The full list of banned words in the House of Commons

HT: gq-magazine.co.uk

Greece’s problem is Rule Of Law

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If the right people don’t have power – Yes Prime Minister

Yes Prime Minister – The Department of Education and Science

Hayek Quotes of the Day

These passages from The Road to Serfdom are my favourite from Hayek because of the allusion to the need to look at institutional solutions to problems and to be flexible about the relative merits of different institutions.

His metaphor of the gardener tending to his plants is great.

Another excellent metaphor of his of the role of public policy is that of a maintenance squad in a factory making sure everything was working well, although the maintenance squad really didn’t care what the factory was producing.

Karl Smith's avatarModeled Behavior

My Hayek exposure was mostly The Use of Knowledge in Society style stuff. I am just now reading The Road to Serfdom for the first time.

While his analysis of why markets work has always been wonderful, from what I can tell his political economy seems to echo that of a distinctly left-of-center economist by modern standards.

Probably nothing has done so much harm to the [libertarian] cause as the wooden insistence of some [libertarians] on certain rough rules of thumb, above all the principle of laissez-faire.

We must save capitalism from the unconstrained free-market. Is this Hayek or Robert Reich? Hayek makes repeated reference to the fact that it is only competition as a rough principle that is to be supported. Indeed, he goes on to say

The [proper] attitude of the [libertarian] towards society is like that of the gardener who tends a plant and in order to…

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Roger D. Congleton on how democracy emerged

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Lord Bingham on parliamentary sovereignty versus judicial review

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What are the courts to do about improper laws passed by a sovereign parliament?

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Are the New Zealand and British Parliaments sovereign?

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The Times of London on the fatal conceit, the pretence to knowledge and unintended consequences

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Is the Electoral (Disqualification of Sentenced Prisoners) Amendment Act 2010 invalid as submitted today in the High Court?

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Gordon Tullock on why successful popular revolutions are rare

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Gordon Tullock on avoiding difficult decisions about saving lives – updated

Gordon Tullock wrote a 1979 New York Law Review book about avoiding difficult choices. His review was of a book by Guido Calabresi and Philip Bobbitt called Tragic Choices which was about the rationing: the allocation of kidney dialysis machines (a “good”), military service in wartime (a “bad”), and entitlements to have children (a mixed blessing).

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Tullock argued that we make a decision about how to allocate resources, how to distribute the resources, and then how to think about the previous two choices. People do not want to face up to the fact resources are scarce and they face limits on their powers.

To reduce the personal distress of making these tragic choices, Tullock observed that people often allocate and distribute resources in a different way so as to better conceal from themselves the unhappy choices they had to make even if this means the recipients of these choices are worse off and more lives are lost than if more open and honest choices were made up about there only being so much that can be done.

The Left over Left and union movement spends a lot of time pontificating about how we must not let economics influence health and safety policy rather than help frame public policy guidance on what must be done because scarcity of resources requires the valuation of life in everything from health, safety, and environmental regulations to road building. health budgeting is full of tragic choices about how much is spend to save so lives and where and for how long.

The Left over Left and the union movement deceive themselves and others into make futile gestures to make themselves feel good. These dilettantes cannot assume that they are safely behind a veil of insignificance. They have real influence on how public policy on health and safety are made.

A major driver of the opposition among the Left over Left and the union movement to the use of cost-benefit analysis and the valuation of statistical lives is its adoption makes people confront the tragic consequence of any of the choices available to them.

By saying how dare you value a statistical life does not change the fact that choices made without this knowledge will still have tragic consequences, and more lives may be lost because people want to conceal from themselves the difficult choices that they are making about others as voters and as policy-makers.

One of the purposes of John Rawls’ veil of ignorance and Buchanan and Tullock’s veil of uncertainty is that the basic social institutions be designed and agreed when we have abstracted from the grubby particulars of our own self-interest.   Buchanan and Tullock explain the thought experiment this way

Agreement seems more likely on general rules for collective choice than on the later choices to be made within the confines of certain agreed-upon rules. …

Essential to the analysis is the presumption that the individual is uncertain as to what his own precise role will be in any one of the whole chain of later collective choices that will actually have to be made.

For this reason he is considered not to have a particular and distinguishable interest separate and apart from his fellows.

This is not to suggest that he will act contrary to own interest; but the individual will not find it advantageous to vote for rules that may promote sectional, class, or group interests because, by supposition, he is unable to predict the role that he will be playing in the actual collective decision-making process at any particular time in the future.

He cannot predict with any degree of certainty whether he is more likely to be in a winning or a losing coalition on any specific issue. Therefore, he will assume that occasionally he will be in one group and occasionally in the other.

His own self-interest will lead him to choose rules that will maximize the utility of an individual in a series of collective decisions with his own preferences on the separate issues being more or less randomly distributed.

Behind the veil of ignorance and the veil of uncertainty, we would all agree that resources are limited, including in the health sector and some drugs can’t be funded – choices must be made.

Once we go in front of the veil of ignorance and find out that we are the one missing out on that drug, naturally, our views will change.  We agreed to these rules  as fair for the distribution of basic social resources when, as John Rawls put it:

…no one knows his place in society, his class position or social status; nor does he know his fortune in the distribution of natural assets and abilities, his intelligence and strength, and the like.

Is always the case that someone just falls on the other side of any line in the sand. If you move that line, there is always another set of people who are just on the other side.

Charles Krauthammer’s Law of American Politics

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Hayek on why he got his key prediction right in the Road to Serfdom

This summary by Hayek of the contemporary meaning of socialism in the 1930s and 1940s was relatively accurate.

You must remember that clause 4 of the British Labour Party’s manifesto  committing that party to the socialisation of the means of production, distribution and exchange was only dropped relatively recently at the impetus of Tony Blair.

The Australian Labor Party  still includes the socialisation of the means of production, distribution and exchange as one of its objectives.

There were stronger  divisions in the inter-war labour parties in Britain, Australia and New Zealand about  whether the party should be committed to full socialism, Christian socialism or social democracy. It has been forgotten that the labour parties of Britain, Australia and New Zealand had many fall on the socialists within that party.

The Labour Party of Michael Foot in the 1983 British general election ran on a hard left manifesto, with Tony Benn and the Trotskyist entryist group Militant Tendency, which had several MPs,  wanting a full socialist agenda in 1980s Britain.

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