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Posts Tagged ‘United Kingdom’

In my never-ending strategy to educate policy makers about the Laffer Curve, I generally rely on both microeconomic theory (i.e., people respond to incentives) and real-world examples.

And my favorite real-world example is what happened in the 1980s when Reagan cut the top tax rate from 70 percent to 28 percent. Critics said Reagan’s reforms would deprive the Treasury of revenue and result in rich people paying a lot less tax. So I share IRS data on annual tax revenues from those making more than $200,000 per year to show that there was actually a big increase in revenue from upper-income taxpayers.

It has slowly dawned on me, though, that this may not be the best example to share if I’m trying to convince skeptical statists. After all, they presumably don’t like Reagan and they may viscerally reject my underlying point about the Laffer Curve since I’m linking it to the success of Reaganomics.

So I have a new strategy for getting my leftist friends to accept the Laffer Curve. I’m instead going to link the Laffer Curve to “successful” examples of left-wing policy. To be more specific, statists like to use the power of government to control our behavior, often by imposing mandates and regulations. But sometimes they impose taxes on things they don’t like.

And if I can use those example to teach them the basic lesson of supply-side economics (if you tax something, you get less of it), hopefully they’ll apply that lesson when contemplating higher taxes on thing they presumably do like (such as jobs, growth, competitiveness, etc).

Here’s a list of “successful” leftist tax hikes that have come to my attention.

Now I’m going to augment this list with an example from the United Kingdom.

By way of background, there’s been a heated housing market in England, with strong demand leading to higher prices. The pro-market response is to allow more home-building, but the anti-developer crowd doesn’t like that approach, so instead a big tax on high-value homes was imposed.

And as the Daily Mail reports, this statist approach has been so “successful” that the tax hike has resulted in lower tax revenues.

George Osborne’s controversial tax raid on Britain’s most expensive homes has triggered a dramatic slump in stamp duty revenues. Sales of properties worth more than £1.5million fell by almost 40 per cent last year, according to analysis of Land Registry figures… This has caused the total amount of stamp duty collected by the Treasury to fall by around £440million, from £1.079billion to a possible £635.7million. The figures cover the period between April and November last year compared to the same period in 2015.

Our leftist friends, who sometimes openly admit that they want higher taxes on the rich even if the government doesn’t actually collect any extra revenue, should be especially happy because the tax has made life more difficult for people with more wealth and higher incomes.

Those buying a £1.5 million house faced an extra £18,750 in stamp duty. …Tory MP Jacob Rees-Mogg…described Mr Osborne’s ‘punitive’ stamp duty hikes as the ‘politics of envy’, adding that they have also failed because they have raised less money for the Treasury.

By the way, the fact that the rich paid less tax last year isn’t really the point. Instead, the lesson to be learned is that a tax increase caused there to be less economic activity.

So I won’t care if the tax on expensive homes brings in more money next year, but I will look to see if fewer homes are being sold compared to when this tax didn’t exist.

And if my leftist friends say they don’t care if fewer expensive homes are being sold, I’ll accept they have achieved some sort of victory. But I’ll ask them to be intellectually consistent and admit that they are implementing a version of supply-side economics and that they are embracing the notion that tax rates change behavior.

Once that happens, it’s hopefully just a matter of time before they recognize that it’s not a good idea to impose high tax rates on things that are unambiguously good for an economy, such as work, saving, investment, and entrepreneurship.

Yes, hope springs eternal.

P.S. In addition to theory and real-world examples, my other favorite way of convincing people about the Laffer Curve is to share the poll showing that only 15 percent of certified public accountants agree with the leftist view that taxes have no impact have taxable income. I figure that CPAs are a very credible source since they actually do tax returns and have an inside view of how behavior changes in response to tax policy.

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Since I’m always reading and writing about government policies, both in America and around the world, I’m frequently reminded of H.L. Mencken’s famous observation about the shortcomings of “tolerable” government.

If you take a close look at the world’s freest economies, you quickly learn that they are highly ranked mostly because of the even-worse governments elsewhere.

Even places such as Switzerland have some misguided policies.

But there’s a silver lining to this dark cloud. The incompetence, mendacity, and cronyism that exists all over the world means that I’ll never run out of things to write about.

So let’s enjoy a new edition of Great Moments in Foreign Government.

We’ll start with the utterly predictable failure of an entitlement program in the United Kingdom.

The government must stop ‘nannying’ British parents and do away with universal free childcare, a new report has urged. Families most in need of help are not getting it because Government subsidies are poorly targeted, the Institute of Economic Affairs publication said. Many families on average earnings are spending more than a third of their net income on childcare, the report claimed, saying too much regulation in the sector has hiked prices. …One study has estimated that keeping parents in work costs £65,000 per job, the report claimed, describing current policy as ‘costly and inefficient’. …home-based childminders are priced out of the sector, it said. Co-author of the report Len Shackleton, an editorial research fellow at the Institute of Economic Affairs, said: ‘Government interventions in the childcare sector have resulted in both British families and taxpayers bearing a heavy burden of expensive provision.

Gee, a sector of the economy gets more expensive and inefficient once government gets involved.

I’m totally shocked, just like Inspector Renault in Casablanca.

Sentient human beings, of course, are not surprised. After all, just look at what government intervention has done for healthcare and higher education.

I’m still waiting for an example of a government “solution” that makes a problem better rather than worse.

Let’s now turn to Germany. I’ve previously referenced the country’s intelligence community because the BND managed to lose the blueprints for its costly new headquarters building.

But apparently the incompetence goes well beyond architecture. Another German intelligence division, the BfV, had an Islamic terrorist on staff. Here are some excerpts from a report in the Washington Post.

German intelligence agents noticed an unusual user in a chat room known as a digital hideout for Islamic militants. The man claimed to be one of them — and said he was a German spy. He was offering to help Islamists infiltrate his agency’s defenses to stage a strike. Agents lured him into a private chat, and he gave away so many details about the spy agency — and his own directives within it to thwart Islamists — that they quickly identified him, arresting the 51-year-old the next day. Only then would the extent of his double life become clear. The German citizen of Spanish descent confessed to secretly converting to Islam in 2014. From there, his story took a stranger turn. Officials ran a check on the online alias he assumed in radical chat rooms.

And they found out that the terrorist had a rather colorful past.

The married father of four had used it before — as recently as 2011 — as his stage name for acting in gay pornographic films. …which could cast a fresh light on the judgment and vetting of the German intelligence agency at a critical time.

These revelations have generated some concern, as one might expect.

News of the case sparked a storm of outrage in Germany, even as critics said it raised serious questions about the country’s bureaucratically named domestic spy agency, known as the Federal Office for the Protection of the Constitution (BfV). …“It’s not only a rather bizarre, but also a quite scary, story that an agency, whose central role it is to engage in counterespionage, hired an Islamist who potentially had access to classified information, who might have even tried to spread Islamist propaganda and to recruit others to let themselves be hired by and possibly launch an attack” against the domestic intelligence agency, said Hans-Christian Ströbele, a member of the Parliamentary Control Committee that oversees the work of the German intelligence services.

You won’t be surprised to learn that the German government is not alone. The U.K. government also has hired terrorists to work in anti-terrorism divisions.

In the United States, by contrast, we import them and give them welfare. I’m not sure which approach is more insane.

The only saving grace is that terrorists sometimes display similar levels of incompetence, as illustrated in the postscripts of this column.

Let’s close with a trip to Canada. Our friends to the north generally are a sensible bunch, but you can find plenty of senseless policies, particularly in the French-speaking areas.

And I’m not sure whether to laugh or cry about this example of bureaucratic extortion.

A Camrose man is ticked about his ticket — a $465 traffic violation issued by Edmonton police — for having a cracked driver’s licence. Dave Balay admits he’s guilty of having a small crack in his licence. But he doesn’t think the penalty fits the crime. He was returning home from visiting a friend Wednesday evening when he was pulled over on Anthony Henday Drive. …He gave the officer his driver’s licence, registration and insurance card. …”He came back, and the younger policeman said he was going to give me a ticket for my driver’s licence being mutilated,” said Balay. “I said, ‘Mutilated? I didn’t even know there was such a thing.’ Then he gave me a ticket for $465.” The mutilation referred to was a crack in the top left corner of Balay’s licence. “Maybe not even quite an inch long,” said Balay, adding the crack doesn’t obstruct any pertinent information. …”I think I outright laughed, and said, ‘Seriously? Four-hundred-and-sixty-five bucks for this crack?’ [The officer] said, ‘It’s a mutilated licence.’ …”Had I scratched out my eyes or drawn a mustache on my face, or scratched out the licence number or something, then, yeah, give me a ticket for that. That should be an offence.”

But the local government says Mr. Balay should be grateful that he was treated with such kindness.

Edmonton police released a statement Friday suggesting the officer actually gave Balay a break. According to the statement, the officer had grounds to lay a careless driving charge, which carries a fine of $543 and six demerit points. But because Balay was co-operative, the officer issued a lesser fine for a cracked driver’s licence.

Though Mr. Balay doesn’t think he’s been given a break.

Balay said he won’t pay the fine, even if that means serving jail time or community service. “I don’t have $465,” he said. “…I do some part-time substitute teaching, supply teacher. It’s a week’s wage.”

Good for Mr. Balay. Hopefully the publicity that he’s getting will force the revenue-hungry bureaucrats in Edmonton to back down.

Meanwhile, this story adds to my ambivalence about Canada. On the minus side of the ledger, there are absurd policies granting special rights to alcoholics, inane harassment of kids selling worms or lemonade, fines on parents who don’t give their kids carbs at lunchtime, and punishment for kids who protect classmates from knife-wielding bullies.

Then again, Canada is now one of the world’s most economically free nations thanks to relatively sensible policies involving spending restraint, corporate tax reform, bank bailouts, regulatory budgeting, the tax treatment of saving, and privatization of air traffic control. Heck, Canada even has one of the lowest levels of welfare spending among developed nations.

Though things are now heading in the wrong direction, which is unfortunate for our northern neighbors.

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When I debate one of my leftist friends about deficits, it’s often a strange experience because none of us actually care that much about red ink.

I’m motivated instead by a desire to shrink the burden of government spending, so I argue for spending restraint rather than tax hikes that would “feed the beast.”

And folks on the left want bigger government, so they argue for tax hikes to enable more spending and redistribution.

I feel that I have an advantage in these debates, though, because I share my table of nations that have achieved great results when nominal spending grows by less than 2 percent per year.

The table shows that nations practicing spending restraint for multi-year periods reduce the problem of excessive government and also address the symptom of red ink.

I then ask my leftist buddies to please share their table showing nations that got good results from tax increases. And the response is…awkward silence, followed by attempts to change the subject. I often think you can even hear crickets chirping in the background.

I point this out because I now have another nation to add to my collection.

From the start of last decade up through the 2009-2010 fiscal year, government spending in the United Kingdom grew by 7.1 percent annually, far faster than the growth of the economy’s productive sector. As a result, an ever-greater share of the private economy was being diverted to politicians and bureaucrats.

Beginning with the 2010-2011 fiscal year, however, officials started complying with my Golden Rule and outlays since then have grown by an average of 1.6 percent per year.

And as you can see from this chart prepared by the Institute for Fiscal Studies, this modest level of fiscal restraint has paid big dividends. The burden of government spending has significantly declined, falling from 45 percent of national income to 40 percent of national income.

This means more resources in private hands, which means better economic performance.

Though allow me to now share some caveats. Fiscal policy is only a small piece of what determines good policy, just 20 percent of a nation’s grade according to Economic Freedom of the World.

So spending restraint should be accompanied by free trade, sound money, a sensible regulatory structure, and good governance. Moreover, as we see from the tragedy of Greece, spending restraint doesn’t even lead to good fiscal policy if it’s accompanied by huge tax increases.

Fortunately, the United Kingdom is reasonably sensible, which explains why the country is ranked #10 by EFW. Though it’s worth noting that it gets its lowest score for “size of government,” so the recent bit of good news about spending restraint needs to be the start of a long journey.

P.S. The United States got great results thanks to spending restraint between 2009-2014. It will be interesting to see whether Republicans get better results with Trump in the White House.

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Back in 2013, I got very upset when I learned that senior bureaucrats at the IRS awarded themselves big bonuses, notwithstanding the fact that the agency was deeply tarnished by scandal because of its efforts to help Obama’s reelection campaign.

That’s when I decided to put forth my “First Theorem of Government,” which simply states that the public sector is a racket for the benefit of a ruling class comprised of bureaucrats, interests groups, cronies, and other insiders.

They have figured out how to line their pockets and live very comfortable lives at the expense of people in the economy’s productive sector.

The same thing is true on the other side of the Atlantic Ocean. The U.K.-based Daily Mail reports that senior bureaucrats in the country’s government-run healthcare system get lavish taxpayer-financed pension.

Hundreds of NHS managers have amassed million-pound pension pots while presiding over the worst financial crisis in the history of the health service… As patients face crippling delays for treatment, A&E closures and overcrowded wards, bureaucrats have quietly been building up huge taxpayer-funded pensions. They will be handed tax-free six-figure lump sums on retirement, and annual payouts from the age of 60 of at least £55,000 – guaranteed for life.

Here are some of the details, all of which must be especially aggravating for the mistreated patients who suffer because of substandard care from the government.

Nearly 300 directors on NHS trust boards have accrued pension pots valued at £1million or more; At least 36 are sitting on pots in excess of £1.5million – with three topping a staggering £2 million; The NHS pays a staggering 14.3 per cent on top of employees’ salary towards their pension – almost five times the average of 3 per cent paid in the private sector; …About 500 earn more than the Prime Minister – after Health Secretary Jeremy Hunt ordered them to ‘show restraint’ on executive pay. …the scheme every year pays retired staff £10 billion more than it takes in. That black hole has to be filled by the taxpayer. The subsidies enable NHS executives – including managers, human resources bosses and directors of ‘corporate administration’ – to build up vast pensions, at minimal personal expense.

Here’s the bureaucrat with the biggest pile of loot from taxpayers.

The biggest single beneficiary is Professor Tricia Hart, who retired as chief executive of South Tees Hospitals NHS Foundation Trust in January with a £2.6 million pension. That figure entitled her to a lump sum of at least £335,000 on retirement, plus an inflation-proof annual pension of £110-115,000. …at least four HR directors have amassed million-pound pensions.

By the way, I have nothing against people accumulating big nest eggs. Even if they work for the government.

My objection, as discussed in yesterday’s column about state and local bureaucrats in America, is when bureaucrats have special taxpayer-financed deals.

Especially, as we see all too often in the U.K., when taxpayers don’t even get good healthcare in exchange for the lavish salaries and benefits.

Almost four million people are now waiting for cataract surgery, hip and knee replacements and other routine operations. The number of people forced to wait more than four hours in A&E has doubled in two years. And wards are full of elderly people who cannot be discharged – because there are no care home places for them.

A spin doctor tried to rationalize and justify the cozy scheme for bureaucrats.

…a spokesman for NHS Pensions stressed that…The amounts individuals accrued were a result of the ‘rules and regulations’ of the NHS scheme. ‘What people get paid is a matter for NHS trusts,’ he added.

I’m amused by the assertion that the lavish pensions are the result of simply following the “rules and regulations.” That’s precisely the point. Government insiders write the rules and regulations and they inevitably produce systems that are very good for them and not so good for taxpayers.

I’m also amused (and when I write “amused,” I actually mean “irritated” or “appalled”) at the claim that compensation levels are “a matter for NHS trusts”. If the spin doctor was talking about a private company, I would agree. As I’ve argued before, pay levels in private companies should be determined by managers and stockholders.

But we’re talking in this case about pay levels in a government bureaucracy. And notwithstanding the elitist attitude of some government officials, taxpayers have every right to get outraged when they learn that their money is being squandered on excessive pay and gold-plated benefits.

It’s a problem all over the world.

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It would be impossible to pick the most hare-brained government policy. We have all sorts of bizarre examples from the United States. And we have equally “impressive” examples from other nations.

And today, we’re going to augment our collection of bone-headed policies from elsewhere in the world.

We’ll start with the United Kingdom, which already is a very strong competitor in the government-stupidity contest.

Though they may deserve to win that contest since the government is actually giving welfare benefits to polygamous immigrants.

Immigrants in polygamous marriages drain British taxpayers of millions of dollars each year by taking advantage of loopholes in the welfare system, and future legislation will make it even more profitable. …Married couples in Great Britain can receive need-based income support of up to $162 per week. As of 2013 — when a number of reforms to marriage support came into effect — a man can claim an additional $57 for every subsequent wife. In total, a polygamous household can claim more than $17,000 in welfare over the course of a year.

There apparently is some effort to clamp down on handouts based on future multiple marriages, but there’s a giant loophole.

An even more profitable way for polygamous marriages to bring in welfare money is by getting married in a so-called “Nikah” ceremony, which is recognized by Islam, but not British law. The wives will hence appear as “single” in the system, and can take out additional benefits if they have children. …New legislation expected to go into effect by 2021, will no longer recognize multiple marriages for the same person. But “Nikah” marriages will still receive a huge boost from the new law, since women can receive more money under “single” status than she did as an additional wife. The allowance for the extra “wives” will more than double to $454 each per month.

This may be the “triple crown” of stupidity. The first mistake is providing handouts. The second mistake is giving handouts to immigrants (which creates unseemly yet understandable backlash). And the third mistake is supposedly cutting back on handouts, but doing it in such a foolish fashion that more money will be wasted. Impressive.

Speaking of going above and beyond the call of duty in the battle to squander money, the U.K.-based Telegraph reports that the British government has been flushing away huge amounts of money for a facility to house unsuccessful asylum seekers.

An accommodation centre for failed asylum seekers is more costing than the world’s most exclusive hotels, taking just 14 families last year at a cost of more than £450,000 each. Cedars, a secure centre run by the Home Office, was occupied for approximately 40 nights in the first nine months of 2014/15 – but landed the taxpayer with a bill for millions of pounds. Total running costs for 2014/15 were estimated at £6,398,869 – or more than £457,000 for each family which passed through its doors. If each family stayed at the centre for the full year, the cost would equate to £1,252 a night, or £38,088 per family per month. However, the true cost is far higher – as much as £152,354 a night – because most families spend only 72 hours at Cedars… London’s Savoy hotel charges from £1,150 for a suite with a view of the River Thames, making it cheaper than the minimum nightly cost of Cedars House.

Wow. I’ve never stayed anyplace that nice on my trips to England. Maybe I should ask for asylum on my next trip?

Here’s another story that almost defies belief. Apparently the geniuses in the British bureaucracy thought wars only get fought in cold weather.

The Royal Navy’s fleet of six £1bn destroyers is breaking down because the ships’ engines cannot cope with the warm waters of the Gulf, defence chiefs have admitted. They also told the Commons defence committee on Tuesday that the Type 45 destroyers’ Rolls-Royce WR-21 gas turbines are unable to operate in extreme temperatures and will be fitted with diesel generators. Rolls-Royce executives said engines installed in the Type 45 destroyers had been built as specified – but that the conditions in the Middle East were not “in line with these specs”. Earlier a Whitehall source told Scotland’s Daily Record: “We can’t have warships that cannot operate if the water is warmer than it is in Portsmouth harbour.”

But it’s not just British bureaucrats who make bizarre mistakes.

Consider how the incompetence of Belgian officials paved the way for a terrorist attack.

…ministers and prosecutors…admitted failures that led to the release, last year, of two of the perpetrators of Tuesday’s terror attacks in Brussels. Interior minister Jan Jambon and justice minister Koen Geens said that information about one of the three suicide bombers transmitted by Turkey was not properly handled. …a Belgian prosecutor said that a second terrorist had been arrested and released by the Belgian justice system.

Here are the jaw-dropping details on one of the terrorists.

El Bakraoui had been sentenced in 2010 to 10 years in prison for robbery and for shooting at police with a Kalashnikov rifle. He was released in October 2014 but on condition he didn’t leave Belgium for more than 30 days at a time. He was arrested on the border between Turkey and Syria in June. Turkish authorities notified Belgium about it at the end of June, Geens told journalists. …”It was then very dificult to arrest him”, Geens said, as El Bakraoui had landed as “a normal Belgian citizen”, even though he had missed appointments with justice officials as part of his conditional release.

Wow, we have another contestant for the triple crown of government incompetence. First, the dirtbag only served four years in prison after trying to murder some cops. Second, it didn’t set off any red flags when he violated the conditions of his way-too-early release and went to Syria as a jihadist. Third, the Belgian government failed to act when given advance notice and warning by officials in Turkey that he was returning from his jihadist vacation. In this case, the net result wasn’t just wasted money, it was death for innocent civilians.

Let’s not forget, by the way, that a government bureaucrat excused all this incompetence on the theory that the “small size of the Belgian government” precluded an effective approach against terrorism. Yet if you look up the data, government in Belgium is so bloated that it consumes 54 percent of economic output, which is worse than even Italy and Sweden.

And let’s also not forget that American taxpayers subsidize jihadists, so we can’t really laugh too much about the Belgians.

Now let’s move from deadly incompetence to protectionist cruelty. The government in the Bahamas, acting to protect the local dentist cartel, shut down a clinic providing free dentistry for poor people.

Lenny Kravitz learned the hard way about government over-regulation on Monday when police raided a free dental clinic he sponsored in the Bahamas. “The dentists literally had to run out the back door to escape being arrested,” one source told me exclusively. …Kravitz flew several American dentists there for the four-day clinic, but evidently didn’t get all the permits required. On Monday, the last day of the program, as local residents were being fitted for dentures and having root canals, police and immigration officials burst in “and gave the team working 15 minutes to pack up all the equipment and leave,” the Eleutheran newspaper reported.

Heaven forbid that a government permit was missing! No good deed goes unpunished, even if it means poor people lose access to dental care.

Let’s close with a truly inane bit of government from Canada, where bureaucrats stopped a couple of kids from operating an unlicensed – gasp! – lemonade stand (the same thing happens in California, Georgia, and Oregon).

But in a surprising display of humanity, the local paper pushers decided the lemonade stand was okay and they even agreed to waive the $1520 daily fee.

But only with the following conditions.

The NCC has issued a special permit to allow two young girls to sell lemonade…which came with several conditions they must abide by while they operate their lemonade stand…carry a copy of the permit at all times while on NCC property…comply with all federal, provincial and municipal bylaws and regulations…create signs for the lemonade stand in both official languages…only sell lemonade…ensure that customers park their bikes on the grass.

Geesh, I knew the language police were active in Quebec, but I assumed Ontario wasn’t so crazy.

Reading all these stories, the only possible conclusion is that P.J. O’Rourke should apologize to teenage boys.

P.S. For what it’s worth, here are a few of my favorite examples of great moments in foreign government.

Though American readers shouldn’t laugh too hard. After all, we pay for bagpipe police and milk police.

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I realize that there are important issues to analyze, but it’s utterly depressing to focus on Trump’s protectionist agenda or Hillary’s redistribution agenda.

So let’s escape the dismal reality of American politics and enjoy some laughs about Britain’s glorious decision to escape the sinking ship of the European Union.

We’ll start with a parody video featuring the head of the National Socialist Workers Party (PG-13 warning that there are some naughty words).

Very well done.

Not let’s enjoy some more clever satire.

We’ll start with this depiction of what was supposed to happen according to the statist practitioners of Project Fear.

Speaking of Project Fear, here’s some related humor.

And I very much enjoy this cartoon showing that Obama’s attempt to convince Britons to remain in the EU was about as successful as his efforts to convince Americans to like the failed Obamacare program.

Last but not least, I can’t resist sharing this image since I’ve repeatedly used the escape-from-a-sinking-ship metaphor.

P.S. If you enjoyed the Hitler parody, other examples of this genre include:

P.P.S. And if you enjoy European-themed humor, here’s my collection (some of it involving – GASP! – stereotypes):

P.P.P.S. This is sad rather than funny, but here are examples of government-created human rights in Europe. Similarly, if you compare bizarre statements and behavior from the two leading bureaucrats at the European Commission, you’ll understand why the Britons were wise to escape.

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What an amazing vote. The people of the United Kingdom defied the supposed experts, rejected a fear-based campaign by advocates of the status quo, and declared their independence from the European Union.

Here are some takeaway thoughts on this startling development.

1. The UK has voted to leave a sinking ship. Because of unfavorable demographics and a dirigiste economic model, the European Union has a very grim future.

2. Brexit is a vote against centralization, bureaucratization, and harmonization. It also is a victory for more growth, though the amount of additional long-run growth will depend on whether the UK government seizes the opportunity for lower taxes, less red tape, and a smaller burden of government.

3. President Obama once again fired blanks. Whether it was his failed attempt early in his presidency to get the Olympic Games in Chicago or his feckless attempt in his final year to get Britons to remain in the EU, Obama has a remarkably dismal track record. Maybe I can get him to endorse the Boston Red Sox, thus ensuring the Yankees make it to the World Series?

4. Speaking of feckless foreign leaders, but I can’t resist the temptation to point out that the Canadian Prime Minister’s reaction to Brexit wins a prize for vapidity. It would be amusing to see Trudeau somehow justify this absurd statement, though I suspect he’ll be too busy expanding government and squandering twenty-five years of bipartisan progress in Canada. Potential mea culpa…I can’t find proof that Trudeau actually made this statement. Even with the excuse that I wrote this column at 3:00 AM, I should have known better than to believe something I saw on Twitter (though I still think he’s vapid).

5. Nigel Farage and UKIP have voted themselves out of a job. A common joke in Washington is that government bureaucracies never solve problems for which they were created because that would eliminate their excuse for existing. After all, what would “poverty pimps” do if there weren’t poor people trapped in government dependency? Well, Brexit almost surely means doom for Farage and UKIP, yet they put country above personal interest. Congratulations to them, though I’ll miss Farage’s acerbic speeches.

6. The IMF and OECD disgracefully took part in “Project Fear” by concocting hysterical predictions of economic damage if the U.K. decided to get off the sinking ship of the European Union. To the extent there is some short-term economic instability over the next few days or weeks, those reckless international bureaucracies deserve much of the blame.

7. As part of his failed effort to influence the referendum, President Obama rejected the notion of quickly inking a free-trade agreement with the UK. Now that Brexit has been approved, hopefully the President will have the maturity and judgement to change his mind. Not only should the UK be first in line, but this should be the opportunity to launch the Global Free Trade Association that my former Heritage Foundation colleagues promoted last decade. Unfettered trade among jurisdictions with relatively high levels of economic freedom, such as the US, UK, Australia, Switzerland, New Zealand, Chile, etc, would be a great way of quickly capturing some of the benefits made possible by Brexit.

8. David Cameron should copy California Governor Jerry Brown. Not for anything recent, but for what he did in 1978 when voters approved an anti-tax referendum known as Proposition 13. Brown naturally opposed the referendum, but he completely reversed himself after the referendum was approved. By embracing the initiative, even if only belatedly, he helped his state and himself. That would be the smart approach for Cameron, though there’s a distinct danger that he could do great harm to himself, his party, and his country by trying to negotiate a deal to somehow keep the UK in the EU.

9. Last but not least, I’m very happy to be wrong about the outcome. I originally expected that “Project Fear” would be successful and that Britons would choose the devil they know over the one they don’t know. Well, I’m delighted that Elizabeth Hurley and I helped convince Britons to vote the right way. We obviously make a good team.

Joking aside, the real credit belongs to all UK freedom fighters, even the disaffected Labour Party voters who voted the right way for wrong reasons.

I’m particularly proud of the good work of my friends Allister Heath of the Telegraph, Eamonn Butler of the Adam Smith Institute, Dan Hannan of the European Parliament, and Matthew Elliott of Vote Leave. I imagine Margaret Thatcher is smiling down on them today.

Now it’s on to the second stage of this campaign and convincing California to declare independence from the United States!

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