EU truths and untruths

With the UK now voting as to whether it remains in the EU or stirs up what has been described as "the biggest change in European politics since the fall of the Berlin Wall" (although the war in Yugoslavia and the first genocide since the Nazis ought to come close), I thought I'd run through some of the claims of both sides that are intellectually dishonest.

Remain

3 million jobs are linked to trade with the EU: Well yes, but then nobody is saying trade with the EU will end and nobody campaigning to leave wants inferior trading conditions.  The European Free Trade Association provides free trade with the EU, with Switzerland, Norway and Iceland all members.  The idea that leaving the EU means 3 millions jobs are at risk is a gross exaggeration.   However, if the EU is bloody minded and puts up tariff barriers equivalent to what it does for the rest of the world. it is a 4% average tariff on UK trade to the EU, which is negative for jobs, but hardly a huge risk. 

If the UK leaves the EU, you might need a visa to visit the EU: Nonsense.  You don't need a visa to visit the EU from the US, Canada, Australia, NZ or any of the EFTA member states.  What would change is having the right to live there.  Given those wanting to leave mostly want to end the free movement of people, that could be a concern for some. 

Leaving the EU will create a recession: No it wont.  The worst estimates are a small reduction in economic growth, but the long run estimates are a 6% long term slowing of growth if the UK gets the most inferior trading conditions likely with the EU (and assuming the UK has no free trade agreements with any other countries, like the US, Japan and China).  It also assumes the UK does not cut any EU regulation out at all.  In short, the Treasury estimates used by the Government of a recession are based on leaving the EU, and not taking advantage of the new freedom to trade and freedom to relieve the economy of EU Directives that impose costs on growth.

The EU means food, petrol, flights, energy and mobile phone charges are lower: Unmitigated rubbish, quite the opposite.  The EU Common Agricultural Policy inflates the price of food in the EU by 17% over market prices.  The EU legally requires all Member States to tax petrol by at least around 32p/l (but the UK government taxes it at 80% more than that).  The Single Aviation Market goes beyond the EU, with many non-EU countries as participants.  Norwegian Airlines has grown rapidly in the past couple of years, expanding long haul flights between the UK and US.  Norway is not in the EU. The EU inflates energy prices, by requiring minimum levels of taxation on gas and electricity bills, and imposing renewable energy obligations on member states.  Yes mobile roaming in the EU is lower than it would have been had the EU not enforced it, but it's clear EU protectionism and "normalisation" of regulations imposes costs on consumers. 

The £10 billion paid into the EU is "returned' many times over: No it's not.  What is returned is free trade, which should never be at the cost of paying for farming subsidies or infrastructure investment in other countries.  Leaving the EU doesn't mean an end to trading with the EU. 

The EU has 50 trade agreements we lose access to:  Many of which are with micro-states/territories, like San Marino, Andorra, Liechtenstein, Faroe Islands, Guernsey.  The only significant economies with deals are Mexico, South Africa and South Korea.  The UK could readily negotiate during the transition deals easily as good or better, as the main forces for protectionism in trade are the likes of France.

Staying in means reform:  That's highly unlikely.  David Cameron couldn't even get all the reforms he asked for with a threat of Brexit (which clearly the EU saw through as being unlikely), why would it happen after a vote to Remain?  The UK holds 9% of the MEP seats in the European Parliament, and although it is a significant contributor, reform is sclerotic.  The EU hasn't significantly cut back any of its activities and always finds new ones.  It is a political project of integration, and shows little sign of ever caring what is thought of it.

David Cameron's deal means unemployed EU migrants can be deported:  No, they can't. EU citizens can't be deported from Member States unless they are a threat to national security or criminals.  

Leave

Leaving the EU will fix the immigration "problem":  Assuming the problem is too many immigrant, and the failure of the Government to cut annual immigration to less than 100,000 people, leaving the EU will enable the UK to ration EU immigration like it does for non-EU.  However, non- EU immigration is already over 150,000 per annum.  Nobody is saying Brexit means deporting immigrants (thankfully).  Most concerns over immigration are perceptions about access to taxpayer provided services, and more often than not reflect the bankruptcy of the world's biggest health bureaucracy, which is treated as a religion never to be reformed (NHS), the bizarre legal obligation of all local authorities to ensure anyone who lives in the UK has housing (including rooms in hotels paid for by taxpayers), the open access to compulsory education and the sclerotic way the UK restrains supply of housing and roads.   Leaving the EU wont solve any of that, but then those wanting to stay in the EU are also devoid of responses to what are more fundamental problems.  

Turkey is joining soon: No it's not.  Notwithstanding David Cameron's hypocrisy over the issue, it is difficult to see Cyprus accepting Turkey until there is settlement over northern Cyprus, or Greece accepting Turkey until Turkey secures its southern borders with Syria and Iraq.  However, Serbia, Montenegro, FYR Macedonia and Albania will all likely be members within 10 years.

Money saved will be spent on the NHS:  Well the half that is a rebate and is current subsidies wont change, although there is a chance to make some serious saving there.  The rest?  Well it can go on many things, but there is a case for simply cutting the deficit by £10 billion a year.  After all, despite George Osborne's platitudes, the UK government is still overspending.  What happens with the money is up to the government.  The Leave campaign is not the government.  Yes leaving the EU wont save £350 million a week, more like half that, but the rebate is not set in a treaty, and the spending 

UK will be drawn into the Euro and ever closer union: The UK has a treaty opt-out of the Euro and has to agree to treaties for ever closer union, but it wont mean it doesn't face the costs of ever closer union.  That will depend on future negotiations.

The UK can get trade access as good as the Single Market without free movement of people:  This is unlikely, simply because it would mean the Single Market is undermined and would be a massive backtracking of the principles of the EU.  Signing up to EFTA or the EEA will mean some compromise on this.

Road pricing in Auckland

A simple guide:

1.  The proposal now on the cards is not "road tolls", tolls are when individual roads are subject to an additional fee on top of existing motoring taxes.  

2. The Auckland Mayor's "motorway tolls" proposal has been comprehensively rejected, as it has been before for sound reasons.  Quite simply, the motorways are not Auckland Council's to charge and just charging them diverts traffic onto the local road network which has traditionally been neglected in Auckland.

3. The proposal put forward by the government is to replace fuel tax with what is essentially an updated version of road user charges (which already is provided now by three private companies collected RUC), that varies by vehicle type, location and time of day.  It should be absolutely clear, as are vaguely similar proposals in Oregon and California, that fuel tax must go if roads are to be charged directly. 

4. The Auckland Transport Alignment Project (ATAP) has made it abundantly clear that the current "build lots of rail based public transport" trend beloved of new-urbanist planning enthusiasts (and the Green Party) will have next to no impact on traffic congestion. It's hardly surprising, because the reason traffic congestion exists is because the provision of roads and the pricing of roads is not done under market conditions, but is subject to a political/administrative process that results in demand exceeding supply.  Nowhere in the new world (NZ/Australia/US/Canada) have any cities noticeably eased traffic congestion by building new bespoke passenger rail networks.  Which is why, when questioned, the enthusiasts for highly subsidised (by taxes from road users) urban rail don't talk about addressing the problems of urban transport, but sell how "wonderful" it is for people to have a choice that they pay a fraction of the cost for.

5. There is no need for road pricing to be accompanied by highly subsidised alternatives.  Full market based road pricing has four major effects:

-  Prices go up at peak times, encouraging users to make different choices, such as drive at a different time, use a different (less congested) route if available, use another mode (increasing revenue for that mode), or not take a trip at all (consolidating trips);

- Prices go down at off peak times, encouraging greater use and facilitating more trips at those times;

- Congestion is greatly reduced, providing capacity for more public transport on existing roads at peaks, and making such public transport commercially viable.

- Higher revenues at peak times on busy roads sends a signal to invest in more road capacity when revenue from additional users will pay for the cost of the new capital investment

The primary economic argument for subsidising peak time public transport in cities has always been that roads in cities at peak times are underpriced (and historically the technology did not exist to adequately address this).  Once roads are priced efficiently, the case for subsidising urban public transport is weak indeed.  Notice that intercity bus and airline services are not subsidised, neither are road freight services (in or between cities).  Why should urban public transport be special when roads are subject to market forces?

6.  Market based road pricing inevitably should mean the management of roads is taken away from politicians and bureaucracies and towards a more commercial model.  State highways could be shifted into a state-owned-enterprise that could be privatised by giving away shares to all registered vehicle owners.  Local authority roads could be transferred into similar enterprises, but with shares held by local property owners (as ratepayers currently pay for half of all local road costs).

The price of roads should then be set by these organisations.  They would be owned by those with the greatest interest in their networks being run efficiently and meeting their needs.  

7. The ATAP road pricing proposal can only work nationwide.  It isn't just for Auckland, it's a change in how roads are priced everywhere.

Auckland Council wont like this, because it knows that the only way to address congestion is through road pricing, but it doesn't want to lose control of its large rail vanity projects (now including trams - which are buses on dedicated rights of way for 3-5x the price to taxpayers).  It wants control of the revenue to spend on its politically/central planner driven projects, but it shouldn't get it.

Bearing in mind the government wont do what I say, this is what it could do:

- Move all of the state highways into a new SOE, empower that SOE to charge users but only if it gives them an equivalent refund in fuel tax or RUC

- Tell Auckland Council that if it shifts its roads into a new Council Controlled Organisation, it can be fully funded from fuel tax and RUC (and any road pricing that replaces them), but on condition it gives all Auckland ratepayers an equivalent permanent cut in rates and that it has no political direction at all on its activities.


More background on Auckland road pricing debate in recent years:
Auckland motorway tolls re-emerge as revenue raising option
Auckland transport funding report promotes urban road pricing and tolls
Auckland congestion charging, not happening yet

NZ Herald wrong about EU referendum

The NZ Herald has decided that it thinks the UK should stay in the EU, but its editorial on the issue is  woeful, it misses the point and is dotted with errors.  There is nothing in the editorial about the key problems with EU membership, around how EU laws are developed undemocratically (introduced by the European Council, MEPs can't introduce legislation), how the EU is inordinately wasteful including on policies that harm New Zealand's economy (including the Common Agricultural Policy) and harm developing countries.  Nothing about the protectionism of the EU slowing the ability of the UK to trade freely with growing economies in Asia and Latin America.  

New Zealand has full control over its trade policy, its domestic regulations and immigration policy, but the UK does not have the same at all.

It's not true that no country has ever left the EU, Greenland did.  Now that's not anything remotely on the scale of the UK.  Of course, neither did the NZ Herald point out that Switzerland, Norway and Iceland all have thrived outside the EU.  The EU is not Europe as much as it likes to think that it is.  

It's true that Brexit could encourage a break up of the EU, but is that necessarily a bad thing? An unwieldy arrogant technocratic organisation that failed miserably to deal with the refugee crisis, was paralysed by the breakup of Yugoslavia, unable to agree on acting until the US intervened to stop Serbia deporting Kosovan Albanians.  The spectre that European countries will wage war on each other when they have functioning liberal democracies with extensive trade and travel with each other. 

Yet the Herald editorial paints the picture that Brexit somehow increases the chance of Russia invading the EU? Why?  NATO provides the security guarantee for its members, it isn't weakened by the UK leaving the EU - at all.  Why would it matter?

The claim that Scotland will leave the UK after a Brexit vote is also rather fatuous.  Polls on Scottish independence still say 55% would vote to stay in the UK, and there is little reason why the UK Government would hold another referendum on Scottish independence.  It's highly presumptive to think Brexit means Scottish independence.

Finally, yes it is immigration that is motivating many voters to want to leave the EU, but not immigration from outside the EU, it is concern that free movement will overcrowd the country, keep down wages and overwhelm government provided services. 

However, for me, it is because the EU is a sclerotic unaccountable project that keeps the UK in chains, it also subsidises unfair competition to New Zealand producers in world markets and restricts sales of many NZ products into the EU.

The case to leave the EU is about openness, tolerance, kindness and freedom

The shocking murder of Labour MP Jo Cox may well prove decisive in the referendum on EU membership.   Tommy Mair appears to have repeatedly shot and stabbed the MP and for all we now know, when asked for his name he shouted out “Death to Traitors, Freedom for Britain", but Mr Mair doesn't believe in freedom.

It appears he is a fascist, and so of course, the new narrative has been that “politics are too angry” and that the anti-EU campaign has “fuelled” this murder.  Of course, those claiming the hate tend to be on the left/Remain side, like legendary leftwing polemicist Polly Toynbee, who once claimed Conservative welfare cuts were like The Final Solution for the disabled.  You can’t do much more in hate than accuse your opponents of being Nazis can you?  Of course Labour is led by a man who used to go to the funerals of IRA terrorists and invite their leaders for meetings, all the time it was waging war against the UK public and UK government (and had killed several MPs).  Corbyn’s statements against hate and violence are as duplicitous as they are disgusting.  The late Jo Cox had a range of views across the spectrum, including a belief that the world shouldn't let Assad barrel bomb and drop chemical weapons on civilians, which saw her be damned by the mediocre "Madame Mao" Labour front bencher Diane Abbott as a "warmongering Tory".  She faced a campaign for de-selection, which Labour has carefully airbrushed away, as her tragic murder becomes politicised.  She did support remaining in the EU, quite vehemently, so it has become easy to claim that the other side were opposed to her.

Yet, the narrative that links the murder to leaving the EU may well stick among undecided voters, especially as polls have been close throughout the campaign, and most recently have put Leave ahead by a few points.  

It’s grossly simplistic and opportunistic to claim, as Remain advocates are, that their side is about kindness, tolerance and openness, when the EU is neither open, nor particularly tolerant and kind with its trade policies, or indeed with diversity of opinion about itself.

The EU isn't open when it maintains a fortress around it trading with the world, especially on services and agriculture.  It has been a force for openness in trade within with enormous resistance from one of its founding members, France, which sees the EU as a tool for "solidarity" - code for spending ever more taxpayers' money on its dirigiste vanity led economic nationalism and absurd profligacy for 19th century farming enterprises.

The EU isn't tolerant when it ignores referenda in France, Ireland, the Netherlands on EU Treaties and simply demands their governments ignore them.  It isn't tolerant when it says that it wont allow "extremists" to be in government in Member States even if democratically elected.

The EU isn't kind when it continues to flood world markets with subsidised agricultural produce, undermining exports and domestic production in developing countries, and so impoverishing poor country producers, whilst funding subsidies for Prince Charles's farming empire.  

Do I think leaving the EU will mean the UK will embark on some free market libertarian revolution of less government?  No, not really.  However, within the EU the only certainty is that there will be growth in EU spending programmes, growth in regulation and ever less accountability for the new laws and spending from Brussels/Strasbourg (don’t forget the EU has two locations for its Parliament, because France wanted an impoverished area to get a boost, so monthly the entire Parliament relocates between cities, at a cost of over €330 million annually).

For all of the relatively mild rhetoric about immigration, the Leave campaign is led by politicians who have mostly been sceptical about government power and all are advancing an agenda of more free trade, more openness to the world and greater engagement with the world.  Leaving the EU is not the fascist/socialist vision of a self-sufficient island that waves a flag and shuts out the world (although those who hold those views want to the leave the EU because its own internal market is an anathema).

I don’t doubt a vote to leave the EU will be a shock, initially to financial markets, more fundamentally to the EU and to the UK Government.  However, the shock need not last for the UK, when there are many years to negotiate leaving the EU and a new trade relationship.  It wont give succour to Putin, nor will it mean a loss of influence for the world’s fifth largest economy.

The Spectator’s lead story this week is about how it is advocating for the UK to break free from the EU.  

Given that the EU has proved that it is structurally incapable of reform, we now have a choice. Do we cave in, because we’re too scared to leave? Or do we vote to retrieve our sovereignty, walk away from the whole racket and engage with the world on our own terms? A vote to leave would represent an extraordinary vote of confidence in the project of the United Kingdom and the principle of national self-determination. It would also show reform-minded Europeans that theirs is not a lost cause. And that we stand willing to help forge a Europe based on freedom, co–operation and respect for sovereignty.

It isn't a vote for UKIP politicians, for leaving the EU will put most of them out of a job.  Nigel Farage isn't even an MP, and the one UKIP MP, Douglas Cardwell, is very much a libertarian.

I urge all those in the UK eligible to vote, to Vote Leave.  It is time to break free, for a more open, a more tolerant and a kinder UK. 

Libertarian position on the EU Referendum

On 23rd June, the UK will vote on whether to remain in or leave the EU.  I'm voting to leave the EU, and believe that, on balance, those who believe in individual liberty including free trade should strongly support leaving the EU.

Bizarrely, Prime Minister David Cameron, having campaigned for a referendum, is now claiming that a vote for the UK to leave would trigger recession, economic catastrophe and even risk future war.  He’s been asked why he bothered putting the UK through such a risk, particularly since only months ago he said the UK would “do ok”.    Now both the Tory Government, most of the Labour Party and virtually all Liberal Democrats, Scottish and Welsh Nationalists and the Greens are all campaigning to remain in the EU, whereas the campaign to leave is led by Boris Johnson,  Michael Gove, nearly half of Conservative MPs, a handful of Labour MPs and UKIP.

The two main planks of the Remain camp are first that leaving the EU Single Market would damage the economy, and they cite many economists, the IMF, World Bank and OECD who all support this, along with some major business leaders and companies.  The second claim is that leaving the EU “lessens Britain” and isolates it, and means the UK loses influence. 

The Leave campaign has a few key messages.  One is that it will save £350m a week from not contributing to the EU (although that excludes receipts from EU programmes to the UK and Thatcher’s rebate, which could be removed at any time).  Secondly, is that leaving the EU will return sovereignty to the British Government, rather than the EU, which passes laws, even if all British MEPs oppose them, imposing them on the UK.  Thirdly, is concern that immigration cannot be effectively controlled whilst there is free movement and full rights for all EU citizens to reside in the UK.

For a libertarian, the EU referendum does mean a trade off.   Indeed, the only two elements of the EU that are pro-freedom are the single market and free movement of people.

EU Membership does provide a single market of over 550 million people, for goods if not for services.  However, it is a customs union that is highly protectionist, and has for decades been one of the biggest objectors to global free trade in agriculture and in many services at the WTO, particularly because France is consistently resistant to trade liberalisation.   Much is made of the EU signing “trade deals” with other countries, but it rarely includes services and never includes agriculture.   Nick Clegg likes to describe the many years and reams of paper needed for the EU to reach trade agreements with the likes of Canada, as if this is the norm (and a burden the UK would have to bear with other countries if outside the EU).  Yet this is quite unnecessary.  New Zealand and Australia agreed on free trade (CER) in less than four years, with a relatively simple agreement.  The only reason free trade agreements become complex is when one of the parties wants exemptions – not actually wanting free trade. 

The second libertarian element of the EU is the free movement of people.  The ability to cross borders virtually unimpeded is of significant value, but it is unconditional.  No EU Member states have the ability to shut out other EU citizens if they have been convicted of any serious offences.   I am not from the camp that believes that free movement within the EU is inherently bad, but I do believe countries should be able to exclude foreign nationals who are proven violent criminals.  The UK's immigration problems are in part, its own fault.  Its health system is the world's biggest civilian bureaucracy that makes feeble attempts to restrict non-national usage and asks nothing of users in terms of financial contributions.  Anyone with legal residency in the UK has access to the welfare state (including generous tax credits for low income workers and child benefits), to taxpayer funded education for their children and access to publicly subsidised housing (indeed there is a "legal right" to housing in the UK, paid for by others).   

In short, the UK has a welfare state edifice that is attractive to migrants with low skills, especially coming from much poorer countries with inferior health, education and housing provision.   If it wants to reduce immigration, it ought to look in the mirror.

Furthermore, as journalist Rod Liddle said at a Spectator hosted event on June 13th, eastern Europeans don't pose an existential threat to western civilisation or to the values of individual freedom that give cause to be concerned about Islamism.  As much as some are concerned about Polish migration to Britain, they integrate, they embrace the values of a developed Western liberal democracy, they set up businesses, they are not demanding media not offend them with threats of violence. Notwithstanding the distortions caused by the UK's wider welfare state, I am not concerned about migration from eastern European, as long as prudent measures are made to exclude convicted violent criminals.

However, the freedom of movement and freedom of trade within the single market do not, for me, outweigh what's wrong with the EU:

- It is a massive exercise in regulation and legal control on almost all areas of the economy.  The EU has over 10,000 Directives on anything from standards for fruit and vegetables, to blowtorches, to light bulbs, to employment.  It is a huge corporatist system that imposes major compliance costs on businesses, restricting new entry and restraining innovation.  Most explicitly, the EU has prohibited the use of genetically modified organisms in agriculture, ensuring that research and development of GM technology outside laboratories is based in the US and Asia, not Europe.

- Its budget is dominated by the protectionist racket known as the Common Agricultural Policy (CAP).  The CAP inflates the price of food for Europeans by heavily restricting imports from more efficient producers from many countries, including New Zealand, and subsidises overproduction in Europe which is then exported undermining market prices in other countries including poor producers in developing countries.  The CAP impoverishes farmers in poor countries, whilst the EU engages in pious virtue signalling about how much it cares about inequality.  The CAP itself isn't even equal in Europe, as it would have gone bankrupt had eastern European producers been subsidised at the same rates as those in western Europe, so perversely farmers in the EU's poorest countries (e.g. Bulgaria) receive subsidies one-third lower than those in its richest countries (e.g. Luxembourg).

- The EU takes £10 billion a year of British taxpayers' money more than it returns (and most of what it returns is to prop up farmers, to fund research projects or pious regional development projects).  That is money currently borrowed from future taxpayers.  It should end to help balance the budget.  The ludicrous idea that this is the "price for accessing the single market" is absurd.  Free trade does not need to be accompanied by massive subsidy schemes for small parts of the EU economy or politically motivated infrastructure, research or vanity projects (such as Galileo - the EU's complete duplication of the US GPS system, under the nonsensical basis that the US might "shut it down one day").  Furthermore, the majority of EU Member States are not net contributors, and until the past three years neither was France (primarily because it takes so much back in subsidies to prop up its 19th century farming sector).

- The EU is fundamentally authoritarian in instinct, having contempt for the democratically expressed choices of EU Member State voters (the EU President recently said that certain political parties would "not be allowed" to have power if they won elections in EU Member States, such as the Freedom Party in Austria).  The EU's utter failure to provide any discipline on spending in some Euro-member states and contempt for popular revolt at the resulting economic collapse reflects its distance from the concerns of Europeans.  Notably, it has taken few steps to address Hungary's creeping authoritarianism as its government subverts much of its media to support its own propaganda.

- Members of the European Parliament have no powers at all to introduce new legislation including legislation to abolish existing Directives.  Only the European Council can introduce draft legislation into the European Parliament, and the Council is comprised of people appointed by Member State Governments.  The closest the EU gets to accountability is that MEPs can vote to oppose the passage of draft directives, but none can propose their own new legislation.

- The European Commission budget has been found to be materially in error every year for the past 18 years, most recently by 3.9%, or around €5 billion.  This is in part because of the complexities of its spending programs there is considerable scope for fraud and mistake.  Never mind, the EU just keeps asking for more money.

- The EU never cuts its budget, ever.  Every year it asks for more and more, it never ceases to undertake any functions, it never seeks to hand back powers to Member States.  It grows inexorably.  Ten years ago it didn't have a common Foreign Policy, it is now discussing haviuniong an EU Army.  Bear in mind this growth continues in spite of it telling the likes of Greece and Spain that they need to cut spending to balance their budgets.

- The EU falsely claims it is responsible for peace in Europe amongst its Member States, ignoring not only the role of NATO in deterring war with the Soviet Union, but also the more fundamental principle that liberal democracies don't go to war with each other.  The EU got in the way of addressing the war in the Balkans in the 1990s as it opposed letting the Bosnian Muslims arm themselves to respond to the Serbian ultra-nationalist genocide being led by Radovan Karadzic, it has been divided over Ukraine.

- The EU attracts mediocre political appointees to have considerable power over us all.  The UK supplied the second Foreign Minister, Catherine Ashton, a Labour Party member, unionist and former peer (i.e. never elected) who had no foreign policy background.  Failed UK Labour Leader Neil Kinnock built a long career for himself and his family in the EU.  

- The EU has attacked free speech by requiring Google to remove content from searches that EU citizens specifically request as being the "right to be forgotten" .  More recently it has sought to have a common approach to "hate speech", including a call to restrict "disrespectful public discourse".  Fuck off you arseholes.

- The EU project's ultimate end game is a European superstate with power over taxation, national budgets and a massive programme to "harmonise" the regulation of all industries and sectors as one.  This superstate will not be interested in reducing what it does, granting more freedoms to its citizens and reducing its burden on taxpayers, rather the contrary.

Supporters of the Vote Leave campaign have produced this movie below, which is being freely distributed.

I have already cast my postal vote to leave and no, I don't take the views of President Obama, John Key, the IMF, World Bank,  UN Secretary General or others into account.  I don't expect any government or any international organisation to risk their own trade and relationships with the world's largest economy (the EU) by supporting the UK leaving.   Most bizarrely, it is odd that President Obama would ask the UK to stay in a political union that the US itself would never bind itself to even if it could, given the US itself refuses to sign up to many international treaties because it doesn't want its sovereignty restrained.

However, let's be very clear what leaving the UK does not mean:

The campaign to leave the EU is not led by those who want the UK to be isolated and protectionist: Unlike the opposition to the UK's original EEC Membership in 1975, those who lead the campaign to leave the EU now are not primarily socialists who feel threatened by foreign competition.  They are advocates of free and open trade with the rest of the world.   They are dominated by concerns that UK's national sovereignty is eroded by the EU and that the EU is wasteful, sclerotic, inefficient and dismissive of individual freedoms and people's concerns about it.

Leaving the EU is not "ending co-operation": Over 160 countries in the world co-operate on a vast number of matters.   Switzerland, Norway and Iceland are not in the EU, all trade freely with it and work with it and each other and other states, without being tied to the EU project.

Leaving the EU is not racist:  By illiberal-leftwing standards, the EU itself may be deemed racist with its trade policy that harnesses protectionism and European taxpayers' money to harm producers in developing countries.  Those advocating for Brexit want an immigration policy that does not favour EU citizens from non-EU citizens, which would appear to be anything but racist.

Leaving the EU is not "leaving" or "turning our back on Europe":  The EU is not Europe, it is a political-customs union project.  The UK has been at the heart of advocating values of freedom, civil liberties, liberal democracy, rule of law and separation of powers in Europe for much longer than any other countries in Europe.  It is understandable why some countries with recent totalitarian pasts would see the EU as a project that may enable them to move on from unspeakable horrors and oppression, but the UK does not have such a path.  UK outside the EU would trade, travel and work closely with European countries, with continued migration and investment, it simply wouldn't be shackled to how the EU wants Europeans to interact.

Leaving the EU is not seeking a return to a "golden age": Far from it, it is seeking to regain full sovereignty over UK laws to create a more dynamic, outward looking Britain that isn't dependent on the EU for freer trade with the rest of the world.  No one harks back to Empire, some say Brexit will enable trading relationship with the Commonwealth to be revitalised, but few see a future of self-sufficiency and exclusion.

So I have voted to Leave.  I know if it happens, the pound will drop, the FTSE100 will drop and there will be panic.  I also know that there are strong calls for Brexit to mean a significant toughening of immigration policy, which I largely oppose.  I also know there is chance the UK will be blocked from the single market for some time, as the EU and major EU Member States seek to punish the UK for leaving, rather than look at themselves as to why that might be.

However, I am also hopeful and optimistic that the world's 5th largest economy can be more outward looking, can liberalise its economy, can reprioritise its net contribution to the EU by cutting its budget deficit and replacing the subsidy programmes it receives now and phase them out.  I am hopeful that the UK can show the EU that it should be more dynamic, open and prosperous, stimulating the sort of reforms EU Member States desperately need.  I am also hopeful that the charlatan, the PR spin doctor Prime Minister, David Cameron, can finally retire, and the UK can have a government that doesn't look like the Labour Party stayed in power after 2010.

Three elections, none are likely to please: 1. London election

Yes it's been a while.  Having moved from one employer to another,  and with a load of house improvements I've been spending more time with life than pontificating, but there are two elections in the coming three months that I can vote in.  Of course the biggest one in the world is going on in the US, and from the point of view of a pro-capitalist objectivist libertarian, none of them seem likely to provide an outcome that is pleasing.  Why?

These are the London Mayoralty election, the UK EU referendum and the US Presidential election. First, the London Mayoralty.

London Mayoralty - 5 May:  The lowest profile one,  the least important, but also the election one that can't help but be disappointing.  Not one of the candidates is worth my vote, especially not the two leading candidates - Labour's leftwing candidate, Sadiq Khan, who nominated the neo-communist, anti-capitalist, totalitarian apologetic Jeremy Corbyn to be Labour leader (then didn't vote for him to be leader, and the "Conservative" leftwing Green candidate, Zac Goldsmith, who has spent much of his life lazily trotting out enviro-fascist agin-prop.  Despite some concerns, Khan is not an Islamist, and is less offensive than the vile old Castro-phile Ken Livingstone, but he has had poor judgment with those he associated with.   One of his former aides is a racist Islamist.  The imam at the mosque he attends rails against Ahmadi Muslims, like the murdered shopkeeper Asad Shah (killed by a fellow Muslim because he dared wish customers a Happy Easter - because Mr Shah was a model of tolerance, as Ahmadi Muslims tend to be).  Khan's response, and the response of the Labour Party is to shout "racist" at anyone questioning these links,  but that's almost stereotypical standard far-left identity politics laziness.  Bear in mind that his main opponent is backed by another, much more famous, much bigger Muslim political figure - Imran Khan (Zac is his ex.wive's sister after all).  Not that this endears me at all to Zac, because he is beyond the pale too.

Zac Goldsmith epitomises much of the worst of the Conservative Party, for he exemplifies the self-serving "generosity" of the inherited wealth entitled classes that decide that instead of producing anything or achieving anything (he dropped out of Cambridge), they can "serve" us by having power of us.  Much worse though, is the guilt-dripping  embrace of trendy authoritarian environmentalism, which drips of the greatest hypocrisy.  You see as Zac once fought genetic engineering (organics for him, to hell with the price of food for the poorest), he now fights airport expansion because of climate change - not that he shows any sign of giving up long haul travel, he just embraces policies that will keep the price high (can't have the oiks going to the Caribbean can we?  It's for their own good).

He follows from Boris Johnson whose main quality was that he is entertaining and has a slight libertarian streak, although he has a fancy for totemic vanity projects.  Zac is neither entertaining, nor has any libertarian streak.

More importantly, neither Sadiq nor Zac have any clue how to make a significant difference to the policies that the Mayor of London has powers to change, and which are the biggest London-centric issues the city faces.

On housing London has a crisis of supply.  It is usually talked of as a crisis in affordability, which is the result of the supply crisis, although far too many politicians think it is something different.  Khan and Goldsmith both admit supply needs to increase.  At the moment London's population is increasing by 10,000 per month, but the number of new home units is increasing by only 25,000 per year.  Given average occupancy of over two per unit, it is far below what is needed to accommodate a growing population.   Khan thinks the answer is more council flats and to hobble the rental market because he sees increasing rents as landlords ripping off tenants, not a function of a market where demand exceeds supply.  Indeed, Khan thinks that new private builds should be 50% "affordable", that nonsense euphemism in London for "subsidised".   What he (and many politicians in London) ignore is that to cross-subsidise cheap social housing for those on modest incomes, means the remaining 50% have to be priced to cater for high income Arab, Russian or Chinese investors (although they have decreased in number in the past couple of years).  Middle income or middle/upper income Londoners flee to the home counties and spend inordinate amounts of time on subsidised railways commuting into London.   Goldsmith isn't much better, but he is obsessed with new builds on public land and "brownfield" sites, but wont confront the two issues that constrain growth in housing - the strangling of the market by central planners.

London's housing problem is a function of the Leninist central planning approach adopted in the 1940s by the Atlee Government called the Town and Country Planning Act.  It nationalised land development and usage, giving local authorities large scale powers to control development and meaning any property owners needs to seek permission (and anyone can object to this) to build anything that doesn't involve repairing an existing structure.    Councils impose planning demands on home builders that range from a minimum subsidised stock, to a minimum number for the disabled to prohibiting any off road parking (except for the disabled) or even banning residents of new developments from being entitled to on-road residents' parking (Councils in London in particular see car ownership as pernicious and to be reduced by fiat).   The effect of this is that house building is a market dominated by a small number of large firms that can afford to waste months or years of lawyers' and architects' fees to meet the demands of Council planning committees.  Tens of thousands of pounds get spent just on meeting the demands of people who themselves put not a penny into developments, so of course, this adds to housing costs, but more importantly constrains supply because the market simply offers little realistic scope for small scale developers.  With the exception of loft conversions, there isn't much in the way of new housing build in London that isn't the preserve of large developers, and of course Council planners see them as full of money that should be spent meeting social policy goals rather than building housing the market demands.

A perversion of this is the encouragement this presents for developers to delay construction as prices continue to rise.  Former Labour leader Ed Miliband wanted to ban anyone from owning land they had permission to build on, yet not embarking on using that permission.   What he didn't admit was that the sole reason this practice exists is because of the scarcity of supply inflicted by the likes of him and his comrades.   Why build this year, when next year the sale price would be 15-20% higher with construction costs only rising by a tenth of that?  So a planning system that makes small scale development uneconomic, but demands large scale development meet the social policy goals of politicians rather than market demand is constraining supply.

London greenbelt, more land used for this than any other purpose

The second problem with London housing is more visible, and it is the blight of the Green Belt.   Khan and Goldsmith have vowed to protect it and not allow any new housing construction on it, but this is complete madness.   The Green Belt policy had two purposes.  One was to ensure that some open space would remain in a growing city, the other was to constrain sprawl.  It has profoundly failed to do the latter, as people live as far out as Ipswich, Brighton, Kings Lynn and Luton and commute into London by train.   London has sprawled using the railway network and the few goods that service its outer suburbs, by sheer factor of housing supply.   22% of the land in metropolitan London is Green Belt much of the image above is beyond that, but envelops greater London strangling people so that those with homes adjacent to it can enjoy ever increasing prices, undisturbed by new people.  Indeed,  another 43% of land is London is "green", that being parks, gardens and other green space that is not protected as Green Belt, so around two-thirds of London isn't built on.

However, only 22% of the Green Belt land has environmental designations, so 78% does not involve protected habitats.  59% of the Green Belt is farmland, subsidised by the EU, which if made available for housing would be worth many times what it currently is  (indicating that housing is more important than uneconomic farms).   7% of the Green Belt is golf courses, and 2% of the Green Belt is buildings, roads, railways or driveways/car parks.  

Furthermore, 60% of the Green Belt is within walking/cycling distance (2km or less) from an existing underground or overground railway station.  So there is much land that building on would simply enable more utilisation of existing transport networks. 

Green Belt defenders (and nobody is saying abolish the Green Belt, rather just let some of it be released to allow housing) talk about "paving over the countryside" yet less than 5% of the total land area of the south-east of England is built on (buildings, roads, parking lots/yards).   Only a small proportion of Green Belt land would be needed to transform London's housing market, but neither Goldsmith or Khan will touch it.   The votes of NIMBYs are worth more than those who can't afford to live in London.

On transport, they are both equally uninteresting.  Khan is taking the traditional far-left Labour view that fares on the monopoly subsidised public transport services should be frozen for four years, whereas Goldsmith talks about bikes and electric cars.  Both pay lip service to controlling Uber.   However, neither ever suggests that the behemoth monopoly, Transport for London, get broken up and privatised.   Both say next to nothing about roads, which carry the majority of people and nearly all freight in London.   There is no suggestion that the competition coming from the likes of Uber should be encouraged and extended to buses, nor any suggestion that the main roads be run more on business like lines.   In short, nothing interesting to see here, just maintaining the status quo, which is driven by technocratic beliefs in what is good for people and business, rather than reflecting choices and embracing innovation.   Automation and connected vehicle technology, with ultra fuel efficient engines can transform urban transport (buses and trucks could run in train like formations on main corridors with a fraction of the pollution of today), but to make it work roads have to stop being managed like Soviet style tools for social change.

Both oppose expansion of Heathrow Airport, the hub airport of the UK that is at 99% capacity and can finance a third runway (and construct it in a location that reduces the numbers exposed to noise, which itself is dropping because of aircraft technology).  Khan is prepared to support a second runway at Gatwick, which, of course, is not actually in London, but itself is at 90% capacity and can also be justified (but is not a substitute for allowing the hub to expand).    For me, it doesn't help that he said the Airports Commission (the third study in recent years into what airport expansion in south-east England should look like) had a "pre-conceived" outcome already determined, although I spent a couple of years working on it including being one of a small team who screened through over 50 proposals into the shortlist.   Goldsmith didn't like the outcome of the study, so he criticised those involved, as he can't accept that he might have been wrong (he never admits that, just stops talking about it- like GMOs).

What the Mayoral campaign tells me is how utterly asinine local politics is in the UK.  Two mainstream candidates, one whose biggest achievement was becoming a lawyer (human rights lawyer) and the other who became the polite son of a billionaire, who are ultracrepidarians either unwilling or unable to conceive of the sort of transformations needed to fix London's biggest problems.   They are attention seeking, focus group informed professional politicians, and on housing they will continue to exacerbate the problem, not confront it - because they embrace the problem's sources to the core.

So I haven't voted for Mayor, I crossed out all options and wrote a short damning sentence about the lot - to hell with the anti-capitalist consensus.   London doesn't need a Mayor, it doesn't need a politician to develop a housing strategy of where to spend public money and how to fiddle with a broken planning system that is causing the problem.  It doesn't need a politician to decide how large transport networks are developed, it needs one who knows that he (or she) doesn't know what's best, but if decisions on these are left to suppliers and consumers, then they together might provide much more robust solutions.

So don't vote for Khan or Goldsmith, and ignore the protectionist  halfwit Peter Whittle from UKIP, who thinks that London's traffic can be solved by limiting the numbers of minicabs (because pricing people out of catching cabs is good for them), and focuses his campaign on immigration and leaving the EU.  Khan will probably win, in spite of his laxness towards Islamist lowlives.  However, Goldsmith does not deserve the vote of any supporter of free-market capitalism, small government and most of all, rational evidence based public policy (including science).  Far better for him to resign as an MP in a fit of pique because the UK Government has decided to approve Heathrow's third runway, and for him to depart politics for the life of leisure he has inherited.   He's fully entitled to be an annoying Greenie prat, but let's keep him away from power and punish the Conservatives for picking a candidate who is far removed from the party's values.

Je Suis Parisien de nouveau

You all know what happened on Friday the 13th, for the second time this year, Islamofascists (a bit more descriptive than the "neutral" term Islamist) murdered their way across Paris.  This time instead of "just" being offended by cartoons or people being Jewish, they were "offended" by people at a concert, at a football match, at a restaurant. 

France has responded by bombing Raqqa, capital of "Islamic State", because as the Socialist President of France, Francois Hollande pointed out, France is at war.  The attacks were claimed by ISIS, and for now it appears they were at least incited by, if not funded and armed (and partly manned) by ISIS.   It is war, against Western civilisation, against the modern, tolerant, diverse society of people who simply LOVE LIFE.  For that is what Islamofascists (and indeed all totalitarians) despise for the people they enslave.

However, the West is fundamentally weakened in response.  Because the dominant philosophical influence in the West is one of self-hatred, guilt and identity politics driven cowardice of the left, and the opposition to this is dominated by "conservatives" who are so tied-up in philosophical contradictions and embrace of the guilt and self-loathing expounded by the left, that they are impotent, and the only other discourse that occasionally emerges is kneejerk racism - i.e. those who just want to deport all Muslims.

Brendan O'Neill in Spiked has written about the hand-wringing apologists.  The whole article is worth a read, he are excerpts:

It’s in the already emerging handwringing about a possible Islamophobic response to the attacks, with observers fretting that ‘there could be a backlash, largely driven by confusion and anxiety’. This has become routine after every terror attack: the first response of concerned observers is not with the actual victims of actual terrorism but with possible victims of a moronic mob uprising that exists entirely in their imaginations. This, too, speaks to a profound self-loathing in the West, where the media and political elite’s fear is always how their own societies, and what they see as their inscrutable fellow citizens, a ‘confused and anxious’ mass, will behave. They condemn the terrorism, yes — but they fundamentally fear and loathe the societies they live in, the people they live among.

it is precisely this response, this moral disarray in the modern West, which acts as a green light to terrorist groups or individuals to punish us. It’s an invitation to assault. The interplay between the self-loathing of the modern West and the nihilism of Islamist outfits is striking. They are a brutal, violent expression of a disgust for the modern world that has its origins in the universities, political circles and media elites of the West itself as much as in volatile, unstable territories in the Islamic world. Indeed, many of the attacks in the West over the past 15 years have been carried out by people either born in or educated in the West.