The Welfare State We're In, The website of the book by James Bartholomew
April 30, 2005
Saturday
The dilemma of charities
...belief in restoring people to 'self-respect and self-support' has led compassionate conservatives to reject the de-humanising 'feed-and-forget' philosophy that has come to characterises the welfare state's attitude to its dependent clients. Compassionate conservatives want to see 'help-to-change' charities becoming an increasing feature of society's response to poverty.

Compassionate conservatives are then faced with something of a dilemma.

Posted by James Bartholomew • Indexed in General • NHS • Welfare benefits

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April 29, 2005
Friday
'A life of service is a life of significance'

Who said this:

I leave you with this challenge: serve a neighbour in need, because a life of service is a life of significance. Because materialism ultimately is boring, and consumerism can build a prison of wants. Because a person who is not responsible for others is a person who is truly alone. Because there are few better ways to express our love for America than to care for other Americans. And because the same God who endows us with individual rights also calls us to social obligations.

Was it Martin Luther King? Or Lyndon Johnson? No, it was

Posted by James Bartholomew • Indexed in General

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April 28, 2005
Thursday
Visit to Miami

I will be flying to Florida today to give a short talk at a conference in Miami organised by the Heritage Foundation. I will be on a panel alongside Jason Turner, a man who has been there and done it - he reformed welfare benefits in Wisconsin and then was hired by Rudolph Giuliani to do the same in New York.

On Monday, I will be visiting the Mercy Hospital in Miami - a 483 bed Catholic hospital which offers subsidised and sometimes free treatment to the poor. This is the section of the hospital's website dealing with this aspect of its activities.

Posted by James Bartholomew • Indexed in General • NHS

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April 27, 2005
Wednesday
Ruth Kelly's weasel words on reduced social mobility for the poor

State education was meant to improve the chances of the poor, but a here">new report suggests it is failing.

Among boys born in the poorest quarter of families in 1970, 38 per cent remained in the same bottom quarter of earners when they grew up. That is worse than boys born twelve years before, in 1958. Only 31 per cent of such children did not manage to go on and better themselves. It is an extraordinary indictment of 60 years and more of state control.

A system that was intended to give the poor an opportunity to rise in the world seems, instead, to be keeping them down.

Ruth Kelly, the Education Secretary, yesterday admitted there had been problems and said it was for "many reasons" - a weaselly response if ever there was one. She claimed the main reason was the expansion of higher education which had disproportionately benefited the middle classes. That could be a very small part of it. But far more fundamental is the fact that the poor are not being equipped by the state system to get into top universities in the first place.

Ruth Kelly argued that it was nothing to do with the grammar schools. Is that right?

Posted by James Bartholomew • Indexed in Education

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April 26, 2005
Tuesday
Why nurses leave the NHS

Why Joy Harper, a senior orthopaedic nurse, left the NHS last year:

The moment I knew I had to leave the NHS came when I spoke to a very dignified old man who had spent three days lying in a bed with a fractured hip. He was a war veteran in his 80s and his operation had been cancelled twice. He'd been lying there quietly, getting some pain relief, but otherwise unnoticed by the rest of the medical staff because they were too busy tryng to cope with the rest of the ward.

I was taking his temperature when he turned to me and said quietly, uncomplainingly: "I had been wanted to go to my veterans' day in Arnhem, but I suppose I will miss that now."

Something inside me snapped and I knew I couldn't carry on working in a system that was no longer helping such a man. The war vereran waited so long for his hip op' that he contracted a chest infection which turned into pneumonia.

He recovered and eventually had the operation.

I went into nursing to help people, but I ended up having to wake a senile old woman with cancer at 11pm to make her move wards because her bed was needed....

I routinely saw operations cancelled, people left on trolleys instead of beds and people who had been waiting over a year for an operation being told there was no room on the theatre list. A lot of cancellations were coverd up by managers, because they wouldn't have hit government targets.

This is from page 38 of the Daily Mail today, alongside the stories of three other nurse who have left the NHS.

Posted by James Bartholomew • Indexed in NHS

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April 25, 2005
Monday
State schools damage the poor
If you were born in 1958 into a family in the bottom quarter of income earners then you had a 17 per cent chance of getting into the top quarter of income earners by the age of 30. If you were born in 1970, that chance had declined to 11 per cent.

Peter Lampl, quoted in The Sun today.

Research by the Centre for Economic Performance is reported in many newspapers today. But this is the point at its most succinct.

State education was created to give children equal opportunity. Some even believed it would eliminate entirely the advantage of those who come from richer and better educated families. In fact it has done the very opposite. It has reduced the chances of the poorest to advance themselves. They have, instead, been condemned to the worst of the state schools where they have a very small chance indeed of getting an education that will give them the skills and the ambition to get to the top.

State education for the poor is now so inadequate and, in many cases, positively damaging, that probably the fastest growing trend in education today is for poor people to pay for private - usually faith-based - schooling.

The link to the report is here.

Posted by James Bartholomew • Indexed in Education

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Tax the workers!

The 'quality' papers failed to mention the following in their coverage of the Institute for Fiscal Studies report last week. However the Daily Mail and the Daily Express did. This is the relevant passage from the Express's coverage:


LABOUR has penalised parents who work hard to give their children a good start in life while handing huge subsidies to families where nobody bothers to get a job.

The findings shatter Tony Blair's claims that he is on the side of "hard-working families" and blew a hole in his re-election strategy.

Research by the independent Institute for Fiscal Studies found Labour's tax and benefit changes have boosted the income of a typical unemployed couple with children by around £2,500 a year.

But a working couple with children are around £750 a year worse off because soaring national insurance and other stealth taxes have wiped out the benefit they get from the child tax credit.

If this is true, it is important. I can well believe that the working couple with children has been hurt by Labour policies. But I am more surprised by the idea that benefits for the non-working couple have significantly increased. This needs further examination.

(I am grateful to Corin Taylor of the think tank, Reform, for supplying this cutting.)

Posted by James Bartholomew • Indexed in Welfare benefits

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April 24, 2005
Sunday
The rising public-sector-worker national debt
According to Stephen Yeo, an actuary at Watson Wyatt, the bill taxpayers will have to pay for the final salary pensions of the five million public sector workers has risen dramatically in the last two years from £425 billion to £700 billion. That is nearly twice the size of the national debt, yet you will not find it in the Treasury's accounts.

From an article by George Trefgarne in the Daily Telegraph.

Posted by James Bartholomew • Indexed in Pensions

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April 23, 2005
Saturday
'The NHS has meant 50 years of waiting lists', Labour.

Here is a Labour health minister, Lord Warner, discussing the record of the National Health Service: "We have had 50 years of very, very long waiting lists."

It is a curious thing that such an admission is made about the NHS by a member of the Labour Party which, simultaneously, is trying to argue that:

a) the Conservative Party is trying to destroy the NHS and,

b) this would be awful.

Posted by James Bartholomew • Indexed in NHS

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Mr Brown taxes the poor (another angle)

How much have the poor been taxed under Gordon Brown (see also posting below)? He portrays himself as a great friend to the poor and has created complicated tax credits to help them. How big has that help been?

I have just been directed to some figures published by Reform which were based on the Government's publication, Economic Trends.

In 1997/98, those people in the bottom income quintile had a very susbstantial 39.2 per cent of their income removed in tax. But after five years of the generosity of Mr Brown, in 2002/03, how much was removed? 39.0 per cent. So the poorest gained 0.2 per cent of their incomes. That was less than the average gain of the other four quintiles.

Posted by James Bartholomew • Indexed in Tax and growth

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April 22, 2005
Friday
Mr Brown taxes more of the poor

An extra half million people will be liable to income tax as a result of Mr Brown's budget last month (according to Revenue and Customs estimates reported in the Daily Mail). That is because, as usual, Mr Brown did not increase the tax-free personal allowance with earnings.

During his time in office, the numbers liable to income tax will have jumped by 4.7 million. In the final year of the Tories, 25.7 million were liable to income tax. Next year, 30.5 million are expected to be liable according to the government.

Mr Brown talks about the poor and talks up his tax credits. It is true that many of the people who are liable to income tax will claim tax credits, but not all - either because they are not entitled to them or they fail to claim them. It is simple fact that Mr Brown has made millions more poor people liable to income tax.

Posted by James Bartholomew • Indexed in Tax and growth

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Understanding the language of the election

Each election has its own language. After being away at the beginning, it is taking time for me to pick it up, but here is what some oft-repeated phrases seem to mean:

This is an appalling example of naked opportunism.
What a good idea, I wish we'd thought of it

(Spoken by Mr Blair.)Gordon Brown is the greatest chancellor of the past century.
Alan Milburn was a terrible campaign manager.

It is sickening to see Michael Howard playing the race card.
How many votes do you think I will pick up by saying this?

The NHS is not safe in Tory hands.
The Government increasingly pays for private hospital treatment and that is fine, but if the Conservatives help individuals to go private, they are destroying the fundamental principles of the NHS.

(Spoken by TV reporter.)The trouble with the Conservatives going on about immigration is that they may be perceived as a one-issue party.
At least I hope they will be, as long as I keep on asking about nothing else.

Apropos of which, I liked the comment of Danny Finkelstein on Newsnight earlier this week when he said something along the lines of, "In my experience, when Michael Howard holds a press conference he gets 12 questions on immigration and the thirteenth one is 'why do you keep going on about immigration?'"

Posted by James Bartholomew • Indexed in Politics

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April 21, 2005
Thursday
More manipulation of hospital waiting times

More evidence that the Government four-hour waiting time limit target for dealing with accident and emergency patients is manipulated as well as - or perhaps instead of - motivating hospitals to look after urgent cases within that generous time-frame:

Researchers from Sheffield University found, however, that one patient in eight is moved out of emergency departments in the 20 minutes before the four-hour deadline expires. While most emergency departments achieve their targets, it is increasingly claimed that patients are being admitted to wards inappropriately as a result.

Elderly people and mentally ill people were particularly vulnerable to the long wait and last-minute admission, one recent report said. The Sheffield researchers detected a flurry of activity in the last 20 minutes before the deadline is reached with "most impact on older patients and those being admitted to hospital".

Dr Suzanne Mason, a clinical senior lecturer in emergency admission, measured the treatment of more than 400,000 patients. "We found that with patients who were admitted and discharged there is a sudden leap in the number dealt with between 220 and 240 minutes.

Posted by James Bartholomew • Indexed in NHS

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The growth of school choice in the USA

The Heritage Foundation in the USA has a new website covering 'school choice' - that is how parents in different states are able to make choices in schooling, whether in private or public (local government) schools.

The Foundation asserts that school choice is a growing trend in America.

Home schooling is an example of 'school choice' and has grown very dramatically:

Home schooling is the practice of schooling students at home by parents or guardians. Home schooling is the fastest growing form of school choice. From 1994–2003, the number of home-schooled students rose from 345,000 to 1,100,000.

Posted by James Bartholomew • Indexed in Education

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April 20, 2005
Wednesday
The coming hike in National Insurance that is deliberately omitted from Labour's election manifesto

As Gordon Brown has remarked, it is impossible to believe a word that Mr Blair says. He is going into this election with the knowledge that he will raise National Insurance, or other taxes, afterwards. But he won't admit it.

This is from the BBC online coverage of tonight's interview with Mr Blair by Jeremy Paxman:

...he was not about to confess to having misled voters about his intentions on taxation at the last election.

Four years ago, in a similar interview, he had rejected Mr Paxman's suggestion that it was clear from all he had said that he would raise National Insurance contributions if he was re-elected. (Which is what happened. JB)

There is another well-rehearsed answer to this one - he was only led to increase NICs after a post-election report indicated such levels of extra spending were necessary for the health service. (Surely nobody believes that.JB)

So couldn't he do the same again, if he wins a third time, when, for example, the Turner report into the pensions black hole is delivered.

He was not about to be drawn into mapping out budgets at this point, he declared.

Posted by James Bartholomew • Indexed in Politics • Tax and growth

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The day in the year on which you stop paying tax

From the Adam Smith Institute

TAX FREEDOM DAY HAS COME. Well, at least in the United States, where it occurred last week. Thanks to the Bush tax cuts, Tax Freedom Day this year was 18 days earlier than it was in 2000, under Clinton.

Posted by James Bartholomew • Indexed in Tax and growth

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Getting around the failures of state education

Over time, people will try to find ways to get round the poor and mis-directed delivery of services by the welfare state.

In education, since many schools are ineffective in their teaching, a large minority of parents now resorts to private tuition.

Since some schools are now places to be apprenticed in crime-craft, a small but fast-growing number of people - including those who are poor and thus condemned to the worst state schools - are moving their children to low-cost, fee-paying schools. These are often religion-based and teach good behaviour.

I wonder if the news that part-time further education has dramatically grown is another example?

Posted by James Bartholomew • Indexed in Education • NHS

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April 19, 2005
Tuesday
Six months wait for an MRI scan


According to research by Paul Burstow, the Liberal Democrat health spokesman,

- Patients are waiting for MRI scans for six months or more in 40 per cent of NHS trusts.

- Patients are waiting for CT scans for four months or more in almost a third of NHS trusts

- Patients are waiting for endoscopic investigations for six months or longer in over a quarter of NHS trusts.

Posted by James Bartholomew • Indexed in NHS

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Democracy - not much good at dealing seriously with serious matters

Democracy is a lousy system of government. It is just not as lousy as other systems. Here is Mike Baker, the BBC education journalist, pondering how it is that important issues in education are not being covered in the current election.

Posted by James Bartholomew • Indexed in Education • Politics

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April 18, 2005
Monday
One of the ways the NHS wastes money

The star rating system for hospitals is being phased out. It has been a flop but that does not mean that money has stopped being spent on it. It also does not mean that money will cease to be wasted (often actually doing harm, in addition to the waste of money).

This from BBC Online:

"Star-ratings have had their day," said Michael Dixon, of NHS Alliance. "This year we will have star ratings without them being taking too seriously."

However the Healthcare Commission said the ratings were still relevant.

The last star-ratings will be published during the summer, but experts have said they will not be taken seriously because of the changes.

Star ratings, only introduced in 2001, have been overhauled after complaints they were too onerous and target-driven.

All 572 trusts faced three-yearly inspections, costing £150,000 a go.

Posted by James Bartholomew • Indexed in NHS • Waste in public services

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A Picker Institute report on the NHS

The government commissioned the Picker Institute to do a study of patient perceptions of the NHS. The report on this in BBC Online paints an improving picture. However there are two important things than are not in the BBC report - and perhaps were not in the Picker report either and perhaps were not in the Picker report because the government did not particularly want such things mentioned.

First, there is no mention of the Picker Institute having made - at the same time and in the same way - investigations of perceptions in other countries. In the chapter on the NHS in The Welfare State We're In, I describe some patient perception reports - including at least one by Picker - in which the same questions were asked in different countries. From this it became obvious that the British experience was seriously inferior to that of patients in other countries.

Second, patient perceptions should be used very cautiously when judging a health-care system. If a patient is asked, "did you get good care in hospital" they bring to the answer all sorts of assumptions. An American going to a hospital who was put in a ward with 25 other people might be appalled and answer "no". A Briton might take the large numbers for granted and answer "yes".

Posted by James Bartholomew • Indexed in NHS

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April 17, 2005
Sunday
How much for removing moles in Malta?

I have been on holiday in Malta for the past ten days and while here I have done a bit of medical tourism. I have had three moles removed.

My initial consultation was directly with the surgeon (no need to pass through the 'gateway' of a General Practitioner). Then, a few days later, I had an appointment to have the moles removed. The operation took place in a full-scale operating theatre which is sometimes used for much more serious orthopaedic operations. It had a large air control system with 'walls' of perspex descending a few feet from the ceiling. The system drew out air and blew in clean air. This is to reduce the risk of infection. It was not necessary for my minor operation. From memory the manufacturer's name was Howorth or something similar.

The local anaesthetics and the cutting and stitching must have taken about 20 minutes to half an hour.

What was the price?

Posted by James Bartholomew • Indexed in NHS

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April 16, 2005
Saturday
Overcrowding and infection risk

The incident last week (see previous posting) does not appear to have been an isolated case. There was also a crowding crisis in February, as recently reported in the Epsom Guardian:

Patients were put at "serious clinical risk" when they were forced to stay in the day case unit at Epsom General Hospital instead of waiting for treatment in accident and emergency, according to official documents.

Desperate staff asked patients to leave A&E and go to the day unit or another room in order to hit Government A&E waiting time targets.

Among the patients was one described as having "copious diarrhoea" and another with an infected wound.

Posted by James Bartholomew • Indexed in NHS

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April 15, 2005
Friday
What really happened at Epsom Hospital

I have been contacted by a medically-trained person who tells me that what happened in Epsom hospital last week was even worse than what Theodore Dalrymple referred to in the latest Sunday Telegraph.

My informant's account comes from a second medically trained person who works in the hospital:

Casualty was busy and there was a management determination not to breach the government target that people should not be kept waiting in casualty for more than four hours.

To make room for patients to be admitted, four patients were moved to the combined ante-natal and post-natal ward. This ward was told that the patients coming would be gynaecological patients. In fact, they were not.

"They were four elderly medical patients, including one with bed sores and on IVs [intra-venous drips] - an infectious risk. An agency nurse was sent to nurse them as the midwives did not have the experience to cope."

The transfer of these patients caused "idiotic risks" potentially exposing to infection new-born babies, their mothers and also women just about to give birth. My informant continues, "As to moving around sick elderly in the middle of the night - words fail me."

The next morning, the staff at the ante-natal and post-natal ward, including senior midwives and consultants, "went ballistic".

Posted by James Bartholomew • Indexed in NHS

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April 14, 2005
Thursday
MRSA and incentives

An interesting sidelight on why it is that MRSA kills thousands of people a year in NHS hospitals but none in those private hospitals run by BMI Healthcare:

"There is no financial imperative in the NHS to find a solution to superbugs," Mr Adams said. "That's because if you get sued the litigation all comes out of a central fund."

The Mr Adams in question is chief executive of Bioquell which makes a device that uses hydrogen peroxide to clean hospital rooms. He was quoted in the business pages of the Daily Telegraph.

Posted by James Bartholomew • Indexed in NHS

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April 13, 2005
Wednesday
More ways in which waiting lists are manipulated

The excellent Sunday Telegraph package on the NHS last weekend included an article by Theodore Dalrymple.

He included two ways in which waiting lists are manipulated:


1. "asking local general practitioners to delay referral to specialists."

2. "not ...put[ing] patients on such [waiting] lists until they have replied to a letter from the hospital telling them that they have been referred. Since a substantial number of people reply late, or not at all (some because they are too ill to do so), waiting lists are substantially reduced."

These methods should be added to those mentioned in chapter three of The Welfare State We're In .

The government waiting list figures are lies. We don't know what the real number waiting is. The fact that we have a government that knowingly lies with its statistics reflection extremely badly on it. A judge the other day referred to Britain being like a 'banana republic' because of the absence of proper attempts to prevent electoral fraud. Britain is again like a 'banana replublic' in that official statistics are no longer trustworthy.

Posted by James Bartholomew • Indexed in NHS

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Do the railways prove that private provision does not work?

A visitor to this site, emailed me the following:

James,

I have been reading your book “The Welfare State We’re In” with much interest.

Whenever I present the ideas in your book (to friends and colleagues) almost inevitably the reply comes “It didn’t work with the railways,” how do you best counter this argument?

Many Thanks,
[J.G.]

This was my reply:

Posted by James Bartholomew • Indexed in General

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April 12, 2005
Tuesday
Sweden - not so great and not so Socialist either it seems

Sweden is important because so many people believe it to be an example of how you can have everything: a huge state sector, high taxes, the ultimate in a welfare state and yet also prosperity and good, well-educated citizens.

Previously I have written about how women who work do relatively badly in Sweden because of the legal rights they have been given. In The Welfare State We're In, I looked at the modest rate of economic growth in Sweden. I have now come across a French website called Liberte (forgive me for not knowing how to put an acute accent on the final 'e') which has a long posting about Sweden.

If my limited French does not deceive me, the posting says that there was a crisis in Sweden in 1990-93 during which the state came to account for 67 per cent of GDP, the government budget deficit reached 12 per cent and unemployment reached 12 per cent, too. As a result of this crisis, Sweden reduced the scope of the state and it has now come down to a few points above 50 per cent of economic activity.

The site suggests that modern Sweden - partly because of the pullback in the state's role no doubt - is not quite as Socialist as is widely thought. The railways have been fully and successfully privatised.

Posted by James Bartholomew • Indexed in General

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April 10, 2005
Sunday
The waiting isn't over

The next time Mr Blair or any other Labour Party propagandist boasts that waiting for more than four hours in accident and emergency departments is a thing of the past, remember this testimony from a registrar who has recently completed a posting at an NHS hospital in the North West of England:

Posted by James Bartholomew • Indexed in NHS

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April 08, 2005
Friday
Depressing depression figures

The most common medical reason given for people being incapable of work and therefore entitled to incapacity benefit is now depression. It has overtaken musculo-skeletal problems. This is a competition between two conditions that have one thing in common: in neither case is it easy to prove that someone does not have it.

Posted by James Bartholomew • Indexed in NHS • Welfare benefits

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The welfare state's role in causing family breakdown

My two daughters were discussing divorce and separation among the parents of the children they know at their school. I asked them how many children at school could they think of whose parents were divorced. After consideration, they came up with four. That is probably out of about 25 children who my older daughter knows well in year six, say another 10 in year five, perhaps another 30 in year three (where my younger daughter is) and another 20 in other years. So a total of about 85. It is, of course, possible that there are some divorced parents they did not know about. But it seems probably that not much more than five per cent of the children have divorced or separated parents.

What has this got to do with the welfare state?

Posted by James Bartholomew • Indexed in Behaviour & Crime • Parenting

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April 07, 2005
Thursday
Reading report

It sounds as though the select committee on reading has not taken as strong a line on 'synthetic phonics' as expected. Disappointing. The way that Mr Twigg, the minister, says that anything that the teachers do must be right, is a prime example of the way that the 'producer interest' is allowed to thrive in a state monopoly. This, of course, is at the expense of the interests of those whom the minister ought to be primarily concerned about: the children.

Posted by James Bartholomew • Indexed in Education

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The Government should do something about it

How demands for governments to 'do something about it' work:

With a few exceptions contemporary commentators on economic problems are advocating economic intervention. This unanimity does not necessarily mean that they approve of interventionistic measures by government or other coer­cive powers. Authors of economics books, essays, articles, and political platforms demand interventionistic measures before they are taken, but once they have been imposed no one likes them. Then everyone - usually even the authori­ties responsible for them — call them insufficient and unsat­isfactory. Generally the demand then arises for the replace­ment of unsatisfactory interventions by other, more suitable measures. And once the new demands have been met, the same scenario begins all over again. The universal desire for the interventionist system is matched by the rejection of all concrete measures of the interventionist policy.

This is from Kritik des Interventionismus, 1929, republished in 1976 as A Critique of Interventionism, Translation copyright 1977 by Margit von Mises. It appears in full on the Ludwig Von Mises website here.

Posted by James Bartholomew • Indexed in General • NHS

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April 06, 2005
Wednesday
State failure - due to 'criminal Tories'?

A series of interesting comments on a previous posting:

In response to my remarks on the failure of state education to improve social mobility, 'Joe' commented,

State education is only failing because the Tory criminals neglected it for so long. I dont think youll find they have the same problems with properly funded state education in European countries like Germany, France and Sweden. What your proposing would reverse social progress in Britain by 200 years, just to save you a few pounds on your tax bill.

'Ricky' responded,

Posted by James Bartholomew • Indexed in Education

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April 05, 2005
Tuesday
Conservatives far behind, well ahead and likely to lose

On the day an election is being called, the Conservatives are far behind Labour but also well ahead. If the Conservative are well ahead in the actual votes cast on the day, then they will lose. Confused? Well this is going to be a confusing election. And there is reason to be concerned, too. This election has the potential to make the argument over the fairness of Bush's victory over Gore look like a fuss about nothing.

Posted by James Bartholomew • Indexed in Politics

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April 04, 2005
Monday
Lee Bowyer breaks new ground in British incivility

New ground was broken in British incivility on Saturday at a premiership football game.

Posted by James Bartholomew • Indexed in Behaviour & Crime

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Are people able to look after themselves?

A key issue for those of us who believe the state is bad at looking after people, is whether or not individuals are any good at it either.

This is Tim Congdon in the Telegraph today on the competence or otherwise of people in saving:

Much of economic theory is concerned to establish that people are rational. But theoreticians and practitioners do not always see eye to eye. When confronted with real-world problems, economists are inclined to forget that they live in a world of rational agents.

Indeed, they are quite unembarrassed about offering recommendations to politicians which make sense only if people are rather silly. A good example is the recent report from the Pensions Commission, under the chairmanship of Adair Turner.

It says flatly: "Most people do not make rational decisions about long-term savings without encouragement and advice.'' The report proceeds from this patronising remark to recommend increased state involvement in pension provision, with a consequent enlargement of the government's role in the economy and a rise in taxation.

Professor Congdon goes on to look at the overall savings people make including saving that is not labelled "pension saving" but which nonetheless can be used for that purpose. He concludes that people are perfectly rational. His analysis may be open to challenge. But I want to mention another area in which the rationality of people in looking after themselves may be in doubt.

In America, people have to pay for their own healthcare. But in the same country, the incidence of obesity is very high. Why, when they must know that being fat increases their chances of premature death and early use of expensive healthcare, do so many Americans allow themselves to become fat? It does not seem sensible or rational.

Posted by James Bartholomew • Indexed in General • NHS • Pensions • Welfare benefits

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April 02, 2005
Saturday
Wouldn't that be good?

Admirable ideas from John Redwood:

The Conservatives have also thrown their weight behind a campaign to maintain the availability of hundreds of vitamins and food supplements that are threatened by an EU directive.

A Conservative government would opt out of the directive, which comes into force on Aug 1. In the health service, 686 performance targets, which had distorted clinical priorities, would go.

Britain's opt-out from the EU's social chapter would be revived and Labour's plans for people wanting to sell their homes to pay for "seller's packs" would be scrapped.

Current rules to prevent money laundering by terrorists and drug dealers were too onerous on law-abiding citizens. When he went into his bank to deposit money, even though the staff knew him as their MP he still had to produce evidence of his identity. He said the system could be streamlined for everyday banking without compromising national security.

The full story is in the Daily Telegraph today.

Posted by James Bartholomew • Indexed in European Union • General

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April 01, 2005
Friday
How much better off would we be if Gordon Brown had never existed?

The Institute of Fiscal Studies has now established that average incomes fell in 2003/04 because Gordon Brown took so much more of our money in income tax and national insurance. We obtained higher salaries, but Gordon Brown more than wiped out the benefit.

Gordon Brown did not only increase our taxes in that one year of 2003/04. He has increased our taxes in most of the years he has been in office. They have been slipped in so that they don't get noticed on budget day.

Where would we be if Gordon Brown had never existed? Let us just imagine for a moment that Labour did not come to power in 1997 or, at least, that Labour kept to what Tony Blair told the Financial Times that year: "we have no plans to increase taxes". How much better off would we, as individuals, be if Gordon Brown had kept to that?

Posted by James Bartholomew • Indexed in Tax and growth

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