predictions are hard, especially about the future. But it's probably worth noting here that the famous World Wide What? front page of The Sun, was in fact rather a good a spoof, by The Sun.
Boston Dynamics makes robots.
Who needs Robots? Well, like computers or the internet or driverless cars, the technology is coming. And it will change people's behaviour in many, unpredictable ways. For example, mobile phones were conceived as portable analogues for the phone on your desk or in your hall. SMS text messaging was added as an afterthought, but became THE dominant means of communication. Calling someone is now rude, often you text first to see if a call would be convenient. Who (apart from mums) leaves voicemail messages any more? Few predicted that change in our behaviour. The smartphone is now ubiquitous, and is more about accessing the internet than calling friends, but wasn't imagined before the internet, Except by Douglas Adams (and John Brunner of whom I'd not heard until I discussed the issue on Twitter). Driverless cars will be as close to the car, as the car is to a buggy and four. And robots, when they become ubiquitous, will be unlike anything we've considered.
I look at Boston Dynamics Robots, the big dog is conceived as a load carrying mule for soldiers on rough terrain, and I think of The Luggage, Rincewind's inscrutable companion on the discworld. I suspect everyone will one day have a robot the size of a dog to carry daily necessaries, following them round. You could send your luggage to someone else, by smartphone app to pick something up. Your luggage could take your shopping home and collect it from the store for you. Large luggages could be sent on ahead with bags. Small luggages could replace handbags and briefcases. The labour and time saving would be vast, spawning whole new areas of employment, servicing and modifying your faithful electronic companion and providing for the opportunities they create to effectively be in two places at once. Freed from the ownership of motor vehicles by the fact we'll be taking taxis everywhere, our Robot luggage will perhaps become the next status symbol around which society is built, replacing the car.
Like cars, I suspect the battery technology will be the limiting step, and like cars, I suspect the fuel cell will be the answer. Small fuel cells will one day power your smart phone too.
But think about the opportunities for people from smart phone. There are tens of thousands of app designers round the world now, a job that had barely been considered as recently as 2007, when the first iPhone was released, and that is similar to how the jobs which will be taken by the robots, will be replaced. That is why people who fear of a "post-jobs" future were wrong in 1816 and are still wrong 200 years later. The world's only limitless resource is human ingenuity.
Anway. I for one welcome our new robot overlords, and this guy should totally be locked up.
Saturday, 26 November 2016
Let's be clear, Castro was a murderous bastard who impoverished his country, and whose views on homosexuality and on the importance of brevity in speeches were nothing short of horrifying. It's true, Cubans do have access to better healthcare than many countries of equivalent GDP per capita, and if I had to choose a Communist hell-hole to live in, it'd probably be Castro's Cuba. But the Cuban healthcare system is not the fantasy of western dewey-eyed left-wingers, and Cubans often are excluded from what excellence there is, as it's one of the few means the country has of generating hard currency earnings. Rich foreigners get the best doctors, and more are exported to other successful "progressive" regimes like Venezuela.
"But he was an anti-imperialist". So why were cuban troops in Africa in support of the USSR, which was by any measure or definition an Empire? Anti-Imperialsim is just the justification leftists give for knee-jerk anti-Americanism. And the flood of people risking death to reach the USA should tell you all you need to know about the relative merits of America's and Cuba's system.
Contrasting the attitudes of the USA to Castro, to their attitude to equally murderous bastards like Pinochet misses the point. The US embargo on Cuba is one of the legacies of the Cold war, kept bubbling by the politics of Florida, home to so many Cuban-Americans. There is no Doubt that the US blocade has impoverished Cubans, and that with the fall in the Berlin wall and the collapse of the USSR, such an embargo was no longer justified. However politics are what they are. Fidel Castro's death provides an opportunity for further thawing in relations.
The USA supported "our son of a bitch" all over the world, turning a blind-eye to horrific human rights abuses, though often (albeit less often than we should) working behind the scenes to try and mitigate the worst behaviour. Thatcher is rarely credited with preventing the execution of Nelson Mandela, but she consistently urged Mandela's release, even as she argued against sanctions and branding the ANC "Terrorists". This is one reason why the cold-war piles of dead of Nasty fascist bastards are usually lower than those of nasty communist bastards. I also think the point made by CS Lewis holds. Right wing dictators rarely pretend to be GOOD, making their appeal more on effectiveness.
"The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience."
And one by one, following the collapse of Communism, the support from the USA and its allies for these disgusting regimes was withdrawn. Apartheid South Africa, much of South and Central America saw right authoritarian regimes fall. Genuine democracies were often created in the rubble. The USA didn't support dictators because the USA is an imperialist power, but because it IS a power, and with that comes responsibility. They judged at the time the alternative, Communism, was worse, and represented a genuine existential threat to the USA and its core allies.
This is why for example the USA and its allies mostly support the Regime in the Kingdom of Saudi Arabia. The Saudi regime is repellent, but given the probable alternatives wouldn't be nice, liberal, democratic-minded progressives, they'd be salafist nutcases who'd have access to billions of dollars of oil revenues and the legitimacy of being the Guardians of the Two Mosques. The House of Saud is all that stands between the West and a plausible salafist caliphate with sufficient legitimacy and money to one day threaten the west. We'd rather do business with nice, stable democracies under the rule of law. But seeing as we cannot do to every country on earth what we did to Germany in the late 40s and 50s, we make the best of the options given.
Castro appeared to be a true beleiver in Socialism, so he refused to recognise his philosophy had failed, and his island limped on, a socialist throwback in the age of globalisation. The current poverty of Cuba is partly America's doing, but mostly due to decisions made by Castro himself, policies which set him and the Cuban people at odds with the regional hegemon, in persuit of an evil idealogy. Fidel Castro was on the wrong side of history, and his people suffered because of his stubborness. Now he's dead, it's Cubans turn to make the most of the positive legacy - Cubans are the best-educated poor people on earth, and the mighty economy of the USA is right on their doorstep. There is going to be a lot of money to be made there, and this time, for the first time, Cubans will share in it.
Wednesday, 23 November 2016
Friday, 21 October 2016
Men are physically stronger than women, respond quicker to physical training, and suffer less injury under physical stress. Men are more robust, suffer less morbidity than women in almost all phases of life. Obviously these things exist in a normal distribution, but men's distributions are typically platykurtic - there are more men in the tails of the distribution than women. Thus, even where the means are near identical, such as intelligence, you'd expect to see more male geniuses, and imbeciles among men than women, who're more concentrated around the mean. Feel like taking issue with any of these statements? Then you might as well be a creationist.
Thursday, 13 October 2016
One of the main reasons to oppose brexit is that the UK doesn't benefit from being "out" should the EU collapse. A disorderly break-up of the EU would damage the UK, independently of our status in or out. (any comment saying "it's better to bail early" will be deleted as a failure of comprehension read the post, please, it's that argument I'm dealing with). Indeed preventing a disorderly collapse should be the UK's priority. And when we were in, a disorderly collapse was unlikely. The UK kept the lid on Brussels insanity. Not only has Brexit given free rein to some of the very worst people in the UK, it also removes a brake on the insane Federasts of Brussels.
Far from Remainers "talking the UK down", Brexiters have been doing so for decades - talking down the UK's influence in the EU to the extent we're actually thinking of walking out of the UK's proudest creation: the single market. It is now a shibboleth that the UK has "no influence in the EU", whereas the UK drove the single market, kept half the continent out of the poisonous grip of the Euro and pioneered enlargement to the east following the end of the cold war. The UK drove Russian sanctions to this day. The UK was one of the Big three and on many issues, more influential than France. The UK largely writes EU financial regulation for example (as is meet and proper).
But the EU over-reached. Voters, especially in the UK resented the EU's usurpation of the trappings of National sovereignty far more than the reality of "the laws made in Brussels" which was really just code for an underlying vision they (and I) don't like. And what is true of the UK is true of France and the Netherlands and everywhere else. Remainers like to mock the Be.Leaver's joy over the anticipated return of the blue passport. I however have long resented the words "European Union" above (ABOVE!) the crown on the front. It's like the bureaucrats are trying to rub the British People's nose in it. It's a symbol of something burning in the EU's core, which the average voter neither desires, nor trusts.
The ridiculous and unnecessary potemkin parliament with its farcical shuttle from Brussels to Strasbourg focusses the voters minds on the EU, without giving them any outlet to do anything about it. The EU looms much larger than it ought as a result of the charade of Euro elections. Democracy without a demos is pointless - what commonality do Socialist members from spain and the UK have?:
The EU was flawed, Thanks to the UK some of its worst excesses - the Euro for example were limited to countries that really wanted it. And now without a powerful country holding the reins and steering away from "ever closer union" the Brake that was put on at Maastrict and beyond will be removed. The EU will integrate itself to death, there will be chaos when the voters of Europe can take the tin-eared arrogance of Brussels no more. There was no need for all those millions of lives to be attenuated during that process. While leave voters will say "I told you so", a better analogy would be jumping out of a moving car suffering broken bones and extensive skin abrasions, but saying "it would have been worse" because the lunatic who grabbed the wheel when you bailed steered it directly into a tree.
Spending 1% of GDP to write trade and some business law could much more easily be done intragovernmentally, with a humble and small central bureaucracy. There is no need for "Presidents" and parliaments which lead to grandiose visions; visions which slam painfully, like the Euro, into the unyielding wall of reality. Unobtrusively aligning business regulation and deepening economic integration is necessary. A parliament, a flag, an anthem and a head of "state" are not. The EU has paid the price for this arrogant and pompous grandiosity.
Friday, 16 September 2016
If you ask the wrong question, the answers will not work.
"Populism" is, like pornography, hard to define, but you know it when you see it. Wikipedia defines it thus
"a political ideology that holds that virtuous citizens are mistreated by a small circle of elites, who can be overthrown if the people recognize the danger and work together. Populism depicts elites as trampling on the rights, values, and voice of the legitimate people"It's clear Farage's lauding of a victory for "
There's also the populists view that MPs rather than being representatives paid to exercise judgement, are delegates paid to vote on someone else's behalf. In this, Paul Mason and Douglas Carswell are in agreement. But this is simply mob rule and behind it is a fear that legislators may Go Native, if they're allowed thanks to the corrosive influence of "[insert boogeyman]" in their long-running campaign to keep the "real" people down. But perhaps legislators know best; they have exposure and access to what passes for facts in this field, and are paid to study it, maybe there's something in the idea of representative democracy after all.
It's always easier to imagine you're the victim of an elite conspiracy, subject to "discrimination" on the grounds of class or race, or at risk from being "flooded" by immigrants, than it is to answer the question "what to I do?". Whether you're running your own life, or that of a nation, what to do is hard, and one of the stresses of modern life is the extent to which people are free, which means they have to make choices. No longer can you just follow dad into the Factory. Because many suffer from crippling loss aversion, these choices are scary, which is why stupid people yearn to be led. They look for leaders who offer answers which fit their prior prejudices and make sense of a complicated world. Corbyn and Farage have made careers finding and stroking a tribe's prejudices, soothing their people's indignation against a world they feel is against them.
The reason populism is so toxic to political discourse is that in apportioning blame, they create a slipway for the launching of vastly damaging ideas. "It's all the EU's fault" leads to Brexit*. "It's all the Fat Cats' fault" and you have a country that looks like Venezuela. If you start blaming immigrants or minorities, well we saw where that went in the last century. It's also why the Brexiteers ran from office at the moment of victory. Delivery isn't in the populists' skillset. The permanent masturbatory pleasures of opposition are what they crave, always losing so they can keep telling their people the game's rigged against them. If they win, then all those inadequate people will have to start making choices and they feel completely lost again. Much easier to simmer in resentment against an immovable object which allows you to blame it, rather than yourself for your failings.
*This isn't a place for a debate on the merits or otherwise of Brexit. Any comments on that subject will be deleted.
One of the reasons for the Populist's success (please note the "one of" at the start of this sentence) is Russia on the internet. The internet allows people to form much denser ideological defences against reality. And into the internet, there is a wounded superpower, pouring poison, poison which people use as ammunition in the defence of their ideological redoubt. Putin's toxic little propaganda swamps like RT and Sputnik are manufacturing and promoting stories which appeal to the populist mindset. Notice how Racists will share RT stories about Immigrants raping white women while members of the Green party will share horror stories about fracking from the same source. Some of these stories will be true. But many are manufactured, exaggerated and twisted specifically to support any party or idea that causes problems to the democratic governments of the west. This is not a random process. It is directed and controlled by the intelligence agency which has captured Russia. Maskirovka raised to a governing principle.
One of the reasons for the UK's relative success as a nation is that up until now, we have been mostly immune from the allure of the populist demagogue. We simply don't have it in us to put too much belief in one man, whether as protagonist or antagonist. Let's hope Brexit is a flash in the pan, and not part of a widespread descent of mature democracies into populist demagoguery. We'll know in 12 months whether democracy can survive or whether, thanks to Trump, Farage and Le Pen, we're going back to pogroms and a summer "campaigning season".
Please let's stop listening to Putin' useful idiots pedalling fallacious simplicity, and start listening to fallible and all-too-human experts again. At least the experts are asking the right question.