“Brexit” Wins – Where now for Liberty?

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As I am sure everyone is now aware the British people, on Thursday, voted to leave the European Union by a slim majority of 51.9% to 48.1%. Without a doubt this largely unexpected result represents one of the most important, possibly the most important, step forward for liberty in at least a generation, dealing a serious body blow to a major project that sought to centralise and consolidate state power and to weaken the primacy of individual nations and identities. However, while our enthusiasm remains palpable and before the champagne goes flat it is important to judge this outcome in a sober light and to reflect upon how we, as libertarians, can capitalise upon this victory.

As I stated in my essay prior to the referendum, we must bear in mind the fact that the official leave campaign was not a battle between libertarians, or liberty-leaning individuals on the one hand and statists on the other. Rather, it was between small statists and large statists. The contest was not about getting rid of the full house of government horrors – central banks printing paper money, the welfare state, the NHS, and so on – but about national control of the state apparatus versus international control. The populist politicians who will benefit the most from “Brexit” – notably, former London mayor Boris Johnson, who is likely to become the next UK Prime Minister, and US Presidential candidate Donald Trump – may shove two fingers up to the establishment but they are very, very far from perfect and principled characters. Consequently, if they are elected they will soon become part of that establishment and subject to its infiltration. But even if they manage to resist this they may assume they have a mandate to become more authoritarian in their own way. Moreover, the centralising forces that have invested so much in the European project are not going to give up easily. They may have been set back considerably but we can expect them to fight, in the short term by making the stipulated two-year process of withdrawal from the EU punitively painful for Britain, and in the longer term by finding other ways to enact consolidation and centralisation through the back door.

However, let us explore now some aspects revealed by this referendum that provide both something which we libertarians can capitalise on and reasons for us to be optimistic for the future. The first aspect is the sentiment of the voters who participated in the ballot. According to Lord Ashcroft Polls, 43% of those who voted for Britain to remain in the EU did so because “the risks of voting to leave the EU looked too great when it came to things like the economy, jobs and prices” while only 9% voted because they felt “a strong attachment to the EU and its shared history, culture and traditions”. Out of the leave voters, better trade and economic growth outside of the EU was a relatively minor concern with only 6% acknowledging this as their primary reason. However, 49% of leave voters said the biggest single reason for them wanting to leave the EU was “the principle that decisions about the UK should be taken in the UK”. In other words, looking deeper than the overall slim majority in favour of leaving we can see that remain voters voted pragmatically for their jobs and financial security whereas leave voters voted out principle for British sovereignty. If these figures are correct, therefore, the referendum indicates either a complete lack of support for or a downright repudiation of the ideology of centralisation and the merging of individual nation states in a giant behemoth. This is an extremely encouraging revelation for the cause of liberty and one that has seemingly been missed by mainstream commentators.

The second aspect is the reaction of liberal elites to the referendum result, a result that has shocked them profoundly. The prevailing attitude of these people is one that I have detected from conversations with and observations of my own friends and acquaintances, who are mostly young, are either well or highly educated, and are either intellectuals or professionals. This is the attitude that all progress, peace and prosperity, and that all prevailing cultural attitudes emanate from the top down, from a stewardship and management of society and the economy by wise, far sighted elites such as themselves through the apparatus of the state; and, hence, the bigger and more unified the apparatus of the state run by people like them then the more successful and prosperous will be the society it rules. In the same way that great engineers can fashion the tallest buildings, the fastest cars, the biggest planes and so on, so too do these people believe that they can engineer and shape society according to what they believe is virtuous and valuable. What they fail to see is that a peaceful and prosperous society is nothing more than individual people seeking to co-operate to attain ends that they want; that it is individual people with their own thoughts, feelings and desires making their own choices to better their lives; that their attitudes and values are motivated from the bottom up by what is good for them and for their families and friends. The narrow minded, intellectual view has led the elites to interpret the results of the referendum – i.e. rejection of a unity of states – as being a rejection of peace and harmony with the rest of humanity because they cannot imagine a unity of peoples without the unity of states. Indeed, the reaction of one acquaintance to the outcome of the referendum was that she was feeling “apocalyptic”. However, the most pertinent example of this globalist-elitist attitude is in the following reaction offered to the BBC by a young Polish lady:

Seriously Britain? It’s sad that a majority of your people didn’t realise that it’s not a choice…about your no longer imperial country, but about commitment, devotion and enthusiasm of the whole Europe. If you voted Leave, you are selfish and you deserve to watch Scotland saying ‘bye’.

I pity well-educated people of Britain, especially youngsters, that will need to face what the ‘majority’ brought them.

[…]

As a person who truly believes in unity of European culture and heritage and supports sticking together against the odds, I feel really disappointed, even personally touched” [Emphasis added]

Another individual expressed regret that we do not have weighted voting – because obviously all of those stupid voters out there in the wilderness do not know what is best for them, an attitude no doubt bolstered by the fact that much of the leave vote came from working class heartlands where the Labour Party is normally strong. What these bright individuals have utterly failed to realise is that people have had enough of “well educated”, morally superior, self-righteous elites such as themselves telling them how to live their lives and forcing them to do it, with the most hubristic and arrogant of them now retreating into their shells because they think the world is about to end without this pan-European state structure that they have designed for us all.

Happily, however, I also sense, amongst some of the smarter individuals within these kinds of circles, a small but glowing realisation that there was, outside of London and the ivory towers of universities, a whole other country from which they were entirely disconnected – attitudes, opinions, thoughts, feelings and desires which they completely ignored. It is this realisation that libertarians should attempt to nurture and grow, an opening into which we can begin to instil the benefits and morality of decentralisation and personal liberty. It will be a long haul but at least there is a glimmer of light.

So while, therefore, I believe that June 23rd is a great day for liberty, there is much work to be done and we should not lose any time in getting down to it.


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British Election Headlines

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The UK is currently enduring the general election campaigns of its political parties prior to the vote on May 7th. Needless to say this is provoking the usual raft of daily daft headlines where the balloted buffoons attempt to outdo each other in promising us endless rounds of goodies paid for with our own money. This is exacerbated by the fact that the total lack of fundamental ideological difference between the main contenders makes a hung parliament the most likely result. This essay comments on a number of them that have appeared over the past few weeks.

Healthcare

“We’ll find £8bn more for the NHS!” (Conservative)

£8bn makes for a pretty fantastic headline. Unfortunately the only thing that the NHS will be nursing with it is itself, as this crippled corner of the welfare state experiences spiralling costs which claim an increasing proportionate share of the UK’s GDP and whose waiting times for operations have hit a seven year high this month.

Taxes

“End the non-dom status!” (Labour)

This refers to the non-domiciled tax status where certain foreign UK residents can exclude their non-UK income from their tax liability. The allowance is seen to be a bone of contention among the less well-off British public who had the misfortune to be born in the UK and hence have to pay tax on all of their worldly income. Needless to say, creating “tax fairness” is about increasing the taxes of the rich instead of just cutting them for everyone else. Talking of tax loopholes…

“Labour will raise an extra £7.5bn a year through closing tax loopholes and imposing bigger fines on tax avoiders”

Politicians seem to be promising endlessly to “close tax loopholes” in order to either increase revenue or induce tax equality. By their own standards, we have to wonder what is taking them so long to do this. Aren’t we going to run out of loopholes at some point? Or maybe if you set up a compulsory monopoly of violence the wealthy will always have the greater wherewithal to infiltrate it and tune it to its benefits. Yet again there is also the blurring of the legal distinction between tax evasion, which is illegal, and tax avoidance which is legal. So a Labour government would believe that it is OK to fine you for behaving legally.

“Raise the inheritance threshold to £1m for family homes” (Conservative)

Undoubtedly the reduction of any tax should be applauded, particularly the especially egregious inheritance tax as it is a charge on accumulated capital. You can tax income all you want but so long as there is enough left over to replenish the capital stock then the standard of living will be maintained. When you start taxing that capital stock itself, however – as any kind of wealth tax does – you destroy the very machinery of production. This measure by the Conservatives would therefore appear to be welcome, although not quite as welcome as abolishing the entirety of wealth taxes altogether. Unfortunately, it is designed to be “revenue neutral” and will be “paid for” by reducing tax relief on the pension contributions of people earning more than £150K. Although this proposal is supposed to alleviate the fiscal drag of rising house prices, it is likely that inflation will push those who benefit from it into the £150K tax bracket anyway.

“The Liberal Democrats will eliminate the deficit by 2017/18 by raising taxes by an additional £12bn, cutting public spending by 12bn and cutting welfare by £3bn.”

Kudos to the Lib Dems for at least making the (probably empty) promise that spending cuts will exceed tax rises. Unfortunately the figures are altogether too miniscule. The problem is not just the deficit – the discrepancy between the government’s revenue and expenditure in any fiscal year. It is the enormous debt to which that deficit contributes. The UK government’s official debt is £1.56trn. The total saving of £27bn from this proposal amounts to a mere 1.7% of that debt. Even if we were to assume that this figure will amount to a budget surplus, it will still take another two generations to pay off the debt. However, that is not what the Lib Dems are proposing and it also ignores the unfunded liabilities that do not form a part of the official debt.

Housing

“George Osborne [Chancellor of the Exchequer] promises to get 2.4m first-time buyers onto housing ladder with property ‘revolution’ (Conservative)”

Will this so-called “revolution” involve cutting the incessant inflation of the money supply that blows up housing bubbles? Probably not. Labour’s turn…

“£5bn for funding 125K homes” (Labour)

It seems that both parties feel that a government solution is necessary for a government created problem. Far better to remove the source of the problem.

Transport

Freeze Rail Fares for Five Years” (Conservative)

This will be the same railway that is nominally privatised but whose track, signalling and infrastructure is owned by a statutory corporation and the train operating companies are geographic monopoly franchises that are parcelled out to private companies by the government. In economics it is of course a travesty that a good can be both overpriced and overcrowded, yet somehow government – including a £4bn subsidy from the taxpayer – manages to achieve this and so the age old remedy of price fixing is brought out of retirement. Making the railways a true free market enterprise by selling them off completely is not considered.

Jobs

“We’ll create a 1000 new jobs every day” (Conservative)

They’ve been in government for five years – why haven’t the been doing it already? That aside however, will these be genuine, productive, free enterprise jobs that genuinely meet the needs of consumers? Or will they be a part of the bloated public sector and paid for through loot mulcted from taxpayers?

“An end to zero-hours contracts” (Labour)

Apart from the fact that zero hours contracts (previously known as “casual labour”) are likely to be a beneficial arrangement for some employers and employees, perhaps their abundance is less to do with corporate greed and more to do with the fact that the government has made it so ridiculously expensive to hire low skilled workers for a committed number of hours per week?

UKIP has proposed a UK-controlled fishing zone to replace involvement in the EU Common Fisheries Policy to revive the British fishing industry”

What would benefit the British fishing industry is government leaving it alone and opening areas of the sea to private ownership so that fish stocks can be cultivated through a genuine aquaculture industry. Although UKIP’s replacement of the words “EU controlled” with “British controlled” may appeal to voters it doesn’t hide the fact that an industry will be still be subject to the stifling interference of government.

“£800m to protect 10,000 police jobs (Labour)”

Why? How do we know that these jobs are needed? Does Labour have any profit and loss statement to show that these jobs in the security industry benefit the consumer through their protection?

And Finally…

“Lib Dems promise £1bn to ‘build a better Wales’”

As we noted above, the Tories are dredging up £8bn for the NHS. The Liberal Democrats think that one eigth of that figure is enough for an entire country.

Give “respect” to teachers” (Labour)

This stunningly innovative piece of education policy alludes to the alleged breakdown in the relationship between education ministers and teachers. Far better would be for that relationship to be severed altogether rather that the government have any further wherewithal to indoctrinate the next generation of voters.

“UKIP hopes to woo women with plan to scrap the Tampon tax”

No doubt all of Britain’s female voters will be delighted to learn that UKIP believes that the contents of their underwear is the most pressing political issue burning away in women’s minds. It is no small wonder that, amongst other things, UKIP is seen to be sexist.

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