27 February 2013

Italy's long decline

So Italians have voted primarily for the socialist, the corrupt philanderer and the comedian (whose main joke is that he isn't even standing because he has a conviction for manslaughter).   The socialist opposes austerity, the philanderer opposes it too, promising to reverse tax increases and give everyone their money back (nice try) and the comedian wants to halve the working week and give everyone free internet access.  For Italians to have bothered supporting any of these buffoons is comedy extraordinaire.

Italians don't trust politicians or bankers much, but also are averse to change.  It's why on the one hand public debt in Italy is over 120% of GDP its private debt is very low.  Around 30% of Italians don't have bank accounts, because of a history with a Lira that past government simply inflated away, so they don't trust their savings with banks.  Italians don't take our credit to pay for a holiday or a car, they save, they have tightly integrated families.  There is a lot to be said for not borrowing to consume, and the tradeoff of the intact families is a female employment rate 12% lower than the EU average.  Whether the stability of families offsets the loss of economic and human potential from low employment of women is a moot point.

However, on the government side Italy is a disaster.  It has had fiscal incontinence for many years, so needs to get spending under control.   Mario Monti was the man appointed by the European Commission to sort the country out - and he was punished for that by his party coming a distant fourth.  Not, because he is not respected, but because he was a tool of Brussels.  The European Union, the great arrogant entity that proclaims whenever it can that it kept the peace in Europe, now has on its record the imposition of rule from Brussels upon a Member State.  That wasn't going to last.

Yet Italy's problems are deep and cancerous, with endemic corruption, of which Silvio Berlusconi is only the leading figurehead for.  Of a labour market that would make unions in the UK, US, Australia and NZ groan with envy, but which effectively makes it nearly impossibly expensive to make people redundant, and so keeps so many Italian businesses just below the threshold for such a law to come into place.

26 February 2013

It's not "your" Banksy

Who owns graffiti?

Let's say you own a building.  Yes, I know that for some this concept of property rights is rather alien, but humour me for a moment.  It's your building.  You have a wall on the property line up against the footpath or another public space.

If someone spray painted it you'd think that you had every right to do what you wish with your wall, as long as you don't put others at risk.  You could leave it, remove it/paint over it, or even remove the wall right?

Banksy Wood Green
No.  You see this is exactly what has happened in Wood Green, London.  

The anonymous artist 'Banksy' had painted this image of a child working in sweatshop conditions making bunting.  The owner of the building, a pair of property developers, cut out the wall to sell it at an art auction in the United States, sparking outrage.   Locals were outraged considering that the art was "theirs", because it could be seen publicly.

The sale was halted as even the FBI allegedly asked Scotland Yard to "investigate" according to the Evening Standard, but Scotland Yard has refused to investigate as it is not a criminal matter.

The locals who thought a wall, that they didn't own, was theirs, managed to gee up a few local politicians, ever keen to hop on a bandwagon and treat property rights as ephemeral.  Alan Strickland, a Labour councillor (big surprise) for Haringey has said he wants it returned.  Local MP, Lynne Featherstone (Liberal Democrat - another party with little respect for private property rights) has also called for it to be returned asking "will we get it back"?  Who is this "we"?  

Why do politicians think that just because a (relatively small) group of loud people demand other people's property that this is "ok"?  Do they really think that the future of graffiti on a private wall should be put to public acclaim?  Does it mean anyone can paint your external wall and if he gets a gang of locals and a couple of leftwing politicians on side, that you can't paint over it?

One of the owners points out the irony:

I cannot believe it’s over graffiti on a wall that has caused this. We had a case with one of our buildings where we had graffiti and the council told us they would fine us over £1000 if we didn’t remove it.“The council have done nothing to protect it. They’ve not helped us in any way. They’ve just caused us more problems and more problems"

So on your own property, the council fines you if it doesn't like it, but then harasses if it does?

It ought to be simple.

If Banksy (or anyone) chooses to paint on a wall of a building that he doesn't own (or without the permission of the owner), then he takes the risk that it is removed, obliterated or left as is.  Bear in mind that using someone else's property temporarily is the crime of conversion, and that the painting may be seen as vandalism.  Art it may be to some observers, but it isn't their property.  You don't have the right to tell other people what they may do with their property.

The owners were quite within the rights to ignore the baying crowd and remove the wall.  The baying crowd that didn't offer to buy it, that didn't do anything to protect the wall, that are only too willing to demand something that isn't theirs becomes theirs.   Cheered on by politicians that belong to parties that would tax the property owners every year to pay for the bloated states they support.

Not one of them offering to buy the wall themselves with their own money, they just want to regulate and interfere.

What of Banksy?  Well if he wants his art to be protected then he might approach the property owners before he paints on their walls.   Yes that "isn't the point" and is part of the anarchy that the anti-establishment loves, but property rights are important.  Because when you can't control what you own, then you don't own it.   So if he wants to be "pure", then accept that sometimes the property owners wont like it, sometimes they will accept it and sometimes they will say "thank you, that's our wall".

20 February 2013

The end result of the welfare state culture

Truth is stranger than fiction, and the editors of the Daily Mail and The Express cannot be disappointed at the discovery of Heather Frost, 37, who personifies the caricature of a welfare parasite (although the same can be said of the feckless sperm donors who abandoned their offspring in her).  Don't worry, she is in the Daily Mirror as well.

She "struggles" to live at taxpayers' expense, in two adjacent houses in Churchdown, Gloucestershire, with her 11 children, 2 grandchildren and unemployed partner Jake.  She would love to have more children, but is sterile (due to cervical cancer), and says she is married.

She also bought a horse and keeps it for one of her daughters, at £200 a month.

Now none of this would matter if her and her kin were sustaining themselves or other people were sustaining them by choice.  I couldn't care less if she wants to breed.  

However, this is a family that costs other people money, and not through ill fortune, but by lifestyle choice.  In fact, this choice, facilitated by the generous UK welfare state, has given the woman the gall to demand more.  

She has been complaining to the council that the housing provided at the expense of others is inadequate, so the Council is now building a brand new house for the family at the price of £400,000.

A true libertarian would cancel her benefits, tell her to get the money from the kids' dads, get a job and warn her that when the house she has asked for is built, it will be sold and the rent where she currently is will go up to market rates.

It is easy to moan about this, but what is needed is answers and a broader reflection on why this happens, when it is blatantly goes against the values of most of the population.

Quite simply, the incentives are set up to encourage this.  

Money and housing is offered in exchange for breeding, without employment and without a call upon the other party responsible for the breeding.  The more breeding, the more money and the bigger the home.  The quality of parenting (which would appear to be at least questionable) is irrelevant.

Defenders of the status quo on the left would hold their hands up and say "what else can you do", and claim these cases are so rare that it is wrong to destroy or reform a system that makes these cases news because they are rare.  Yet these very same people will protest and harass companies that legally seek to minimise their tax bills, and wonder why they do so?

After all, if you invested your hard earned money in a business, would you want a penny of it going to the likes of Heather Frost? 

The culture bred by the welfare state is this one of entitlement, which isn't just about expecting the Council to give you a new house for nothing, but raising children who expect to never have to work, who are resentful of those who have worked and have things they want, and who believe that it is right to raise kids the same.  Her eldest (21) already has a child of 2, who lives with them all.  

Consider the effect of promoting this culture has on business, employment, crime and society as a whole.  Indeed the left ought to consider how it breeds undying resentment amongst the broad mass of people who resent being the host to the parasitical claims of those who choose to be unproductive.

The only answer to this culture is to stop guaranteeing people every growing income for breeding and housing to accommodate it.   Would Heather Frost have kept breeding if she knew she wouldn't get more money or a bigger house to accommodate the children?  She claims that if she could have more children, she would. Maybe she would have named the fathers and they would have had a portion of their income taken to help pay?  If she had been denied more money and housing for breeding, would the social services system let her raise the children in such poverty or take them away so they could be fostered or adopted?  

There are some relatively gentle responses that take us down the path of more individual responsibility.

19 February 2013

Doctors' attempt to tackle obesity is middle class statism

There is nothing new about the latest report from the Academy of Medical Royal Colleges calling for state intervention to prevent people getting fat.  It demonstrates the fundamental error of people who are well intentioned, and intelligent, moving beyond their core expertise of medicine, into public policy and human behaviour.

For example, virtually none of them realise that the price of food overall, including fruit, vegetables, meat, dairy products and fish would fall, if the quotas and tariffs imposed by the Common Agricultural Policy were abolished (which do not apply to highly processed sugary foods made in the EU).  However, that requires an understanding of public policy beyond health into trade.  Bear in mind the largest UK recipient of EU agricultural subsidies in recent years is sugar refiner and retailer Tate & Lyle.

The doctors also seem to have ignored the Danish fat tax failure, unless they think the problem was taxing fat, not sugar.   Danes introduced a classless fat tax, which of course meant gourmet cheeses and butter got hit the highest, and many Danes simply took to fat tax evasion trips into Germany to stock up on their favourite foods.  Doctors in the UK presumably think a sugar tax could only target the products they disapprove of (not be based on all simple sugars in products) and would avoid encouraging people to shop internationally (Northern Ireland would be home to a new black market in smuggled Coca Cola).   Policy experts? Hardly.

You see the key obesity problem is not the lack of hectoring, lack of information or lack of laws to make people do what they want, but a culture of irresponsibility and a lack of medical understanding as to why people behave in ways that make them overweight.  What is particularly galling is the implication that it is only certain foods, perceived to be "junk" consumed by the poorer classes, that are the problem.  In fact, if people predominantly ate the rich, butter intensive foods of some celebrity chefs, in particular their butter and sugar laden desserts, they would also be obese.  However, it is perceived that the people who will bother to make such foods or eat out, know how to look after themselves.  This battle against obesity is one about class.  For the wealthy man who loves steaks, Beaujolais, chocolate mousse and fine cheeses is not the target of the hectoring doctors - even though such a person equally faces a risk of heart attack as the poorer man who loves fish and chips, chocolate and beer.   Yet it is abundantly clear from the communications behind these reports that it is the latter that is targeted, presumably because the latter person is not thought to be competent, but the former "understandably enjoy delicious high fat high sugar foods".

Most of the proposals outlined reinforce a culture of irresponsibility, and the hectoring culture whereby doctors think people will do what is "right" if only they keep telling them to do so.  The implicit message is that it is only one group that is irresponsible, and it is not those doctors socialise with.

So I'll rank the proposals from least to most acceptable based on qualitative measures of promoting responsibility and preserving individual freedom.

12 February 2013

DPRK commences another round of bad cop, good cop

As was fully expected, Kim Jong Un has shown off that just because dad died, the DPRK still can pack a nuclear punch.  It follows the satellite launch in December of Kwangmyongsong 3-2, which is widely thought to have also been a display of rocket technology might that could be used to launch missiles.

Youth Hero Motorway approaching Pyongyang
It's useful to largely ignore the hyperbolic Western media on this, driven partly because the DPRK has understandably being caricatured as some weird insane little country with a silly leader who does crazy things.  I understand that caricature, but it is deceptively simplistic.  Weird dictatorship, bad man who likes showing off his military might, but as this week's Economist reports, the reality on the ground in the country is quite different.   For example, despite the rhetoric, it is comparatively easy (though not cheap) to travel to the DPRK.

You see, the DPRK has gone through a cycle of provocation, isolation, face saving dialogue, engagement and then provocation, since Kim Il Sung died.  It doesn't demonstrate a genuine desire to wage war with its neighbours, rather it is a technique to extract booty from them, like a truculent child who wants attention, and has a tantrum when you stop giving it any.

Trolley bus in Kim Il Sung square

You can't blame Kim Jong Un, because it worked for his father.