Archive: economy

Scottish Conservatives

This is a pretty substantial leaflet, with lots of copy for you to read. It’s pretty slick. One thing that strikes me is that it avoids the tacky symbolism adopted by the other right-wing Eurosceptic parties. The only sign of nationalism is a rather washed-out Union Flag acting as a background.

Content-wise, it starts with a number of cut-outs of newspaper headlines chronicling Labour’s many disasters — as if we needed reminding. Below that is a picture of Gordon Brown photoshopped to make him Janus-faced, which is disappointingly base.

Policy-wise, the focus is very much on European issues. While I may not agree with all of their policies, I appreciate the effort they have taken to tell us exactly what they have done and plan to do in the European Parliament.

Unfortunately, this focus on Europe goes out of the window during the message from David Cameron and Annabel Goldie. They essentially encourage you to vote to send a message about the Labour government in Westminster. There is no escaping the fact that the European Parliamentary election is a second-order election, and will therefore often be used as a way to “send a message” to the government. But I’d rather the Conservatives wouldn’t encourage people to discard European issues for a European election.

No word on the coalition of charmers they are trying to build up either.

Scottish Greens

We have not heard a peep from the Greens. No leaflet came through the door. So I have taken a look at their website.

The blurbs are full of the sort of stuff you come to expect from Greens. For instance, it attacks “reckless growth”, apparently oblivious to the fact that it is the lack of growth that is hurting everyone so much just now. They attack the economic system, but offer little in the way of alternative ideas, apart from more control and more regulation. And renewable energy.

Among their main plans is a promise to create “hundreds of thousands of jobs”. Good luck with that one. They also advocate mutual financial institutions, glossing over the problems that hit the Dunfermline Building Society.

Scottish Labour

This leaflet is not just tailored for Scotland. It is aimed more narrowly at Fife and Tayside. We learn that Labour has the vote of Kariann and Kenneth from Rosyth, whose are pictured with their son Ryan. Oddly, they all look rather glum. Their quote says:

It’s Gordon Brown’s leadership that will get us through these tough times. Labour is the only party on the side of hard working families, standing up for Scottish people nationally and in Europe.

They’re not doing a very good job of it though, are they? As for “Gordon Brown’s leadership”, I can only imagine that Kariann and Kenneth are by now the laughing stock of Rosyth. There can’t be many towns in Scotland that have been more badly hit by Labour’s disastrous economic policies than Rosyth.

I’ll never forget the Dunfermline and West Fife by-election, when Gordon Brown stood in Rosyth banging on about job security — only for 700 jobs to go at Lexmark. According to this page, 1,599 jobs had been lost in Rosyth — around an eighth of the town’s population — between 1997 and 2006. Labour’s economic legacy in Gordon Brown’s patch.

When you open up the leaflet, the first thing it does is play the unionist card, as you would expect from Labour. It’s not that I disagree with the message, but it does seem a bit ham-fisted. It is perhaps a mistake for the rest of this page to focus on Labour’s economic record, which is in tatters.

Page three concedes that “it may seem hard to talk about an upturn now”. It certainly is hard to talk about it while Labour are in charge. There is only a brief mention of what Labour’s MEPs have done, and nothing at all about what they plan to do in the future. The rest focuses on the SNP’s record in the Scottish Government. Above this blurb is a rather unflattering photograph of Gordon Brown and Lindsay Roy, two people who always look uncomfortable in front of a camera. Neither of them look particularly happy, reflecting the mood of the times.

The back page sees the return of Kariann and Kenneth, telling us what they think. They tell us that the SNP “have broken almost all their election promises”, then list all the “wrong decisions for Scotland” the SNP have made. Nothing about European issues.

They are “not voting for the Tories because of the last recession.” Hahahahah! Quite why the relatively benign recession that happened almost twenty years ago matters more than the one that is ruining everyone’s lives today is not entirely clear, although I suppose we have come to expect this sort of logic from Labour supporters. Anyone but the Tories, never mind the facts.

Scottish Liberal Democrats

The Lib Dem message on the front is simple and effective: “Stronger together, poorer apart”, illustrated by a tug-of-war team wearing orange and black. Inside, the copy focuses on “international action” that the Lib Dems help take.

Admirably, the entire leaflet focuses largely on European issues. There is a section at the bottom on why each of the other major parties are so bad. Gordon Brown is pictured shaking hands with George Bush — a bit of a cheap shot. The SNP are bad because a “broken up” Britain would be weaker in Brussels. The Conservatives would also isolate us from Europe. Apparently the Tories “only agree with small fringe parties including UKIP and Sinn Féin.” Ouch! Another low blow.

Despite the cheap shots, this is easily the leaflet that speaks the most to me. I appreciate the focus on European issues, underlining the importance of international action in certain areas — a concept I agree with.

SNP

The SNP are a major party, so there are none of the amusing loon-policies. However, what it does mean is a lot of bland platitudes. “SNP MEPs will always do what’s best for our nation, our families and our communities.” What does this actually tell us? Would any party say they wouldn’t do that?

One thing that differentiates the SNP is the promise to “Campaign for Scotland to be a member of the European Union in its own right” — in other words, independence. Surprise surprise.

Disappointingly, Alex Salmond’s message focuses on what the SNP Scottish Government is doing, rather than what the party plans to do in Europe. The back of the leaflet provides a list of what the SNP is doing to protect Scottish jobs. This feels more like an opportunity to remind us of what the Scottish Government is doing rather than a plea for us to vote SNP in the European Parliamentary election.

Here it is: that post I’ve been sitting on for upwards of a year. Before I start, I am going to make a few introductory notes about what I do and don’t mean when I call democracy disturbing. I find that all too often debates about this subject are clouded by dogma, which leads to poor thinking and boilerplate arguments.

Before some cheesy person wheels out that Churchill quote about democracy being the worst system apart from all the other systems, yes of course I have heard it. And it is true. I am a democrat because I believe it brings about favourable conditions. For instance, there is the correlation between democratisation and higher GDP per capita. (Whether democracy is cause or effect does not matter. If the value of the higher GDP per capita is greater than the cost of democracy per head — as it almost certainly is — then democracy is a price worth paying.)

Furthermore, I should define more closely what I mean by democracy. Most of the flaws I will point out are actually problems with elections rather than democracy as a whole. Aspects of democracy such as civil liberties, human rights, freedom of speech, the rule of law, due process, and so on and so forth, are of course things that I am deeply supportive of. This will become clear in my first point.

I tackle the issue not from an anti-democratic perspective. Far from it. My problem is with the approach which sees democracy almost like a religion which ought not be questioned — what Bryan Caplan in his book The Myth of the Rational Voter called “democratic fundamentalists”:

Its purest expression is the cliché, attributed to failed 1928 presidential candidate Al Smith, that “All the ills of democracy can be cured by more democracy.” In other words, no matter what happens, the case for democracy remains untouched.

No case should remain untouched. That is why, for me, there is not enough scrutiny placed on democracy. There is a fear of investigating it, because the benefits of democracy are perceived to be so self-evident that anyone who stops to ask what the disadvantages are is instantly regarded as a fool. That must be dangerous. If we agree that the system is imperfect, the only way to improve the situation is to investigate it and have an awareness of what the problems are.

Just as a final point, much of my thinking in this area came about as a result of the research I did for my dissertation, which was about the “paradox of voting“. In case you want to read more about voting behaviour, I have uploaded my dissertation here.

Having got all of the caveats and explanations out of the way, it is time to move on to my five points.

1. Democracy is not guaranteed to uphold freedoms

This is more or less a rehash of The Devil’s Kitchen’s post which I referred to yesterday. Above I said that “aspects such as civil liberties, human rights, freedom of speech, the rule of law, due process” are important. Arguably, these have all taken a battering by recent democratically elected governments.

Wave goodbye to your right to peacefully protest, have a fair trial and take photographs in public. Say hello to ID cards, the database state, endless reams of CCTV footage, mass DNA collection, control orders, detention without charge and extraordinary rendition. Thanks, democracy!

2. Tyranny of the minority

Most people are familiar with the concept of the tyranny of the majority. Thanks to the system of democracy adopted in this country, it doesn’t even take a majority to construct a tyranny. In the 2005 General Election, 9,562,122 people voted for Labour candidates. Assuming a population of 60 million, this translates to around 16% of the population.

The votes of this small percentage of the UK’s citizens has given the Labour Party 55% of the seats in the House of Commons, a majority of 67 seats. What gives the government the right to rule the country with such dominance? Not the people, that’s for sure. Only 16% of the people expressed a preference for the current government. In fact it is the way the system is constructed, and nothing else, which gives Labour its “legitimacy”.

That brings me neatly on to…

3. The system can’t be fixed

Arrow’s Impossibility Theorem states that there can be no voting system which will be able to fulfil a number of desirable criteria:

  • The Pareto principle — if everyone prefers x to y then y should not be elected
  • Anonymity — every voter should be treated equally
  • Neutrality — every candidate should be treated equally
  • Independence of irrelevant alternatives — the ability of x and y to win an election should not be affected by the entrance of a candidate z
  • Transitivity — if x is preferred to y and y is preferred to z then x should be preferred to z

Independence of irrelevant alternatives is the one that riles up proponents of electoral reform the most. Just think of Ralph Nader, or the farcical events of the 2002 French Presidential election. In this case, the voting system is far more important than the voters themselves. The fifth item on the list refers to Condorcet’s paradox, whereby attempts to find a winner of the election leads you on an endless circle.

We can argue among ourselves about which voting system should be adopted. But (and I’m not saying this will necessarily come as a surprise to anyone), you will never find a system that will please everyone. It will be a matter of choosing the least worst option, as every system has a fatal flaw of some kind. For what it’s worth, my preference is Single Transferable Vote — but that’s a matter for a different post in the future.

For more along these lines, read this post about a talk I attended a couple of years ago. It was given by economist Eric Maskin en route to collecting his Nobel Memorial Prize in Economics. He had some very interesting views on electoral reform.

4. An individual vote is almost worthless

If you are concerned with affecting the course of history by having your say on major political issues, going to cast your vote in an election is more or less a complete waste of your time and energy. It is said that you are more likely to be killed on your way to the polling station than to actually cast the deciding vote.

The probability the the outcome of an election will hinge on your vote is minuscule. Even under the fanciful assumption that in a two candidate US Presidential election each other person is likely vote for either candidate with a probability of 0.5, the probability that your vote will be the deciding vote is 0.00006.

Yet the costs of voting are actually rather large. You have to spend time and possibly money learning about each of the candidates and their policies. The time and money spent travelling to the polling booth is not exactly negligible in the context of the minuscule probability of your vote actually meaning a damn thing.

Of course, this doesn’t mean that voting is wrong. People don’t vote because they believe it will affect the outcome. They vote because it makes them feel good. But the fact that you need to resort to non-instrumental incentives in order to justify the act of voting leaves wide open the possibility that people with bad motives (or motives with bad effects) are more likely to vote…

5. Many who do vote base their decision on prejudices

In his very interesting book The Myth of the Rational Voter, Bryan Caplan said that the fact that people vote can be explained by the fact that they like to hold certain political beliefs. Let’s call our voter a sheep. He may hold suboptimal opinions and support policies that would actually make him worse off. This might be due to social pressures, a sense of self-image or whatever. It is, after all, all too common to meet someone who votes Labour just because their dad did.

It is precisely because a person’s vote is so worthless that sheep are encouraged to vote. They like to go and vote because it makes them feel good, reaffirms to themselves their ideological loyalty and so on. But sheep never stop to think if the policies they support would make them worse off. They don’t have to because their vote doesn’t matter anyway. The cost of ideological loyalty is low. Indeed, the benefits of it are enough to outweigh the costs of voting.

Those who hold no strong ideological loyalties, and who may therefore be expected to enter the polling booth ready to judge fairly based on all of the information they have gathered, are actually far less likely to vote. This is because they feel no warm glow from the act of voting for their favoured party.

As such, the traits of voters are the sort of traits you would normally expect to find on a football terrace. They will trudge along to express their tribal feelings, and will keep on doing so even in the driving rain, even if their football team is rubbish and the game is low-quality.

One might say that the political party you support is rubbish and the state of politics just now is low-quality. Who wants to buy a season ticket? Is it not better to leave that sort of behaviour on the football terraces?

Yesterday, for the first time in a while, I took a trip into Kirkcaldy’s main shopping centre, the Mercat. I’m very familiar with the first set of shops that meet you from the entrance. I passed them all many, many times on my way to work at the late, great Woolworths.

This opening corridor is a very strange looking place now. The entrance to Woolworths lies at the end of the corridor, facing the entrance to the Mercat. It is the first thing you see as you enter. This alone makes the shopping centre feel dark and desolate. Instead of a bustling Woolies, there is now a large grey shutter, unflinchingly shut.

What is now striking about this section of the Mercat is the fact that so many other shops have shut since Woolies closed down. In fact, when you look at it, there is barely a shop between the entrance of the Mercat and Woolworths that hasn’t been badly affected by the recession.

At the entrance, on the left, is The Officers Club. This briefly went into administration just before Christmas. But a number of stores were saved, including Kirkcaldy’s. This is actually one of the few success stories of the Mercat’s recent past.

Opposite The Officers Club is The Works. This has been in the Mercat for a while. The only problem is, it used to occupy a much larger unit with two floors. The new Works is probably a third of the size. It occupies the slot that was vacated by Bookworld a couple of years ago.

The old home of The Works was filled over Christmas by Calendar Club, a makeshift shop that was only there for a couple of months. Today the unit lies empty.

Next to it lies the former home of Internacionale. This has become empty since Christmas. Presumably they have moved into the Mk One unit at the other end of the shopping centre.

Further along, we come to Passion for Perfume. This is another chain which unravelled in the run-up to Christmas. Today, it’s just another grey shutter left permanently down.

Opposite lies an empty space which is presumably a unit which has been vacant for as long as I can remember. This is next door to Card Factory which has also recently closed down. the Original Shoe Company, a JJB Sports subsidiary which was recently put into administration. Now the only thing on display there is the windolene smeared all over the entrance.

At the top of the corridor, next to the former Woolies unit lies the entrance to an actual JJB Sports. Ironically, this is actually a relatively new shop. It fills a unit that had been empty for a while. It was extensively renovated to accommodate JJB Sports. The shop itself is upstairs, residing directly above Woolworths. I reckon around 18 months was spent building just above our shop (and they were quite noisy about it at times too).

Then, mere days after JJB opened, rumours about its seriously poor health surfaced. I think it, just about, remains open. But I hear it is absolutely dead. I am not surprised given than you are presented with nothing but an escalator when you go through the entrance.

I have heard that JJB were actually reluctant to move in. I am told that the Mercat paid for all of the renovation work themselves. If that is true, they must really be kicking themselves. Not only did they build it for a shop that has been on its knees ever since it opened, they could now take their pick from about half a dozen empty units.

This is a stroke of bad luck really. Once you turn the corner past Woolies, the situation is not quite so bad. But the impression you get as you walk through the entrance is that the Mercat is half dead. Almost every store along the way has been affected by the credit crunch, the only exceptions being Greggs and HMV.

It may put people off proceeding further than Woolies. The whole place feels so dark and empty now. Instead of bright shop lights, you are presented with shutter after shutter. The contrast to twelve months ago could hardly be greater.

(With apologies to dad, from whom I nicked this post’s title.)

It’s no secret that the Scottish media is going through a particularly tough time at the moment. In a sense, the past decade or so can probably be described as one long tough time. Job cuts have been piled upon job cuts. With sales plummeting, advertising revenues shrinking and the uncertain world of new media, the credit crunch is simply the icing on the cake.

Just yesterday it was announced that seventy jobs at Trinity Mirror will go once production of the Daily Record and the Sunday Mail merges into a single operation. That amounts to a quarter of editorial staff.

The state of the Scottish press was one of the subjects discussed on Newsnight Scotland yesterday (from 18:07). BBC Scotland’s business and economy editor Douglas Fraser (himself a former Herald journalist) noted that when The Herald and the Sunday Herald did something similar, more people requested redundancy than the Herald Group was actually looking for. On his blog he wrote:

It doesn’t say much about working at those heavier titles to find management has even more voluntary redundancies than they had wanted.

It’s worth remembering also that last year staff at those newspapers held strikes in protest at cuts. But it might not be just the Herald group of newspapers which has become a more difficult place to work. Costs at all newspapers are constantly being cut, but the newspapers are churning out just as much content as before. If anything, they are producing more content as a result of the 24 hour news cycle, and the need to keep websites constantly updated.

Today I have received an email informing me that North Lanarkshire Council has (presumably accidentally) published details of shortlisted candidates for the role of Head of Corporate Communications and Marketing. The job went to Stephen Penman, who used to be deputy editor of the Sunday Herald.

I am reluctant to elaborate too far further in case it annoys any of the people concerned. But the list has been published publicly, albeit without forenames, so you may be able to join the dots. My informant seems certain that the list contains a number of big names from various newspapers and public affairs firms.

No doubt the job of Head of Communications at a local council tends to attract candidates with a background in journalism and public affairs. But the calibre of these applicants is quite striking. There is an Associate Editor for the Scottish version of a major UK-wide newspaper; Group Content Editor for a major Scottish newspaper group; possibly Group Political Editor for a national newspaper group and a columnist for a Scottish newspaper. There is also at least one person, and maybe two, who currently work for private sector public affairs / PR companies.

Whatever you make of it, it has spurred someone to email me. He says: “Considering these names there is a rush to get out of the dead tree press and the private sector and into the safe harbour of the public sector.”

It’s pretty clear that the Scottish press is in turmoil just now. With devolution, there is more politics going on than there used to be, and it is the media’s job to keep on top of it. But ever since devolution, Scottish papers have increasingly struggled to make ends meet in the face of the internet revolution. The government is stronger, but the media is weaker — and that’s a dangerous situation to be in.

It seems likely that this town ain’t big enough for both The Scotsman and The Herald. Many see it as a foregone conclusion that both papers will be dead before long unless something radical is done. Recently Stewart Kirkpatrick, former editor of Scotsman.com, wrote a blog post on what such radical action may look like.

With the latest news coming from Trinity Mirror, it looks as though Scotland’s main tabloid newspaper will similarly struggle. It seems as though even in the best case scenario for the Scottish media, a lot more jobs are going to go and the Scottish press is going to be a lot weaker.

I truly feel deeply sorry for anyone who follows / followed the Honda F1 team. The team has been a walking joke for years. The events of the past few months have shown that Honda can’t even disappear from F1 without making a total hash-job of it.

It wasn’t always like this. Of course, the BAR team was always a bit of a loony show. Expertly (ahem!) led by a ski instructor, the team was a shambles. They couldn’t even get their livery done correctly.

But things took an upswing towards the middle of this decade. David Richards hauled the team up the grid and in 2004 BAR’s performances were consistent enough to earn it 2nd place in the Constructors’ Championship on merit. Then David Richards left.

He was replaced with Nick Fry, a smirking, over-confident fool who seemingly couldn’t manage his way out of a paper bag. At round 4 of the 2005 Formula 1 Championship, the team was caught out when an illegal second fuel tank was discovered. After that point, the team’s performance plummeted for some reason.

Since then, Honda have bought the team outright. You would have thought that would be a good thing. Oh no. Those clever people decided to bring in a motorbike designer, Shuhei Nakamoto, with minimal experience with designing cars, as technical director. He replaced the perfectly competent Geoff Willis, who now works at Red Bull Racing. After Nakamoto’s disastrous design was unveiled, Honda spent two years in P-nowhere. Can’t think why.

2009 was supposed to be better than this. They had brought in Ross Brawn specifically to make 2009 better than this. This was going to be Honda’s big comeback year! We could see what the man who masterminded every single one of Michael Schumacher’s World Championships could do. Then Honda pulled the plug on the entire F1 project mere months before lift off.

Now, fair enough. Honda can’t exactly help economic circumstances and if they need to make cutbacks (even just for cosmetic reasons) then that is just the reality they face. But have they managed to do it in a vaguely dignified way? Of course not. This is the Honda F1 team. They make a botch job of everything.

If anyone can make head or tail of all the contradictory news stories about Honda that have emerged over the past week or so, could you please explain all because I am at a complete loss. The deadline of the end of January has long been forgotten about. The management buyout was supposed to have been done and dusted by now.

Now, having seen off all of the other potential buyers with all the talk of a management buyout, something seems to have gone badly wrong. Rumour after rumour has emerged over the past week or so, and it seems as though the Honda team don’t have a clue what they are doing.

A week or so ago I read that, despite the fact that things had gone quiet on the Honda front, things were looking up for the team. Since then, there has been an explosion of peculiar rumours that suggests that all is not well.

First of all, it was rumoured that Bruno Senna had signed for the team, that Honda would continue to supply limited funding and that Bernie Ecclestone would provide further financial backing. But it turned out that Bernie can’t supply funding to Honda, even if he wanted to.

Then we were told that Honda had secured backing for the first four races of the season, mostly as a result of funds raised from Petrobras via Bruno Senna. But the four races thing sounded ominously similar to Super Aguri’s 2008 season.

Petrobras poured cold water on the suggestions pretty quickly, pointing out that not only are they not interested in Honda, but they don’t do driver sponsorships either. So the rumours were a load of hogwash all along.

But all was not lost!, we were told. Honda were in talks with a major company that could provide solid backing and had a reputable brand that was known worldwide. James Allen revealed that the company could be Virgin. Grandprix.com outlined why a deal with Virgin could make sense, because of the links between Richard Branson, Adrian Reynard and the Honda F1 team.

But then Pitpass phoned up Virgin, whose Brand Development and Corporate Affairs Director, Will Whitehorn, was very negative about the idea. And that it was Honda who approached Virgin, not the other way round.

Now Reuters have reported that the deal is possibly on. The BBC have since reported that a Honda spokesperson has now confirmed that talks with Virgin are under way.

In out, in out, shake it all about. Part of me wonders if Honda are deliberately spreading these rumours just to try and generate some interest in the team. To be scrabbling around like this with mere weeks until the beginning of the season is not good.

Then there are the engines. Soon after Honda announced their withdrawal, Ross Brawn practically said that an engine deal with Ferrari was a given, which was news to the Scuderia. Now apparently only Mercedes are interested, and that is only if they can be guaranteed that Honda have “bulletproof” backing. Which Honda clearly do not have.

Even if they do get it together by the start of the season, Honda’s prospects for the 2009 season are utterly doomed. Even if the car is fundamentally good, the late change of engine supplier is bound to result in reliability problems, as pointed out by James Allen. Honda will also arrive in Melbourne having had very little testing.

It is such a shame. 2009 was supposed to be Honda’s comeback year. They had literally given up on 2008 so that they could focus on 2009, and I was genuinely excited to see what they could come up with. Unfortunately, if there is one thing you can rely on in F1, it is that Nick Fry and his merry men are 100% guaranteed to cock it up. What a shame.

See also F1 Wolf’s Honda rumours summary post