Do peace talks have a role in wars of annihilation @jeremycorbyn

Peace activists are utterly clueless about what is discussed at peace talks. The ability to negotiate a credible peaceful settlement between sovereign states depends on:

  • the divisibility of the outcome of the dispute,
  • the effectiveness of the fortifications and counterattacks with which an attacker would expect to have to contend, and
  • on the permanence of the outcome of a potential war.

Central to any peace talks is that any peace agreement is credible – it will hold and not will not be quickly broken:

A state would think that another state’s promise not to start a war is credible only if the other state would be better off by keeping its promise not to start a war than by breaking its promise.

Peace talks occur only when there something to bargain about. As James Fearon explained, there must be

a set of negotiated settlements that both sides prefer to fighting

That need for a bargaining range is the fundamental flaw of peace activists. When they call for peace talks, peace activists never explain what will be discussed in a world where everybody is not like them terms of good intentions. What are the possible negotiated settlements that each both side will prefer to continue fighting? Diplomacy is about one side having some control over something the other side wants and this other side have something you want to exchange. In a war, the attacker thinks he can get what it wants to fighting for it.

There were plenty of peace feelers during World War I. World War I came to an end when Germany preferred surrender and disarmament over conquest. Its armies were in full retreat and disarray – revolution was a threat at home

Previous World War I peace feelers failed because each side thought it could gain more by fighting. German peace feelers when they are advancing were premised on keeping what they are taken. When the Germans were retreating, the Germans wanted to go back to the pre-war borders and keep their capability for relaunching the war once they have recouped. The Allies had nothing to gain from allowing Germans simply to withdraw from the fighting intact and regroup, attack again and perhaps win.

When a war is over territory rather than annihilation of the other side, the challenge is to divide the disputed territory in a way that both are happy to keep the peace settlement rather than come back and fight in a few years. Grossman explains:

If the winner of a war would gain control of the entire territory, and if the whole of a contested territory is sufficiently more valuable than the sum of its parts, then, despite the costs and risks of war, promises not to start a war could be not credible, and a peaceful settlement, or at least a peaceful settlement with unfortified borders, would not be possible.

That point about the need for fortified or unfortified borders after a peaceful settlement over contested territory is the ultimate failure of peace activists.

If peace activists truly want peace, rather than victory for the other side, they must prepare for war including fortified borders so that the other side doesn’t dare cross them and start a war. A peace settlement depends upon the ability to divide the contested territory is with or without fortified borders to make a settlement credible:

…despite the costs and risks of war, if a dispute is existential, or, more generally, if the whole of a contested territory is sufficiently more valuable than the sum of its parts, then a peaceful settlement is not possible. A peaceful settlement of a territorial dispute, and especially a settlement that includes an agreement not to fortify the resulting border, also can be impossible if a state thinks, even if over optimistically, that by starting a war it would be able at a small cost to settle the dispute completely in its favour permanently.

Wars of annihilation have a long history. The first two Punic wars were settled by Rome and Carthage. The third was not because the objective of Rome was to destroy Carthage which it did. Rome is decided it simply did not want to have any further wars with Carthage. The only way to ensure that was to destroy that city – level it to the ground. The Arab Israel conflict is another example:

Over the years the Arabs have rejected every proposal for a peaceful settlement that would divide Palestine into a Jewish state and an Arab state, because for the Arabs allowing a Jewish state would be a defeat, not a compromise. The Israelis, however, demand a Jewish state, and they refuse to turn all of Palestine into a single multinational state in which Jews would not make up a large majority of the population. If the dispute between Arabs and Israelis were about the control of tracts of land or sources of water, then a peaceful settlement might have been possible long ago. But, the dispute is about the existence of a Jewish state, and the outcome is indivisible. Is there or is there not to be a Jewish state in Palestine? The answer is either yes or no.

The key guardian of peace and enforcer of peace settlements is the ability of the other side to mount an effective counter-attack if attacked again. If you want peace, you must prepare for war. The loudest champions of a large military budget should be peace activists. Peace activists know, they should know, that a country with a strong military is less likely to be attacked.

If a country is a democracy, it is less likely to start wars and especially with other democracies. If peace activists want more democracies in the world, they should preach capitalism and free trade because countries that are capitalistic become democracies.

Peace activists think that they can make peace just by talking with people. Peace is made by trading with hostile countries to make them depend on you for their prosperity as well as yours. By growing rich through free trade, training partners have less reasons to go to war or otherwise have poor relations with each other or each other’s friends. Trade increases the opportunity cost of starting a war.

Robert Aumann argued well that the way to peace is like bargaining in a medieval bazaar. Never look too keen, and bargain long and hard. Aumann argues that:

If you are ready for war, you will not need to fight. If you cry ‘peace, peace,’ you will end up fighting… What brings war is that you signal weakness and concessions.

Countries are more likely to cooperate if they have frequent interactions and have a long time horizon. The chances of cooperation increase when it is backed by the threat of punishment.

The ability to threaten to hurt is conducive to peace. Disarmament, Aumann argues, “would do exactly the opposite” and increase the chances of war. He gave the example of the Cold War as an example of how their stockpiles of nuclear weapons and fleets of bombers prevented a hot war from starting:

In the long years of the cold war between the US and the Soviet Union, what prevented “hot” war was that bombers carrying nuclear weapons were in the air 24 hours a day, 365 days a year? Disarming would have led to war.

Aumann has quoted the passage from the biblical Book of Isaiah:

Isaiah is saying that the nations can beat their swords into ploughshares when there is a central government – a Lord, recognized by all. In the absence of that, one can perhaps have peace – no nation lifting up its sword against another. But the swords must continue to be there – they cannot be beaten into ploughshares – and the nations must continue to learn war, in order not to fight!

Civil wars such as those in Syria and Iraq today are grubby affairs in terms of peace talks because of the greater inability to divide what is contested.

Ending civil wars is even more difficult to make binding commitments because new groups such as ISIS can spring up to replace the signatories to the old peace treaty or introduce new agendas:

…if the constituent groups of a polity are deeply divided and, hence, are unwilling to accept meaningful limitations on the prerogatives of winners of constitutional contests, then civil war can be unavoidable.

How liberal are the Democratic candidates?

What does @Walmart do wrong but @APPLEOFFIClAL does right?

@NZGreens is the gender pay gap 6.6%, 11.8% or 14%?

Source: Statistics New Zealand: New Zealand Income Survey.

Source: Gender pay gap | Ministry for Women.

The unadjusted gender pay gap has been in a long-term decline for generations. The unadjusted gender wage gap in 2015 is 11.8% as shown in the above chart and in the second New Zealand Green’s Facebook link above but not first of their Facebook links above where it is claimed to be 14%.

To sex-up their numbers, the Labour Party and Greens used the gap between the average wages of men and women. This was rather than the median wage to make their gender wage gap comparisons despite the pious commitment of the Greens to use median wage in their gender wage gap calculations in the recent past.

The unadjusted gender pay gap has all but disappeared at the bottom of the labour market as the chart below shows. The gender wage gap remains stubbornly high at the high end of the wage market at 20% because of compensating differentials. Professional women are balancing families and careers in choosing the occupations that best suits each individual woman.

Source: OECD Employment Database.

@CloserTogether @FairnessNZ nail case for neoliberalism @chrishipkins @Maori_Party

The Council of Trade Unions and Closer Together Whakatata Mai charted similar statistics to show that everything has gone to hell in a hand basket since neoliberalism seized power in New Zealand in 1984 and in particular after the passing of the Employment Contracts Act in 1991.

image

Source: Income Gap | New Zealand Council of Trade Unions – Te Kauae Kaimahi.

The passage of the Employment Contracts Act greatly reduced union power and union membership and with it wages growth in New Zealand, according to what is left of the New Zealand union movement.

image

Source: Income Gap | New Zealand Council of Trade Unions – Te Kauae Kaimahi.

Unfortunately, both charts of the same statistics show the exact opposite to what was intended by The Council of Trade Unions and Closer Together Whakatata Mai.

Even the most casual inspection of the data charted above and reproduced below with some annotations shows that real wages growth returned to New Zealand in the early 1990s after 20 years of real wage stagnation.

image

Source: Income Gap | New Zealand Council of Trade Unions – Te Kauae Kaimahi.

The reforms of the 1980s stopped what was a long-term decline in average real wages. The reforms of the early 1990s including the passing of the Employment Contracts Act was followed by the resumption of sustained growth in average real wages with little interruption since.

Closer Together Whakatata Mai has even stumbled onto the great improvements in household incomes across all ethnicities since the early 1990s.

The increase in percentage terms of Maori and Pasifika real household income is much larger than for Pakeha. As Bryan Perry (2015, p. 67) explains when commenting on the very table D6 sourced by Closer Together Whakatata Mai:

From a longer-term perspective, all groups showed a strong rise from the low point in the mid 1990s through to 2010. In real terms, overall median household income rose 47% from 1994 to 2010: for Maori, the rise was even stronger at 68%, and for Pacific, 77%. These findings for longer- term trends are robust, even though some year on year changes may be less certain. For 2004 to 2010, the respective growth figures were 21%, 31% and 14%.

image

Source: Bryan Perry, Household Incomes in New Zealand: trends in indicators of inequality and hardship 1982 to 2014 – Ministry of Social Development, Wellington (August 2015), Table D6.

As Closer Together Whakatata Mai  documented, incomes increased in real terms by 14% for the bottom and 19% for the middle.

Perry noted that in the lowest decile had too many implausible incomes including many on zero income so he was wary of relying on it. I have therefore charted the second, median and top decile before and after housing costs below. All three deciles charted showed substantial improvements  in incomes both before  and after housing costs.

image

Source: Bryan Perry, Household Incomes in New Zealand: trends in indicators of inequality and hardship 1982 to 2014 – Ministry of Social Development, Wellington (August 2015).

Naturally, measuring changes in living standards over long periods of time is fraught with under-estimation. There are new goods to be accounted for and product upgrades too.

@BernieSanders @HillaryClinton an average American works 11% less than in 1950, but earns 246% more

https://twitter.com/humanprogress/status/653920576457830402

@EconomicPolicy showed gender pay equality when arguing the opposite @CHSommers @Mark_J_Perry

The Economic Policy Institute were good enough to dig out unit record data on the unadjusted US gender wage gap by percentiles. In attempting to show there was a persistent gender pay gap, the impeccably left-wing Economic Policy Institute showed that the unadjusted gender pay gap has all but disappeared in the USA.

There is next to no gender wage gap even in unadjusted terms towards the bottom of the labour market. This is despite all the protestations of the Left of an inherent inequality of bargaining power between the bosses and workers.

The low paid are supposed to be powerless unless unionised. Declining unionisation is a leading explanation on the Left of the rising income shares of the top 10%, top 1% in the top 0.1%.

If that inherent inequality of bargaining power trundled out at every opportunity by the Twitter Left explains anything in the labour market, this inequality of bargaining power should be operating with greatest strength at the bottom of the labour market.

Clearly the inherent inequality of bargaining power between the bosses and workers is not doing its job regarding the gender wage gap. The gender wage gap in the USA increases as you move up the income ladder rather than the other way around.

The explanation of the Economic Policy Institute for greater gender pay equality at the bottom is the minimum wage and male wage stagnation:

It is interesting to note that the wage gap between genders is smaller at the 10th percentile than at the 95th. At the 10th percentile, women earn 91 percent of men’s wages while women make only 79 percent of men’s wages at the 95th percentile.

The minimum wage is partially responsible for this greater equality among the lowest earners—it sets a wage floor that applies to everyone, which means that people near the bottom of the distribution are likely to make more equal wages. Also, low-wage workers are disproportionately women, which means that the minimum wage particularly bolsters women’s wages.

…Although women have seen modest wage gains in the last several decades, the main reason the gender wage gap has slowly narrowed is that the vast majority of men’s wages have stagnated or declined.

It is a bit rich for the Economic Policy Institute to praise the minimum wage as a force for increasing incomes after spending so much of its time saying how the minimum wage has fallen way behind wages growth in general.

The gender gap lingers at the top of the labour market despite the quite substantial wage gains  for women as compared to men over the past 15 years. The Economic Policy Institute dismissed the substantial gains as modest despite their own documenting of them.

It is even richer for the Economic Policy Institute to start extending the male wage stagnation hypothesis to the top 20% and top 10%.

The top of the income distribution has not been known previously known as victims of wage stagnation.

The gender wage gap remains stubbornly high at the top end of the US labour market at 20% for the last few decades. The gender wage is so large and has stayed large at the top half of the labour market  for the past few decades because of compensating differentials. Women on higher incomes are balancing families and careers in choosing the occupations that best suits each individual woman, their talents and educational choices.

image

Source: OECD Employment Database.

Studies of top earning professionals show that they make quite deliberate choices between family and career. The better explanation of why so many women are in a particular occupation is job sorting: that particular job has flexible hours and the skills do not depreciate as fast for workers who take time off, working part-time or returning from time out of the workforce. Low job turnover workers will be employed by firms that invest more in training and job specific human capital.

  • Higher job turnover workers, such as women with children, will tend to move into jobs that have less investment in specialised human capital, and where their human capital depreciates at a slower pace.
  • Women, including low paid women, select careers in jobs that match best in terms of work life balance and allows them to enter and leave the workforce with minimum penalty and loss of skills through depreciation and obsolescence.

This is the choice hypothesis of the gender wage gap. Women choose to educate for occupations where human capital depreciates at a slower pace. This gender wage gap for professionals can be explained by the marriage market combined with assortative mating:

  1. Graduates are likely to marry each other and form power couples; and
  2. There tends to be an age gap between men and women in long-term relationships and marriages of two years.

This two-year age gap means that the husband has two additional years of work experience and career advancement. This is likely to translate into higher pay and more immediate promotional prospects. Maximising household income would imply that the member of the household with a higher income, and greater immediate promotional prospects stay in the workforce.

This is consistent with the choice hypothesis and equalising differentials as the explanation for the gender wage gap. As Solomon Polachek explains:

At least in the past, getting married and having children meant one thing for men and another thing for women. Because women typically bear the brunt of child-rearing, married men with children work more over their lives than married women. This division of labour is exacerbated by the extent to which married women are, on average, younger and less educated than their husbands.

This pattern of earnings behaviour and human capital and career investment will persist until women start pairing off with men who are the same age or younger than them.

In low-paying jobs, there is little in the way of trade-offs other than full-time or part-time work. Low-paid jobs do not involve choosing majors at university, choosing careers, industries and employers that call for long hours and uninterrupted careers or not so long hours, fewer human capital and promotional penalties for time off and more work-life balance. The choice hypothesis is the far better explanation for the persistence of the unadjusted gender wage gap in  the USA as Polachek explains:

The gender wage gap for never marrieds is a mere 2.8%, compared with over 20% for marrieds. The gender wage gap for young workers is less than 5%, but about 25% for 55–64-year-old men and women.

If gender discrimination were the issue, one would need to explain why businesses pay single men and single women comparable salaries. The same applies to young men and young women. One would need to explain why businesses discriminate against older women, but not against younger women. If corporations discriminate by gender, why are these employers paying any groups of men and women roughly equal pay?

Why is there no discrimination against young single women, but large amounts of discrimination against older married women? … Each type of possible discrimination is inconsistent with negligible wage differences among single and younger employees compared with the large gap among married men and women (especially those with children, and even more so for those who space children widely apart)

The main drivers of the gender wage gap are unknown to employers such as whether the would-be recruit or employer is married, their partner is present, how many children they have, how many of these children are under 12, and how many years are there between the births of their children.

Everything is on sale compared to 1979 @BernieSanders @jeremycorbyn

HT: Stephen Berry.

@Oxfam fewer people living in absolute poverty today than in 1820

Watch Milton Friedman visit the Berlin Wall @NaomiAKlein

https://youtu.be/upiaI-gs2qA

@NaomiAKlein agrees with #MiltonFriedman on Mancur Olson’s theory of how nations escape institutional sclerosis

Source: quoted by Naomi Klein in “The Shock Doctrine”.

https://youtu.be/mI_Z_oVYEkw

1. There will be no countries that attain symmetrical organization of all groups with a common interest and thereby attain optimal outcomes through comprehensive bargaining.

2. Stable societies with unchanged boundaries tend to accumulate more collusions and organizations for collective action over time.

3. Members of “small” groups have disproportionate organizational power for collective action, and this disproportion diminishes but does not disappear over time in stable societies.

4. On balance, special-interest organizations and collusions reduce efficiency and aggregate income in the societies in which they operate and make political life more divisive.

5. Encompassing organizations have some incentive to make the society in which they operate more prosperous, and an incentive to redistribute income to their members with as little excess burden as possible, and to cease such redistribution unless the amount redistributed is substantial in relation to the social cost of the redistribution.

6. Distributional coalitions make decisions more slowly than the individuals and firms of which they are comprised, tend to have crowded agendas and bargaining tables, and more often fix prices than quantities.

7. Distributional coalitions slow down a society’s capacity to adopt new technologies and to reallocate resources in response to changing conditions, and thereby to reduce the rate of economic growth.

8. Distributional coalitions, once big enough to succeed, are exclusive, and seek to limit the diversity of incomes and values of their membership.

9. The accumulation of distributional coalitions increases the complexity of regulation, the role of government, and the complexity of understandings, and changes the direction of social evolution.

image

Source: Obituary: Professor Mancur Olson | Obituaries | News | The Independent

@zoesqwilliams has great timing on capitalism not doing enough on poverty @worstall

Source: Poverty goals? No, it’s extreme wealth we should be targeting | Zoe Williams | Comment is free | The Guardian

When Zoe Williams was born in 1973, 60% of humanity lived in extreme poverty. That has dropped to 1 in 10.

Just the other day, the World Bank estimated that extreme poverty has dropped below 10% of the world’s population for the first time in human history but some are still grumbling.

Zoe Williams is not grumbling about the failed states and predatory government responsible for the last pockets of extreme poverty, but about the inequality from economic progress under capitalism.

Zoe Williams honestly believes that extreme poverty could have been reduced faster if we had taken on the socialist road.

China and India escaped from extreme poverty by rejecting socialism.

China and India received next to no overseas development assistance in their Great Escape from extreme poverty.

There’s been some clear-cut natural experiments such as between Chile and Venezuela and Japan, Hong Kong, Singapore and just about any other developing country in terms of capitalism as the only path to prosperity.

@SeumasMilne could @jeremycorbyn win?

While standard British Labour Party populist policies resonate with the electorate, all the policies that Jeremy Corbyn brings as a socialist, peacenik and renegade Liberal are deeply unpopular and will be used against him as wedge issues by the Tories.

The popularity of individual policies in the Labour Party manifesto didn’t do them any good at the 2015 general election.

What matters to the voters at the last British general election was that brand Labour was down on the nose. It was not a credible alternative government.

Jeremy Corbyn makes that gap into a chasm because of the vast difference between what his supporters on the left of the Labour Party want and what the voters who must be persuaded to switch their vote for Labour to win in 2020 want as government policies.

Jeremy Corbyn is much further to the left than Ed Miliband, who lost the election in 2015 rather badly because he was too far to the left for the taste of the British electorate.

Ed Miliband was rejected in the 2015 British election because he was not a fiscal conservative nor a credible economic manager. The anti-austerity message loses votes.

There is a yawning chasm between the reasons why the left of the Labour Party thinks their party lost the 2015 British general election and why Labour voters thought they lost the election.

The anti-austerity message was one of the reasons why Labour lost in the eyes of its own voters and would-be voters in the centre of politics

The deep unpopularity of Jeremy Corbyn cannot be understated as a barrier to British Labour winning the next election.

That deep unpopularity of Jeremy Corbyn sacrifices the one winning advantage that British Labour has under Jeremy Corbyn. That advantage is governments tend to lose elections rather than oppositions win them.

Schumpeter disputed the widely held view that democracy was a process by which the electorate identified the common good, and a particular party was then elected by the voters because it was the most suited to carrying out this agreed common good:

  • The people’s ignorance and superficiality meant that they were manipulated by politicians who set the agenda.
  • Although periodic votes legitimise governments and keep them accountable, their policy programmes are very much seen as their own and not that of the people, and the participatory role for individuals is limited.

Schumpeter’s theory of democratic participation is voters have the ability to replace political leaders through periodic elections.

Citizens do have sufficient knowledge and sophistication to vote out leaders who are performing poorly or contrary to their wishes. The power of the electorate to turn elected officials out of office at the next election gives elected officials an incentive to adopt policies that do not outrage public opinion and administer the policies with some minimum honesty and competence.

Power rotates in the Schumpeterian sense. Governments were voted out when they disappointed voters with the replacement not necessarily having very different policies.

The challenge for British Labour is Corbyn cannot win unless he projects minimal competence and stops having policies on defence, foreign affairs and terrorism that outrage public opinion.

Jeremy Corbyn has plenty of outrageous opinions and is yet to show even the most basic competence in running the office of opposition leader, working 24/7 as opposition leader, and showing some ability to win support from members of the Parliamentary Labour Party. If Jeremy Corbyn cannot win votes of his own MPs, what chance do he have with the British people whose interests he claims to champion.

@RusselNorman tried to outthink, outsmart @JohnKey unlike @nzlabour who just tried to smear him

Are @vngalasso @OxfamAmerica @dpaulobrien Great Escape deniers? @WhitefordPeter

https://twitter.com/MaxCRoser/status/656144668468641793

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