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Blog Review 950

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Does the US really need a car industry? And if it does, is supporting Chrysler and GM the best way to have one?

Good news on those "toxic assets". Prices are higher than many had thought.

If Netsmith were able to bash just one point into the heads of idiot lefties it would be this one. That markets are not inherently rightish things, they work for all regardless of ideology.

There's a nasty whiff of something not right about this case of Master Ferry. 4 months remand and no charges brought?

And there's more than a whiff of demonisation of those owners of Chrysler debt who, umm, insisted that such debt was in fact their property,

This just has to be made into a film. Just has to be.

And finally, why the police should not be using loudhailers.

 

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Making use of a good crisis

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It's the greatest of political sins, to fail to make use of a good crisis. One example of those trying to do so might be the recent EU report on financial market regulations. Hedge funds and private equity are to be brought under tighter control despite their having nothing whatsoever to do with the current problems.

Another attempt which is unfolding under our very eyes is the attempt to portray this swine flu as being an example of the evils of industrial farming.

The Mexican swine flu, a genetic chimera probably conceived in the faecal mire of an industrial pigsty, suddenly threatens to give the whole world a fever.

It's not a chimera, of course, as that would be mixed DNA rather than mutated. It's also an interesting thought for that's not really how we expect zoonoses to arise. For a disease to spread from one species to another, to become cross infectious, we actually think we need to have the two species living in close proximity. Like the Hong Kong bird flu of 68 came from the way in which small holding farmers in that at the time poor country lived cheek by jowl with their birds. Or SARS from Vietnam from the similarly close proximity of stock and human. (No, Spanish flu was not thought to come from humans associating too closely with Spaniards.) That is, we expect such diseases, and we've seen that they do historically, to come not from industrial farming, but from small scale peasant farming. Sleeping above the stock (rather than, erm, with it) is the cause, not having tens of thousands of stock that have little inter species contact.

But of course this should not get in the way of using a good crisis to get whatever it is that you've already decided you want, as Caroline Lucas shows us

More research is urgently needed to explore the potential link between industrialised animal farming, and the spread of disease. Some elements of the Mexican media are already pointing to the potential role of intensive pig farming in Mexico, which has grown substantially in recent years, with some giant operations raising tens of thousands of pigs at a time.

Very well, let us have some more research. How about a bit of empiricism, some collection of relevant facts?

But agricultural in­spec­tion officials say there is no swine flu virus among the pigs at these farms.

So theory says we wouldn't expect large single species farms to produce zoonoses and the facts say that it didn't. Another glorious theory ruined by those pesky facts perhaps? But unfortunately I doubt that will be enough to drown out the siren voices desirous of making good use of this crisis.

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Blog Review 949

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We have myriad problems about pensions, both public and private, at present. But the root cause of all of them is actually something to celebrate: we're all living longer.

Anna Schwartz blamed the Fed for the last disaster, in the 30s, and she was right. Now she's blaming the Fed for the current problems: is she right again?

No, Somalian anarchy is not the perfect state. But amazingly, the absence of government is better than the presence of some governments.

The secret to understanding Adam Smith. He describes meticulously that which is - and not so much that which should be.

The universal first rule of politics:

Every politician really, sincerely, and truly wants what is best for the nation ... as his or her second priority, after doing whatever it takes to get elected or re-elected.

The language here is shocking but then perhaps justifiably so. The lies and contortions are simply fantastical.

And finally, celebrating May Day.

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Blog Review 948

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What we do about the current troubles of course depends on what caused them. And there's still some confusion around as to what actually did cause the current troubles.

We used to have a Man in Whitehall who really did know best. Unfortunately, he retired, which explains a lot about the modern world.

This is known as "ripping a new one". About time it happened to Thoreau.

Rarely is the correct reaction to a tragedy to ban something.

Why Government procurement always costs so much.

Has Gordon really lost the plot?

And finally, some appear to think so.

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Us vs. Them? The global economy in a time of economic nationalism

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Rising unemployment and economic contraction spawned by the financial crisis have inspired governments in almost every major economy to “do something."  Often that has included raising barriers to trade, subsidising domestic industries, compelling local lending while deterring lending abroad, and preventing the benefits of Keynesian “stimulus" spending from “leaking" outside national boundaries. The mantra of both the Right and the Left has become “British jobs for British workers," while the American government precludes “bailed-out" financial institutions from hiring foreign workers.

But is this inward-looking thinking anachronistic for the modern global economy? Over the past 50 years, falling barriers to trade have led to an unprecedented division of labour.  Where supply chains were once very small and usually entirely domestic, they have evolved into highly efficient transnational operations, often spanning several countries.  It’s no longer “our" producers vs. “their" producers; nowadays our producers are the customers of their producers and vice versa.  Collaborations of our producers and their producers compete against other collaborations of our producers and their producers.

The impact of rapidly increasing levels of trade in recent decades has been overwhelmingly positive in terms of innovation, job creation, growth, and poverty reduction around the world.  But changes in trade policy thinking didn’t keep pace with changes in commercial reality, which has kept the door ajar for a resurgence of economic nationalism.  Does that spell the end of the global supply chain?  Daniel Ikenson, trade expert at the Cato Institute in Washington D.C., will discuss these issues in an upcoming event hosted by The Adam Smith Institute and International Policy Network:

Date: 28th May 2009
Time: 12:30 - 2:00pm (buffet from 12:30, talk from 13:00)
Location: 23 Great Smith Street, London, SW1P 3BL

If you would like to attend this event, please email events@old.adamsmith.org

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Lessons from the Great Depression

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Click here to see an excellent video from Freedom to Trade (F2T).

F2T is a joint initiative of IPN and the Atlas Economic Research Foundation to alert the public to the looming dangers of protectionism and to oppose existing and new protectionist measures. We have formed a coalition with 68 other think tanks and civil society organizations around the world, including the Adam Smith Institute.

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Blog Review 947

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There are almost no lengths a bureaucracy won't go to in order to garner more of your money. Almost none.

It looks like there's a very nice little scandal brewing over the Vice President's son and brother. Absolutely no proof of anything as yet, of course.

Something for Green types to think on. Self-sufficiency is the route to poverty.

If industrial production is a much smaller share of our economy than it used to be, does declining industrial production matter quite so much?

Schumpeterian creation in unusual places and unusual markets.

Perhaps the libertarian (or classically liberal) discussion around climate change should centre on what we're already good at: the economics of it all?

And finally, well, why not?

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