Monthly Archives: August 2021

This Economist’s explanation of why nothing ever appears to happen in the Westminster political scene

Economics, Politics, , , , , , , , , ,

Politics in Britain appears to be a in state of stasis, nothing seems to happen. No longer is Westminster forum were the decisions crucial to our future well being are made, dullness and a ‘do nothing’ manner seem to prevail. In part this can be put down to Britain decline, both relative and real. Being now of relative global insignificance seems to have a negative impact, realising that are now figures of little significance, fearing that they can do little any import, they have lost the desire to do. However it might not he the loss of empire and the loss respect of the world’s leading statesman that account for this sense of ennui at Westminster. Economic theory offers an alternative explanation.

Parliament is dominated by two parties, although the rise of nationalist parties, in particular in Scotland pose a threat, the power duopoly of Conservative/Labour has not yet been seriously threatened. Duopoly is the extreme example of an oligopolist market and it is the theory of oligopoly that explains this political inertia or caution. Caution is the word that best describes the behaviour of oligopolists. They have reached this position of great power and don’t want to do anything that might threaten this power. What they realise is the power of their rivals is such that they have the potential to do great damage to them. Therefore they will do all in their power to avoid radical or aggressive actions that could provoke a damaging war with their powerful rivals. What they fear most is losing votes to their rival, much as the oligopolist fears losing market share to its rivals. What exist between oligopolists is an undeclared war or a truce of kinds. All fearing a damaging trade or political war that could inflict a death blow to their business or political party.

Oligopolists compete within certain parameters, fearing not to upset the apple cart. Businesses compete not with price but through advertising, marketing. Hoping at best to make modest inroads in a competitors sales. Similarly politics in Britain is another phoney war, conducted within strict parameters, parameters defined by the mainstream political culture. One of these parameters is responsible. Policies be responsible, not commit the partly to a great spending programme, because voters fear for their wallets. The political truism observed by all is increasing taxes is a vote loser, while reducing them is a vote winner. Also responsible politics doesn’t threaten powerful vest interests. The best example is the property lobby. Any policy that might threaten house prices is a ‘no-no’. This mainstream view also excludes as possible policies, those that while they may promise needed radical change, are too difficult to implement as they will upset power groups in society or voters.

In consequence politics is predominantly a war of words, each party claims that they possess that unique set of values that make them best suited to governing the country. Policy statements or policies spelt out in detail are anathema, as they can start a political bidding war in which each strives to out do the other. Potentially damaging to both parties as they have to make good on their policy promises. A leader can state that he wants every person in the country to have a job that guarantees a fair wage, an income that maximises their well being, but must never state how that would be achieved.

This can lead to the politics of dullness, with each party hoping to keep their share of the vote and remaining a major party. Hoping that this caution will be rewarded with those few extra votes that translate into a majority in parliament. The peculiarity of the British electoral system is that a marginally small but larger share of the vote can translate into a disproportionately larger number of parliamentary seats.

One other characteristic that political parties share with oligopolistic corporations, is a ruthlessness in preventing new entrants coming into the market. They are aware that their majority position in politics is always under threat, they are aware that the once in a lifetime event that changes the political landscape. A change which gives an outsider the opportunity to replace one of the two main parties, as occurred in the 1920s, when Labour replaced the Liberals as one of the two main parties.

This strategy is action is demonstrated by the risky strategy that the Conservative party adopted over Brexit. Its vote was threatened by the Brexit party, which one a majority at the last European election, through the support of disaffected Conservative voters. To crush this upstart the party adopted the Brexit party policy so depriving it of the political oxygen which it needed to thrive. This was a risky strategy as it meant their rivals the Labour Party could have opted for Remain, which would have put at risk their candidates in strongly Remain constituencies. Fortunately for them the Labour Party read the political runes and decided that majority opinion or the voters that mattered were for leaving the EU*. This about volte face by two predominantly Remainer parties, deprived the half of the nation wanting to stay in the EU unrepresented.

What can be said is that the British political system works to favour the two main parties in situ? No matter how outrageous their behaviours or betrayals, they need fear being voted out. British politics will continue in its outrageous but merry way refusing to countenance any change. Change that might threaten the power of the two dominant parties. Even when the crisis of climate change is becoming increasingly apparent neither of the two main parties will be willing to make the radical change necessary to help avert it. When the Conservative government reneged on its promise to install a national charging grid for electric cars, Labour remained silent. Fearing being accused of making irresponsible policy commitments that would threaten existing jobs in the motor trade, forcing on the country a change they may not want. Giving the leadership of Cop26 to any British politician is detrimental to the well being of the world. All that can be expected is lots of words, words used to say the right thing but devoid of meaning or commitment. Possibly this is a sign of Britain’s decline, a not willing to commit to anything that might threaten to diminish further Britain’s international power and reputation.

The fallacious misunderstanding of the medieval world and why it matters

History, Philosophy, Politics

The medieval world has been characterised as the Dark Ages, a misconception that remains current today. One example that comes to mind is the television presenter and historian who on describing the fall of Constantinople, said that the siege was of little concern to the monks of St.Sophia who would be spending their time debating such unworldly issues as to how many angels could dance on a pin head. What the presenter did not realise was that he was repeating the black propaganda used by the Protestants to discredit there Catholicism. In fact if he had read William of Ockham, he would have discovered that the thinking of medieval theologians was both pragmatic and sophisticated. In fact David Hume cited William as one of key thinkers that influenced his philosophy. His essay the ‘Treatise on Human Nature’ echoes William’s scepticism about the limitations of human reason. Although separated by five hundred years and starting from different intellectual standpoints, there conclusions are remarkably similar. Seb Falk a historian decided to turn this thinking on its head by writing a book about medieval science, that he called ‘The Light Ages’.

Seb Falk’s contention is that despite its mischaracterisation, this time was a period of remarkable scientific and mathematical advance. Sun dials he states that despite their rudimentary construction could be sophisticated means of measuring time. He gives as evidence of this sophistication the astrolabe. A flat disc that when used with a sighting device for checking the position of the stars or sun could determine the viewer’s latitude and longitude. They knew that there location could affect their astronomical reading, as position of the stars the sky would change according to their latitude. John Westryk a monk from St.Albans knew that when he was relocated to Tynemouth could still use an astrolabe made for use at the southern location of St.Albans, because the small variation in latitude would only effect a minimal change in the position of the stars.

Despite their wrongful belief that earth was at the centre of seven concentric circles of heaven, each one being ever closer to God, they were remarkably accurate in their charting of the night sky.

Sailors in the open sea would use the cross staff or astrolabe to find their position. By the fourteenth century sailors were using compasses and charts marked with rhumb lines. The latter were lines leading to various ports. Despite what appears to be the rudimentary nature of their navigational aids, they were capable of accurately navigating the seas. British and other fishermen by the end of this period were beginning to use this technology to find the fisheries located off Newfoundland. Manuscripts suggest that St.Brendan (an Irish monk) of the early medieval period may have been the first European to discover America.

What Seb Falk establishes is remarkable scientific understanding and practice existed within the learned clerical class.

This class also displayed a remarkable openness to non Christian thinking. The Arab philosopher Avicenna was significant, it was through familiarity with his writings that medieval theologians became familiar with the works of Aristotle. It was through the writings of these theologians that Aristotle was reintroduced into the Christian world. Such was the sophistication of their philosophical reasoning, that later philosophers made use of their findings. In fact the use of Avicenna in their writings was controversial, it was the two path controversy. Christians believed that truth could only be found through faith, now Avicenna was saying that truth could be found through philosophy. In fact he believed that only the philosopher could truly know the truths of God. Theologians would accuse their rivals of being adherents of the two truth theory, which was anathema to the church. This and other contentious issues ensured that medieval universities were lively and stimulating centres of learning. Often earning the censure if the church authorities, as happened to the university of Paris.

There is the intriguing story concerning St.Francis of Assisi. He took time out from his reforming work to travel to Spain. Idries Shah believes that he was hoping find the master, a man he made many references to. Shah thinks the master was Rumi the great muslim thinker and poet. Speculation perhaps, but the medieval church was more open to new ideas that is usually thought.

Medieval universities could be lively places of intellectual discovery, but there was a dark side to the medieval university. William of Ockham a particularly controversial thinker was accused of heresy by the master Oxford university, and had to flee to the continent.

I am aware that in describing medieval England as a time of enlightenment and intellectual advance, is painting as partial a picture as that of the Victorians who described it as the dark ages. How should we judge or characterise this period? By its monsters and the crimes they committed or by its best and most enlightened and their achievements? If the former it should be noted that the twentieth century regarded as a time of progress and advance, was a time when there were men such as Stalin, Hitler, Mao and Pol Pot who committed far worse crimes than there medieval predecessors.

At my last school my colleague taught the ‘Wars of the Roses’, as it was he said, an interesting period of history. Perhaps if we view education as a making a positive contribution to the students development, we should not glorify a group of arrogant, brutal men, who gloried in the butchery of their rivals.

I have always thought we neglect teaching what is best from the past. Once Erasmus’s’ ‘Adages’ was regarded as essential reading for statesman. Now a book only read by the intellectually curious. I value from that book the essay entitled ‘War is sweet only to those who have never tried it’. I think this should be required reading for any aspirant politician on a PPE course.

When we reflect on the achievements of the medieval period, does it not undermine the theory of human history as a constantly upward progressive movement? There are a group of Anglican theologians who think the high Middle Ages represent the peak of human civilisation. These radical orthodox theologians have among their adherents, the former Archbishop of Canterbury, Rowan Williams.

The fallacious misunderstanding of the medieval world and why it matters

History, Philosophy, Politics, , , , , , , , , , , , , , , , , ,

The medieval world has been characterised as the Dark Ages, a misconception that remains current today. One example that comes to mind is the television presenter and historian who on describing the fall of Constantinople, said that the siege was of little concern to the monks of St.Sophia who would be spending their time debating such unworldly issues as to how many angels could dance on a pin head. What the presenter did not realise was that he was repeating the black propaganda used by the Protestants to discredit there Catholicism. In fact if he had read William of Ockham, he would have discovered that the thinking of medieval theologians was both pragmatic and sophisticated. In fact David Hume cited William as one of key thinkers that influenced his philosophy. His essay the ‘Treatise on Human Nature’ echoes William’s scepticism about the limitations of human reason. Although separated by five hundred years and starting from different intellectual standpoints, there conclusions are remarkably similar. Seb Falk a historian decided to turn this thinking on its head by writing a book about medieval science, that he called ‘The Light Ages’.

Seb Falk’s contention is that despite its mischaracterisation, this time was a period of remarkable scientific and mathematical advance. Sun dials he states that despite their rudimentary construction could be sophisticated means of measuring time. He gives as evidence of this sophistication the astrolabe. A flat disc that when used with a sighting device for checking the position of the stars or sun could determine the viewer’s latitude and longitude. They knew that there location could affect their astronomical reading, as position of the stars the sky would change according to their latitude. John Westryk a monk from St.Albans knew that when he was relocated to Tynemouth could still use an astrolabe made for use at the southern location of St.Albans, because the small variation in latitude would only effect a minimal change in the position of the stars.

Despite their wrongful belief that earth was at the centre of seven concentric circles of heaven, each one being ever closer to God, they were remarkably accurate in their charting of the night sky.

Sailors in the open sea would use the cross staff or astrolabe to find their position. By the fourteenth century sailors were using compasses and charts marked with rhumb lines. The latter were lines leading to various ports. Despite what appears to be the rudimentary nature of their navigational aids, they were capable of accurately navigating the seas. British and other fishermen by the end of this period were beginning to use this technology to find the fisheries located off Newfoundland. Manuscripts suggest that St.Brendan (an Irish monk) of the early medieval period may have been the first European to discover America.

What Seb Falk establishes is remarkable scientific understanding and practice existed within the learned clerical class.

This class also displayed a remarkable openness to non Christian thinking. The Arab philosopher Avicenna was significant, it was through familiarity with his writings that medieval theologians became familiar with the works of Aristotle. It was through the writings of these theologians that Aristotle was reintroduced into the Christian world. Such was the sophistication of their philosophical reasoning, that later philosophers made use of their findings. In fact the use of Avicenna in their writings was controversial, it was the two path controversy. Christians believed that truth could only be found through faith, now Avicenna was saying that truth could be found through philosophy. In fact he believed that only the philosopher could truly know the truths of God. Theologians would accuse their rivals of being adherents of the two truth theory, which was anathema to the church. This and other contentious issues ensured that medieval universities were lively and stimulating centres of learning. Often earning the censure if the church authorities, as happened to the university of Paris.

There is the intriguing story concerning St.Francis of Assisi. He took time out from his reforming work to travel to Spain. Idries Shah believes that he was hoping find the master, a man he made many references to. Shah thinks the master was Rumi the great muslim thinker and poet. Speculation perhaps, but the medieval church was more open to new ideas that is usually thought.

Medieval universities could be lively places of intellectual discovery, but there was a dark side to the medieval university. William of Ockham a particularly controversial thinker was accused of heresy by the master Oxford university, and had to flee to the continent.

I am aware that in describing medieval England as a time of enlightenment and intellectual advance, is painting as partial a picture as that of the Victorians who described it as the dark ages. How should we judge or characterise this period? By its monsters and the crimes they committed or by its best and most enlightened and their achievements? If the former it should be noted that the twentieth century regarded as a time of progress and advance, was a time when there were men such as Stalin, Hitler, Mao and Pol Pot who committed far worse crimes than there medieval predecessors.

At my last school my colleague taught the ‘Wars of the Roses’, as it was he said, an interesting period of history. Perhaps if we view education as a making a positive contribution to the students development, we should not glorify a group of arrogant, brutal men, who gloried in the butchery of their rivals.

I have always thought we neglect teaching what is best from the past. Once Erasmus’s’ ‘Adages’ was regarded as essential reading for statesman. Now a book only read by the intellectually curious. I value from that book the essay entitled ‘War is sweet only to those who have never tried it’. I think this should be required reading for any aspirant politician on a PPE course.

When we reflect on the achievements of the medieval period, does it not undermine the theory of human history as a constantly upward progressive movement? There are a group of Anglican theologians who think the high Middle Ages represent the peak of human civilisation. These radical orthodox theologians have among their adherents, the former Archbishop of Canterbury, Rowan Williams.

Good and Bad economics or Creative and Destructive Economics

Economics, Politics, , , , , , , , , , ,

From the very beginning of my teaching career I felt that I was not giving my students the complete story. Then just recently my son-in-law who is a joiner taught me something about economics that I should have known. The market is but one strand of the economic complex, what I and other economists have ignored is collaborative or creative economics. An economic practice that is not based solely on price, but other values, such as trust, respect and quality of work. Self employed construction workers such as my son-in-law, may work singly or with others when the task requires it. When a task calls for collaboration, collaborates are chosen on the basis of respect, trust and work ethic. They all know the profit maximiser who will cut costs and corners so as to achieve the maximum profit. These men make poor work colleagues and are best avoided.

This does not mean that there are not a number of bad tradesmen, who will produce a poor quality product or service. Men who make a good living from their trade but who former customers are desperate to avoid using again. Our local internet network is dominated by requests for the names of tradesmen who can be trusted to deliver a good quality service. While the market economists would say that the customer looks for the tradesmen who charge the lowest price, what most people want is quality of service. If a potential customer tried to force the price down to the lowest level, my son-in-law and his colleagues would just walk away.

While in the building trade there is a rogue element of profit maximisers, who cut costs to the bone to earn maximum profit, I suspect the majority are like my son-in-law ‘profit satisfiers’. Given the ignorance of the building trade potential customers find it hard to identify these rogue traders. Rogue traders who in the present shortage of tradesman can make a good living. However that does not discredit my belief that in the building trade, quality of service is valued more than price. Obviously price matters to both the customer and tradesmen, usually what is valued is the fair price, a price for the job that satisfies both customer and tradesman. It is a deal founded on trust, a trust that can unfortunately be abused. There are the customers who are tardy payers and the rip off merchants on the traders side.

What is required to make the construction market work more effectively is more regulation, of the right kind. Electricians are compelled to take regular tests to ensure their fitness to work in electrics. Unfortunately there is no effective mechanism from preventing the bad or poor electrician working in the trade. Anybody can advertise themselves as a builder qualified in all trades. A regulated market such as that found in Germany or Switzerland would improve immensely the work undertaken in the building trade.

From my knowledge of people working in the small and medium trader market, the same standards apply there. Even businesses solely driven by profit and not quality of service, such as the banks and other financial services, the success of these profit maximisers depends on their staff adopted collaborative working practices. If staff felt they could not trust each other, the business would soon collapse. Businesses don’t thrive if their staff are constantly at each other’s throats.

In this respect the practice in call centres, where staff are constantly monitored and required to meet performance tasks have a high turnover of staff. This works when unemployment is relatively high, as unemployed young people can be quickly trained in the simple skills required. Given the high and wasteful staff turnover such call centres find that treating staff well, equals higher productivity and higher staff retention. In even this industry values other than cost minimisation are adopted, contrary to market economics.

Collaborative working of the type undertaken by my son-in-law is creative economics, he is a profit maker. Whatever he makes or does adds value to the property. This is contrary to destructive economics, whereby the trader or business literally diminishes the value of the nation’s wealth. In economist’s terms, the profit taker or in common sense parlance the robber baron. Private equity companies are one of the worst practitioners of destructive economics. They loot the company of its most profitable assets and then return the ‘efficient’ business back to the market. Adding the resale price to the profits gained by selling the companies assets. These enfeebled businesses rarely survive long once returned to public ownership.

Another term for these non creative looters, is rentier capitalists. One example of this is those business that buy the copyright of a particular musician. Then with the ownership of these rights they can charge exorbitant sums to those who make use of this artists music. They are assiduous in keeping control of the right to profit from that artist work, often resorting to court when they believe their rights have been infringed. Unfortunately a list of these corporate looters is most endless.

China had its cultural revolution in the 1960s and Britain hers in the 1980s. Although the British free market revolution did not produce the huge loss of life that China’s did, it was in some ways equally destructive. Rather than freeing Britain from the shackles of government and liberating the market for the benefit of all, it has created an unregulated market which in essence is becoming a thieves paradise. Only a return to a regulated market that prioritises the creative economy over the destructive economy, can return us to an economy that works for the benefit of all. What I treasure is the Code of Hammurabi which threatened bodily mutilation to profiteers and speculators. He as a successful ruler knew that he would only remain successful, if he reined in the excesses of the market.