09 July 2012

Buying something from the government is stealing?


He describes anyone buying shares from the government in SOEs as buying "stolen assets".

Fascinating.

For he does not think of taxes - money taken by force by government - as stolen, regardless of whether or not it is to buy any assets.

Yet he thinks of the government, having bought assets by taxes, selling them, as "stealing".

You see he calls SOEs "public assets", "owned" by everyone.  Yet you are no more able to exercise the rights of ownership over a dam, road, school or hospital owned by the state than you are a privately owned one.   

However, he regards it as "public ownership" because the public, through its elected representatives (MPs), can "exercise control".  Let's just stick with that for now.

Using the electoral system he broadly supports, National got elected on a platform of part-privatisation. It is supported by parties which have either included or consented to that part of its manifesto.

So voters effectively chose a Parliament that has, through its elected representatives, chosen to "exercise control" on behalf of the public.

It's just he doesn't like it, because he voted for the Greens.  Yet he claims to support democracy.

He says "these goods were stolen from us by the government".  Well funnily enough they were, in the form of taxes.  In which case would he support selling them and giving everyone some money in return for the sale?  Of course not.

Instead he suggests "opponents of asset sales should boycott stolen assets".  I couldn't care less if they don't buy shares, and feel free to boycott buying their goods and services.  Don't forget all of the other companies privatised before, such as Air New Zealand (still 22% private), Telecom, Bank of New Zealand, State Insurance, former THC hotels, Intercity Coachlines.

However, you should also boycott EVERYTHING sold by the state.  The shops that now own former post offices and railway stations, the ex. Air NZ planes sold offshore, any closed schools, in fact any land at all that the state once owned.  After all, selling assets is "stealing".  Presumably buying state assets is "gifting".

This amusing view of property rights concludes with a sure fire approach to send New Zealand's sharemarket, property market and currency down to Zimbabwean levels "they should support calls for those assets to be forcibly renationalised at less than the sale price. Asset-thieves should not be allowed to profit from their crime."

That's right, the Soviet Union is back.  Buying shares offered for sale by a democratically elected government is a "crime".  Some belief in elected democracy he has.  No belief in property rights at all.  No interest, care or thought of what that does to both foreigners and New Zealanders seeking to invest their savings.  From big foreign companies to retirees, students or small business people, if they buy shares they are criminals - because they don't embrace his venal Marxist view of the role of the state.  After all, people from many backgrounds and income levels will buy shares, but to him they are all kulaks, the sellouts, the class and nation traitors.

I look forward to the Greens embracing this policy for the next election, for as somewhat socialistic many New Zealanders are, the idea the state can take back property you bought from it by force with a penalty, will frighten the bejesus of most.

He can live in his solipsistic south Pacific USSR if he likes, but all the aspiring successful wealthy people he despises wont be there paying taxes, opening businesses and employing people with him.

07 July 2012

Labour's part privatisation would have been ok, but not National's

Meanwhile, the Labour Party can't reconcile its opposition to part privatisation of SOEs with its own attempt to part privatise Air New Zealand to its biggest foreign competitor.  Apparently because it was once renationalised, this is ok.  However, almost all SOEs are the result of previous nationalisations, and by that measure the Nats selling part of Kiwirail to whoever wanted it, would be fine.

It all started with Sue Moroney insinuating that John Key visiting Australia is all about a sales pitch for the partial privatisation of SOEs, as seen by this Twitter from Sue Moroney

Sue Moroney @suemoroney -Really interesting that the trolling Nats won't deny that John Key is over in Aus flogging off our assets.
Sue Moroney @suemoroney - John Key is in Australia flogging our assets off to them. Dumped Oz PM John Howard says its a great idea. #whatAsuprise!
Of course Labour had no problem with that in its last term, when it sought to sell 22.5% of its renationalised Air New Zealand to the airline's biggest competitor - Qantas.   

I said:

libertyscott @libertyscott @suemoroney Yet Dr Cullen positively favoured selling 20% of Air New Zealand to Qantas, what's changed?

She said:

Sue Moroney @suemoroney @libertyscott Labour bought AirNZ back - that's the difference. It was privatised and we got 80% of it back. Nats selling what we own.

Hold on, but when the state buys something doesn't that mean "we own it"??  

So I confronted that and made the point again.  Labour was ok with selling part of a state asset to a foreign company (and indeed competitor).

libertyscott @libertyscott @suemoroney Wrong you got 86.5% back and sought to sell 22.5% to Qantas, its main competitor. Cullen press release here

She said:

Sue Moroney @suemoroney @libertyscott So you see the difference now?

 I said:

libertyscott @libertyscott @suemoroney You'd support National selling down 22.5% of Air NZ to a foreign competing airline? But not power companies or a coal mining co?

No response.  The contradictions of the Labour Party remain astonishing.  At least the Greens have always had a one way view of state ownership - the more the state owns = good, the less it owns = bad.

06 July 2012

Conservative MP admits to having used drugs, so shouldn't she be in prison?

On  BBC Question Time last night, Conservative MP Louise Mensch, admitted she had used Class A drugs (she didn't specify what they were, and "A" is the "most dangerous" category including cocaine, MDMA, etc) and that they had had a "lasting effect" on her brain.   I'm not one to deny that, and I'm certainly not condemning her for it.

Yet I will criticise her hypocrisy.

See she thinks drugs should remain illegal and criminal, and supports the "war on drugs".

In which case should she now not hand herself into the Police and face charges, trial, conviction and sentencing?  Should she not also forward names of all of her family and friends who have done the same?

After all - if it's so bad, and criminalising drug users is the "right thing to do" by implication, why shouldn't upper class English catholic Tory MPs and their associates face the same legal sanction as young poor Afro-Caribbean or white working class boys?

You see it is very easy for those living in relatively cozy middle and upper class communities to support a "war on drugs", until you confront them with "how many people do you know have taken drugs" and then "shouldn't they be in prison too"?

Because of course it isn't those people that are allowed to "make a mistake".  Louise Mensch is smart, successful, married to a wealthy husband, herself a successful writer. She "knows better".  She wants to protect the ignorant, stupid, vulnerable poor folk who aren't capable of making such decisions.

She wants the war on drugs fought in Tottenham, Newham, Mossside, Brixton, Toxteth etc, not Kensington, Highgate, Hampstead and Tunbridge Wells.

So why don't the Conservative, Labour and "Liberal" Democrat MPs who believe in this simply say that the "war on drugs" is about poor people having drugs.  Rich people, the middle classes and the like often "make mistakes" when young but they shouldn't be condemned for it, because it only hurts themselves.   Louise Mensch has been allowed to get away with ingesting what she chose without prosecution, why does she deny that right to others, or why doesn't she insist the law she supports gets applied equally?

Just to be clear.  I wouldn't throw her in prison.  I think it would be absurd and unjust for her to be in prison for possession and ingestion of Class A drugs.  However, unlike her, I also think that everyone else in prison for such offences should also be set free and have their convictions expunged.  Had she been convicted, she could not have pursued the career choice she now has.  Why subject others to the same because the Police happen to more readily patrol their neighbourhoods and communities?

Judge says "society to blame" for sexcrime


That, according to the Daily Telegraph, is the conclusion of Judge Gareth Hawkesworth of Cambridge Crown Court (UK). It is also the logical conclusion of many decades of the embrace of the post-modernist philosophical morass of determinism and denial of the causality principle.

What happened?

A 14 year old boy tied an apron around the face of a girl of 4 and performed a sex act with her. The boy got a three year community order with supervision as a sentence.  The girl's parents are upset, but I don't want to dwell on what is an appropriate sentence, needless to say the boy needs both help and punishment.  What matters is how the judge got to his sentence.

The judge said of the offender:

"I'm satisfied it was impulsive and I believe you have become sexualised by your exposure to and the corruption of pornography. Your exposure at such a young age has ended in tragedy. It was the fault of the world and society.”

Actus reus and mens rea are the two key tests to secure a criminal conviction in most cases. Actus reus is the “guilty act” meaning the accused did the deed. Mens rea is the “guilty mind” meaning the accused intended to commit the crime. Prove both beyond reasonable doubt, and the accused is considered guilty of the crime.

Judge Hawkesworth has contradicted himself. For the boy has been found guilty and been sentenced, yet he effectively claims the boy did not have mens rea.  The boy was not "at fault".

For that to be true, there could have been a number of defences, such as acting under duress, or insanity. The age of criminal responsibility is 10, so he can’t legally claim that he is not responsible for his actions.  Yet the statement by the Judge implies just that.

He wasn’t under duress nor insane, but rather under “undue influence”, not by one person, but by “the world and society”. We are ALL to blame. He didn’t really have a choice. He was corrupted. Yet the murderers of James Bulger, who were younger when convicted, were not subjected to such an excuse (and their backgrounds did explain, but did not excuse their actions).

This is the philosophical reef upon which Western society has been wrecking reason, objectivity and justice against for many years. It is the underlying foundation of so much taught in the humanities departments of universities. It is the fundamental dimunition and denial of free will and conscious volition.

It is, in fact, the argument put forward both by the post-modernist believers in a large state sector and many religious conservatives. The Muslim women who are told to wear the niqab do so because otherwise men “can’t help themselves” but molest them. Christian campaigners for censorship argue that erotica, pornography and violence in the media “makes” people commit those crimes, indeed the current censorship laws are in part predicated on this. That’s why you can (in New Zealand, Australia and the UK, but not the USA) be prosecuted for writing or owning erotic stories about certain sexual acts ( a woman was prosecuted for writing such letters). David Cunliffe supported this strongly in select committee when challenged about it. The idea is that such stories “make people do them”, so it is better to take away a bit of freedom than to risk “making people do crimes”.

In this case, “society” or rather EVERYBODY made the boy commit the crime, so EVERYONE should feel shame and contrition. Not only the little girl, but the perpetrator is a victim.  Consider what effect that will have on the girl, to think that the offender is somehow less responsible.  If "society" and the "world" are responsible, isn't she a tiny part of that?

In which case, the judge is effectively saying who is he to blame the boy? Society must do more to shield people from such corrupt influences. It is deterministic. Because the boy was exposed to pornography (although it appears he looked for it, watched it and kept doing so), it was inevitable that he would commit this crime.  He wasn't just corrupted (probably true), but he was incapable of reconciling fantasy and desires with reality.  He could not control himself.   Yet he is not insane.

I don’t need to explain the consequences of extending that principle. For indeed we see them today:

Excusing people who steal, vandalise and commit arson against the property of innocent people because they were “upset” at their own lives. Yet vast numbers of people can claim the same or worse, but do not commit such crimes.

Excusing those who beat up their children because they don’t have enough money. Yet millions are in poverty and do not mistreat their children.

Excusing the woeful life choices of this generation, because of what happened to past generations. Yet many make different life choices having inherited next to nothing from past generations.

I don’t doubt Judge Hawkesworth is, in part, politicking. He wants politicians to restrict the access of young people to pornography. You see, he could have blamed the boy’s parents, for allowing him such unfettered access to the internet. He didn’t. He blamed us all, implying the solution is going to come from government or at least from people listening to his preaching.  We all raise all children, we are all responsible for everyone else's children (and of course we must pay for them and have our behaviour regulated, as if we are children too).

Let me be clear, I believe there is an issue about unfettered access by young people to extreme content online, and that there are potentially serious consequences that can arise from this. Whether the state acts or not is a political question. However, when sane individuals commit crimes, including teenagers (who are between being children and adults), it is quite simply incorrect to claim that others are to blame.

To attribute blame to an amorphous collective such as “the world” or “society” is meaningless and even corrosive. There is no such thing as a collective brain or consciousness (unless you subscribe to the malignant class or race theories that ultimately justified mass murder on hitherto unknown scales). For a judge to even think it appropriate to “blame” in this way is not just unprofessional, but dangerous.

Who will turn up in his court next week to claim “it is society’s fault that I…” (insert crime)? How can he disagree when he believes this is a perfectly credible defence to grant someone leniency?

After all, if this boy isn’t to blame for his actions, why should others be to blame for theirs? Is not every criminal a product of their experiences, influences and history? Can everyone with rotten parents, or who was bullied, or who saw a violent or sexually explicit film, image or read a story, or had no friends, or grieved their dead pet or whatever – now say they are not to blame, but society is?

Similarly, does it not mean that everyone who does well at school, who wins a sports match, starts up a very successful business, becomes wealthy, becomes popular, invents, creates or discovers something of note, is not actually responsible for that? Are not those who succeed therefore “because of society”? Should not everyone who does well then be made to share the fruits of their endeavours? Think how often you hear that trotted out by those on the left who fondly believe in increasing taxes for those on higher incomes, who say that successful people are only successful because of “everyone else”. That if the state hadn’t provided a hospital, school or roads, these people would have been “nothing”.  Even though the number of tall poppies that grow from this very same field are always few and far between.

Think what that means for how the state treats individuals. You’re not to blame when you do bad, and you’re not to get all the credit when you do good. It was all going to happen anyway, and we’re here to soften the punishment and to share the proceeds. Individual choice? Not so important now.

That, ladies and gentlemen, is at the core of so many of the political debates that are engaged in today.

Is the individual to be treated as a thinking, conscious, choosing human being, who whilst carrying a vast array of influences from family, peers, media, community, school, religion, business, can decide whether or not to act in a certain way, including whether or not to act with objectivity, reason, benevolence and respect for others? Or is the individual already pre-determined, with his ancestors, sex, race, religion, sexuality and class effectively programming him to think, act, succeed or fail in certain ways?

If the former, shouldn't people be free to live as they wish, as long as they respect the right of others to do so?  If the latter, is there any point to anything people do at all, unless it is a constant battle of power between those pre-determined to succeed and those pre-determined to fail, until everyone is ironed flat so we are all pre-determined to be in the same way?

05 July 2012

Who will bail out Germany?


This is the question economist Detlev Schlichter has asked in today’s City AM.

Seems ridiculous right? After all, Germany is bailing out the rest of the Eurozone. Its economy is growing, its budget deficit is low. Greece is the basket case of the Eurozone, with Portugal, Italy, Spain, Cyprus and Ireland not far behind. If you were look at who would be next, both Belgium and France appear on the scene, because both have high public debt, budget deficits and are structurally sclerotic economies (imagine Belgium without the massive EU bureaucracy sucking in money from across Europe and consuming in Brussels).

Germany though? Well yes. It is, once again, wilful blindness to reality. Germany’s public debt is 81% of GDP, this having risen from 61% in 1999. That should indicate that there is a day of reckoning to come. Yes the budget deficit is low, but in an environment of steady growth, low unemployment and very low interest rates (meaning public debt can very cheaply be refinanced), Germany isn’t able to run a surplus. Remember how the Keynesians say that in good times you can run a surplus and pay down the debt you incur in the bad times. Well this is the good times for Germany, and it can’t run a surplus. Why?

Quite simply, the German state is lumbered with the same burgeoning welfare state and social policies that have already been bankrupting its southern neighbours. The difference is that the economic growth Germany is experiencing for now, and the low interest rates are slowing the inevitable slide towards that day of reckoning.

Schlichter points out that in the past four decades “Germany extended considerable, unfunded promises to the populace, mainly in the areas of public health insurance, state pensions and the public care insurance”. He blames this as an inheritance from the Helmut Kohl administration, an ostensibly “right wing pro-business” government. He says it implies effective government debt in excess of 200% of GDP. It is Germany’s ticking time bomb.

The difference with France and the south of Europe is that Germany has a more liberal labour market than all of them, but that isn’t hard. Germany’s state may be more efficient in tax collection and operation than the southern states, with much less corruption, but again that isn’t hard. It was the centre-left government of Gerhard Schroeder that implemented modest reforms (Agenda 2010). He liberalised labour laws, reduced the size of the welfare state and reduced regulation. Merkel has been unable to continue this further, even though she started her administration in a grand coalition with the leftwing SPD opposition, after he resigned as leader as his party had lost badly in the 2005 election. The message was clear. You don’t get re-elected in Germany after implementing radical reforms.

You can now see why Angela Merkel doesn’t want Germany to be the saviour of the rest of the Eurozone anymore – Germany cannot afford it. German voters are as attached to their big generous welfare state as other Europeans, but they have been immune to actually paying for the full costs. The legacy has been rising debt.

So when the protestors in the rest of the Eurozone think Germany will write them cheques to bailout their own bankrupt welfare states, they are deluded. For not only can Germans not afford that, they can’t afford their own. The difference is that German politicians are hoping that no one notices for now, and that the problem becomes someone else’s. On top of that, German taxpayers are carrying, still, the burden of the deeds of their ancestors as guilt that makes them at least partly amenable to helping the rest of the Eurozone.

The problem is that if German taxpayers/voters and politicians don’t confront their own bubble of debt and overspending, they too will face a crisis. That will indeed be a Eurozone crisis, a European crisis and a global one. That’s if Japan and the United States haven’t dealt with their similar looming crises in the meantime.