So, what’s the remaining problem?
Well, in a rational world we would but that ain’t our one, is it?
So, what’s the remaining problem?
Well, in a rational world we would but that ain’t our one, is it?
How lovely to see public policy working well for once:
The number of aggrieved workers bringing sex discrimination claims to employment tribunals has tumbled by 90 per cent in a year since claimants were made to pay a fee.
It appears that the prospect of forking out in advance – and losing the money if their case fails – is deterring many of those who may be tempted to use a tribunal to make their employer pay compensation.
But Labour business spokesman Chuka Umunna has promised to abolish the fees, claiming they are unfair.
Chuka, as ever, is missing the point here. The aim and purpose of the fee is to reduce the number of claims. The fee has been instituted, the number of claims has dropped: public policy is actually working. Would that everything done by government worked so well.
The point is not though to make sure that those cruelly done down by t’evil capitalist plutocrats have no recourse: discrimination law still exists and still operates in the normal manner. Those with a good case will happily pay the small fee, those with a frivolous one won’t. The impact of this modest fee therefore tells us something most interesting: the number of former claims that were indeed frivolous, or at least highly unlikely to succeed. But if trying it on costs nothing then why not do so?
There’s an interesting parallel here with another thing that the British courts get right. In, say, a patent case, the loser pays everyone’s court costs and legal fees. In a similar US case the each side pays its own costs, whatever the outcome of the case (except in truly, truly, egregious cases). It costs perhaps $500 to file a suit alleging patent infringement and up to $2 million just to prepare the defence for a trial. The incentives there are obviously for many trivial suits to be filed in the hopes of getting a bit of cash as a settlement to bugger off and stop bothering everyone.
It’s worth noting that the US courts are full of patent troll cases: the UK courts have nary a one.
You know, the first thing everyone should know about economics? Incentives matter.
When proven cases of real sex discrimination bring (righteous) damages of tens to hundreds of thousands of pounds the idea of a small fee as a gatekeeper to deter frivolous cases seems both sensible and not a barrier to those real cases moving into the justice system.
We’ve a lovely little example today of where so many environmentalists go wrong on this climate change thing. As always around here we’ll take the IPCC seriously as a matter of exposition of logic. So, The Guardian’s running a column in which sure, the IPCC is right about the dangers of climate change, about the way that they prove that something ought to be done. However, they’re entirely wrong about what should be done (ie, get markets and private money involved in changing the world) because, well, you know, that’s just neoliberal economics and that can’t be right, can it?
The IPCC report has done a wonderful job at alerting the global public opinion about the urgency to prevent, or at least limit, climate change. Also, it has correctly identified the growing pressure climate change will put on public finances, thus worsening the crisis of the state. But when it comes to finding solutions, it has not escaped the neoliberal zeitgeist, and especially the tendency to see in financial markets an answer, rather than a source of social problems.
This is indeed a small example of a larger problem. People taking the IPCC seriously on climate change, the need to do something, but then insisting that this means the IPCC supports their own plan for whatever should be done. As, for example, we note around here often enough the Greenpeace and the like plan to move forward into the Middle Ages in response to it all.
Here’s the problem with these projections. The very proof that the IPCC uses that something is worth doing, that doing something will be, in the end, less costly than doing nothing, is entirely based on that neoliberal economics. More specifically, that we use the most efficient methods of mitigating climate change (ie, a carbon tax, not any of this regulatory rubbish and most certainly not a retreat to feudalism).
Both William Nordhaus and Richard Tol have done a lot of work on this. Leaving out their differing numbers the logic is: it’s worth spending $x to avoid damages of $x or more than $x. If $y is greater than $x then it’s not worth spending $y to avoid damages of $x. They both go on to point out, at various times, that the most efficient method of spending to avoid damages is that carbon tax. Thus spending $x in a carbony tax sorta manner can be justified if we’re reducing future damages by $x or more. However, because other methods (regulation, law, targets, micromanagement) are less efficient then that is akin to trying to insist that spending $y is worth avoiding damages of $x (where y is still larger than x).
Note that none of this depends upon whether the IPCC is correct in its science about climate change at all. This logic is internal to the system. The IPCC has only, using neoliberal economics, shown that responding to climate change in the most efficient manner possible (ie, using neoliberal economics) is worthwhile. This means that you cannot then project your own desired, less efficient, solutions onto the world using the IPCC as your justification.
So ideas like the one quoted above just don’t fly. You can’t reject the neoliberalism of the IPCC solutions because they are integral to the argument that anything at all should be done.
For someone who trained as a theologian and philosopher this is rather sad: Rowan Williams has, in his retirement, fallen into an all too common logical trap in discussing climate change and what we ought to do about it. His piece is here and that trap is that while it’s entirely possible to prove that climate change is a problem that we should do something about (a view largely held here at the ASI) that is not the same thing as saying that because climate change is a problem we should do anything about it. Anything here meaning not that we should do nothing, but that we end up giving credence to the more ludicrous suggestions about what we should do.
This is an extremely important point and it’s one that is desperately misunderstood too.
OK, so climate change is a problem and we should do something about it. Please, no, let’s just take that as a starting assumption for the rest of this discussion. Excellent, does that mean we should follow Greenpeace and abolish industrial capitalism? That would be to embrace the “do anything” option and it would be ludicrous. The costs in human tragedy of starving a few billion of us as we return to an agrarian feudalism would be worse than anything that climate change could possibly foist upon us.
That is, the merits of doing whatever to deal with climate change depend not upon the merits of beating climate change but upon the merits of doing that particular thing.
And that’s where this pernicious logical error comes in. That some things might or should be done to deal with climate change is, in our opinion, entirely true. But this does not then mean that every brainspasm that issues from a politician or environmentalist is worth doing due to the threat of climate change. We have to go through each and every suggested action to see whether it does make sense, or not, given the costs and benefits of that action.
The past year has seen the obstacles blocking action on climate change beginning to crumble. Opposition on scientific grounds looks pretty unpersuasive in the light of what has come from the experts on the Intergovernmental Panel on Climate Change. Their seven-year study states that they are now 95% certain that human activity is a significant and avoidable element in driving climate change around the world. Predicted changes in the climate are now being observed in the most vulnerable countries, confirming the predictive models that have been used.
The suggestion that action on this would have too great an economic cost is likewise looking increasingly shaky.
No, absolutely not. Proof that some action is required, proof even that some actions would be justifiable, is not proof that all actions are desirable or justified. It depends upon the economic cost of each action itself to determine that.
Or, to put it in a shorter and simpler manner. Just because climate change might be real it doesn’t mean that the world of Caroline Lucas, George Monbiot or Bob Ward makes any sense. We’re not entirely sure that a world that contains Bob Ward makes sense come to that.
In the Keystone Cops comedy that is the contending parties in the Scottish Independence referendum campaign, it seems that the Scottish No team have been making all the same mistakes that Canada’s No team made on Quebec independence back in 1995.
True, the Quebec referendum campaign ended in a narrow No decision – but so narrow that it kept the independence issue alive and grumbling. Next week’s Scottish referendum has become too close to call, but most polls are predicting a No majority – though again, one so narrow that it keeps the independence issue alive and grumbling here too.
It seems the No team have learnt nothing from Canada’s experience of nearly twenty years ago. Andrew Coyne of the National Post lists the similarities:
As in Canada, says Coyne, an unwarranted legitimacy was conferred on the separatist project; then came attempts to pacify it with more powers and more money, only to see it grow more ravenous in response. And once again, a Yes vote is probably forever, while a No vote just marks the start of fresh campaigning.
It all looks like one of the slow-motion car crash in those early comedies. Except this particular farce is deciding the UK’s future political and economic reality.