Toy Library at Oakridge Health Centre

This morning, I visited the Oakridge Health Centre, where children with additional needs and their parents can access a range of therapies through the Toy Library. I was truly inspired by the resilience, determination and love of the parents I met and by their children, who defy expectations with their progress.

If you wish to discover the importance and effectiveness of physiotherapy and speech therapy in liberating people to fulfill their potential, then I recommend Paul Maynard MP’s dazzling and humbling maiden speech.

CentreRight: Surely the Big Society is about more than volunteering?

Yesterday, I received a sneering email from an obviously partisan campaign group which implied that the Big Society is about nothing more than people giving their time. I beg to differ.

If society is “the sum of human conditions and activity regarded as a whole functioning interdependently” (Concise OED), then it comprises everything we do. Society includes family, friendship, volunteering, giving and exchanging.  It is a rich and comprehensive tapestry of human relationships which includes business.

Read the rest of my article: CentreRight: Surely the Big Society is about more than volunteering?.

Pakistan floods “hell on earth” says Wycombe Cllr (From Bucks Free Press)

The Bucks Free Press are reporting my Conservative colleague Arif Hussain’s trip to assist in Pakistan:

COUNCILLOR Arif Hussain described his harrowing aid trip to flood-torn Pakistan as “hell on earth” – but has vowed to return to help the thousands of devastated families.

The Wycombe District Councillor flew out to Pakistan on August 14 as part of an 11-day aid and mercy mission with the High Wycombe-based Five Pillars charity.

I recommend the article if you wish to discover the extent of the devastation.

You can give via the DEC, UNICEF or the Red Cross.

Life in Nassim Nicholas Taleb’s Extremistan

I met Nassim Nicholas Taleb last year, briefly, at a lecture he gave on the impact of highly improbable events: Black Swans. I’m just reading his book now.

And then along came my own Black Swan.

Against all expectations, improbably yet explicably, but hopefully inconsequentially, I have been adopted as DK’s Blog Mascot.

As Taleb might point out, I shouldn’t be surprised. I didn’t expect to be in Parliament now either. Whatever next?

I just finished two other books which discuss the improbable in sociology and economics: Mandelbrot’s The (Mis)Behaviour of Markets: A Fractal View of Risk, Ruin and Reward and Dowd and Hutchinson’s The Alchemists of Loss: How Modern Finance and Government Intervention Crashed the Financial System. Combined with Popper’s critique of historicism and Postrel’s The Future and Its Enemies: The Growing Conflict over Creativity, Enterprise and Progress, these ideas may make a potent mix.

I’ll mull them over and see what comes out.

More on the IFS’ budget analysis

Via The TaxPayers’ Alliance – Economics 101: The IFS spreadsheet doesn’t tell us what policy choices are best for the poor:

Suppose you invented a policy, some kind of economic miracle, which doubled the incomes of the poorest ten per cent of families without the Government spending a pound.  That would reduce benefit spending.  It would also increase tax revenues from the poorest.  The same method that the IFS are using in their reports would show the effects of that policy as horribly regressive, cutting spending on the poor and shifting the fiscal scales against them.

Of course that is an extreme and artificial example.  But it shows the big problem with the IFS analysis, which essentially assumes that the fortunes of the poor add up to the amount of Government money spent on them.

Telegraph: “Middle class to lose its grip on best state schools”

I’m sure this will attract a mixed reaction:

The Coalition is planning to allow hundreds of secondary schools to control their own entry policies and Michael Gove warmly praised the system, which allocates places according to academic ability and reserves many places for children with the weakest performance.

“Fair-banding” admissions schemes are often seen as a way of breaking the middle-class dominance in the best-performing state secondaries since they prevent affluent parents from monopolising places by paying a premium to live in their catchment areas.

Banding generally means that 11 year-olds applying for school places sit an IQ-based “attainment test” and are then divided into seven or nine ability groups. The same number of children from each ability group are then given places at the school.

via Middle class to lose its grip on best state schools – Telegraph.

I see the government is “planning to allow” not proposing to compel, so I look forward to learning what choices schools make. Grammar schools have the freedom to continue their policies if they become academies.

As my predecessor, Paul Goodman, points out at ConservativeHome, the key problem is that there are too many applicants for each good school place. That is the problem we must solve and that is why I am a supporter of the Government’s education policies.

Northumberland 2010 photoset

Some of my (hopefully!) more interesting photos from Northumberland may be found here.

This emotive shot is most likely to be used again:

World War Two Pill Box, defocussed, with barbed wire in foreground.

(Click image for all sizes - Creative Commons licensed)

I was pleased with this falcon(?) too:

It was hunting on the updraft around Dunstanburgh castle, with a swift(?) bouncing in playfully:

A hovering falcon with a swift bouncing into shot

Northumberland

Beth and I are now home after a great week in Northumberland, which included our 14th wedding anniversary.

Lindisfarne Panorama

Lindisfarne (click image for full size - edited and stitched with Aperture and Hugin)

It seems to us a wonderful yet much-neglected county, though it is apparently not neglected by the RAF!

On the IFS’ budget analysis

“It is not clear how you would go about working out how much better off a household is from not having a Greek-style meltdown,” said Mr Browne.

via FT.com / UK / Politics & policy – Equality fears add to Budget woes.

CentreRight: Will the spending review be bold enough?

Over at CentreRight, I ask “Will the spending review be bold enough?“ This is a follow up to Professor Kevin Dowd’s article for The Cobden Centre: The UK is Broke.

Hazlitt’s remark in Economics in One Lesson seemed an appropriate introduction:

Today is already the tomorrow which the bad economist yesterday urged us to ignore.

Government urged to reveal ‘true’ national debt of £4.8 trillion – Telegraph

BIS report on sovereign debt

Click for debt projections from the BIS

Via Government urged to reveal ‘true’ national debt of £4.8 trillion – Telegraph:

The Institute of Economic Affairs (IEA) has calculated that the national debt is £4.8 trillion once state and public sector pension liabilities are included, or £78,000 for every person in the UK.

The IEA raised its concerns after the latest public finances data from the Office for National Statistics (ONS) this week, which showed that the total debt, excluding bank bail-outs, is £816bn – itself a record high. However, the figures strip out the state’s pension liabilities in a contravention of standard accounting practices.

I made this the central theme of my speech on the Finance Bill on 22 Jun. I referred to the IEA’s work before looking at sovereign debt projections from the Bank for International Settlements. I said:

The Bank for International Settlements published a paper – working paper 300, which I recommend to hon. Members – that considers the future of public debts, the prospects and implications. In my hand, I have a set of graphs that show the public debt for western European nations, plus Japan and the United States, disappearing exponentially. Hundreds of per cent. of GDP are owed by the nations of the western world, including Europe and Japan. The situation is dire. By 2040, our largely age-related debt is projected to be five times GDP. By 2040, our interest payments would be more than a quarter of GDP. I do not know about the rest of the House, but I do not believe that we will ever get there. Long before interest payments reach 25% of GDP, we will have a social catastrophe. We cannot allow that to happen.

In summing up,  I said:

If Members on both sides of the House are serious about building a better society, we have no choice but to reform radically the size, scope and role of the state.

Rivlin, Understanding the Law

I first mentioned Understanding the Law by Geoffrey Rivlin after observing the proceedings of Wycombe Magistrates’ Court. At last, I have finished it.

The book is a tour de force covering the law and its importance, the courts, the constitution, Parliament, the police, the judiciary, human rights, discrimination, the legal profession, the work of the courts and various historical, practical and ancillary subjects. At 370 pages, it is a considerable read but a triumph of brevity and wit in view of its scope. I enjoyed it.

However, I find myself for the first time, though inevitably not the last, in some disagreement with a judge. On page 334, by prefacing his remarks with “There seems to be no limit to man’s greed”, Rivlin appears to criticise the application of property rights to natural resources: he seems to separate property rights and responsible stewardship. I believe this is a mistake: sensible people take care of what they own, so property rights promote stewardship. Perhaps this is merely a weary aside but neither “property” nor “private property” appear in the index.

Happily, the fundamental importance of the right to own and enjoy property is explained in the first few pages of the book, but I lament the absence of either a chapter or an index entry on the subject. The essential weakness of property rights in contemporary society is set out in some detail by Shaffer in Boundaries of Order, so I was disappointed if not surprised to find this weakness present in Rivlin’s book by omission. As Mises explained, if classical liberalism were to be condensed to a single word, it would be “property”: we should not be astonished to find in these statist days a lack of emphasis on this fundamental concept.

Nevertheless, Understanding the Law is an excellent introduction to the English legal system and its practice today. I recommend it but perhaps consider reading Shaffer too.

War planes mark 70th anniversary of Winston Churchill’s Battle of Britain speech – Telegraph

Ex-fighter pilots and relatives of war heroes joined commemorations as Sir Winston Churchill’s stirring ’so much owed by so many to so few’ speech was read out, prompting tears in the crowd.

The actor Robert Hardy began reading out the speech at 3.52pm, exactly 70 years after the wartime prime minister delivered it in Parliament.

via War planes mark 70th anniversary of Winston Churchill’s Battle of Britain speech – Telegraph.

You can find the text of the speech here.

Heroes or victims?

Beth and I just spent a few days in Cumbria with old friends and their wonderful children. When he and I graduated together from the Royal Air Force College Cranwell, we never imagined that today I would be an MP and he would be managing a major manufacturing facility, but that is a story for another day. It was, of course, picturesque:

Sawrey, Lake District

Sawrey, Lake District (click image for more)

I am indebted to my old mate for the notion that what he wants is an organisation of heroes, not victims: people who boldly do the right thing, picking themselves up from setbacks on their own initiative and striving to take others along with them. I’m struck that one of the things heroes do is rescue others, not leave them behind.

It reminds me of Reagan:

It is time for us to realise that we are too great a nation to limit ourselves to small dreams. Those who say that we are in a time when there are no heroes… they just don’t know where to look.

It’s a theme I shall mull over.

Dr Eamonn Butler, Austrian Economics – A Primer

This post originally appeared at The Cobden Centre.

From the Adam Smith InstituteFollowing his introduction to Mises, Dr Eamonn Butler has released his latest book, Austrian Economics – A Primer. I recommend it strongly if you want to grasp the fundamentals of the Austrian School of Economics as quickly as possible: at just 118 pages, this pamphlet can be tackled in one sitting.

With Keynesian-inspired policies which ‘spend your way out of recession’ clearly not working, the Austrian School provides a better explanation for recent events than more ‘mainstream’ thinking, whether Keynesian or Monetarist.

Over the course of the book, Eamonn explains the Austrian view of the importance of human agency, values and knowledge in shaping the markets, that is social cooperation. Vitally, it explains the origin of the present cycle of boom and bust: the government’s cheap credit policies, which encouraged people to borrow and discouraged saving, creating an artificial boom that inevitably ended.

For many years, the Austrian School of Economics has been sidelined, but it’s great to see that it is now rising in popularity as people become increasingly critical of the way governments and central banks have handled the economy.

Butler’s systematic and simple yet comprehensive primer is a great addition to a stable which also includes The Austrian School: Market Order and Entrepreneurial Creativity by Jesus Huerta de Soto. While Huerta de Soto’s first-class book is perhaps aimed at a more technical audience, Butler has made the Austrian School highly approachable. A strength shared by both works is to be measured and inclusive where “Austrians” can be confrontational.

Eamonn has made a superb job of outlining this important school of thought and his book should prove a great success. You can buy it here.

Alternatives to capitalism: Nikolai Bukharin on the division of labour

Brought forward – I’m on holiday.

Thinking about the pressures on capitalism — or rather, on the interventionism that passes for capitalism today — and on the alternative which was most comprehensively implemented, I discovered this recipe for chaos and failure from Bukharin:

Under communism people receive a many-sided culture, and find themselves at home in various branches of production: today I work in an administrative capacity, I reckon up how many felt boots or how many French rolls must be produced in the following month; tomorrow I shall be working in a soap factory, next month perhaps in a steam-laundry, and the month after in an electric power station. This will be possible when all the members of society have been suitably educated.

via Nikolai Bukharin and Evgenii Preobrazhensky: The ABC of Communism – Chapter III : Communism and the Dictatorship of the Proletariat.

As one who has not long studied Marxism, it is frankly amazing that Bukharin was hailed by Lenin as “a most valuable and major theorist of the Party” when he wrote such impractical nonsense. Here’s another taste of his particular madness, expounding on what we know as “from each according to his ability to each according to his work” and “from each according to his ability to each according to his needs”:

The communist method of production presupposes in addition that production is not for the market, but for use. Under communism, it is no longer the individual manufacturer or the individual peasant who produces; the work of production is effected by the gigantic cooperative as a whole. In consequence of this change, we no longer have commodities, but only products. These products are not exchanged one for another; they are neither bought nor sold. They are simply stored in the communal warehouses, and are subsequently delivered to those who need them. In such conditions, money will no longer be required. ‘How can that be?’ some of you will ask. ‘In that case one person will get too much and another too little. What sense is there in such a method of distribution?’ The answer is as follows. At first, doubtless, and perhaps for twenty or thirty years, it will be necessary to have various regulations. Maybe certain products will only be supplied to those persons who have a special entry in their work-book or on their work-card. Subsequently, when communist society has been consolidated and fully developed, no such regulations will be needed. There will be an ample quantity of all products, our present wounds will long since have been healed, and everyone will be able to get just as much as he needs. ‘But will not people find it to their interest to take more than they need?’ Certainly not. Today, for example, no one thinks it worth while when he wants one seat in a tram, to take three tickets and keep two places empty. It will be just the same in the case of all products. A person will take from the communal storehouse precisely as much as he needs, no more. No one will have any interest in taking more than he wants in order to sell the surplus to others, since all these others can satisfy their needs whenever they please. Money will then have no value. Our meaning is that at the outset, in the first days of communist society, products will probably be distributed in accordance with the amount of work done by the applicant; at a later stage, however, they will simply be supplied according to the needs of the comrades.

Where to begin a critique? “The applicant” for products? I think perhaps we should bear in mind the madness of this system when we lament our present circumstances.  We should remember that even in Bukharin’s peculiar dreams, repression was essential:

For a long time yet, the working class will have to fight against, all its enemies, and in especial against the relics of the past, such as sloth, slackness, criminality, pride. All these will have to be stamped out. Two or three generations of persons will have to grow up under the new conditions before the need will pass for laws and punishments and for the use of repressive measures by the workers’ State.

Thought for the day – Karl Popper on reason and critical discussion

From All Life is Problem Solving:

When I speak of reason or rationalism, all I mean is the conviction that we can learn through criticism of our mistakes and errors, especially through criticism by others, and eventually also through self-criticism. A rationalist is simply someone for whom it is more important to learn than to be proved right; someone who is willing to learn from others — not by simply taking over another’s opinions, but by gladly allowing others to criticize his ideas and by gladly criticizing the ideas of others. The emphasis here is on the idea of criticism or, to be more precise, critical discussion. The genuine rationalist does not think that he or anyone else is in possession of the truth; nor does he think that mere criticism as such helps us achieve new ideas. But he does think that, in the sphere of ideas, only critical discussion can help us sort the wheat from the chaff. He is well aware that acceptance or rejection of an idea is never a purely rational matter; but he thinks that only critical discussion can give us the maturity to see an idea from more and more sides and to make a correct judgement of it.

Perhaps it is too much to dream that we might have a little more critical discussion in Parliament…

Thought for the day – Bastiat

From Bastiat’s dialogue What is Money?

B. I have not yet made up my mind that your views upon money and political economy in general are correct. But, from your conversation, this is what I have gathered: — That these questions are of the highest importance; for peace or war, order or anarchy, the union or the antagonism of citizens, are at the root of the answer to them. How is it that in France and most other countries which regard themselves as highly civilized, a science which concerns us all so nearly, and the diffusion of which would have so decisive an influence upon the fate of mankind, is so little known? Is it that the State does not teach it sufficiently?

F. Not exactly. For, without knowing it, the State applies itself to loading everybody’s brain with prejudices, and everybody’s heart with sentiments favorable to the spirit of anarchy, war, and hatred; so that, when a doctrine of order, peace, and union presents itself, it is in vain that it has clearness and truth on its side, — it cannot gain admittance.

Thought for the day – Churchill

Though this is from Winston Churchill’s The Second World War, Volume I : The Gathering Storm (1948), it seems relevant to the intellectual battle over economics we face today:

If you will not fight for the right when you can easily win without bloodshed; if you will not fight when your victory will be sure and not too costly; you may come to the moment when you will have to fight with all the odds against you and only a small chance of survival. There may even be a worse case: you may have to fight when there is no hope of victory, because it is better to perish than to live as slaves.

Some introductory reading for a better system of economic thinking:

You might also keep an eye on The Adam Smith Institute over the next couple of months and there is a UK-centric documentary coming out in the Autumn, of which more in due course.

Labour’s legacy

A new video from the Party:

Sayeeda Warsi, Co-Chairman of Conservative Party, has written:

Labour’s incompetent handling of our economy will hit all of our pockets. The cuts to come are Labour’s cuts. So, it’s only fair that the people responsible should share some of the pain. That’s why today I have written to each of Labour’s leadership candidates asking them to voluntarily give up their severance pay, worth £20,000 each. Forfeiting this pay would be the first step towards rehabilitation, and the first time they had come to terms with the mistakes of the past.