Blogging on liberty, capitalism, reason, international affairs and foreign policy, from a distinctly libertarian and objectivist perspective
21 May 2008
Libertarianz announce mammoth tax cut
20 May 2008
New blog rankings
A different 20 point pledge card
1. Government waste. Cut all government spending to the lowest of the OECD: These means cutting local government as well as national government, and being bold about waste. A smaller government than New Zealand's competitors is more ambitious than matching Australia, which is bloated by mineral wealth.
2. Cut and flatten tax rates: OK, time to repeat the already announced policies of having the first $10,000 tax free, abolishing the 39% top tax rate AND abolish the 33% tax rate. Drop company tax to 19.5%. That means flat tax at 19.5% for all.
3. Limit local government to core activities: Abolish power of general competence and cap rates, permanently (no inflation indexation). Councils would need to find new ways to raise funds (no new tax powers), and cut spending. Councils would be prohibited from entering into new activities, from subsidising businesses and the arts.
4. Reform the public service: I don't care about limiting Parliament or Cabinet, but let's require all departmental CEOs to give a report within one month of office explaining what would happen if the department was abolished. All must give two options. Those that aren't convincing would be abolished. CEO's of Ministry of Womens' Affairs, Youth Affairs, Families Commission and numerous others would be better resigning and using the time to find a real job.
5. Red tape: Require remaining government departments to report on options to eliminate costs to business, and rely upon contract, tort and private property rights instead of licensing and regulation.
6. Reform the Resource Management Act: Amend the RMA, to make private property rights pre-eminent, and make its primary purpose the extension of private property rights onto rivers, foreshore, seabed, airspace, sight lines, air quality and the like. In other words, create private property rights to enable owners to do as they wish with their OWN environment. Of course it wouldn't look much like the RMA any more.
7. Create a competitive market in education: Yes to education vouchers, extend it to university, but they should only cover half the cost of tuition. Abolish state involvement in early childhood education. Give schools full autonomy on pay and curriculum, make each school into an independent corporate entity.
8. Same in healthcare: Offer insurance model in exchange for tax cut, payment of premiums. Public can opt out of state healthcare and switch insurance providers, or can choose state healthcare which receives budget based on hypothecated tax revenue from those paying for it. Make all government healthcare facilities into businesses again.
9. Reintroduce competition to accident compensation: Competition for employer, motor vehicle and personal accounts. Compulsory cover with review to consider merits of returning right to sue for personal injury by accident.
10. Welfare: Support ACT's announced policy of shifting welfare to unemployment, sickness and invalid insurance, extend to DPB and transfer Kiwisaver to individuals to ultimately replace national superannuation.
11. Immigration: Open door with the following limits. No right to claim welfare or social assistance of any kind. No admission for those convicted of crimes that have NZ equivalents. Must have financial means (or sponsorship) for at least 3 months and airfare to return.
12. Labour reform: Shift employment law to contract law, abolish minimum wage.
13. Privatisation: Sell and give away shares for all SOEs, give away shares in hospitals, schools to the public.
14. Infrastructure: Abolish electricity and telecommunications commissioners. Return Telecom's property rights in its infrastructure, and abolish laws requiring cellphone operators to resell competitors' services. Convert Transit NZ into an SOE and privatise Auckland Harbour Bridge and its approaches, allow road users to contract directly for road use and opt out of fuel tax. Require local authorities to transfer roads into SOE equivalents. Privatisation of water/sewage.
15. Cut the remaining tariffs on imports: Perfect.
16. Free up more land for housing: Abolish urban growth limits, privatise state housing by offering Thatcher style "buy your state house" scheme, use RMA reform to reintroduce private property rights.
17. Strengthen law and order policies: Yes private prisons and get the private sector to do Police work that ISN'T about arrest (e.g. assistance, traffic control) and speed up the courts. However, introduce "points" scheme for crimes. If a criminal gets 100 points, it is permanent detention. Good behaviour inside allows for a 10% discount on sentence and points. Full review of all criminal laws to eliminate victimless crime, legalise medical use of cannabis and review laws on drugs consistent with changes to health and ACC policy (to ensure individuals are accountable for their actions).
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18. Climate change: Declare climate change policy to be abolition of subsidies for activities likely to be contributing to climate change (in fact all activities), and reducing taxes on low emission activities (and all activities). Abolishing transport subsidies and price controls on energy will help too. Quite simply, taking pro-freedom steps that are consistent with trying to reduce the theoretical impact of climate change, but nothing else.
19. Strengthen our constitutional framework: Yes to a Taxpayers' Bill of Rights, but also abolish the Maori seats, include private property rights and right to control one's body in the Bill of Rights, and eliminate references to the Treaty of Waitangi in all legislation.
20. Appoint mentors to families at risk: All very well and good, but to help this along, abolish additional welfare for children born to families or individuals already in welfare. Also deny convicted serious violent or sexual criminals the right to custody or cohabitate with anyone under 16, or the right to welfare. The stick as well as the carrot.
So there you go, it felt rather unambitious not scrapping the RMA, not introducing a libertarian constitution, not fully privatising schools and hospitals or the roads, or legalising drugs, but well this isn't for Libertarianz, it's for ACT. What do you think?
An idea for Dr Cullen
The dangers of collective thinking
Dr Cullen thinks it's inflationary if you spend your money but not him
Advance auction of stolen goods
19 May 2008
Using Koran as target practice
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1. It's a book, those who get upset about it happily ban and burn books themselves.
2. Notwithstanding that, it was not a clever thing to do in a predominantly Muslim country.
3. However, it's telling how upset so many Muslims get about this, but don't get agitated about honour killings, rape victims being executed, sentencing teenagers to death for having consensual sex, or death for adultery. Yes, the priorities of far too many Muslims are - book first, lives second (sorry I mean female lives third).
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Oh and if anyone wonders how i'd feel if a copy of The Fountainhead was used as target practice? Well if it was by a US soldier, I'd say he was an idiot, but it's his right to free speech. If it was the Bible I wouldn't care less, but I suspect many in the US would be calling for his head.
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You see as much as I know how it isn't clever to deliberately insult others for the hell of it, it is more important to realise that nobody has a right to not be offended. I find all the points I listed in "3" above to be infinitely more important than any single book - I'd like to hear from Muslims who agree.
Scoring ACT's 20 point plan
"Who would you trust to manage New Zealand's $175 billion economy in a crisis?
Michael Cullen - who's squandered the best global conditions of a generation to make us poorer than Greece?
Bill English - who did nothing much the last time he was Minister of Finance, and is proudly promising to do nothing much again?
Or Sir Roger Douglas - the Finance Minister who transformed New Zealand from the East Germany of the South Pacific into one of the freest and most respected economies in the world?"
So what are these 20 points? Are they substantial, or are they waffle and would they make a positive difference? Here's my verdict one by one (this will take some time). I'm judging ACT on clarity of policy and contribution to economic or personal liberty. To make it slightly more interesting I'm giving up to 5 points for being bold:
1. Government waste. Cut state spending to Australian levels: I presume this means as a proportion of GDP, but isn't entirely clear. This is clearly positive, modestly ambitious, but only worthy of 2 points, after all Australia is far from free from government waste.
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2. Cut and flatten tax rates: Well yes, but what does this mean? This could be anything from getting rid of the 39% top tax rate to promoting a single flat tax rate. Last election ACT promoted a two tier rate of income tax, in 1999 and 1996 it advocated flat taxes. Make your mind up. Lack of clarity shows lack of commitment to what this means. National may cut tax rates and you flattening is a point further, so only 2 points here. If ACT comes out with a single low income tax rate then it would deserve 4 points.
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3. Limit local government to core activities: Again, lack of clarity. What does this mean? Does it include owning water, rubbish collection services and running roads? Does it include subsidised housing? In principle, it is good, but again lacking clarity means what am I to judge? I'm giving ACT 1 point for this, it could be 3 if it was specific to what are often referred to as "public goods".
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4. Reform the public service: This is described as cutting Parliament to 100 (fine but symbolic really), close departments "we don't need" (like?) and limit Cabinet to 12 members (again symbolic). The first and last proposals do little, and closing departments without naming them is rather odd. I'll give ACT 2 points for this if only because it has promise, but little more.
5. Red tape: Back into the vagueness brigade. Saying things like "Get rid of all nutty regulations" without one example is fuel to fire Labour. The Regulatory Responsibility Bill would be a small step forward, but there already are Regulatory Impact Statements prepared, albeit often ignored and with poor analysis. Only 1 point with this, as it sounds like little more than rhetoric.
6. Reform the Resource Management Act: Again nothing in terms of substance. If I'm optimistic it might mean including private property rights, but Rodney says nothing else useful about it. I'll give him 1 point for reform, but it's woefully inadequate to not say more. He gets four if he RMA makes private property rights paramount (three if dominant).
7. Create a competitive market in education: At last something more substantial, education vouchers. Now this would make a positive difference. The need to tackle education is critical, and this will break the centralised bureaucracy and the unions, I'm giving it 3 points for being a worthwhile step forward.
8. Same in healthcare: Well I'm not sure ACT means health vouchers or being able to buy health insurance with a tax rebate, for that it loses a point for being unclear. However, having competitive delivery and choice in healthcare would be be worthy. 2 points for that assuming it does really mean choice.
9. We'd reintroduce competition to accident compensation: This isn't that vague, although remember competition was only for employer accounts, not motor vehicle cover or personal cover. If it is just employer accounts then it is only 1 point, the Nats are already going to do that. Add motor vehicle and it gets another, and personal accounts adds another two. So more clarity needed there.
10. Welfare. We'd create competitive markets for sickness, invalid and unemployment insurance: Now this appears bold. Presumably this insurance would be compulsory (which knocks a point off), and doesn't mention the DPB (which is rather critical too). However, having people buy insurance rather than pay taxes for welfare is a bold step forward indeed. ACT gets 4 points for this, as it has the potential to be a quantum leap forward in how the public treats welfare and insuring against misfortune, I'll assume not mentioning the DPB is an oversight, as not including that would knock a point off, because it is too important to ignore.
11. Immigration: Uh oh vagueness returns with talk of "welcoming more high quality migrants". There is literally nothing to hang an opinion on here, so I give it 1 point to be kind assuming something positive might be done.
12. Labour reform: Rodney says this means "Allow freedom of contract to make it easier to trial new workers and replace poor performers". Nothing to argue with there, assuming this is further than the former Employment Contract Act then it deserves 4 points.
13. Privatisation: Rodney says "Sell state businesses where private firms can serve customers better". Now limiting it to businesses (not hospitals, schools and roads) easily knocks a couple of points off, but also limiting it to selling AND the condition that "private firms can serve customers better" seems a little odd. It gets 2 points for being less bold than it should be, and because the next policy wouldn't be necessary if it was more bold.
14. Infrastructure: Rodney says "We need to build better networks, like roads, water and electricity", well you could sell electricity and water with little effort, and roads with a bit more. He then says "replace user charges with tolls that reward off-peak use". This means roads of course. Electricity and water can do this easily, now. Roads you could allow this by following the commercialisation/privatisation model you talked about before. It gets 1 point for noting the economic point, but no more for failing to note how this best can be done.
15. Cut the remaining tariffs on imports: Excellent, clear policy, cut appears to mean abolish. 5 points for this, all of New Zealand being a free trade zone is clearly bold.
16. Free up more land for housing: I'd like to know what this means. It could mean getting rid of urban growth limits, it could mean the government selling land. It could mean changing property rights. I don't know, how can I give it a single point, unless it is a combination of all of the above, and four points if private property rights were paramount (I can hope).
17. Strengthen law and order policies: A perennial favourite. This time it means private prisons (a point for that), private sector helping the Police (a point there too, as long as civil liberties are respected), then speed up the courts (Night Court time apparently) and zero tolerance of minor offences all seem rather positive. Of course no talk of reviewing victimless crimes or the war on drugs. I'll give ACT 2 points for this because although it is positive, the truth is it isn't that particularly bold. A bit more commitment to zero tolerance might squeeze a third point out of this policy.
18. Climate change: Now this is very unclear. It appears ACT supports a carbon tax by Rodney saying "A low carbon tax would be a lot more affordable than carbon trading". Then he talks about the US, Australia and British Columbia doing this better, though they all have different policies. There is definitely a minus three from this one. This policy wont add anything positive to the status quo.
19. Strengthen our constitutional framework: This means a Taxpayers' Bill of Rights (a point of that), return to the Privy Council (maybe a point for that at best), and a referendum on MMP (no points for that Rodney, it's neutral). Nothing on private property rights, nothing on getting rid of the Maori seats, nothing about treating the Treaty of Waitangi as historically important but no more. 1 point for the Taxpayers' Bill of Rights. I wont double count the Regulatory Responsibility Bill.
20. Appoint mentors to families at risk: Hmmm one point for this. How about denying convicted criminals welfare? How about withdrawing custody from those convicted of violent or sexual offences? How about dealing to the DPB?
OK, so what does ACT get. It could get 100 for being radically bold and innovative towards pushing freedom and personal responsibility. If it gets 50 I'll say it will have taken the chance to be a major difference from National and staked a claim for reform ala the 80s, early 90s. So now I'll count. 33 points at worst, and if the vagueness I identified came out as positive as is likely it would be 47. Of course to get 47 would mean advocating a single low flat tax, reforming the RMA meaning private property rights were paramount and local government reform made a serious difference.
So I give ACT a D, but showing promise. If it dumps talking about a carbon tax as being positive, advocates flat tax, advocates private property rights, spells out what local government should do explicitly and is bolder on privatisation (such as giving away shares and going beyond the SOEs) it could get a pass. Its brightest points appear to be on welfare and trade, shifting welfare to an insurance model and abolishing tariffs are two rather bold innovative steps. I hope the vagueness is clarified, and a bit more boldness can be squeezed out.
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Of course the Nats should hold their heads in shame. Five of these policies were once Nat policies, now they are not.
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On the other side, Libertarianz have nothing to be concerned about. There is plenty of room for practicable pro freedom policies on all of these areas, and I'll be blogging on what these could be tomorrow. Frankly if it was 1987 or 1991, I'd expect almost all of the ACT policies to be mainstream with either Labour or National - oh how times have changed.
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UPDATE: Lindsay Mitchell describes it as "what real commitment looks like", even though it doesn't explicitly even mention the DPB, which is a passion of hers (and rightfully so).
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Clint Heine provides a handy link to the pledge card (PDF) and is enthusiastic as well saying "The pledgecard is a briliant piece of work, and something EVERYBODY of any political persuasion should look at and debate. I personally think this IS the agenda the right in NZ should be following and I challenge National/United and any other centre right party to come up with anything that will be as successful as this is." Yes , centre right is the term. I could see most of this being National policy on a good day, but I can do better, and it isn't even going as far as Libertarianz.
Time to purge Immigration service
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Clearly the Pacific Division has been dominated by a nepotistic culture that sounds remarkably like the kind of public service culture all too apparent in Pacific Island nations where "who you know" is terribly important. 19 cases of theft, bribery and fraud over three years. It has clearly operated like a third world bureaucracy.
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For once I agree with Idiot Savant "Led by a self-serving fraud, agreeing to lie in unison to prevent proper public oversight, and now taking bribes and kickbacks for favours. And they want even more power to abuse? Screw that - they can't possibly be trusted. The whole department needs a full, independent review to cut out the rot - and once that is done, it needs to be watched like a hawk to make sure it never reappears."
Of course it could help if a qualified open door policy was allowed on immigration, which means allowing anyone in on condition that they are not eligible for taxpayer funded education, housing, healthcare and welfare, not convicted of a criminal (violent, property, fraud) offence, not linked to a terrorist group and have the means to look after themselves for three months (and the means to leave). That would mean confronting the xenophobia of both NZ First and the Maori Party, and the socialist beliefs of those who support the welfare state, but it would help avoid bribes to be allowed in, and only let in those who wont be a claim on the state, or risk committing crimes against the rest of us.
18 May 2008
Bailey Kurariki enjoying home detention
Sunday Herald advocates intervention in Burma
Nats want to revisit MMP
17 May 2008
Don't forget Zimbabwe, has Africa?
Mugabe's reputation as an anti-colonial hero is protecting him from scrutiny, criticism and from being arrested, tried and imprisoned for his role in decimating his country and oppressing his people. The tinpot Marxists and collectivist kleptocrats who bully, bribe and connive their way to power in far too many African countries have enough in common with Mugabe to not want anyone to look in their backyards. South Africa is proving also that it is led by a tinpot Marxist who'd rather protect his mate than tell him to stop murdering the common people. Zimbabweans are being murdered and beaten, and South Africa continues to feed and support those commiting those crimes.
Obama and Clinton's pork stinking up world trade
16 May 2008
While Burma's people suffer, the NZ government profits
Obama mania needs to be looked past
Happy Birthday Israel but...
So this post will be controversial.
The founding of Israel was a political decision, a decision that the British governed territory known as Palestine should be divided into states based upon nationality, and implicitly by religion. It was one of the first actions by the UN. Words are important here, after all arguably everyone living in the territory of Palestine is Palestinian, although the word is only used to describe the Arabs living there. There is no other distinction for the word "Palestinian". However, equally all Arabs living in Israel can be said to be Israelis.
What is clear is how much isn't clear about the years leading up to the creation of Israel. Zionists did act, violently, against Arabs. Arabs responded in kind. Quite simply, bald nationalism drove both sides, and still does - the notion that because one belongs to a certain nationality, there is some greater entitlement to land than that of others. It divides people who wish to live side by side on the same land, and it is a division promoted by the UN from day one.
So Palestinian Arabs have wanted to destroy Israel from day one, although Fatah in recent years has recognised Israel and accepted a "two-state solution", it would be fair to say that many Palestinian Arabs want Israel eradicated. On the other side, many Israelis also sought the end of any notion of a Palestinian Arab state, some wanting the West Bank and Gaza to be part of a greater Israel. However, many also today accept that a "two state solution" is probably the only way that Palestinian Arab aspirations will be met. Having said that, Jerusalem will remain a problem, because of the different ghost intepretations that Jews, Muslims and Christians have and conflicting claims to that city for the same reason.
The right approach would have been to grant independence to all of the Palestinian territory, but for it not to be Israeli or Arab, but a secular state comprising Jews, Arabs and others. Zionists did not seek this, but then neither did many Arabs. Arab nationalism and Jewish nationalism both held the same collectivist malignancy. Had Palestinian Arabs had secure private property rights they could have justifiably held onto their own land, or sold it to others including Jews. State land could also have been sold. The displacement of Palestinians, by fear or by force was wrong - but that was then.
Palestinian Arabs rejected the UN partition plan of 1948, and sought to destroy Israel from that day forward. Since then Israel has created a modern liberal western democracy, light years ahead of the authoritarian Arab regimes that surround it. However, the issue of what to do about Palestinian Arabs has been the thorn in the side of Israel ever since, and especially for the Palestinian Arabs themselves.
So on the one hand Israel has reason to celebrate, having been attacked numerous times by those willing to destroy it, it survives, flourishes, maintain an average standard of living that is the envy of its neighbours, and has a relatively high level of freedom and corrupt free government. On the other hand, the West Bank and Gaza are disaster areas. Israel's occupation of both long made sense while neighbouring states vowed to destroy it. However, the creation of settlements, and the virtual martial law endured by Palestinian Arab in those territories has antagonised, and seen much suffering. It is clear that this must be addressed.
Israel has always said it was prepared to trade land for peace. It exchanged the Sinai Peninsula territory that it held after the Six Day War for peace with Egypt. It made peace with Jordan after Jordan recognises its right to exist, and relinquished any claim of the West Bank. Peace with Syria remains elusive, partly because the totalitarian one party state in Damascus finds it convenient to be a haven for terrorists and a rallying point for Islamists (ironic for a secular socialist party). No doubt peace with Syria will involve a settlement regarding the Golan Heights in one way or another.
The rest of the Arab world wont make peace until the Palestinian Arabs do. Much has been surrendered to them in recent years as overtures to make progress were made, by granting autonomy.
Palestinians were granted a chance with the withdrawal from Gaza, a chance they squandered. Gaza could have become a focus for reconstruction, the building of infrastructure, education, a free trade zone, a place for Palestinians and those who govern them to build an enclave of success. Somewhere to say to Israel - "Look we can look after ourselves peacefully, now let us have the West Bank too".
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Palestinians voted for Hamas, Hamas chose to use Gaza to launch attacks on Israel proper. Palestinian Arab's chose politicians who are vowed to destroy Israel. Who is surprised that Israel wont concede anything to these people?
Meanwhile Israel is a prosperous country with Western standards of living and a modern technology driven economy. It benefits enormously from US taxpayers, but is, if Arabs paused for a moment, an example of freedom, prosperity and tolerance in that region. The weeping sore of the Palestinian Arabs needs to be healed before Israel can live in peace, but as long as they follow Islamists or socialists, they will remain impoverished. The incompetence of their leaders will be hidden by blaming Israel for their woes, whilst their leaders continue to gain the benefit of subsidies from their oil rich Arab neighbours.
Israel still lives in an environment where many of its near neighbours don't believe it should exist, and almost the whole Islamic world follows this from Sudan to Indonesia. It has Iran, breaching IAEA rules and wishing its annihilation. Perhaps the only UN member state where other members explicitly call for its eradication. It deserves congratulations for surviving against wars that tried to destroy it, and neighbours that wanted it replaced with a Marxist or Islamic dictatorship. In that process of fighting for survival, it has accidentally killed many, and nobody can pretend Israel has not made many mistakes in how Palestinian Arabs were dealt with (indeed until 15 years ago mainstream Israeli politicians were still advancing a greater Israel). However, despite these mistakes Israeli citizens can be proud of the state they have defended, while they have been fighting they have built a livable modern society - when given the chance, Palestinian Arabs have so far failed. Israel is never going to go away, it's about time all its neighbours recognised this.
Oh and by the way, Israel knocked out Saddam's first nuclear reactor, supplier by the ever peace loving morally uplifting French in the 1980s, and last year knocked out Syria's. Nobody else had the courage to do either of those actions, and the world is undoubtedly a better place since Israel prevented Saddam and Assad junior from obtaining nuclear weapons. Something I doubt anyone in the so-called peace movement has ever cheered, because after all none of them really care about peace.
15 May 2008
Endorsement of Edwards boosts Obama
Manchester endures rioting Glaswegians
Qantas stuffs up A380 cabin release
Abandon the railways or just the facts?
While the fuel used by an efficient train will be less than that used by trucks carrying the same weight, this ignores the fact that freight is invariably carted by trucks at one end of the train trip and often at both ends. And at the transition, fuel is used by forklifts or container cranes and increasingly used to maintain the temperature of freight while its waiting to be moved.
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I've quoted it before, the Ministry of Transport's Surface Transport Costs and Charges study.
How to help stop the outflow to Australia
Rapist has a right to housing in the UK
Chavez calls Merkel a Nazi
14 May 2008
Why liberation from Saddam isn't enough..
Is it real?
However, to digress look at this photo. Hillary constantly does this faux "grin of recognition and point" action when on a podium. I know it's petty, but the lying power hungry shrew does it EVERYWHERE, as if she has friends in every state and every town. Is it fake? Or is she laughing at the poor dress sense of her supporters, or their messianic banality to want this compulsive liar run their lives?