In the campaign to jettison fossil fuels as the main source of our energy and replace them with so-called “renewables,” a notable feature is the lack of discussion of the costs and practicalities of trying to make intermittent sources like wind and solar work to run a 24/7/365 electricity grid. Is there any problem here that deserves consideration? In Tuesday’s post I noted that in my home state of New York we are about to try to replace our big Indian Point nuclear power plant with mostly wind-generated power. Actually, we already have wind turbines with approximately the same “capacity” as Indian Point, but unfortunately over the course of a full year they only generate about one-quarter as much electricity as Indian Point. Still, can’t that problem be solved just by buying four times as many wind turbines? It may be a little pricey, but is there any reason why that won’t work?
In a publication called Energy Post on January 10, prominent German economist Heiner Flassbeck has a piece that addresses this question. The headline is “The End of the Energiewende?” Of course the problem is that the wind turbines don’t just run steadily and predictably at one-quarter of capacity; rather, they swing wildly and unpredictably back and forth between generating at near 100% of capacity and generating almost nothing. The “almost nothing” mode can persist for days or even weeks. In Germany under a program called Energiewende (“energy transition”), in effect since 2010, they have been pushing to raise the percentage of energy they obtain from wind and solar, and have gotten the percent of their electricity supply from those sources all the way up to 31%. But Flassbeck now looks at what just occurred during the month of December 2016:
This winter could go down in history as the event that proved the German energy transition to be unsubstantiated and incapable of becoming a success story. Electricity from wind and solar generation has been catastrophically low for several weeks. December brought new declines. A persistent winter high-pressure system with dense fog throughout Central Europe has been sufficient to unmask the fairy tale of a successful energy transition….
Here is a chart from Flassbeck’s piece showing German electricity demand through the first half of the month of December, against the sources of the electricity that supplied that demand. Among the sources, solar, on-shore wind, and off-shore wind are broken out separately:
As you can see, at some times wind and solar sources supplied as much as half or more of the demand for electricity, but at other times they supplied almost nothing. Flassbeck: […]
I would dearly love to install solar panels and go off the grid. And I’ve been watching the prices and the expected equipment lifetimes for a couple of decades now to decide when it will make financial sense.
But the problem of storing the energy aside, there are periods of weather like our current one. Today was the sixth gloomy, sunless day in a row in Missouri. That’s not unusual in January or February in the center of the US; it’s more common than not, I believe.
On the other hand, if I still lived in Tucson I’d probably have done it by now. (Check your insolation.)
Puerto Cabello, Venezuela — When hunger drew tens of thousands of Venezuelans to the streets last summer in protest, President Nicolas Maduro turned to the military to manage the country’s diminished food supply, putting generals in charge of everything from butter to rice.
But instead of fighting hunger, the military is making money from it, an Associated Press investigation shows. That’s what grocer Jose Campos found when he ran out of pantry staples this year. In the middle of the night, he would travel to an illegal market run by the military to buy corn flour — at 100 times the government-set price.
“The military would be watching over whole bags of money,” Campos said. “They always had what I needed.”
With much of the oil country on the verge of starvation and malnourished children dying in pediatric wards, food trafficking has become big business in Venezuela. And the military is at the heart of the graft, according to documents and interviews with more than 60 officials, company owners and workers, including five former generals.
As a result, food is not reaching those who most need it. […]
Saying “The Russians hacked the election” is really lame in my view. It’s the kind of statement intended to get a knee-jerk reaction from the implication that Russians hacked the voting process. I don’t know of any reputable claims of that happening and I don’t believe it did.
Since the Democrats don’t disavow the content of their hacked e-mails, their claim that they were injured by the release of those messages basically shows that they were hoist by their own petard. "Oops… we didn’t want that to go public."
But all that said, a separate and more important point is that the U.S. isn’t blameless in this regard. This article from the Independent Institute’s The Beacon recounts ways the U.S. has interfered in the elections or governments of other countries.
The FBI and CIA are in agreement that Russia in some way interfered in the U.S. election. What is known so far is that Russian hackers were able to access the emails of Hillary Clinton’s campaign chairman, John Podesta. Hackers also breached the Democratic National Committee (DNC).
According to sources, the Russian government sought to hinder the Clinton campaign and work to assist Trump in winning the presidency. […]
People seem floored by these revelations. How could Russia interfere in the workings of the U.S. political process? How dare they try to manipulate the outcome of a presidential election?!
I’m reminded of a Biblical passage.
Why do you look at the speck of sawdust in your brother’s eye and pay no attention to the plank in your own eye? How can you say to your brother, ‘Let me take the speck out of your eye,’ when all the time there is a plank in your own?
Those barking loudly over Russia’s involvement with the U.S. political process would do well to take a look at the history of U.S. foreign policy. The U.S. government has a long history, some two hundred years long, of interfering in the politics of other countries—and we’re not just talking emails. […]
1898—In the aftermath of the Spanish-American war, the U.S. government invaded the Philippines, reneging on a deal with Philippine rebels to help the nation win independence and overthrowing the country’s new government.
1903—The U.S. government helped Panama secede from Colombia. […]
1953—The U.S. government launched operations to overthrow the government in Guatemala. […]
1958-1960—CIA engineered at least three coups in Laos.
1966—Kwame Nkrumah was the Prime Minister of Ghana when the country gained independence from the British. The U.S. government was not fond of his socialist, anti-imperialist views. As such, the U.S. government, via the CIA, worked to oust him in a coup in 1966.
(Note: the above is woefully incomplete. For a couple more list of U.S. efforts to interfere in other countries’ governance, see here and here.) […]
Venezuelan authorities have arrested two toy company executives and seized almost four million toys, which they say they will distribute to the poor.
Officials accused the company of hoarding toys and hiking prices in the run-up to Christmas.
Last week, the government issued an order to retailers to reduce prices on a range of goods by 30%.
Business owners say the order is a populist political move, and pushing them towards bankruptcy.
Venezuela’s consumer protection agency, Sundde, said toy distributor Kreisel had stockpiled the goods and was reselling them at a margin of up to 50,000%.
“Our children are sacred, we will not let them rob you of Christmas,” it said in a tweet, along with photos and video of thousands of boxes of toys.
During this last year, the Venezuelan government and its opposition have been in talks mediated by the Vatican. The topics ranged from politics to allowing humanitarian aid to Venezuelans. Here’s a report from the Caracas Chronicles about the humanitarian aid.
Remember the "Humanitarian Channel" the government and the opposition had agreed to set up in Vatican-mediated talks? That’s right, the one that was meant to be administered by Caritas, the Catholic Church’s global charity. That one.
How’s that been going?
Well, funny you should ask…
[Five tweets in Spanish omitted here.]
In short, the government’s tax inspectorate, Seniat, openly announces that they’re impounding church-donated medicines at port because they lack requisite customs paperwork. The shipment was declared "legally abandoned" and then "adjudicated" to the government-run Social Security administration.
You’d think that would make for some awkwardness at the next set of talks, right?
It came as no little surprise when, three years ago, François Fillon accepted my invitation to participate in the Margaret Thatcher Conference on Liberty, organised by Britain’s Centre for Policy Studies. Needless to say, no other French politician even bothered to answer the invitations I hardly bothered to send out.
In French political debate, “Thatcher” is used in the same way as “the Vichy regime” – as a label that disqualifies an opponent from office forever. Open and avowed Thatcherites in Paris are a fringe movement of degenerate right-wingers, tolerated purely as a sign of open-mindedness, in the same way as advocates of cannibalism or sado-masochism.
But there Mr Fillon was. All of a sudden, a Gaullist with a fondness for the “French social model” […] had morphed into an unrepentant free-marketeer, promising to slash taxes and liberalise the labour market with a forcefulness that would make the IMF blush. […]
Over the past few years, he has assembled a team of like-minded economists and entrepreneurs and put together a detailed program of reforms with a credible implementation timeline.
The plan includes disposing of 500,000 civil servants and cutting public spending by €110 billion. It also covers critical social reforms, such as granting a greater level of autonomy to state schools (a proposal distantly inspired by Britain’s academies) and shaking up the health care system (for example by funding non-essential treatments via private health insurance).
For that, Fillon had been the butt of journalists’ and fellow politicians’ ridicule – until the electorate unexpectedly gave him a sweeping victory in the first round of the primary election for the centre-right Republican party (44 per cent of the vote against 28 per cent for Alain Juppé, with Sarkozy eliminated after coming in a humiliating third).
How did this miracle occur? Because Fillon’s message struck a chord. From the farmer sick of spending a third of his time doing paperwork (according to the latest surveys), to the entrepreneur stifled by regulation, to middle classes strangled by taxes, a popular revolt is starting to emerge. After decades of bureaucratic doziness, could France be starting to roar again? […]
A U.S.-based group is preparing a pilot program in Kenya that will test the effects of a universal basic income—the increasingly popular concept of giving virtually everyone in a community unconditional payments on a regular basis. Unlike past large-scale experiments of this sort, this one is being run and funded privately.
The organization behind the effort is GiveDirectly, a charity whose work in Africa is based on the idea of giving people cash without restrictions on how the money can be spent. (The underlying anti-paternalist principle is that the needy know their needs better than outsiders do.) That outlook led naturally to an interest in the basic income, and so the organizers conceived a randomized control trial:
• In one set of villages, every adult will receive monthly payments equivalent to 75 cents a day for two years.
• In another set of villages, every adult will receive such payments for 12 years.
• In yet another set of villages, the adults will receive a single lump-sum payment equivalent to what the two-year group will be receiving.
• The last set of villages is the control group, so they don’t get any money at all.
The aim here, GiveDirectly’s Ian Bassin explains, is “to isolate the effects of what most people consider a ‘basic income’—that is, a permanent payment over time—from something resembling more traditional temporary supports. For example, when someone knows they have a long-term, guaranteed floor below which they cannot fall, do they take more risks like starting a business or going back to school? And does that security produce greater overall returns?” […]
Even private aid to Africa has its pitfalls. When the price of clothing or shoes goes to $0, that puts the local textile and shoe makers right out of business.
I have to wonder what happens when these GivingDirectly programs end. Or, if they’re continued indefinitely, at what point their participants become ineligible because of income or assets.
Daniel Hannan argued that voters should fire him from his job as MEP by voting for Brexit. He got his wish.
Can this cat talk or what? What an orator! His closing lines here are by Tennyson:
“Though much is taken, much abides; and though
We are not now that strength which in old days
Moved earth and heaven, that which we are, we are”
I don’t know whether Brexit was a good move or not. I hope it was because Mr. Hannan makes such good sense on other, related topics. ‘Twould be a pity if he were wrong about this one.
Update 2: The headline of Matt Taibbi’s Rolling Stone piece says it all:
In 1934, at the dawn of the Stalinist Terror, the great Russian writer Isaac Babel offered a daring quip at the International Writers Conference in Moscow:
“Everything is given to us by the party and the government. Only one right is taken away: the right to write badly.”
As a rule, people resent being saved from themselves. And if you think depriving people of their right to make mistakes makes sense, you probably never had respect for their right to make decisions at all.
This is all relevant in the wake of the Brexit referendum, in which British citizens narrowly voted to exit the European Union. […]
Update: Here’s an interesting column about Brexit at Hit & Run.
The Washington Post headline bluntly declares “Brexit is a reminder that some things just shouldn’t be decided by referendum.” [Sounds like Mr. Hannan quoting Jean-Claude Juncker, doesn’t it? Ed.]
Writer Emily Badger, whose focus is generally on urban policy, brings up American ballot initiatives—particularly those in California — as an example of how referendums can lead to bad outcomes, or rather outcomes that certain people don’t like.
After talking about a handful of Brits who publicly regret their vote (keep in mind that millions of people voted to leave), Badger points out correctly that public referendums can be used to undermine democratic institutions, both purposefully by special interest groups ranging from public sector unions to private corporations by directing taxes and government programs in their directions and by simple and not-so-simple unintended (or unpublicized) consequences.
Still, even when making this point, Badger commits some possibly unconscious biases to print when she writes about California, “Back in 1978, California voters generously decided in a ballot measure to cap their own property taxes in a way — amending the state constitution — that has hobbled ever since California’s ability to generate revenue and create reasonable housing policy.” The bold emphasis is mine to point out that her idea of a problematic referendum seems to inherently be anything that restrains the authority of the state. California’s ability to generate revenue has most assuredly not been hobbled even with this one restriction. It’s got some of the highest taxes and fees in the country. She uses “hobbled” to describe the idea that there are limits to what the state of California can afford to do, assuming that these are things that should be done.
But what should also be obvious during this entire “populist” vs. “elites” political battle happening both in the United States and Europe is that representative democracy under legislators has also led to taxes and government programs being directed to interest groups and all sorts of unintended or unpublicized consequences. And it’s an issue that some these same people do not want to seem to deal with. Instead, we get the “uneducated poor people voting against their own self-interest” arguments, like we see about Wales.
These responses are of the “These communities get more money from the European Union than they pay in” vein. We have seen similar arguments about American states who get more “money” from the federal government than they pay in taxes. Such an argument ignores the fact that these targeted communities don’t actually get more “money” than what they pay into the pool; what they get is more government administration and programs put together by various interest groups that tend to direct these subsidies to those with the right connections (in other words—”elites”). […]
The question of who rules over you is an elemental, central component of having a democratic republic. Treating Brexit like it’s just some complicated but very broad referendum is ignoring the nature of the question behind it. If British citizens shouldn’t get to vote whether to be in the European Union because they don’t “understand” all the issues involved, then why should they even get to vote on their legislators? Indeed, why have them vote at all?
Global capitalism isn’t always easy to love. But Vietnam is still in the free-market honeymoon phase.
Roughly 95% of Vietnamese respondents to the Pew Research Center’s spring survey of global attitudes agreed with the following statement: “Most people are better off in a free market economy, even though some people are rich and some are poor.” That was the highest rate of agreement among all the countries where researchers asked the question.
Of course, capitalism is always easier to love during an economic expansion. And Vietnam has had itself quite a boomlet in recent years. The country is steadily making its way up the manufacturing food chain, depending less on churning out low-skill manufactured goods like textiles and shoes to produce more sophisticated products such as smartphones. And foreign capital has poured in, thanks to global companies’ eagerness to tap pools of labor that remain relatively cheap in comparison to fast rising Chinese wages. That all means that standards of living are going up. The IMF expects the economy to expand by 5.6% this year. […]
I recall being in the last few draft lotteries during the Vietnam War. (I never served.) And now the Vietnamese are schooling us – in markets at least.
The encouraging news from Latin America is that the leftist populists who for 15 years undermined the region’s democratic institutions and wrecked its economies are being pushed out — not by coups and juntas, but by democratic and constitutional means. Cristina Fernández de Kirchner of Argentina is already gone, vanquished in a presidential election, and Brazil’s Dilma Rousseff is likely to be impeached in the coming days.
The tipping point is the place where the movement began in the late 1990s: Venezuela, a country of 30 million that despite holding the world’s largest oil reserves has descended into a dystopia where food, medicine, water and electric power are critically scarce. Riots and looting broke out in several blacked-out cities last week, forcing the deployment of troops. A nation that 35 years ago was the richest in Latin America is now appealing to its neighbors for humanitarian deliveries to prevent epidemics and hunger.
The regime that fostered this nightmare, headed by Hugo Chávez until his death in 2013, is on the way out: It cannot survive the economic crisis and mass discontent it has created. The question is whether the change will come relatively peacefully or through an upheaval that could turn Venezuela into a failed state and destabilize much of the region around it. […]
And today I came across a post at Business Insider, featuring this photo. (Hambre means hunger.)
Despite breathless coverage of Venezuela’s vanishing supply of condoms, toilet paper, and beer, perhaps the country’s most debilitating shortage has been that of food, which appears to be a motivating factor for growing antigovernment sentiment.
“I want the recall because I don’t have food,” one woman told the Venezuelan commentary site Contrapunto, referring to a referendum to recall President Nicolas Maduro that has so far reportedly drawn more than a million signatures in support.
“We want out of this agony — there is too much need in the streets,” another woman told Contrapunto. “We have much pressure because there is no food and every day we have to ask ourselves what we are going to eat.”
Government supporters have long pointed proudly to the improvement in eating under socialist leader Hugo Chavez, who used oil income to subsidize food for the poor during his 14 years in office (1999 to 2013) and won UN plaudits for it.
But Reuters notes that Maduro, Chavez’s successor, has faced a collapse in the price of oil, which provides almost all of Venezuela’s foreign income. He has also blamed an opposition-led “economic war,” which critics deride as an excuse.
Living in a severe recession and a dysfunctional state-run economy, poorer families say they sometimes skip meals and rely more on starch foods, Reuters reports.
“We are eating worse than before,” Liliana Tovar, a Caracas resident, told Reuters in late April. “If we eat breakfast, we don’t eat lunch, if we eat lunch, we don’t eat dinner, and if we eat dinner, we don’t eat breakfast.”
As Scott Adams said, "When one person doesn’t understand economics, we call it ignorance. When millions don’t, we call it a political movement."
Here’s an recent op-ed by Natalie Morales in Flood Magazine that’s both interesting and snarky. I found her advice about clothing amusing, for one thing. It reminds me of the post in January about "North Korea with palm trees."
Editor’s Note: Natalie Morales’ Op-Ed was written before President Obama announced his intention to travel to Cuba and is not in any way intended to be a response to the president’s remarks.
Just last week, I was at my friend Michaela’s house dropping off a bag of stuff I’m sending to my family in Cuba. Her husband, Fred, is visiting Havana and was kind enough to be my courier. Among the things I sent with Fred were two packages of Cuban coffee. Yes, that’s right: I’m sending Cuban coffee to Cuba. It’s absurd and hilarious and I got a real kick out of telling everyone I came across that day about it. This is because Cuban coffee is too expensive for the average Cuban to buy in Cuba. […] I, on the other hand, buy it for three bucks at Target.
Coffee is just one of the things my family in the States sends to my family in Cuba. Usually, monthly, we send money, medicine or syringes for the diabetic aunt (since the hospital doesn’t have any unused disposable ones), baby clothes, adult clothes, shoes, or food (there’s a website for Americans to buy food that is sent to Cuba, but at an absurd upcharge). They cannot survive without our help. For many Cuban-American families all over the States, this is just a regular part of life, another bill to pay each month.
Here’s a terse explanation of why: a doctor, a lawyer, or another similar profession that is considered to be high-earning everywhere else in the world will make about twenty to thirty dollars per month in Cuba. Yet shampoo at the store still costs three dollars. This is because everything is supposed to be rationed out to you, but the reality is that they’re always out of most things, and your designated ration is always meager. […] That’s good ol’ Communism in practice.
Now, knowing this, picture me at any dinner party or Hollywood event or drugstore or press interview or pretty much any situation where someone who considers themselves “cultured” finds out I’m Cuban. I prepare myself for the seemingly unavoidable “Ooh, Cuuuuuba” — as if the country itself were somehow a sexy woman or delicious food — followed by the inevitable, “I have to go there before it’s ruined!” I try to be polite, because I am aware that, oftentimes, people who think they are very thoughtful are the least thoughtful. So I ask, “What do you mean by ruined?” and they always say, “You know, it’s so cool looking! It’s stuck in time! They have all the old cars and stuff… Everything’s gonna change soon!”
So depending on the situation […], I will say some version of this: "What exactly do you think will ruin Cuba? Running water? Available food? Freedom of speech? Uncontrolled media and Internet? Access to proper healthcare? You want to go to Cuba before the buildings get repaired? Before people can actually live off their wages? Or before the oppressive Communist regime is someday overthrown?" […]
If you want to go to Cuba, I want you to go. I do. But can I ask a favor? Be aware of what’s going on there. Try, if you can, to stay in people’s homes — casas particulares — instead of hotels. They’ll take much better care of you, the food will be much better, and you’ll be putting a little less money into Castro’s tourism pocket. When you go, ask the people to tell you what’s really going on… not the version they’re supposed to tell you. […] Also, for God’s sake, please don’t wear a fucking Che t-shirt.
Venezuela’s Collapse Brings ‘Savage Suffering’ Dying infants, chronic power outages and empty shelves mark the world’s worst-performing economy
CARACAS, Venezuela—In a hospital in the far west of this beleaguered country, the economic crisis took a grim toll in the past week: Six infants died because there wasn’t enough medicine or functioning respirators.
Here in the capital, the crisis has turned ordinary life into an ordeal for nearly everyone. Chronic power outages have prompted the government to begin rationing electricity, darkening shopping malls. Homes and apartments regularly suffer water shortages.
Rosalba Castellano, 74 years old, spent hours this week in what has become a desperate routine for millions: waiting in long lines to buy whatever food is available. She walked away with just two liters of cooking oil.
“I hoped to buy toilet paper, rice, pasta,” she said. “But you can’t find them.” Her only choice will be to hunt for the goods at marked-up prices on the black market. The government, she said, “is putting us through savage suffering.”
The National Assembly, now controlled by the opposition, declared a food emergency on Thursday—an attempt to spur the government of President Nicolás Maduro to, among other things, ease price controls that have created shortages of everything from medicine to meat.
“The people are being left without the ability to feed themselves,” said lawmaker Omar Barboza.
Inflation in this oil-rich country is expected to hit a world’s-worst 700% this year, according to the International Monetary Fund. The economy shrank by 10% last year and is expected to decline another 8% this year, according to the IMF, the worst performance in the world. And there is no end in sight. […]
I’m taking this video at face value. That is, I don’t know for certain how serious or how frequent the food shortages are in Venezuela. Based on other reports, though, I think they’re both pretty serious and pretty frequent.
So I have to wonder what the hell is going on When I see the military chasing down a food "smuggler."
Here’s a video from Operacion Libertad Venezuela.
¿Debería la gente espere a que el pan? Creo que no. El pan debe esperar a la gente.
Karl Marx was wrong about many things but right about one thing: the revolutionary way capitalism attacks and destroys feudalism. As I explain in a new study, in India, the rise of capitalism since the economic reforms of 1991 has also attacked and eroded casteism, a social hierarchy that placed four castes on top with a fifth caste—dalits—like dirt beneath the feet of others. Dalits, once called untouchables, were traditionally denied any livelihood save virtual serfdom to landowners and the filthiest, most disease-ridden tasks, such as cleaning toilets and handling dead humans and animals. Remarkably, the opening up of the Indian economy has enabled dalits to break out of their traditional low occupations and start businesses. The Dalit Indian Chamber of Commerce and Industry (DICCI) now boasts over 3,000 millionaire members. This revolution is still in its early stages, but is now unstoppable.
As an aside, my brother-in-law’s wife was born in Kolkata (Calcutta). She told us a story once about her parents’ household and mentioned in passing that the family’s servants washed their car by hauling water in buckets.
It made my back ache to think of it. I’m hoping those servants have better things to do these days than schlepping water to wash cars.
That applies as well to Eve’s children in India as it does to her children everywhere else.
Anyone claiming privileges because of "breeding" or "family line" deserves a poke in the nose, IMO. When you think about those claims, they’re just another form of racism — or maybe "sub-racism", which is a concept that’s even more ridiculous.
Now that I think of it, claims like those make a very good reductio ad absurdum argument against racism.
Update: (8/18/15)
I just came across this trailer for a documentary that will appear on public television soon.
This is a Google translation of an article at a Russian site. (I don’t vouch for the quality of the translation though I think the meaning’s pretty clear.)
The exhibition “No filter”, where more than 100 author’s drawings in the format of graphic cartoons dedicated to Russian President Vladimir Putin and opened in Moscow today. Organizers of the exhibition – “Young Guard” United Russia “, together with the patriotic artists and well-known graphic designers. The exhibition takes place at the design factory “Bottle”.
As you can see, President Obama isn’t treated with much consideration – and that’s true of many of the cartoons in the site’s slideshow.
The more news I read from Venezuela, the more anti-socialist (or anti-statist, to be clearer) object lessons I see.
To set the scene, Venezuela is a member of OPEC – that’s the Organization of the Petroleum Exporting Countries. And Venezuela used to export a fair amount of oil. But here’s a graph of its production for the last 50 years — which is down by about 1/3 in the last 15 — so now Venezuela’s ready to start importing oil.
Not to put too fine a point on it, but you’ll recall that el señor Chávez was first elected in 1999.
The management acumen of Venezuela’s President Nicolas Maduro continues to amaze. Reuters:
Algeria is in talks to export crude oil to fellow OPEC member Venezuela, Algerian Energy Minister Youcef Yousfi said on Tuesday, confirming a Reuters report. […]
“Yes, we are in talks,” Yousfi told Reuters when asked whether Algeria was planning to export crude oil to Venezuela. He declined to provide details.
It turns out that Venezuela’s own production of light crudes has plummeted since the late President Hugo Chávez took office in 1999, and the country desperately needs light crudes to blend with its Orinoco Basin extra heavy crude oils. Without such a blend, the Orinoco Basin’s extra heavy crude is too dense to be transported through pipelines to Venezuelan ports and exported abroad.
Venezuela’s oil production, which accounts for 95 percent of the country’s export earnings, should be used in world classrooms as a textbook case of what happens when a populist government starts distributing a country’s wealth in cash subsidies, without investing in maintenance and innovation. Much like happened with Cuba’s once flourishing sugar industry, Venezuela’s Chávez-inspired populism has destroyed the goose that laid the golden eggs.
In 1999, when Chávez took office, PDVSA had 51,000 employees and produced 63 barrels of crude a day per employee. Fifteen years later, PDVSA had 140,000 employees, and produced 20 barrels of crude a day per employee, according to an Aug. 14 report by the France Press news agency. […]
There was a popular riddle bandied about the Soviet Union back in communist days that went something like this: Question: if the Soviet Union conquered the Sahara, what would happen? Answer: nothing for 50 years, then a shortage of sand.
You cannot, as the man said, step in the same river twice. I was away from Britain for 20 years. The Britain I returned to was not the Britain I left. Even though I had visited often, kept in touch with friends and family and followed political developments assiduously while living abroad, it had changed in ways I had not grasped. Perhaps, to be fair, I had changed too.
To me, it now seems a strange, immoral place. For example, I read articles in The Guardian and The Times this week about the abolition of inherited wealth. The Economist also recently wrote about it. It did not even occur to any of these columnists that they were talking about the property of others. They did not create it. They did not inherit it. They have no just claim to it. Yet they have no moral concerns about proposing its seizure. […]
I have tried to make these points both here and face to face with people I meet in my everyday life. All I have achieved is an outward reputation for eccentricity and a powerful inward sense of alienation. As the next General Election approaches offering me no moral choices it is time, alas, to accept defeat.
Everything I might still want to say to you has been said better in this book and this one. I am wasting your time writing anything more than this heartfelt recommendation to read them.
Goodbye and good luck.
I wasn’t certain that this was intended to be Tom’s farewell post but he confirmed that it was in a comment at Samizdata.
Reading his post reminded me of my thoughts that maybe those of us who favor freedom and self-reliance have lost a culture war. Maybe we’ve allowed the debate to be framed in terms favorable to our opponents’ points of view. There are times when I wonder whether I’m becoming an eccentric (as Tom says) or the culture really has changed for the worse in the years since I was young. It can be a tough call.
It helps to recall some Happy Warriors of the recent past, even if I didn’t always agree with all the battles they fought. They re-framed the debates of their time: "There can be no liberty unless there is economic liberty."
And all that said, I certainly agree with Tom’s advice that you read Thomas Sowell’s books linked in his post.