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Blog Review 836

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Yes, we really should take up Larry Flynt's idea and subsidise the porn industry. Well, why not? It's no more ridiculous than many other things which are having cash thrown at them, which was rather Larry's point we think.

For example, perhaps the UK car industry isn't all that deserving after all.

What we really need is a bad country, not a bad bank. Netsmith likes this idea a lot. Perhaps we will finally find out what France is for?

This could be the phrase for 2009. "You're not dead until you're warm and dead."

Evidence to annoy the republicans (that's the anti-Monarchists, not the GOP). Parliamentary systems do better than Presidential ones.

Blimey. Someone's finally come up with a stimulus plan that's at least half decent?

And finally, the Milky Way Transit Authority. (Puns are here.)

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Miscellaneous Tim Worstall Miscellaneous Tim Worstall

How laws are made

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Yes, yes, we all know what Bismark said about watching the law being made. Even so, it can come as something of a shock to hear those who would extol such a system. Complaining that politicians cannot do what he would like them to do about climate change Jonathan Porritt suggests the following:

So it was good to see the latest publication from the Green Alliance on The New Politics of Climate Change. The basic thrust of it is that individual action by the "converted" is never going to be sufficient, and that we now need to mobilise the whole of the so-called Third Sector (voluntary organisations, local community groups, trade unions and co-ops, NGOs beyond the environment world, faith communities and so on) to enable a collective shift in both attitudes and actions. Without this, we will never generate a sufficient momentum to encourage/compel our politicians to do what they know they should be doing but still feel they can’t get away with.

That would be the Jonathan Porritt who used to run Friends of the Earth. That FoE whose offshoot, FoE Europe, gets 50 % or so of its funding from the European Union? Those unions that get great gobs of money from the taxpayer? Those NGOs that, when you examine their accounts, all seem to be sucking at the same taxpayers' teat? Indeed, that Third Sector which in recent years has all but given up any pretence at all of being independent and allowed themselves to be coopted by the promises of government cheques?

So, to explain in more detail. Government taxes us using their monopoly of legitimate violence. They then hand some portion of this money to the less talented parts of the upper middle classes who then use it to persuade us of the merits of what the government wanted to do all along?

Unrelated here is a claim that the European Union spends more on its propaganda budget than Coca Cola does on its global advertising.

For those who would prefer something more pleasant, here is a film of sausages being made.

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Blog Review 835

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Bankers stupid enough to lend on these terms almost deserve to lose their money.

At least in the US there was little sign of that credit driven frenzy we hear so much about.

Historical evidence that lending booms leading to defaults are hardly exactly new.

Obama is hailed as one of the great rhetoricians of our time. Well, perhaps, but it's certainly true that the Chicago School of political speech has a style all its own.

An elegant and simple solution to the problem of environmental vandalism.

Ukraine, Russia and gas supplies. Best understood as a classical bilateral monopoly situation. With added gangsters.

And finally, great reporting of our times.

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Blog Review 834

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In one way we could think of the second stage of the stimulus as being like the Battle of the Somme. So far our tactics haven't worked so let's go large!

Even Obama's new advisor seems to be indicating that fiscal stimulus won't work.

And of course a stimulus fired by spending leaves us open to the most egregious pork.

One such piece of infrastructure pork here in the UK is a broadband rollout. There is a better way.

There is of course real world evidence that there is a slowdown: oil stocks are booming.

This fall off in car sales. It's not all about the recession you know.

And finally, conclusive proof that soccer is becoming more popular in the USA.

 

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Adam Smith Institute named world's No.10 non-US think tank

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The Adam Smith Institute has been ranked as the No.10 think tank outside the US in a major new study for Foreign Policy magazine, making it the highest-placed domestic policy think tank in the UK. The ASI was also listed at No.5 in the 'Top 5 International Economic Policy Think Tanks' category.

The 'Think Tank Index' – which is based on a worldwide survey of hundreds of scholars and experts – is published in full in the January/February issue of Foreign Policy. It was compiled by James McGann, Assistant Director of the International Relations Program and Director of the Think Tanks and Civil Societies Program at the University of Pennsylvania.

Naturally we are delighted to feature in the top 10 of such an authoritative international study, and to be considered one of the five leading economic think tanks in the world – despite having a much smaller budget than many of our competitors. We put it down to many years of solid effort to produce timely, well-researched and practical policies, an eye to cost-effectiveness, and the continuing loyalty of our many supporters among the general public.

It has in fact been an excellent month. In Ian Dale's End of Year awards, the Adam Smith Institute was voted to be Think Tank of the Year. With big plans for 2009...

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Blog Review 833

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It might be that medical research by private companies is not the best: but government research would face its own set of incentive problems too. Might even be worse.

Why is that so many people think the New Deal "worked" when at least half of economists think it didn't?

How the world has changed now that the political regime is about to.

So, can the US actually afford the Keynesian stimulus being talked of?

More evidence that the SEC really should have cottoned on to Madoff before he confessed.

If you'd like to understand what is really going on with Russia, the Ukraine and gas supplies....

And finally, it's curtains for curtains.

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Miscellaneous Philip Salter Miscellaneous Philip Salter

Alexander Stoddart: Her Majesty's Sculptor in Ordinary in Scotland

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At the end of 2008, Alexander Stoddart was given the prestigious title of ‘Her Majesty's Sculptor in Ordinary in Scotland’. An honour justly deserved, if only for the excellent statue he created for us of Adam Smith on the Royal Mile in Edinburgh.

Following the unveiling of the statue of Adam Smith last summer, Stoddart spoke of the many people needed to build the magnificent statue. Upon receipt of this title he paid tribute once more to the work of others:

 What I might have done to have this honour conferred upon me is in large part owing to the steady support and great skill of the foundrymen, plaster-workers, stone-masons and carvers, architects, planners and engineers with whom it is my privilege to work, in Scotland, England, Italy and America.

Thus, the division of labour leads not only to an increase in the quantity of production, but the skills of men and women come to together to produce such quality as Stoddart’s work. As such, Adam Smith is now well placed to stand firm against the vagaries of fashion and those cold Scottish winds.

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Quote of the week

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It would be irresponsible in the extreme for an individual to forestall a personal recession by taking out newer, bigger loans when the old loans can't be repaid. However, this is precisely what we are planning on a national level.

Peter Schiff, Wall Street Journal

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Blog Review 832

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Even Paul Krugman (when writing as an economist that is) seems to think that fiscal stimulus simply buys time rather than it is a solution.

Whether you call it political corruption seems to be a point of view more than anything else.

No, tariffs are not the solution and one reason is that you've got to assume that everyone else does nothing about them.

Automating tasks is how we progress: but there might be those who will game an automated system.

A textbook example of creative destruction in action.

History is supposed to repeat itself, first as tragedy, then as farce. Not, as in this case, a tragedy repeating a farce.

And finally, fun for all. The internet anagram server.

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