The other day I found myself in conversation with one of my fellow students about whether or not the British government had too large of budget cuts too soon in the economic recovery. I argued that it was fairly self-evident that it had done so, considering the superior economic performance of most nations that had refrained from issuing cuts or embarked on a policy of stimulus. The response he gave me was an interesting one–he argued that the advantages being enjoyed by the stimulus countries were short term, and advised me to look at France, a country that had refrained from austerity and has recently had its credit rating reduced by Moody’s, is seeing stagnant growth rates, and has a host of other problems. I responded that Eurozone countries were in a different kind of economic crisis from countries like Britain and America, and that different rules applied–this was met with scepticism, as if I were trying to weasel my way out of the point. So today I would like to make the broad argument that the economic problems being experienced in non-Euro countries like America, Britain, Japan, and Canada are of a fundamentally different nature from the kind being experienced in France, Spain, Portugal, and Greece. So different, in fact, that comparing the former to the latter is intellectually useless.
Groupthink: How Democracy Maintains Evil and Injustice
This morning an entirely new line of attack on democracy occurred to me, and I feel an intense pressure to share it with all my readers. In the past, I have argued that democracy has a tendency to result in the political preferences of the median voter being realised. There is, however, a related implication that did not occur to me at the time of writing and which has such spectacular implications so as to deserve a post unto itself for explication.
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Universal Basic Income: Free Money
Today I had a lecture that introduced an interesting idea, one I think worth sharing and discussing–universal basic income (hereafter referred to as UBI). UBI is a radical alternative to the present welfare system existent in most western countries. In most societies, welfare is conditional on a demonstration of effort to gain employment–it has a work requirement. UBI proposes that the work requirement be scrapped and that welfare be provided to all citizens irrespective of need so that everyone has a sufficient standard of living such that employment becomes a life choice rather than a life requirement.
Why the Welfare State?
There’s a set of institutions that most western countries have that we collectively call “the welfare state” and, in the drive to shrink budget deficits, it has come under attack. But why do we have a welfare state in the first place? What is its function, and what are we putting at risk when we cut funding for it? That is today’s point of inquiry.
The State’s Role in Investment and Innovation
It is often said that the state spends money inefficiently–or at least, less efficiently than the private sector spends it. The old Hamiltonian argument, in favour of the state as an investor, an engine of growth, technological development, and innovation, often falls on deaf ears as the opposition points to Solyndra, the “crony capitalism” of investment centred states like France or Japan, and so on down the line. Today, I would like to challenge this dismissal for being much too flippant and much too anti-historical.
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Benjamin Studebaker 