Regulating Social Media

blind justice

A note on the US regulation of its domestic media and internationally. I say, "Despite the US claiming the strongest free press rights in the world, rights granted in the US constitution belong to its citizens alone and are only enforceable within the United States. The US’s historic regulation of foreign media, much of which remains in place today, includes the licencing of foreign journalists and the statutory requirements the significant media organisations are owned by U.S. citizens. In fact, U.S. politics confuses the freedom of the press, with the right to platform. For more press the button ...

Are there any public sector efficiencies to find?

Are there any public sector efficiencies to find?

In order to prop up the markets, Kier Starmer wrote an article in the FT, once again extolling the need for public sector reform. His article covers more than that, it seeks to address innovation & growth, and public sector reform, yet misses the implications on industrial policy, university investment and local authority services. I explore these themes in more detail overleaf ...

Growth, institutions and Brexit

Growth, institutions and Brexit

Several commentators on the UK budget, including the OBR, have suggested but there’s insufficient growth stimulus planed. The OBR predict that the economy will grow slightly less than under previous plans; I don’t know how this can be when the proposed deficit is £89bn. They also however predict that the effect of Brexit his -4% of GDP and yet no one in parliament, except for Ed Davey has mentioned this as a growth opportunity.

The OBR and the Bank of England are both institutions designed to protect economic policy from democratic control. Time to abolish one and reform the other. …

More on growth & debt

More on growth & debt

The problem with the Truss mini-budget was not that they had an ‘unfunded’ deficit but that there was no mechanism between the deficit and investment. Rich people tend to save and for the deficit to do any social good, the banks would have to lend to investors i.e. entities looking to buy or make capital goods; which they have never done. Private sector domestic investment has usually been funded by retained earnings!

The lesson here is that the markets were not frightened of the deficit, just its purpose.

See also Growth vs public debt management on this blog. …

Growth vs Public Debt management

Growth vs Public Debt management

You don’t have to be a modern monetarist to believe that the UK has a debt crisis. There are a number of well evidenced and widely believed economic theories that support the use of a Government deficit to induce growth which is the surest way to reduce national debt. Those that argue austerity is a choice are bang on the money.

Debt fetishists need to get this, but so do those who argue that we should fund some desirable programme, be it pensioner’s winter fuel allowances, doctor’s recruitment or student debt forgiveness because we can fund a defence budget. How we use and deploy our military is of course a matter of other priorities but arguing we need to accept austerity by applying the cuts elsewhere is ignorant.

Investment led growth requires expenditure in increasing the productive capacity of the techno-economy, although there is some recent writing and research that traditional industrial policy focused on startups and R&D doesn’t work and that looking at public service outcomes is a more effective growth measure. I’d add that investment in labour force skills is another investment which means that University [& FE] funding and student finance should be considered investement, although none of this seems important to this Government who are prioritising reducing the public debt before investment. Housing is not an investment in productivity; the reason for doing this is social, and not based on macroeconoic policy goals.

You can’t grow the economy while reducing the deficit! It works the otherway round.  …

Universalism

Universalism

In his latest blog, Phil BC shares that the Labour Government, articulated by Rachel Reeves, want to end the pensioners winter fuel benefit because they oppose universalism. But pensions have been earned through NI contributions. Dealing with wealth, or the wealthy earning subsidies, should be dealt with through income tax, removing the NI taper, inheritance tax, and a new wealth tax. Any such reform needs to take into account housing costs and cost of living. Why is it always the only just successful that get penalised by these schemes, such as occurs with the clawback of personal allowance and child benefit. The frightening thing from Phil’s report is that the state pension is a contributory universal benefit, although so was Unemployment Benefit which the Tories abolished and they also put National Insurance contributions into play. Are Labour really going to play with this and create a huge increment to the WASPI campaigners? Perhaps they think that pensioners vote Tory and die, but there are over 1 million workers over 60, most of whom will be planning when to stop and need some stability in their planning horizon. …

Starmer, Berlin, rejoineu and delay

Starmer, Berlin, rejoineu and delay

Even the press and some commentators noticed that Kier Starmer visited Berlin and repeated his Brexit red-lines and yet claimed to want to reduce trade frictions between the two countries.

Germany is not in a position to negotiate this. Trade with 3rd countries is an EU competency. Starmer’s growth mission will be easier if the UK were to rejoin the single market [and customs union]. This involves him changing his mind, and talking to the Commission [FT] to the Commission in Brussels.

The British people would seem to want to rejoin the EU but the Labour Government and too many experts would seem to be still pursuing the chimera of a mercantilist patchwork trade deal which  must be called “Cakeism” in the UK and  will be called cherry-picking  or extrawurst in the EU. This is not available, neither is a swiss style multi-treaty deal.

Starmer’s government seems to think that revamped Anglo-German military treaty will help the cause of reduced friction trade. There are three problems with this. Just as one shouldn’t start trade negotiations in Berlin but in Brussels, military co-operation needs to involve Poland which now has one of the largest armies in the EU. Since the British ambitions are broader i.e. beyond military co-operation  and to include intelligence sharing and cybersecurity but since the UK was kicked out of Europol as part of Brexit because it no longer recognised the EU’s Charter of Fundamental rights, intelligence sharing will need a common recognition of privacy and judicial rights of citizens. The children and grandchildren of fascist and Stalinist societies will not permit their governments to outsource surveillance to an unrestricted and and unaccountable body. The third problem is that suspicious member states will characterise the UK position as wanting freedom of movement for weapons and ammunition, but not of people, and a single market for guns but not for anything else.

As a counterpoint, Richard Bentall writes  in a thread where he states that “the only way to slow it [rejoining the EU] is by saying it’s too difficult”, to which I add that holding out for better opt-outs is merely delaying rejoining. As a reinforcement, Blade of  the Sun argues that rejoining is simple,

  1. You apply to rejoin.
  2. They tell us what you need to do.
  3. You do it.
  4. Rejoin

And it is that simple, no opt-outs, no special deals but I fear that this Government are not yet ready to drop their dreams of a swiss-style/cakeist deal supported by too-clever academics and journalists, who are looking to ‘hack the treaties’. They need to make their mind up, do they want to be seen to be clever, or change the world; too often this is a choice and one that many academics and journalists fail to address or get wrong. …

Labour and the Cuts (again)

Labour and the Cuts (again)

Two comments on the Reeves announcement to cut albeit fake investment projects and the pensioner’s winter fuel allowance. On the fuel allowance payment, this is not means testing the entitlement, it will be linked to Pension Credit entitlement, the threshold for which which is slightly less than the state pension paid to someone with full contributions record. It also ignores the fact that additional income is taxed. This entitlement limit is £11,500, about half, under the national living wage, and the amount required to sponsor an immigrant is £29,000. I quote these figures to show how necessary and low the contribution-based pension is. This is mean and unnecessary.  

On the macro-economics, the “golden rules” were designed to protect investment against short-term debt management fetishism. Until now no-one has ever argued that you shouldn’t borrow to invest, and while I usually argue that investment in human capital is a legitimate use of the state’s borrowing capability, which some consider to be a stretch, that can be no doubt the roads and railway lines warrant being borrowed for.

Jeremy Hunt and Owen Jones both accused Reeves of implementing cuts that she had always planned to do. If the labour front-bench did not know that the last Tory budget was fake, then they should have done. I’m also taken with the Twitter correspondents here and a thread here who point out that it is not just modern monetarists who state that the constraint on the capacity of the economy is its inputs and neither the money supply or the borrowing capacity. …

More immigration raids? Really?

More immigration raids? Really?

So Labour’s 2nd immigration policy is, it seems to increase raids; not to establish safe routes for asylum seekers, not to recruit more staff to process the asylum claims backlog, not to repeal the litany of the Tories’ appalling laws, not to vacate the Bibby Stockholm & not to abolish the hostile environment.  😭 How does this help “smash the gangs”? One other thing to note, is that people don’t like immigration raids, it’s been very difficult to do them in Glasgow and South London.

Labour’s rhetoric has been and now its policy is about triangulating with and encouraging the racists in Reform and the Tory Party. We shouldn’t be doing this, it’s morally wrong and there are more important jobs to do within the Home Office.  …