Category Archives: Economics

Why the State Shouldn’t Manage a Crisis


Why the State Shouldn’t Manage a Crisis

By Duncan Whitmore

Many libertarians, especially at lewrockwell.com, have written of their scepticism to the draconian responses of states around the world to the recent outbreak of coronavirus (COVID-19). It is not difficult to share this scepticism given that at least some analyses – particularly of infections on cruise ships, which, given the unavoidably close social proximity, present the closest thing to a worst case scenario – suggest there is little cause for any heightened alarm. Indeed, for the very vast majority of us, there is probably more to be feared from state overreaction than there is from the virus itself. Even mainstream commentators, such as Matthew Parris in Saturday’s Times, are beginning to question the wisdom of trashing your economy to prevent the spread of an infection that is, at least at the moment, affecting only a relative minority of people of advanced age and/or with underlying health conditions (in common with many other inflictions). States always have ulterior motives when dealing with (apparent) crises as they always see them as an opportunity to expand the ambit of their power over the populace, given that a scared people is nearly always willing to sacrifice its liberty for the sake of security. In fact, if the true medical seriousness of this current virus turns out to be only a hill of beans then it may well have served as a dress rehearsal that has merely tested our pliability for some later calamity.

This essay, however, will not concern whether the spread of COVID-19 is quite the crisis it is being made out to be. Instead, let us assume, for argument’s sake, that the world was to be threatened by a very real and very serious pandemic threat. Would such a disaster warrant stronger, co-ordinated, globalised solutions managed by states and enhanced state powers to deal with the problem? Read more

Coronavirus: A Conspiracy against the New World Order?


The Coronavirus:
A Conspiracy against the New World Order?
Sean Gabb
20th March 2020

One of my Books
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I have no particular knowledge of medicine or the natural sciences. However, I remember the Aids panic of the 1980s, when we were told there would be two million deaths by 1990 in this country alone. I remember the Mad Cow Disease of 1996, when we were told that a million people would turn into zombies by 2016. There have been a dozen lesser panics the details of which I presently forget. The Coronavirus may be a modern equivalent of the Spanish Flu of 1918-19. But I have reason to be sceptical. Indeed, if ignorant of medicine in any practical sense, I do know a lot about the bubonic plague pandemics of 542-4 and of 1347-51. These exploded among populations severely weakened by hunger, following downturns in global temperature. The Spanish Flu took hold because of the dislocations produced by the Great War. The human race now has never been so well-fed and so well-provided with medicine. It seems that most victims of the Coronavirus were very old or already in poor health. I do not, of course, welcome any death. But I shall need to see much higher rates of infection and many more deaths – and much and many more outside those groups presently most at risk – before I regard this as other than some collective madness. Read more

On Externalities, Integrated Assessment Models, and UK climate policies


On Externalities, Integrated Assessment Models, and UK climate policies

By Neil Lock

This is a follow-up to my recent essay, “On Cambridge University, post-modernism, climate change, Oppenheimer’s Razor, and the Re-Enlightenment.” As I said there about the economic impacts of global warming: “I’d expect that some probing by independent experts into the economic calculations, and the assumptions on which they are built, might bear fruit.” But where are these calculations, and who are the unbiased experts who have quality controlled them? I couldn’t find any such calculations, or the names of any such experts. Perhaps, I thought, I’d better take a look at this myself.

So, I set out to learn as much as I could about the economic calculations which – so we’re supposed to believe – justify the extreme measures proposed, all the way up to total de-carbonization of the UK economy, to avoid alleged catastrophic damage from global warming. This essay is the result of that exercise. If it reads like a cross between a layman’s guide to the economics of global warming and a political rant, that’s because it’s both!

Summary

Here are the main points of what I found out:

  1. In 2009, the UK government ceased to value carbon dioxide emissions according to their social cost [1], in favour of using numbers based on political commitments they had previously made. In effect, they abandoned doing cost versus benefit assessments on policies that are expected to increase or decrease CO2 emissions.
  2. Recent empirical estimates of equilibrium climate sensitivity (ECS), when run through assessment models like those used by the US Environmental Protection Agency (EPA), suggest a considerably lower social cost of CO2 emissions than earlier estimates, such as the UK government’s Stern Review.
  3. When the beneficial side-effects of CO2 emissions, such as increased plant growth, are taken into account, it’s possible that the social cost of these emissions may even become negative. That is, CO2 emissions become a nett benefit not a nett cost.
  4. Calculations based on a 2017 paper by Dayaratna, McKitrick and Kreutzer suggest a social cost for all UK CO2 emissions as at 2020 of 0.05% of GDP (optimistic) or 0.31% of GDP (pessimistic). Using the social cost numbers for 2050 from the same paper, the figures are 0.08% and 0.52% respectively. All these numbers are substantially lower than the 1-2% of GDP put forward as the cost of “net zero” policies.
  5. There is a need for urgent action to prevent the imposition of costly, draconian and lifestyle-destroying policies on people in the UK in the name of a problem, which is far less serious (if it is a problem at all) than is claimed by the promoters of those policies.

Read more

LGBTs, Leftists and Libertarians


LGBTs, Leftists and Libertarians

By Duncan Whitmore

In a previous essay posted on this blog, the present writer explored the poisonous proliferation of identity politics in today’s political discourse. One of the themes of that essay was that identity politics has served to create false group identities which misrepresent the interests of the individuals who are supposed to make up those groups, solely for the purpose of being able to pit each group against other groups for political gain. The actual interests of the individuals within each group are served poorly, if at all.

Continuing on a similar theme, we will, in the present essay, examine how various minority groups that have been championed by the left – many of which, such as those characterised by race, religion or sexual orientation, have won genuine and much needed victories against prior legal repression – are being exploited by the left in the current culture war. Although libertarians are right to welcome a renaissance of traditional, local, cultural and religious values as bulwarks against the metastasising growth of the state, it is not minority groups (or the vindication of their rights) per se which are a threat to traditional cultures; rather, the genuine threat is the attempt by straight, white, middle class virtue signalling liberals to grant legal privileges to these groups in an attempt to attack and weaken what remains of Western civilisation. Far from having their own, long term interests preserved by allying themselves with the left, these minorities may well be leading themselves over a cliff edge if they are swept up in the backlash against leftism that is manifest in the resurgence of populism, nationalism, traditionalism and anti-globalism. Consequently, we shall why it is libertarianism that can allow minority groups to flourish, and why members of minority groups should become libertarians. Read more

Globalisation – the Baby and the Bathwater


Globalisation – the Baby and the Bathwater

By Duncan Whitmore

If the liberal-left was hoping that the recent state visit to the UK by Donald Trump would provide the perfect opportunity to (once again) castigate him for his supposed “racism”, “misogyny”, and a fervour for “nationalism” that apparently puts him on par with Hitler, they have probably been left disappointed. In fact, the visit seems to have come off rather well for the 45th President. Sadiq Khan, London’s leftist mayor, succeeded only in burying himself in a Twitter spat that began before Air Force One even touched down on the tarmac. The anti-Trump protests in Parliament Square – at which, for want of imagination, the Trump “baby blimp” was re-deployed (and subsequently burst by a Trump sympathiser) – failed to attract the anticipated attendance. Instead, news reports of Trump being received warmly by the Queen, behaving graciously and courteously at the state banquet, and delivering a positive and optimistic joint press conference with the Prime Minister about the future of the US-UK relationship, have most likely lent him an air of statesmanship that he has previously lacked. Even the BBC was forced to concede that the trip has, somehow, “normalised” Trump, and that, rather than banishing the orange-faced “fascist” from our shores forever, we should probably recognise that he is “here to say and [so we] had better get used to him”. Read more

“Austrian” Business Cycle Theory – an “Easy” Explanation


“Austrian” Business Cycle Theory – an “Easy” Explanation

 By Duncan Whitmore

Compared to the simple and straightforward siren songs of “underconsumptionist” and “underspending” theories of boom and bust, “Austrian” business cycle theory (ABCT) can seem unduly complex. The former types of theory, associated with “mainstream” schools of economics, at least have the advantage of the veneer of plausibility, in spite of their falsehood. A glut of business confidence and spending will, it seems, naturally lead to an economic boom, a boom that can only come crashing down if these aspects were to disappear. For what could be worse for economic progress if people just don’t have the nerve do anything? Add in all of the usual traits of “greed” and “selfishness” with which people take pride in ascribing to bankers and businessmen (again, with demonstrable plausibility) and you have a pretty convincing cover story for why we routinely suffer from the business cycle. ABCT, on the other hand, with its long chains of deductive logic, can seem more impenetrable and confusing. Is there a way in which Austro-libertarians can overcome this problem? Read more

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