Detroit and Glasgow

On my first ever visit to North America I flew from Gatwick (via Prestwick!) to JFK on Laker Airways. This was back in the days when New York was scarier than London and I remember being ever so slightly nervous when shortly after arrival I took an evening trip on the Subway. All was fine however and three days later I travelled on a Greyhound bus via Boston to Montreal. After visiting Toronto I headed back into the US with Chicago being the next port of call. But I had to change buses in Detroit...

Back in the nineteen seventies the Detroit bus station wasn't the most welcoming of places at 7am. I guess it would be slightly more worrying nowadays:

"neighborhoods literally falling apart"—through streets that look like "a hurricane has recently swept through, destroying nearly everything on its path." Thousands of houses have been abandoned—in many areas 50-60% of the houses are in foreclosure. Some blocks have only a few homes left standing. A thousand people a month are leaving what has been called " America ’s fastest dying city."

Reading this, I immediately thought of Glasgow. Not so bad as Detroit perhaps, but getting there.

Sadly the writer of the piece on Detroit gets it completely wrong:

The productive forces in society—natural resources, technology, the creativity and knowledge of the people—are all held back and constrained, by the private and exploitative nature of capitalism. They are fettered by the need of capital to constantly produce for profit—not to meet the needs of the people.

This basic rule of capitalism—that the whole point of production is to make profit—means that people are treated as things to be used or tossed aside. It means the system considers thousands of Black people, especially the youth, as just so much surplus that can’t be profitably employed. It means the system, through its armed enforcers, must come down with even more repression against this socially combustible and potentially rebellious section of society. And it means poisonous ideological assaults that justify such attacks and blame the people for the oppressive situation the system has put them in.

Detroit is a painful and clear example of how we need a whole new way, a whole new system, a whole new society. And we need revolution to bring this into being.

Doesn't that sound just like the politicians and pundits who have impoverished Glasgow? The writer doesn't seem to realise that it was capitalism that built Detroit into America's premier industrial city. And it was capitalism that led to Glasgow being world champion in shipbuilding and locomotive manufacturing. If the politicians of Detroit and Glasgow wish their cities to be world-beaters again it behoves them to create the necessary conditions. Not subsidies and socialism but low taxes and free markets. As that great fan of Adam Smith once said: "There is No Alternative."

Deficit? What deficit?

You've got to admit that this is most interesting:

Scotland's public finances are in a healthy position, with the country generating more income than it spends even in a period of recession, official statistics published today show. This is the fourth year in a row that Scotland has generated a current budget surplus, compared to a UK-wide deficit over the same period.

The latest Government Expenditure and Revenue Scotland (GERS) report for 2008-09 includes a share of the UK Government's Financial Sector Interventions to support the banking sector.

Even with that spending factored in, Scotland's financial position in 2008-09 was a current budget surplus of £1.3 billion, or 0.9 per cent of GDP, including a geographical share of North Sea revenues. At the same time, the UK was in current budget deficit of £48.9 billion, or 3.4 per cent of GDP, including 100 per cent of North Sea revenues.

I'd like to have a closer look at the assumptions made here but I wouldn't be too surprised to find that the report is more-or-less correct. I've always believed that the Southeast of England gains tremendously from the jobs and money generated there by the UK's uniquely centralised state and once that's taken into account the finances of Scotland become considerably better than they are often portrayed.

That's not to say that Scotland doesn't need a smaller state. Of course it does. And as a libertarian I want to see at least 90% of government expenditure eliminated. High state spending is not a good thing in itself. And the main aim must be to eliminate the welfare dependency that's so harmful to places like Glasgow.

Sadly that's not exactly the SNP view:

This year’s general election showed up a serious ideological difference between the SNP and the other major parties. We were the only ones who went into it opposing the agenda of swingeing cuts in public spending.

The SNP lost my vote at the general election because of their love of high taxation and nanny-statism. An independent Scotland should aim to be richer than Switzerland. Big government won't deliver that.

Why do they always talk about cuts?

For example, here:

Scotland’s unemployment count will increase to 225,000 and more than 30,000 public sector jobs will go in the next parliament, according to a respected economic forecast.

The Ernst & Young Item Club predicts a double-whammy for the economy will flow from the banking crisis and the deep Government spending cuts needed to cure the hangover

And we Scots are supposedly most at risk:

As the Conservative-Liberal Democrats coalition reins in spending to tackle the UK’s £166bn deficit, cuts mean public sector job losses are inevitable, and Scotland’s large public sector makes it particularly vulnerable.

The real problem with the Scottish economy is the vast size of our public (sic) sector. High public sector wages and pensions make life very difficult for our wealth-creators. Why would any young person entering the job market join a private company with all the risks involved when big brother offers much better terms? And why even think of starting one's own business in these circumstances?

We need to decimate Scotland's public sector. And next week deal with the other 90% ...

Who's coming up the Clyde in a kebab boat?

Remember those claims that male life expectancy in the east end of Glasgow is worse than in the Gaza strip?

Can we expect some much-needed international aid?

Aberdeen

F&W calls for Italian weather in Aberdeen and here it is!

And more photos are are here.

Aberdeen
Originally uploaded by David Farrer

Aberdeen
Originally uploaded by David Farrer

Aberdeen
Originally uploaded by David Farrer

Concrete vision

There's been an ongoing row in Aberdeen about the proposal by local businessman Sir Ian Wood to donate £50 million towards a new civic square. Singer Annie Lennox is one of the objectors:

Lennox, who has attacked the scheme as civic vandalism, declared on her website: "Concrete wins out. Something told me that this was already a done deal – no surprises really."

I'm not that familiar with Aberdeen and have only visited the city three or four times. Generally, I've assumed that what motivates many of the objectors to Sir Ian's proposed gift is a distaste for capitalism and I think I'm correct.

Nevertheless, the plans I've seen in the papers did indeed demonstrate "civic vandalism" as claimed by Ms Lennox. What I saw would be out of place in our worst council estates, never mind in the centre of Scotland's third city.

But what about this:

Sixteen months ago, when Sir Ian first announced his philanthropic £50 million donation towards the project, he said his aim was to transform the five-acre site into a square that would be a combination of a grand Italian piazza and a miniature version of New York's Central Park.

He said: "I actually used the words a 'mini Central Park.' It was never setting out to be concreted. But the initial diagrams and designs produced showed a big concrete base.

"There has been this continuous myth that this is a big flat concrete square that is going to possibly involve retail and shops. It has never ever been that."

So now it turns out that Sir Ian wouldn't be funding a concrete disaster after all:

John Stewart, the leader of the city council, who led the move to back Sir Ian's proposals at Wednesday's marathon meeting of the authority, admitted he had been "appalled" by the early concept drawings for the project. They had created a "rod for the back" of those supporting the visionary scheme.

Sir Ian Wood became very rich by providing world-class services to the oil industry. I doubt that any of his presentations to clients were misleading. If they had been he wouldn't have been so successful. And yet when he tries to donate £50 million to his hometown the PR goes haywire. I suspect that the local politicians and bureaucracy are at fault here for not showing the locals just what was planned with Sir Ian's money. Let's hope that Aberdeen gets its Central Park, preferably with Italian food, wine and weather...

Harleys, Kilts and Soldiers

Edinburgh Homecoming
Originally uploaded by David Farrer

Edinburgh Homecoming
Originally uploaded by David Farrer

Edinburgh Homecoming
Originally uploaded by David Farrer

Edinburgh Homecoming
Originally uploaded by David Farrer

More here.

The election in the Athens of the North

For the first time in my life I was uncertain as to how I would vote in a general election. In all previous ones I have voted Conservative with various degrees of enthusiasm. Obviously in 1979 it was necessary to remove the Labour government that had brought us inflation that eventually reached over 20%. No country can survive that. By 1997 inflation was down to just over 3%.

At the last Holyrood election I supported the SNP, partly as a tactical vote to remove the Labour incumbents. On the same day I did cast my vote for the Tory candidate for the Edinburgh City Council. I voted SNP in the recent Euro election.

I am fairly sympathetic to the idea of Scottish independence. A vigorous dose of fiscal reality would do wonders for Scotland. But ideally I would prefer implementation of the Freedom and Whisky plan of 2003:

Withdraw from the EU

Devolve all powers - except defence and foreign affairs - to the various national parliaments

Each parliament to be fiscally independent with contributions being made to the federal government in proportion to population

The federal government should be situated on the Isle of Man, which is not in any of the home countries but is equidistant from all four of them

The Irish Republic should be invited to unite with the North and rejoin the UK with Dublin taking its rightful place in the Anglosphere alongside Cardiff, Edinburgh and London

On Thursday morning I discussed my options with Mrs F&W:

(1) Vote Conservative even though they appear to be a bunch of wimps, unable to propose a proper classical liberal economic plan and distinctly wobbly on civil liberties.

(2) Vote SNP on the grounds that the UK cannot be saved and that an independent Scotland could possibly emerge satisfactorily from the wreckage.

I was still undecided when I got to the polling station. Next door was a cafe and I went in to have a further think. A copy of the Daily Mirror was on the table and needless to say it was full of reasons for voting Labour. At that point I was filled with dread and decided to look after number one. I didn't want Mr Darling to steal any more of my money. Despite what I wrote the other day, I held my nose, went in and voted Tory.

Edinburgh North & Leith Hustings in Castle Street

The candidates (well, most of them):

Mark Lazarowicz (Labour) and Iain McGill (Conservative):

Iain McGill was the most convincing candidate but it was interesting to hear Willie Black - a very lucid but totally wrong old-fashioned George Galloway style of socialist. Mark Lazarowicz looked a tad uneasy when Willie was in full flow.

Some gossip: Labour (not LibDem) to win North & Leith and the Conservatives (not LibDem) to win South. Darling to hold Southwest. Postal votes very low. Make of that what you will...

Our candidate

I've just been looking at an election leaflet from one of our candidates.

Here are some of the things he's been doing to persuade us to elect him as our MP:

Fighting hard against proposals to reduce respite care
Fighting hard for the armed forces
Opposing budget cuts at Edinburgh University
Saving Oxgangs Post Office
Retaining the number 18 bus
Campaigning for better youth facilities
Campaigning for better community services
Supporting a soldier's fight with the city council
Supporting pensioners
Supporting the NHS

Yes, it's our Conservative candidate, Jason Rust.

Now some of these may be worthy causes but what have they got to do with being Member of Parliament for Edinburgh Southwest? Many of these concerns are the business of Holyrood or even the City of Edinburgh Council. Actually, most of them are properly the concerns of civil society and not any business of the political class whatsoever.

And here's the thing: Mr Rust's main opponent is none other than the Chancellor of the Exchequer, Alistair Darling.

So what does our Conservative have to say about the economy? To be fair, in his second leaflet Mr Rust does mention Tory opposition to the planned NI increases and he wants to cut government waste. Good. But then he wants to "protect" the NHS budget. Ah, the NHS: the envy of the world. LOL.

Mr Rust also wants interest rates to be low. But interest rates are a measure of a society's time preference. They aren't something to be decided by governments, but by people acting in the free market.

I have a horrible feeling that Labour's Mr Darling may well know more about economics than does our Tory hopeful.

Not that I'm going to vote Labour of course!

Apologies

It's not just me.

For example, Doctor Vee has written this:

The observant among you may have spotted that it is a month since I wrote a post for this blog. It is interesting that I have not even found the motivation to write about the General Election. This is not a conscious decision — I genuinely have not been moved enough to put finger to keyboard.

This is due to a combination of factors. Partly, I became disillusioned with politics a couple of years ago and have not felt the need to write about it for a long time now. But it goes beyond politics writing.

With me too there are several reasons for the lack of blogging. In addition to dealing with my own financial and business matters there is a general feeling of being "blogged out". Believe it or not, it's now eight years since I started writing Freedom and Whisky and when I look at the state of the world, of the UK, and of Scotland I can't help wondering whether anything's been achieved at all. Throughout the West the political class seems determined to wipe out the prudent and to subsidise the feckless. And the term "feckless" obviously includes plenty of businessmen (sic) as well as the more conventional candidates for that description. The lack of any clear plans from the establishment parties to cut the national debt is a disgrace. They all deserve to lose.

But perhaps all is not lost. We now have a Libertarian Party in the UK and I would certainly vote for them if they were standing here. And the Libertarian Alliance goes from strength to strength. Indeed, it takes me so long every day to read other libertarian blogs that there's no time left to write this one...

Like folks elsewhere I get the distinct impression that we are heading for some kind of bust up. I don't believe for a moment that the financial crisis has been solved. As to why, I suggest getting this new book from the IEA. Then read the hard core stuff.

I'm kind of tempted just to settle back and see how it all pans out. I'm certainly going to enjoy the general election and hope to see lots of the bums (from all parties) thrown out.

But afterwards it'll be back to the intellectual struggle. That's what really matters in the long run. I expect that I'll still be part of it.

Old Devil, New Devil

After this appearance on the Daily Politics show, Chris Mounsey has deleted his Devil's Kitchen blog and is now writing as a much toned-down Devil's Knife.

An explanation of the rebranding can be found here:

My boss was phoned by a very unimpressed friend who had recognised me on The Daily Politics. My boss—who, whilst knowing that I blogged, has never let it concern him—phoned me and expressed some disquiet. I should point out that he did not tell me to do anything and nor has he tried, in any way, to force me to do anything about this situation other than talk it over tomorrow.

However, it took me only a few minutes to make this decision...

The simple fact is that I love my job and I am now in quite a high-profile position: as the company grows, I am going to become yet more exposed. And the fact is, I want to be exposed.

Chris Mounsey is the newish leader of the Libertarian Party and that explains why this whole affair has been all over the British blogosphere for the last couple of days.

I guess that I'm one of the old guard of the British libertarian movement. It's close to 40 years since I first discovered libertarianism and the entire movement could have fitted inside a telephone box back in the early days. When the Libertarian Alliance was founded its purpose was to change the intellectual climate, not to run for office. And now we have a Libertarian Party in the UK.

I was skeptical at first. I haven't joined the LP, partly because I'd probably want to devote myself to making sure that the manifesto was absolutely 100% sound in terms of libertarian theory - the theory that I've been studying for over three decades. Frankly, I haven't got the time, or the energy. But I hope that the new generation of libertarians makes sure that they do read the great classics of our movement. Party politics isn't enough: ideas are more important. But politics does have its place in libertarianism and so I wish the LP well. I have sent a donation to the "F***ing Hellski" fund and I urge others to do the same.

Cameron is an idiot

That's it then. Any slight chance that I'd give my vote to the Tories has gone down the plughole.

Cameron is an idiot

Why, oh why, don't the Tories call Brown out on this?

Not collecting £6 million in tax is not the same as "taking it out of the economy". It means removing it from the state's (proposed) spend and retaining it in the private sector where it belongs and where it will be more productive.

Discriminating behaviour

I posted the following reply to one of Jeff's postings over on SNP Tactical Voting:

There should be a crucial difference between being a Christian owner of a hotel and a Christian owner of a B&B that is effectively your own home.



Utterly wrong. The keyword is not home but property.



In a civilised society, owners of property have the absolute right to determine how their property is used. The only exception is when such use involves the initiation of physical violence against another person or his property. There is no right not to be offended. And this rule applies to discrimination against blacks, Irish, Scots, or even against people called Jeff or David.



See here.



It shouldn't need to be pointed out that none of the above means that I'm in favour of such discriminations. But I totally support the right to carry them out. And of course the right of those who disapprove to carry out retaliatory discriminations.

Wet or Dry?

In response to this post of mine, Subrosa asked:

David, if the SNP privatise Scottish Water they'll lose so many votes in this area anyway. What would be bound to happen is that prices would go sky high.

Well, yes and no. I've no doubt at all that such a move would cost the SNP votes. But that's because of the almost universal lack of economic understanding here in Scotland. Not that it's much better elsewhere of course.

Earlier today I bumped into historian Michael Fry, formerly a Tory candidate and now a supporter of the SNP. Michael has an article about water privatisation in today's Scotsman but unfortunately it's behind the subscription wall. However I have the paper edition!

Michael explains that English water prices shot up after privatisation as a direct result of years of underinvestment by the state:

We might pause to reflect that no other country follows the precise Scottish model of regulated public ownership, whereas all over the world countries have adopted the English policy of straightforward privatisation. One of the reasons is that the English have succeeded in improving the quality of their water, and far faster than we have for all our babbling burns and limpid lochs.

For me the issue is primarily a moral one. The state is the only body in society that can initiate force without attracting the attentions of the police. If there is to be a state at all (arguable), it must be limited to protecting us from aggressors. Everything else, including water, should be provided by the private sector.

Michael concludes his article by asking:

People often ask me how I, a cold-hearted capitalist, can bring myself to support the bunch of wooly lefties who now rule us from Holyrood, as I will again on 6 May.

Here is my answer: reality makes capitalists of us all. It is like nothing so much as a douche of cold water.

I agree with that, except for calling capitalists "cold-hearted". Capitalists are warm-hearted folk who provide people with goods and services without the support of taxation extracted from others.

I really do look forward to that "douche of cold water" being piped, perhaps, directly from Loch Katrine to the Glasgow City Chambers.

Is this a scam?

From: HSBC BANK UK [ add to contacts ]

To:
Cc:
Date: Saturday, April 03, 2010 02:29 pm
Subject: Re-Verify Your Lloyds TSB Online Banking Account Status.

During our regularly scheduled account maintenance and verification procedures we have detected a slight error in your account information.

To securely confirm your personal information please click on the link below:

My account activity

Confirm Your Login Information now to enjoy the benefits of online banking and finance to avoid identity theft and fraudulent activities on your account. …………………………………………………………………………………………………………………………………………………………………............................................................................................. Programs and data held on this system belong or are licensed to HSBC BANK UK. It is an offence to access the programs and data unless you are doing so through your own account using the Passwords and User ID issued to you by HSBC BANK UK in an authorized manner and in accordance with all applicable laws.

The US spelling of "authorized" is a bit of a giveaway, is it not?

But how about an a-mail from "HSBC" warning me about an account with "Lloyds TSB"!

Where's the money?

I'll name one of the organisations I work with "O". It deals with several government departments one of which I'll call "G".

A couple of weeks ago "O" sent an e-mail to "G". Essentially it said: "Send us an invoice for £Megasum and we'll pay you by return. But please make sure the invoice reaches us before 31st March."

Needless-to-say "G" has yet to send the invoice. All it needs to say is: "Send us the money." We'll pass over why on earth "G" itself doesn't know how much to invoice "O".

Like all such entities "G" is short of cash.

Or is it?

It certainly spends lots of cash. From previous experience it's highly likely that when "G" gets round to sending the invoice and subsequently receives the cheque from "O", "G" will stick the cheque in a drawer for up to three or four months before they decide to deposit it in the bank.

This is not a one off. I know of several "Os" that have similar experiences with "G".

The Hawick Pound

I see that some folk in Hawick want to issue their own currency:

A pilot scheme for the "Hawick Pound" is being launched this month to try to encourage more people to shop locally.

There has been concern from traders because of the competition they face from larger retailers outside the town.

But the idea is that the local currency could only be spent in Hawick, so money would stay in the community.

I'm all in favour of towns like Hawick having strong economies. And I'm also in favour of private monetary systems. But I don't think that the good folk of Hawick have thought this through properly.

Listen to this broadcast:

Basically we are going to print up some notes and sell them into circulation.

Just like that.

When the BBC reporter asked, "How would inflation work in Hawick?" the answer was, "I don't know." Not good enough. And if the currency is just going to be "printed up", we can guess the answer on that one.

As Mises explained, a sound currency can only come into existence by winning the hearts and minds of people in the marketplace. Why would a resident of Hawick prefer a currency that was only usable in his home town, especially a currency that can be "printed up"? There's absolutely nothing to stop Hawick folk from patronising local businesses as things stand right now. By all means let that include a bank - but one founded on sound principles.

Calling you...

MPs are having a moan about banks:

Banks are continuing to aggressively target customers who have fallen into debt, according to a report by a group of Scottish MPs.

The Scottish Affairs committee has called for an end to "undesirable practices" such as automated calls.

I didn't realise that the IMF used automated calls!

I blame the public sector workers

According to David Bell in today's Scotsman:

PUBLIC sector workers are not responsible for the recession.

But in the very next sentence Mr Bell writes:

Most of the blame should lie with regulators, bankers, governments, economists, auditors, credit rating agencies etc.

Eh? Aren't the regulators and "governments" public sector workers? And the economists have almost all been educated at universities that employ public sector teachers. Lots of those economists still work in such "public" institutions and wouldn't know real economics if it hit them on the head.

Of course bankers, auditors and credit rating agencies have also fallen down on the job but the prime reason for the financial crisis (most of it yet to happen I guess) is the existence of the fraudulent government-created money system.

Now why could this be?

Here's some interesting news about camera sales:

The UK has embraced the Micro Four Thirds camera format, making up over 10% of interchangeable lens camera sales (by volume) in December 2009. According to figures from market research company GfK Retail and Technology, around 6,600 Micro Four Thirds cameras were sold in the UK, accounting for more than half of the system's sales volumes in 11 major Western European countries.

The Micro Four Thirds system allows serious cameras with interchangeable lenses to be much smaller than the more conventional SLRs. Also, by not having the bulky pentaprism on top, these cameras look very similar to compacts.

Now why would the Micro Four Thirds system be doing especially well in the UK?

It's not the price: these cameras are pretty expensive. I reckon that the reason may well the one that's making me think of getting one of these pricey little devices. Having a small and unobtrusive camera could well mean that the user is less likely to come to the attention of Britain's police forces who are waging a relentless war on photography. Unusually in European history this is a war that seems to have left the mainland unscathed.

Opinion Polls

Last week:

Conservatives: 39%
Labour: 33%
Liberal Democrats: 17%
Others: 11%

Today:

Conservatives: 37%
Labour: 35%
Liberal Democrats: 17%
Others: 11%

Next week:

Bond Market: 100%
Conservatives: 0%
Labour: 0%
Liberal Democrats: 0%
Others: 0%

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