Good news: slowly we are seeing the end of smoking

Smoking is rapidly dying out in the UK and US among young people – the first generation to come of age surrounded by laws that discourage smoking. Figures from the UK Office for National Statistics reveal that the proportion of smokers in the country fell to 15.5 per cent in 2016, down from about half in 2010. Although 19.3 per cent of 18 to 24-year-olds smoke, the percentage has  declined by 6.5 percent.

The US Centers for Disease Control and Prevention estimates that the number of smokers aged between about 12 and 18 dropped to 3.9 million in 2016, down from 4.7 million in 2015. These figures include cigarettes and e-cigarettes, both of which have seen large declines in use.

However, the situation in developing countries has not been so positive. Back  in 2012 a study based on the Global Adult Tobacco  Survey showed that nearly half of men in 14 developing countries were tobacco users and that women were starting to smoke at younger ages. Overall, researchers predicted. at that point that  smoking would cause one billion deaths in the 21st century.

The good news is that quit rates have been  higher in countries with programs in place for discouraging tobacco use and helping with quitting.  Uruguay is interesting because of its stringent anti-tobacco policies, including mandated graphic labels on cigarette packaging, sales tax increases, bans on tobacco advertising and on indoor smoking in public places. Tobacco use in Uruguay has decreased by 25 percent over three years.

Among other promising data, 70 percent of Uruguay’s smokers expressed regret for every having taken up smoking, and in the five-year period covered by the survey, over two-thirds of smokers at least attempted to quit. Positive health changes are already being seen, and may in part be attributed to these policies. The ITC found a 22 percent reduction in the rate of hospital admissions for heart attacks and a 90 percent decrease in air contamination in enclosed public spaces in the year after they were enacted.

Hopefully, by picking off one developing country after another we can stop smoking, based on the interpretation of trade agreements.  Only recently Philip Morris sued the Australian government, which demanded plain white wrappers and the words Smoking Kills on them.  Philip Morris tried to get this overturned before a tribunal, a favourite trick.  But the new regulation was surprisingly upheld.   The Australian used a clause in their 1993 Hong Kong bilateral trade deal and the court ruled that it did not have jurisdiction to hear the case.  The days of smoking might be numbered.

Paranoia reigns! Spying on buses

Since 2012 the conversations of people travelling on buses in Maryland have been recorded.

It’s one thing to have active video recording, which can help identify the drunk and the trouble- makers. But to record passenger ‘s conversations! This is really going too far. What this mass surveillance hopes to achieve is puzzling. Maryland has visited this issue four times, and the objection to stopping the recordings (not one person has proved to be undermining the Constitution or to be in league with ISIS) is that to change the cameras so that the the driver activates the recordings when he thinks an incident is developing would incur too great an expense. (Ovetta Wiggins, Washington Post)

George Orwell really got his forecast right didn’t he? Everywhere we look we see intrusion into privacy and encroachment on civil liberties. Serious bombers and planners of massacres don’t generally plan their attacks on local buses stopping and starting in rural Maryland.

The dirty trade in firearms

A  RAND Corporation report reveals an alarming pattern: gun salesmen based in the US  now ship worldwide, with Europe the biggest source of profit. Lax gun laws in the US are undermining stricter rules elsewhere. Over half of the weapons for sale are from the US, with the revenue from Europe five times higher than from domestic sales, through the dark web.

Although sales account for less than an estimated 1 per cent of items sold on the dark web – transactions go far beyond simply putting a gun in the mail. The information and technology available to potential lone-wolf attackers on the dark web range from manuals on how to create explosives to detailed instructions on how to disassemble and ship a gun to various overseas destinations,

The dark web is a subset of the internet that requires specific software to access so that users can remain anonymous. Registration and access are straightforward. Not all items for sale there are illegal, but the promise of anonymity makes it easier to subvert the law. This anonymity makes buying or selling items risky: the person at the other end of the deal could be a scammer or the police. But previously, to purchase an illegal firearm,  you had to contact a gang involved an arms trafficking gang and convince them  that you weren’t with the police. This was tricky; they might scam you.

To help build trust between buyers and sellers, dark web marketplaces allow them to review transactions the way they would on eBay or Amazon. Many dark marketplaces even offer payment protection.  Vendors on the dark web have also honed their delivery tactics. They may often disassemble weapons into many parts that are sent in different packages. Some parts are embedded in less conspicuous items like old stereos or printers.  (Timothy Revell. New Scientist 29 July 2017)

What are we doing tolerating this stuff?  Why  was the dark web ever allowed in the first place? The 2nd Amendment, allegedly allowing arms to be be bought and used for “self-defence” (hah!) in the US is being traduced by unscrupulous gun makers and dealers who are potentially (and probably actually) exporting terror and death overseas via the internet, alongside advice on bomb-making and other  terrorist techniques. Why would anyone want to buy American guns unless they were al Queda or ISIS supporters, assassins or ruthless gangsters?   This whole thing is a form of pornography, only pornography generally doesn’t usually kill people.  No pussy-footing or discussion!  This is not a matter for Epicurean reasonableness.   Close it down!

How the Republicans should respond to Trump

The second of my two-part series on how enlightened citizens should respond to the farce that is the Trump administration. You can read the first part on the Democrats here, http://hanrott.com/blog/how-the-democrats-should-respond-to-trump/. Also, next Monday the Modern Philosophy series is returning, so look out for that! 

Being an anti-Trump Republican is a lonely job. The President enjoys an 80% approval rating amongst Republican voters. In a era of hyper-partisanship, many people believe that because Democrats hate Trump so much, he must be doing something right. The potential collusion with Russia and other scandals are fabrications or exaggerations by the media, purported in order to undermine him. Similarly, the only reason why he hasn’t achieved more is because of Democrat opposition, treachery within the Republican ranks, and the corrupt nature of ‘the swamp’ (a nickname for the Washington establishment.) This means that any Republican who openly opposes Trump will come under fire from their core supporters, especially if they live in a state or district where Trump has a net positive approval rating.

So I have a lot of respect for Republican politicians and outspoken conservative commentators who critique Trump and the general direction of the conservative movement. No one has done a better job of doing this than Senator Jeff Flake. He recently published a book, Conscience of a Conservative (just like Goldwater), in which he not only rejects Trump, but also the nationalism, populism and disregard for traditional conservatism that led to Trump winning the nomination. I completely agree that in America, just as in every country, there is a need for a healthy debate between respected individuals who are thoughtful and principled. Whatever your feelings are regarding the Republican Party, it is just as necessary to the wellbeing and functioning of American democracy as the Democrats. So of course Flake is right that the GOP should ditch its cult of personality fixation with Trump in favour of universally applicable conservative principles.

However, Flake presents too simplistic a picture. He seems to imply that before Trump came along, conservatives were largely intelligent and moral. Then Trump ruined the movement, so by getting rid of him we can return to an idealised state of affairs prior to 2016. The reality is more complex. It’s certainly true that conservatism has degraded since Trump sought the Republican nomination. But it was hardly perfect before then. While Flake acknowledges the failures of specific Republicans like Newt Gingrich or Mitch McConnell for being excessively partisan, he doesn’t account for the Republican establishment’s toleration and utilisation of illiberal nationalism for electoral gain. Conspiracy theories like Obama not being an American, evolution being a product of militant atheism to destroy Christianity, or climate change denial, were routinely accepted ideas amongst the conservative base even before Trump came along. Given how sceptical of climate change Mitt Romney was, was it really surprising that Trump’s assertion that climate change was invented by the Chinese to make American manufacturing non-competitive, proved popular? Nor is conservative demagoguery the exclusive preserve of Trump- the Economist points ought that Republicans have long made vitriolic and implicitly racist remarks against ‘welfare queens’ to promote fiscal conservatism amongst the working class. https://www.economist.com/news/united-states/21725785-jeff-flake-arizona-says-donald-trump-destroying-conservative-movement

Given the long-term degradation of conservatism, I am far less hopeful for the future than Flake. The senator only criticises Trump and other Republican elites. But the real blame lies with ordinary Republican voters. They chose Trump above a plethora of real conservatives like Ted Cruz or Marco Rubio. They then voted for him in the general election, instead of choosing a genuinely conservative third party candidate. Republican elites didn’t invent conspiracy theories or bigotry; those things already existed amongst the electorate, and were simply politicised to the Republicans’ advantage. Since Trump’s inauguration, it has become obvious that the man is unfit for office. The various scandals shows he has clearly acted improperly, if not illegally. He gets into needless fights far too easily. He is short-tempered and easily goaded. He doesn’t have a consistent and coherent vision for the American economy, nor for America’s place in the world. He has appalling approval ratings, not only in America but worldwide. Yet it is Republican voters who choose to stick by him. If Trump’s popularity amongst Republicans dropped from 80% to say 40% or less, he would be finished.

The fact is, the vast majority of Republicans do not care about the sort of principles Flake believes in. They don’t know anything about Edmund Burke, Adam Smith or Thomas Paine. Most of them haven’t read anything by Milton Friedman or F.A Hayek. Abstract principles like constitutionally limited government, free markets and individual liberty mean little to them. Instead, what concerns them is not the size of government, but who it works for. That’s why they are perfectly happy with Trump’s protectionist economics or statements he’s made in the past about protecting Social Security and Medicare. Government can be as big as it likes, as long as it works for ‘ordinary Americans,’ as opposed to immigrants, foreigners, and liberals who live in big cities. What drives Trump voters is identity politics, not ideology.

The reason why Trump was surprisingly successful was that he understood this, the traditional Republican elites didn’t. Republicans in Washington have long been out of touch with their base on a whole host of issues, because they wrongly believed the base shared their conception of and dedication to conservatism. Now that their folly has been exposed, they dare not criticise the base for fear of losing office. So instead, they collude with Trump in order to achieve their long-term objectives like tax cuts and healthcare deregulation, while pretending to be on the side of working class Trump supporters. This strategy may work for the next few years. They already have another conservative Supreme Court justice and the repeal of various Obama-era regulations. They may get tax cuts and healthcare deregulation yet. But come the forthcoming elections, they will not be able to distance themselves from an increasingly unpopular president. Their moral cowardice will be their downfall. The best thing that can happen to American conservatism is the collapse and total defeat of the Republican Party, which will hopefully be reformed into a party backed by intelligent and authentically conservative voters, as opposed to the pretence of conservatism and nationalistic dog-whistling that characterises today’s GOP.

Best of the Week #11 The potential pitfalls of a US-UK trade deal

Apologies for posting this late, I had to reinstall Mac OS onto my laptop because it wasn’t working. 

Awhile ago, Donald Trump tweeted his enthusiasm for a US-UK trade deal. Inevitably, Brexiteers were ecstatic. Here was irrefutable proof the UK wouldn’t suffer any loss of trade after Brexit. Trade with the US and other countries would replace any losses from leaving the EU. But as usual, the reality is more complex. Partly because the EU and the 45 agreements the EU has with 75 countries around the world account for 60% of our exports, which doesn’t include the abolition of non-tariff barriers that comes with the Single Market. Partly because Trump has made numerous protectionist statements in the past, so the idea that he can be a genuine free trader when it comes to the UK is nonsense. But also because the benefits of a potential US-UK trade deal are mixed at best.

This week’s article comes from George Monbiot in the Guardian https://www.theguardian.com/commentisfree/2017/jul/25/chlorinated-chicken-trade-britain-us-food-standards-globalisation. Monbiot’s argument is that trade deals are not principally about reducing or eliminating tariffs anymore, because WTO rules already disincentivize them. Instead, trade deals are about the harmonisation of standards, which ought to increase prosperity by encouraging trade and promoting competition. This has very few drawbacks to groups of countries with already-similar standards, like the EU member states or Australia and New Zealand. But to countries with different standards, the policy areas covered by a trade deal become more contentious.

So in the instance of the US and the UK, you have two disparities. The first is in economic clout. The US is the world’s largest economy (excluding the EU), that conducts only a small proportion of its trade with the UK. On the other hand, the UK is a relatively small economy that conducts a much larger proportion with the US than vice versa. Moreover, because the UK has chosen to leave the EU with uncertain consequences, it has far more to lose from a deal not coming to fruition. The second disparity is in standards- the UK currently has the EU’s high standards, whereas America’s standards are much lower. In a negotiation where the US has the upper hand, it is very unlikely that the US will change its standards in order to reap a very small reward. It is far more likely that the UK will dramatically lower its standards, due to a Conservative government comfortable with American standards and sheer desperation.

For Monbiot, the infamous example of chlorinated chickens are but one instance of the UK lowering its standards to the detriment of the country’s wellbeing, even if the deal is good for headline economic growth figures. More severe consequences include the degradation of environmental regulations, the opening up of currently nationalised services to American corporations, a slimmed-down welfare state, weaker health and safety standards, and the rights of employees to holidays and sick pay. The point is that it may not be worth sacrificing our EU-level standards for a trade deal with the US, especially as such a deal probably won’t offset the losses of leaving the EU. Monbiot was a voracious critic of the proposed TTIP agreement between the EU and the US. But in my view, TTIP had the potential to be beneficial because the EU and the US were negotiating as equals. No such parity exists if the UK negotiates alone.

Overall I’m more enthusiastic about free trade generally than Monbiot, provided it is accompanied by high standards on the environment and workers’ rights. The prosperity of much of the EU and the prolonged economic growth of countries crippled by the legacy of Communism proves that economic freedom and quality of life need not be antithetical. I certainly don’t believe there is anything to be gained from intentionally reducing an economy’s openness, as Trump has frequently suggested.

However, on this specific issue, Monbiot has my support. Trump has long expressed a zero-sum view of the world, where any gains made by countries like China or Mexico must have come at the expense of the US. He espouses a mercantilist perspective that emphasises trade balances and not being ‘screwed’ by other countries. So when negotiating with the UK, he is likely to try to enrich the US at the UK’s expense. Industries currently owned by UK companies or the British government will be opened up to American corporate takeovers. Our agriculture industry will have to accept lower US standards and/or significantly less revenue due to American competition. It may be that Britain would have to lower the generosity of agriculture subsidies without America lowering theirs. We would probably lose the right to prevent American energy companies from fracking in Britain. Far from ‘taking back control’, we would be handing it over to corporate America. In any case, I don’t believe a UK-US free trade deal would offset the losses of leaving the EU, especially if TTIP goes ahead. The best case scenario is that economic growth would be the same as it would have done had we remained in the EU, but our standards would be lower. None of this is to say that American corporations are necessarily bad, but that we should be regulating them on our own terms, not theirs.

The price of privatising airports in the UK

If you are flying off on holiday the airport is now, in all probability, the worst part of the experience (except the flight!).  Profit is the motivation of the airport management, rather than security. Misery is the result.

1. More than half UK international airports lack free drinking water. Water fountains have been removed, forcing travellers to buy expensive bottled water instead. As people have wised up to the rules and brought empty plastic bottles through security, the airports started to remove or hide their water fountains.  Where water fountains still exist the water barely dribbles out, raising the suspicion that the water pressure has been set deliberately low.

2. So- called  ‘Dutyree’ is a rip- off

A survey this week of retailers in Heathrow by price comparison site PriceSpy found that a Samsung S7 phone in the Samsung store was £559; on Amazon it was £452. A Fitbit selling for £134.99 at Dixons, was £128 in Debenhams. A £319 Sony Camera at its Heathrow shop was £309 at Argos. This should come as no surprise, given the extraordinary rents retailers must pay to be in the airports.

3. The insanely bad currency rates

One airport, Cardiff, is offering just 88 cents for every $1 of a holidaymaker’s cash. Given that the market rate is around €1.11 to £1, it means the exchange bureau is pocketing around a 20% profit. Even the big names, such as Moneycorp and Travelex, will take a 10-12% cut.

4. The VAT trick
When you are forced to show your boarding pass at the till – with the implication that it is a legal requirement – the truth is that it is merely so that the shop can pocket the VAT on purchases made by customers flying to non-EU destinations. Boots and WH Smith now promise to hand the VAT back on purchases over £5-£6, but other retailers carry on regardless.

5. Charging for wifi
Manchester airport actually crows about the fact that it has extended its free wifi from 30 minutes to one hour, before then stinging you for £5 an hour. In Amsterdam, Copenhagen, Dublin, Frankfurt, Istanbul, Munich, Paris, Rome (the list goes on and on), airports give free unlimited access. Not in Britain.

6. Inadequate seating
It is evidently a far more profitable use of the precious floor space for a maze of over-priced shops than giving passengers sufficient seating.

7. The drop-off/pick-up charge
At one airport a brief pause while picking someone up costs £3 for 10 minutes, then £1 a minute thereafter.  All this for foreign owned companies operating airports.  Nothing is now owned by the British taxpayer.  (adapted from an article in The Guardian, 5 August 2017 by Patrick Collinson).

Why do we have to endure all this?  Because the government, which used to run it all, decided to privatise it.  Who benefits?  Well, it is not the travelling citizen.  Could it be associated with any possible corrupt goings-on in the murky world of political funding, or simply neoliberalism run riot?  Is there another government in another country quite so ideological and quite so stupid?  Epicurus, who advocated moderation, would have concluded that we have gone crazy.

 

When will we stop kow-towing to the abominable Saudi regime?

Kosovo has become a hotbed of Islamist extremism.  The tiny Balkan country, whose population is largely comprised of Muslim ethnic Albanians, is studded with mosques that preach the Salafist strain of militant Islam, shared by al-Qa’eda and Isis. Hundreds of Kosovars have gone to Syria and Iraq to join extremist groups. Yet Kosovars also admire the US. There’s a statue of Bill Clinton in the capital, Priština, a mark of gratitude for the 1999 Nato bombing campaign that drove Serbian forces out of Kosovo, and resulted in it gaining independence from Serb-dominated Yugoslavia, of which it was formerly a province.

So why are so many Kosovars being radicalised? The short answer is Saudi Arabia: it has poured money into Kosovo, spreading its radical version of Islam by building schools and mosques and importing Salafist clerics. In a few short years, previously secular Kosovo “was transformed into a Salafist stronghold in Europe”. Muslims in Kosovo had been barely observant for centuries, and “their ignorance about Islam made them more vulnerable to indoctrination”. Now the imam in Priština’s largest mosque is facing prosecution for promoting jihad. Many have already done so. “The threat they pose extends beyond Kosovo’s borders.” (Krsto Lazarevic, Die Welt, Berlin)

I mostly comment on American. and British affairs, but I have an interest in Kosovo, having spent time there in 1965.  At that time it was like stepping back 500 years. The wagons had solid wooden wheels and the houses had straw roofs, upon which storks nested. The inhabitants, were helpful, open and friendly, if dreadfully poor, and only the presence of mosques betrayed the fact that they were nominally moslem.  Now the Wahabis have apparently subverted them.

Saudis are a menace. We bow before them because of their oil, but my personal experience of Saudi Arabia, as a result of visiting on business (oh, dear!)  is of a prevailing arrogance and spoiled ignorance.  No, we are limited in what we can do about the Saudis while oil  remains king. But all decent people should get on board with climate change and return the Saudis to tents and camel trains.

 

Poverty and old age

The New York Times of February 24th carried an article about behavioural economics. The article states that since defined- benefit pensions disappeared in the private sector, only 40% of American families in the bottom half of the income distribution have any form of retirement savings plan. Even among those who do have a plan, their total savings are, on average, $40,000. They don’t save because they have no money to save. Of all the advanced economies, the US had the worst poverty rate and the worst infant mortality, obesity and diabetes rates. The death rate from drug overdoses among young white adults is as high as the death rate used to be of AIDS at its peak. Government savings schemes haven’t worked, nor has making saving simpler.  (Based on a New York Times article)

Epicurus might well judge this situation, in an otherwise rich country, to be a disgrace. There are those who say the government’s role is to reduce dependence on public support, and that the poor should “get on their bikes”, find a proper job , and support their families. The fact is that under current conditions, with wages falling or stagnant,  any incentive to save for old age is overwhelmed by the need for food on the table this week. What is needed is a living wage that gives poor people the opportunity to make choices. One of those choices would be to save for retirement. This is absolutely not the message that resonates with corporations, their political hangers- on, or the heartless religious Right.

How can anyone justify this or think it acceptable?   Historically,  one could, not unreasonably, forecast an eventual uprising and violence, given desperation and the obscene number of guns owned by the public.  The reader will probably think this to be alarmist, but the French and Russian revolutions came as a surprise to the super-rich in both countries, spurred by such desperation and a non-responsive elite.   In America? Well, I believe in moderation, and hope Congress, before they vote their backers even more riches, stops and ponders history.  A dystopian point of view, I know, and I apologise, but historians are there partly to point out parallels.  This cannot – will not – go on indefinitely.

Walt Whitman on the Democratic Party

Nowadays it is the Democrats who are (ahem!) the high- minded crowd, compared with their competition, the Republicans. Times change. This is Whitman ‘s take on the Democratic Party Convention in the US in the 1850s:

“The members who composed it were, seven-eights of them, the meanest kind of bawling and blowing office-holders, office- seekers, pimps, malignants, conspirators, murderers, fancy- men, custom house clerks, contractors, kept-editors, spaniels well-trained to carry and fetch, jobbers, infidels, terrorist, mail-riflers, slave-catchers, duellists, carriers of secret weapons, deaf men, pimpled men, scarr’d inside with vile disease, gaudy outside with gold chains made from people’s money and harlots’ money twisted together; crawling, serpentine men, the lousy combings and born freedom-sellers of the earth. And whence came they? From back yards and bar-rooms; from out of the customs-houses, marshals’ offices, post offices and gambling hells; from the President’s house, the jail, the station-house; from un-named by-places, where devilish disunion was hatch’d at midnight.

“Such, I say, formed…the entire personnel, the atmosphere, nutriment and chyle of our municipal, State, and national politics – substantially. permeating, handling, deciding and wielding everything – legislation, nominations, elections, “public sentiment” etc, while the great mass of the people, farmers, mechanics and traders, were helpless in their gripe”.

Like Epicurus, Whitman seemed to have a thing about politicians.  We no longer have writers who have the command of English that enables them to  pour out such vivid vitriol onto paper. However, were he alive today Whitman might have admitted that Democrats had become a much more respectable lot, if somewhat devoid of effective ideas to regain power, and would turn his attention, shall we say, elsewhere.  American political life has not changed that much.  Lack of lnowledge seems to be power.

Winning by exhausting the opposition

This has never previously been seen anywhere else, and in any era, and is truly historic: subversion- by- exhaustion.

I refer to the White House strategy of disgusting and exasperating all normal, decent supporters of thoughtful, informed and grown-up government, with the objective of getting them to stop paying attention to the daily, endless, infuriating and stressful American news. The succession of tweets and leaks, ad hominem attacks, bullying and ignorant comments remove all oxygen from public discourse. Responsible opposition is rendered ineffective and falls upon deaf ears. Tweet by tweet people are stopping paying attention, and are reading a book instead. Public servants are already demoralized. The objective? The sidelining of the Constitution, the end of checks and balances and the introduction of a Putinesque grabitariat.

Watch carefully as Trump subverts a whole country, not by military coup or even economic cataclysm, but by sheer disgust. Steve Bannon- no fool – is winning. We are witnesses to a clever and sophisticated strategy.  Only his own Party can stop this. Will they?

Epicureans believe in peace and calm and the reduction of stress. It is for this reason that Epicurus disdained party politics. But is this instance we cannot stand back and shrug our shoulders. We have to hold our noses and keep opposing. Let academics sniff at Epicureans who follow and discuss the political news. So be it.

 

How the Democrats should respond to Trump.

This is part one of a two-part series on how sensible and thoughtful people should respond to the increasingly chaotic and scandal-prone Trump administration. This week I’ll be talking about the Democrats, next week about the Republicans, so look out for that! 

In theory, Democrats should be cheery at the moment, at least from the perspective of electoral prospects. Their prediction that a Trump presidency would harm America’s reputation on the world stage and prove divisive at home has come true. Far from uniting America, the country is more divided than ever, with Trump suffering from record-low approval ratings for a president at this stage of his tenure. Even on the Republicans’ own terms, the administration has been ineffective at getting things done. While it’s true that a Supreme Court justice has been nominated, the Trans-Pacific Partnership cancelled and some Obama-era regulations repealed, the two big issues for the GOP- healthcare and tax reform- remain unaddressed. If both were as urgent as Republicans have been telling us for years, then they should have drafted legislation and agreed upon it, ready to be made law upon a Republican electoral victory. Their failure to plan has made a mockery of both themselves and the wider conservative movement.

So if Trump and his Republican Congress are such obvious failures, then why aren’t Democrats more popular? Partly because they’ve failed to learn the lessons of Hillary Clinton’s defeat. They still assume that attacking Republicans will be enough to win. But Democrats need to put policies of their own that command popular support, or else continue to be irrelevant. The problem with Clinton’s campaign is that it seemed so content with the status quo, only promising minor tweaks when America is desperately in need of major reform. Such complacency ought to have been purged from the Democratic ranks, yet to this very day it stubbornly remains.

Take for instance, healthcare. For years, the Republicans have been opportunistically taking advantage of Obamacare’s shortcomings- high deductibles, high premiums, people who still lack insurance. But the fact is, none of those issues can be addressed by the federal government without more taxes and regulations, which Republicans are ideologically opposed to. This has been clear ever since the Affordable Care Act became law, yet most Americans didn’t realise it until now. However, many Democrats seem content to only propose minor adjustments to the ACA now that it enjoys majority support. This simply isn’t good enough. Voters’ concerns about the ACA were perfectly legitimate, even if some of them were wrong to propose repealing the law in its entirety. As I’ve proposed in detail here (http://hanrott.com/blog/what-americans-can-learn-from-the-nhs-and-what-britons-can-learn-from-american-healthcare/), any American should be able to buy their way into Medicare, by giving up a higher proportion of their income to the government, thus guaranteeing health insurance to everyone using an existing and largely popular mechanism. The Democrats should be united in their support for this, yet from many we hear very little.

Healthcare isn’t the only area where Democrats lack ambition. Social security is another. It’s clear that America has a poverty rate far too high for a country with that high a GDP per capita. It’s also clear that the incomes of the wealthiest Americans have risen at a far faster rate than for the general population. So why not reform the welfare system and the tax system at the same time, by introducing a negative income tax. It’s a complex proposal and the specifics would have to be figured out by experts. But in layman’s terms, its essentially a form of wealth redistribution, where everyone earning below the tax threshold gets paid a lump sum, depending on how much they earn below that threshold- the less they earn, the more the government gives them. It would have the double advantage of both drastically reducing poverty and simplifying the tax code, rather than the mess of deductions and credits that currently exists. But I’m yet to hear any Democrats talk about it.

Although Democrats should be bold and radical in their proposals, they should shy away from some of the more crass class warfare rhetoric that was very prominent in the 2016 Democratic primary, particularly from Bernie Sanders. I won’t for a moment defend any illegal or immoral behaviour committed by anyone in the financial sector. But if the Democrats are to win businesses over, they must demonstrate that they aren’t the enemies of wealth. Rather than rant about how terrible some rich people are, they should talk about the benefits of Democratic policies for everyone, the rich included. For instance, spending more on the education system will give employers a better educated workforce. Repairing and upgrading the country’s infrastructure will be good for business. Moreover, the Medicare for all plan would mean that employers would no longer have to feel as if they have to provide healthcare for their employees. This would represent a major saving for them.

Finally, I think the Democrats at the federal level should be honest and realistic about what they can achieve. America’s federal system is a wonderful thing, but it limits the power of the federal government. Instead, Democrats need to utilise the state and local governments more, particularly in times like these when the federal government is so ineffective and hostile. If federal environmental regulations are repealed, reenact them at the state level. If the federal government won’t build new roads or railways, then the states should do them, using local taxes and private investment. The downside of all this is that most governors and state legislatures are Republican. The Democrat obsession with the presidency has come at the expense of smaller but equally important elections. Democrats should fight much harder in these, including ensuring that the currently embarrassing rates of voter turnout improve.

Best of the Week #10 The future of European integration

Awhile ago I was recommended to write a post on the future of European integration. At the time I had just completed a module on the subject at university. But since I had not performed as well in it as I hoped I would, I felt like I didn’t have the expertise to treat the subject properly. Moreover, the increasing volatility of politics has made the future hard to predict. What I can do is outline the vision Europe’s leaders have for the EU, and give my response to them, as well as draw comparisons between the vision of the EU27 and the UK’s future after Brexit.

This week’s article comes from the prime ministers of the Netherlands, Denmark and Finland- three wealthy and politically stable EU member states. https://euobserver.com/opinion/138669. The overall gist of their vision is one of stability, continuity and common sense reform; building on the successes of current levels of European integration, rather than trying to do anything too radical. For the three leaders, the dream of a European superstate is a silly fantasy that isn’t going to happen, even if it’s desirable. But equally, they see no reason to abolish the existing aspects of the EU that enjoy popular support, such as financial passporting rights, the absence of customs checks, or Eurotom. For Europe to thrive, both the EU and individual member states must step up to the challenge. A pragmatic approach is needed, where policy areas are made either on the EU level or the nation state level, depending on which would be most effective. The EU cannot continue to be a scapegoat for the failure of its member states; if a country suffers from too much debt or underinvestment in education, it cannot blame Brussels.

I’m very impressed at the maturity and thoughtfulness of these three leaders. They don’t engage in insults or conspiracy theories. Their solutions are practical, realistic and evidence-based. Most importantly, they remain calm in what remains quite a challenging time for Europe. Given Brexit, it would be tempting to assume that the EU is hopelessly flawed and needs a radical overhaul. But the fact is, the UK has always been the most Eurosceptic member state, even when its economy was doing relatively well (until recently.) In particular, freedom of movement has always been unpopular here, but not anywhere else. You don’t get Germans or Swedes protesting against EU migrants, even when they make up a higher proportion of their populations than they do ours. So there’s no need to get rid of any aspect of European integration that has popular support, even if British people don’t approve of it.

The level-headedness of these prime ministers couldn’t be a greater contrast to the mess that is the state of Britain’s leaders. On the one hand, the governing Conservative Party is a laughing stock on the world stage. A host of negotiators, both British and European, say that we are totally unprepared for the negotiations, and have unrealistic prospects about their outcome. Our leaders have insulted the EU, telling it to ‘go whistle,’ and even accusing it of trying to undermine our election. The idea that centre-right Jean Claude Juncker could be in favour of hard-left Jeremy Corbyn is blatantly absurd, yet the prime minister believes it regardless. But on the other hand, Labour’s leadership seem just as deluded on Brexit. They seem to believe we can have all of the benefits of the Single Market while leaving it, which isn’t the case at all. The more intelligent Labour MPs (including my local MP) have been sidelined by Corbyn’s unexpected success in the most recent election. The only consistently pro-European party, the Liberal Democrats, are still a mere shadow of their former selves.

Like these three leaders, I’m not a European federalist, because I don’t think a European nation is workable given the size and cultural diversity of the EU. The problem in Britain is that everyone in the EU is perceived to be a federalist, except us. Nothing could be further from the truth. The are a few federalists, of course, but there are also a few communists. Just because some people hold a particular view, doesn’t mean everyone does, and it certainly doesn’t make it likely to happen. The fact is, any significant transfer of power to the EU would require a treaty change, which as a member state we could veto. These three prime ministers also outline their opposition to treaty change here.

The misperception of the prevalence of federalist ideology is only one aspect of how the British people were misinformed. If they had heard more arguments from the likes of these three men, perhaps Brexit would never have happened. The EU aside, the governments of these countries are not all that different from David Cameron’s administration. They both value balanced budgets, stability, free trade and much more besides. They are certainly closer to the centre of British public opinion than the likes of Nigel Farage or Liam Fox. But what distinguishes them from Britain’s pro-Europeans is their ability and willingness to outline a positive vision for the EU and its nations, rather than simply warn about the consequences of leaving. Most British people seem embarrassed to be ideologically pro European, even if that is what they are. Equally, unlike the Conservative Party, they do not blame the EU for their own failures. The main problems with Britain’s economy- low productivity, high house prices in the London area, and a regional imbalance in wealth creation- all have nothing to with the EU. When they persist and perhaps worsen after Brexit, the fallout will be anger and a feeling of betrayal.

I hope the vision of these three leaders materialises, and I suspect it will. Contrary to the predictions of many Leave supporters, the EU is remarkably united. It will continue to build on the successes of the Single Market to new areas, particularly digital technology and energy, to promote competition and choice across borders. The biggest challenge to the EU is the Euro, which the leaders fail to mention. The Euro has clearly been a success for many nations, even poorer ones like Estonia and Slovenia, which is why it is as popular as ever. https://www.ft.com/content/37e5d471-f25f-3dc7-9c7b-6218d5907687. But for some, Greece especially, it hasn’t worked as intended. Although Greece should honour its debts, it should also be allowed to leave the Euro if it wants to.

Because I’m British, I want Britain to do as well as possible. So I hope the Leave campaign is right that Britain will thrive outside the EU, or at the very least, not be at the bottom of the European economic growth table for much longer. It’s almost impossible to say for sure how things will turn out. But for now, I suspect that if Britain thrives in the future, it will be despite Brexit, not because of it.

 

Programmatic advertising: the Google comeuppance

Matt Scheckner is the founder of an Advertising Week jamboree, which was held  recently in London.  He is quoted as saying, “One of our biggest challenges is to make sure your advert doesn’t end up next to a recruitment video for Isis”.

Online adverts via Google and Youtube et al have been appearing next to extremist content, and advertisers have, in consequence, been pulling their online ads.   Much of this is because of the explosion in programmatic advertising, where advertisers use algorithms to automatically buy, sell and place advertisements.

There are now 2.7 billion smartphone users and there will be five billion by 2020.  Add to this an explosive growth in digital video advertising, and some form of automation does make sense, that is, if it is done well and  allows advertisers to target specific consumers at the right time and with the right message.  But it can also allow them to chase audiences without regard to who those people might be.  The dilemma for the industry is that chasing audiences without checking on what sites those audiences might be using leads to the mess Google now faces: indiscriminate ads in inappropriate places.  This has apparently been an “open” secret in the industry for a while, and is at the heart of programmatic advertising.

It is possible to blackball certain sites. For instance, the alt-right news website Breitbart has faced a sustained campaign to get advertisers to pull their adverts. Alternatives are either to hire staff to vet websites – time-consuming and expensive – or create a “white list” of so-called approved sites.  The issue comes down to cost – how much more companies are prepared to pay to advertise and how much consumers are prepared to pay for their products.  “We all want the cheapest [advertising],” commented an employee of Unilever, “but it comes at a cost.”

To complicate the jobs of advertisers there is the increased politicization of advertising.  It seems that younger people like their favourite product advertising to take sides, whether it is on issues of diversity, immigration, health policy,  limate change or tax. In the UK last October, Lego ended its promotional giveaways with the Daily Mail amid a campaign to stop firms advertising with some newspapers over “divisive” coverage of migrants. In the US at the 2017 Super Bowl, Airbnb ran an advert criticising Donald Trump’s stance on immigration, declaring “acceptance starts with all of us”.

My comment: One has hardly sent a bouquet of flowers to a bereaved member of ones family and the flower company concerned is sending you ads. You already know about the supplier, and hopefully won’t have to send bouquets (for the reason stated) too often!   It gets downright spooky, the speed with which you get targeted.  How much of it is wasted? I don’t know; nor do they.  How often, for instance , do people arrange for a delivery of flowers to a friend or family member?

Maybe algorithms will become smarter; maybe some clever company will find a way of advertising to us before we need their products, not after?  Meanwhile, should we be sorry for Google and the advertisers? A resounding “No!”

 

Great Britain’s rising fury at a great betrayal

From The Times:

What lay behind last year’s historic vote to leave the EU? As soon as the referendum was over, Brexit advocates began to claim it was all about “freeborn Englishmen and women casting off the EU’s federalising yoke”. No, says Clare Foges. To see the reality, you need only look at the polls that YouGov has been conducting fortnightly since 2010. Immigration was and is the “clincher” issue. Most Leavers didn’t vote for the UK “to take back control” in an abstract sense, but to retake control of its borders and slash immigrant numbers. Problem is, it won’t happen. The Government has long “controlled” non-EU net migration (which exceeds EU net migration), yet has never been able to stem it, any more than it has illegal immigration (reckoned at 250,000 a year). What hope, then, of Theresa May “controlling” the flow of EU arrivals now her party has lost its majority and is under huge pressure to accept freedom of movement as part of a soft Brexit? So after all those promises and all the pain of Brexit, there’ll be “no major reduction of immigration at the end of it”. I fear we’re set to become a nation fuelled by the “greatest sense of betrayal in generations”.   (Clare Foges, The Times, re- published in The Week, 22 July 2017)

I don’t at all perceive any sign of rising fury or sense of betrayal –  yet.  The Brexit referendum vote was met with delight by the Little Englanders and those who believed that £350 million would magically be applied to the National Health Service within weeks, instead of being sent to crafty foreigners in Brussels.  The vote was narrow and the Remainers did a dire job at getting over the dangers of Brexit.

Since that referendum, which should have been treated as advisory, pending full research into the implications and into the dozens of complex problems to be sorted out (or not), the Remainers have acted like so many resigned sheep.  No agitation at the fecklessness and cluelessness of the government.  Seems it’s a done deal, except that it isn’t.  Yes, the general election didn’t go well for the Brexiters, but only because, at long last, young people put down their cellphones and voted, but not really for the principle of the EU, real politique and their own futures.

Ms. Foges’s sense of betrayal will come, but far too late.   The economy is already stalling.  London, for one, is being run day to day by immigrants, and will still be run by immigrants in ten year’s time.  Only by then the full horror of what was so casually done will have seeped through, and then it will be too late.  The perpetrators of this stupidity will blame someone else, but, nonetheless, it will be the Brexiters who will have visited the greatest historical betrayal in British history upon the population.  For the moment the latter are asleep.

Maybe the only way the Brexiters can get rid of the immigrants is when it dawns on the world that China is top dog and Chinese is the language to learn.  Then even young foreigners will stop coming to London to hone their English and go to Singapore or Shanghai to learn Chinese.  Young immigrants are not in London because of its good bus service.

Drugs, part 2 : Should pharmaceutical reseach be under public control?

From Sam Edge, Ringwood, Hampshire, UK

Most of the cost of drug development comes from the public purse, not from the large pharmaceutical companies (3 June, p 22). Independent research has repeatedly shown that these companies spend only around 15 per cent of their revenue on research and development. Tellingly, most spend at least twice as much on marketing.  The remuneration of the bosses has risen inexorably for no other reason than it has been able to.

From Bryn Glover, Kirkby Malzeard, North Yorkshire, UK

It is commonplace these days to encounter companies set up with notional dual objectives: to meet social needs at the same time as making profits for shareholders. I can think of no example where the two motivations haven’t sooner or later come into conflict as, for example, when economic forces place pressures on profits and the social need is pushed into second place and suffers.

A company may be supplying multimillion dollar drug regimes, as Clare Wilson describes, or social carers for pennies, storing up the crisis that James Bloodworth predicts (3 June, p 24). Whatever their initial ambitions, the profit maximisation imperative eventually takes over.

The obvious long-term solution in both cases is clear. All aspects of health and social care must be brought under social ownership and control. That way, the efforts of the universities – alluded to by Wilson – will be recognised; investment can be directed purely towards need, rather than towards areas of maximum potential profit; and any profits can be fed back into the system itself rather than into the pockets of remote and uninterested investors.   (The above letters appeared in June 2017 editions of New Scientist, and have been edited for the sake of brevity).

My comment: the horse is long out of the stable.  There is no public appetite for nationalization, and in any case government is rarely any good at managing companies.  However, if company wants to do business with the NHS, there should be communitarian rules:  limits on what companies should pay their CEOs (say no more than ten times the average salary?); no television advertising of ethical pharmaceutical drugs; the banning of gifts (inducements) to prescribing doctors. Or, if companies groan under this regime, they should be able to repay the government and universities for all research costs, and thus have more control  Let pharmceutical companies make profits by all means, but, in the spirit of Epicurus, moderate profits.  It is not acceptable for the public to be paying for most of the research only to be ripped off in the pharmacy.