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Posts Tagged ‘Jeremy Corbyn’

Not all leftists are alike.

I speculated a couple of years ago that there were four types of statists and put them on a spectrum. I put “rational leftists” at one end. If you wanted to pick a nation that represents this mindset, think Sweden. Nice, civilized, market-oriented, but plenty of redistribution.

On the other end of the spectrum were three less-palatable types.

  1. The “totalitarians,” which means a dictatorial state-run economy, as represented by the Soviet Union and China.
  2. The “socialists,” a democratically elected form of a state-run economy, as represented by post-WWII United Kingdom.
  3. The “crazies,” which I confess is a catch-all category to capture visceral, unthinking, and punitive intervention.

And for that final category, I listed Bernie Sanders and Greece as representatives.

And if you want to know why I listed Sanders, here’s some of Jeffrey Tucker’s FEE column from 2015.

Bernie Sanders, that sweet old socialist who we would have to invent if he didn’t exist in real life, elicited guffaws all over the Internet with his now famous comment about deodorant choice. “You don’t necessarily need a choice of 23 underarm spray deodorants or of 18 different pairs of sneakers,” he said, “when children are hungry in this country.” …The underlying theory here is that the proliferation of deodorant and tennis shoes come at the expense of food for the poor. There is only a certain amount of wealth in the world, this thinking goes.

In practical terms, Sanders must think the world is zero-sum. I can’t be rich unless you are poor, and vice-versa.

Tucker explains that this isn’t true. Or, to be more accurate, it’s not true when markets are allowed to function.

That’s what was so captivating about the Industrial Revolution. All kinds of people were suddenly getting richer, and not by grabbing other people’s stuff. Wealth seemed to be actually expanding. ..Adam Smith…patiently observed how expansion of the division of labor, innovation, and trade — all based on secure ownership titles and free association — were working together to make everyone better off. This was not a zero-sum world. We escaped that fate long ago. …This was the single most marvelous discovery that economics made.

But because of his visceral disdain for markets, Sanders doesn’t trust free people to make decisions.

People who talk like Sanders imagine themselves in the position of dictators, deciding what social priorities ought to be. …What if they got their way? They would have to override billions of decentralized decisions. They would have to reject the judgements of millions of balance sheets. They would have to use massive force to prevent people from inventing, making bargains, striking deals, and buying and selling. It really does mean the end of freedom… It is for this reason that socialist central planning has brought reduced standards of living, poverty, and economic stagnation and chaos everywhere it has been tried.

And Sanders isn’t the only crazy.

Jeremy Corbyn’s economic views are also astoundingly bad, as explained by Andrew McKie for CapX.

…no matter how clueless and unrealistic the Labour leader is when it comes to Europe, that’s nothing compared with his failure to come to grips with the real world. Corbyn said: “I do not agree with or accept the idea there has to be competition in mail delivery. After all, we all have one letterbox, and it is much more efficient to have one postal delivery person coming down the street rather than three or four from different or competing companies.” …Corbyn isn’t just saying that Labour plans to renationalise the Royal Mail. …wave goodbye to Amazon Prime and next-day delivery from Asos, and say so long to FedEx, DHL or UPS and their guarantees. As for innovations that have just arrived or are in the works, such as universal same-day delivery and the use of drones, forget it.

McKie delves into the many reasons why Corbyn is so misguided.

The extraordinary point is that Corbyn really seems to think that, if there’s one of something, it’s neither realistic nor desirable that there should be any alternative on offer. Heaven forbid that you might think that you could make a choice, or that anyone else might provide a better, a cheaper or – in any way at all – a different service. …Corbyn’s “one-size fits all” approach ought to seem ridiculous, even if no one would laugh if they had to live in a country that operated that way. But he’s not joking; he really seems to think that all the reforms, the improvements in living standards, the economic growth and consumer choice of the last 40 years were a mistake, and that the state-run companies of Britain (then known as ‘the sick man of Europe”) were better. He doesn’t seem to realise that it is exactly the market – the existence of choice and competition – which led to those improvements, which drove innovation, drove up living standards, and drove down prices.

Everything Tucker and McKie says is spot on.

My two cents on this issue is that Sanders and Corbyn are guilty of two huge mistakes.

  • First, they think the economy is a fixed pie, which is laughably false. Just watch these videos by Don Boudreaux and Deirdre McCloskey. The simple lesson is that everyone can become richer at the same time. At least if they have decent policy.
  • Second, they have no idea of the valuable role of “creative destruction” in encouraging ever-more efficient and less costly ways of generating ever-more valuable goods and services. Watch this video and this video for more details.

You don’t need to be an economist to understand why Sanders and Corbyn are wrong. Normal people can look at how fast various nations grow (or don’t grow) and draw the appropriate conclusions.

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In a perverse way, I admire leftists who openly express their desire for bigger government and less liberty.

That’s why I (sort of) applauded when Matthew Yglesias wrote in favor of confiscatory tax rates while admitting the government wouldn’t generate any revenue.

And I gave Katrina vanden Heuvel credit for openly admitting her desire to redefine “freedom” so that it means a claim on other people’s income and property.

Both are proposing horrible policy, of course, but at least they’re honest about their goals and motivations. Unlike politicians, they’re not trying to disguise their intentions behind poll-tested platitudes.

We can now add another person to our list of honest leftists. The new leader of the Labour Party in the United Kingdom, Jeremy Corbyn, is a British version of Bernie Sanders, except he really is a socialist who believes in government ownership and control of business. And the chief economic adviser to Corbyn is Richard Murphy.

And, as reported by the U.K.-based Sun, Mr. Murphy openly says everyone’s income belongs to government.

Chartered accountant Richard Murphy, 57, is the brains behind the “Corbynomics” strategy of renationalisation, higher taxes and printing millions of pounds in “new” money. …his bizarre ideas have already sparked fears among Britain’s top economic experts… One of Murphy’s strategies was revealed in August 2014… The dad-of-two claimed taxpayers’ money was NOT their own – and was instead the state’s “rightful property”. Murphy said: “I would suggest that we don’t as such pay taxes. The funds that they represent are, I suggest, in fact the property of the state.”

To be fair, sometimes people mangle their words. To cite one hypothetical example, accidentally omitting a  word like “not” might totally change the meaning of a sentence and give a journalist an opportunity to make a speaker look foolish.

So maybe Mr. Murphy didn’t really mean to say that the government has first claim on everyone’s income.

But if you continue reading, it becomes apparent that he really does believe that government is daddy and the rest of us are children who may be lucky enough to get some allowance.

“…if we give the state the power to define what we can own, how we can own it and, to a very large degree, what we can do with it – and we do – then I would argue that we also give the state the right to say that some part of what we earn or own is actually its rightful property and that we have no choice but pay that tax owed as the quid pro quo of the benefit we enjoy from living in community. Murphy went on: “Well let me inform you that there is no such thing as ‘taxpayers’ money’: it is the government’s money to do what it will with in accordance with the mandate it has been given and for which it will have to account.

Wow, this truly gives us a window into the soul of statism.

Though let’s be fair to Murphy. He’s simply stating that untrammeled majoritarianism is a moral basis for public policy, even if it means 51 percent of the population ravages 49 percent of the population. And that’s an accurate description of how economic policy works in the United States ever since the Supreme Court decided to toss out the Constitution’s limits on the power of the federal government.

Moreover, Murphy’s view is basically reflected in the “tax expenditure” concept used in Washington and the “state aid” concept in the European Union.

None of this justifies Murphy’s poisonous ideology. Instead, I’m simply making the grim point that statists already have achieved some of their goals.

But maybe it will be easier to counter further attacks on economic liberty now that Murphy has openly said what his side wants.

P.S. There are two types of honest leftists. Richard Murphy, like Matt Yglesias and Katrina vanden Heuvel, are honest in that they openly state what they really believe, even when it exposes their radical agenda.

Some other folks on the left have a better type of honesty. They’re willing to admit when there is a contradiction between statist ideology and real-world results. Just look at what Justin Cronin and Jeffrey Goldberg wrote about gun control and what Nicholas Kristof wrote about government-created dependency.

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