Archive for the ‘Civil Liberties’ Category

High Pay Commission

Tuesday, November 22nd, 2011

The High Pay Commission have published their final report. Truly these people live in an alternate reality. The misconceptions are so dense it’s unfiskable. I’ll try with just one paragraph.

Further, our investigation has found that top pay is a symptom of market failure based on a misunderstanding of how markets work at their best.

Markets work at their best when people can trade freely.

Within companies, fair pay matters. It affects productivity, employee engagement

If it is true, free markets will discover it. The best performing companies will be the ones with the fairest pay. No commission needed.

and trust in our businesses.

This is a matter for the customers. In a free market, if they don’t trust a business, they don’t have to do business with it.

Pay in publicly listed companies sets a precedent;

That doesn’t make any sense. Pay is the result of negotiations in a free market; A’s pay is not influenced by B’s: both are affected by the presence of A and B negotiating in the market.

when it is patently not linked to performance, or rewards failure

In a free market, no-one is rewarded for failure. By definition, no-one voluntarily pays for something they do not want.

it sends out the wrong message

It is not a message. It is a transaction between private individuals.

and is clearly a symptom of a poor functioning market.

If people are paying for things they don’t want, then they cannot be doing so voluntarily, so yes, the market would be performing poorly. But the High Pay Commission does not agree with the decisions on pay that are voluntarily made.

In addition, high levels of inequality in income contribute to sectoral imbalances, regional disparities and asset bubble inflation.

Where to start? Inequality is measured wrong, anyway. Wealth is not proportional to money. The top 1% might have diamond encrusted watches, but a cheap Casio still tells the time. I don’t know what a sectoral imbalance is, but it’s probably to do with teachers getting smaller pay rises than the CEO of BP. In a free market, the top teachers might well get pay rises as big as the top executives. But then they’d be in the same sector. Regional disparities are probably caused by a combination of planning regulations and the plain fact that productivity increases with population density. Asset bubble inflation is caused by government policy that props up asset bubbles, like bailouts and manipulation of interest rates. None of this has bugger all to do with the CEO of BP’s £4.5m salary which, frankly, doesn’t even sound all that much.

I’m exhausted, and goes on like this for 65 pages.

Oh, here’s an enlightening quote:

“You have to realise: if I had been paid 50% more, I would not have done it better. If I had been paid 50% less, then I would not have done it worse.” –
Jeroen van der Veer, Former CEO of Royal Dutch Shell

This is probably true, and completely irrelevant. If they’d been prepared to pay 50% more, they could have hired someone else who was better.

Libertarianism and Global Warming

Thursday, November 3rd, 2011

Twice recently I have encountered arguments that libertarians don’t believe in global warming because if true, it would invalidate their world view. The first time was a comment on Eric Raymond’s blog, and the second a comment at Samizdata.

Presumably the idea is that since only government action could reduce emissions enough to avert global warming, you need big government to solve any such crisis. Libertarianism can’t solve this because the atmosphere is the ultimate commons.

But whatever the seriousness of global warming and whatever its causes, more freedom will always be a better solution than less freedom.

There is no conceivable problem that cannot better be solved by a free society than by a society ruled by a large state.

Free people are richer, more innovative and can respond more quickly. Governments are slow, and because they are centralised have a tendency to make the wrong choices. A government can only make one choice at a time, so it goes to its best experts and they decide what is to be done and it gets done, and then we find out what the unintended consequences are and start again. This is far inferior to a free market of competing ideas where lots of things get tried and winners emerge.

But what if the only way to prevent catastrophe is it dramatically reduce emissions immediately? Then there will be catastrophe! Governments are not able to co-ordinate the whole world into reducing emissions. They’ve been trying for long enough and not succeeding. Now, how do you want to face catastrophe? Free, or constrained?

Freedom, Mergers and Monopolies

Monday, March 21st, 2011

In the USA, AT&T are to merge with T-Mobile. This is considered bad news. And it may well be: T-Mobile are considered the better operator for data, and they introduced the first Android phone.

But then there is this viewpoint:

No, not with conditions. Not with asset disposals. Not with commitments. It must never be allowed. Ever. No way, no how. The absolute bedrock of capitalism is competition. The whole essence of our free market system lies in consumer choice… Take away that choice and the consumer is powerless.

That’s Brett Arends on Market Watch.

If you think you need government regulation to preserve capitalism, I think there is something wrong with your thinking. I suspect something else is going on: could government regulation be causing this merger, indirectly? Why aren’t there dozens of small operators? Probably because regulation makes being a mobile telecoms operator more difficult to do than it should be.

Demolishing Alain de Botton

Thursday, February 17th, 2011

Renegade Parent has a new blog, and in one post she demolishes Alain de Botton’s awful BBC column in which he complains that Britain is too libertarian.

Here’s a sample:

Here is the thing. ‘Government’ is made up of a bunch of individuals who are no more or less qualified to speak for the rest of humanity than you or I. They have no superior intellectual knowledge or special, super-human skills. They are normal, fallible human beings who have decided that their life course shall be to tell other people what to do. They are often prepared (and sometimes eager) to use violence to make their vision happen, even if only a minority subscribe to it. This is the ugly truth of democracy.

Here’s another:

If people become unhealthily overweight they might find it harder to play with their children, or buy comfortable clothes. They might not be able to insure themselves, or purchase appropriate medical treatment. They might not be able to fly on an aeroplane, or go on rollercoaster. For the overweight person, it then becomes a cost-benefit analysis exercise to determine whether losing weight or maintaining their sedentary lifestyle is the most preferable option. And only they have the unique information to make that decision, not a government official or Alain de Botton!

Unintended Baby Formula Consequences

Tuesday, February 8th, 2011

Mrs Rob was looking up information about “follow-on milk”, which according to manufacturers is especially blended to provide exactly the right nutrients for a 6-month old baby. She found this:

I’ve been told that follow on milk is a bit misleading, in that the contents are virtually identical to new baby formula milk, but is produced (or should that be “Specially formulated!) in order to get around new strict EU regulations prohibiting the advertising of formula milk to babies.

This is why the packets now have eg. big 1, 2 and 3 on the packets, so a product advertised as 3 will mean your mind will recognise 1 and 2 without advertising being necessary. Maybe I’m just being cynical but I’d check the ingredients/vitamin breakdown very carefully.

I can’t verify this, but it sounds plausible. It’s certainly true that it is illegal to advertise formula for babies up to 6 months old.

The National Childbirth Trust, Save The Children and Unicef say the current partial ban is not enough, and parents have been left confused.

They want the government to extend a ban on infant milk adverts to include “follow-on” milks for older babies.

I don’t really understand why the breastfeeding movement is so vehement. As far as I can tell, breast milk is slightly better for a baby than formula, but formula is a marvel of modern technology and perfectly good enough. Certainly a mother who prefers to use it for whatever reason shouldn’t feel guilty.

So why the scare-mongering and bansturbating?

Update: Lisa from All About the Voluntary responds.

Hugh’s Fish Fight

Monday, January 17th, 2011

I was forced to watch some of Hugh’s Fish Fight the other day. It was the episode about salmon. In it, wealthy, successful TV chef Hugh Fearnley-Whittingstall lectured us about how we should eat a wider variety of fish and not so much salmon.

He mocked people who said they preferred salmon because it had fewer bones. But people can like whatever fish they like for whatever reasons they like. And fishing out tiny bones is annoying. And salmon tastes good.

He complained that farmed salmon is fed on herring and sardines. It takes three pounds of these to get one pound of farmed salmon. So what? Quite a lot of the herring and sardines would be thrown away anyway. And hasn’t Hugh heard of the law of conservation of mass? It’s not as if the organic matter disappears. It eventually rots or is eaten and the carbon dioxide ends up as plant and algae food and so around it goes. Nothing is ever really wasted.

Hugh would prefer us to eat the herring and sardines directly, but given that we have already expressed a preference for salmon, that would achieve nothing except to make us less happy. To make us decide to be less happy, Hugh is trying to make us feel guilty.

It’s time people stopped letting people like Hugh Fearnley-Whittingstall make them feel guilty.

Hugh spent much of his programme about salmon worrying about the scale of the operation. Oh no, they hoover up salmon with a big pipe! Oh no, they have a big machine to chop off all their heads! Oh no, there are so many! I had no idea we ate so much salmon!

Well Hugh, how do you think you feed a nation of 60 million people without them all spending their entire lives farming and fishing? It’s the economies of scale of things like fish farms that makes it possible for us all to eat salmon and still have leisure time. Hugh wants to make salmon more expensive so that only people like him can eat it, and we’re all stuck eating herring.

He’s not just talking about it on TV, he wants to influence policy. He has a campaign web site promoting an early day motion and wants us all writing to our MPs. Much of it talks about the “problem” of discards.

Fishermen are throwing away the fish they don’t want — the ones we don’t eat. He wants politicians to prevent this.

But it’s a non-problem, for the same reason that wasted salmon feed is a non-problem. The waste is an illusion: the dead fish don’t just disappear, they are recycled by the sea: eaten by other creatures and bacteria, and eventually turned into new tasty fish. The energy for all this comes from the sun, so there’s an endless supply. It’s all sustainable. Where does Hugh think fish come from?

But what if we eat too much of one kind of fish and run out? Market forces will keep this in check. If we fish to many of one kind of fish, they become harder to find and prices go up, and fewer will be sold, until a balance is reached. Prices will settle at a level people are prepared to pay for that kind of fish. Innovations such as farming can make an otherwise expensive fish cheaper, as in the case of salmon. This is all good.

But the Hugh Fearnley-Whittingstalls don’t like innovation. They yearn for an imagined golden age when we all gamboled in meadows and were in tune with nature and ate fish caught with our bare hands. If such an age ever existed there were a lot more hungry people in it who didn’t live very long and they certainly didn’t get to eat salmon.

Nature isn’t something to be in-tune with. It’s something to conquer, before it conquers you. So sod off back to nature, Hugh, and let the rest of us enjoy our salmon.

Update: And another thing. If you still think there is something good about Hugh’s campaign, consider the outcomes. The only way he can get us to eat less cod and salmon is to make it more expensive. There are various ideas on his site, such as fish credit trading schemes for fishermen, but ultimately it’s about reducing the supply of our favourite fish, which will make them more expensive. Now what do you think people will do? Buy herring because they can’t afford salmon? Of course not. They’ll end up eating less fish overall, to the detriment of their health.

Healthier and Wealthier

Wednesday, January 12th, 2011

The big boss of R&D at my company just emailed around this awesome video. It shows a scatter graph of income and longevity animated over time. The results, and Hans Rosling’s enthusiasm, are enthralling.

Maybe there is hope for the BBC yet.

BBC Lies About Barclays

Tuesday, January 11th, 2011

I just saw the BBC News at 10 report about Bob Diamond going before a committee of MPs to answer questions about his bonus. The online version is very similar.

It’s the most slimy bit of reporting I’ve seen. They don’t say that Barclays was bailed out, but they show Diamond being asked about his bonus, and then talk about how the sector was bailed out. At no point to they make clear that Barclays, under Diamond’s helm, refused government help.

They point out that Barclays is paying the most in bonuses in one breath, and talk about how banks are owned by the taxpayer in the next.

The intention to smear Bob Diamond is clear. It’s disgraceful, especially as the guy is a hero. Yes, there was a brief clip of him saying that banks should not be bailed out on the News at 10, but there was no commentary on this at all and they went right back to talking about bailouts. The TV version even had a member of the public talking specifically about Diamond and bailouts in the same sentence.

Update: Devil’s Kitchen has a suggestion for Bob Diamond.

Update 2: Tim Worstall has more.

Of all the people you might want to pay a large bonus to Diamond is one of the top few. Firstly Barclays didn’t go overboard into bankruptcy, unlike some others. Secondly, when the shit hit the fan they found (Diamond found) Middle Eastern sovereign wealth funds to shore up the capital and thirdly, he made the bank a fortune picking up bits of Lehman Briothers.

Paracetamol Regulations

Friday, December 24th, 2010

A family member is recently out of hospital and taking 8 paracetamol per day. The wife and I went to Tesco to stock up. They are sold in packets of 16, so we picked up 6 packets to last 12 days.

“I’m only allowed to sell you two packets,” said the cashier.

So, obviously, my wife bought two packets, I bought two packets, and then I snuck off to another till to buy the other two packets.

The regulations about sale of paracetamol, which I assume were brought in after some people overdosed, are stupid in every possible way. They are easily avoided, they wouldn’t work even if they were enforceable because people can save stock, and they would see an ill and wobbly relative, to avoid the imaginary risk of taking too many pills, take the very real risk of venturing out into the ice and snow every four days to buy more.

Oh, for the love of…

Wednesday, December 22nd, 2010

image