Brexit: the fake revolt

Good robust stuff from Paul Mason:

The problem is, I also know what a real revolt looks like. The miners strike; the Arab spring; the barricade fighting around Gezi Park in Istanbul in 2013. So, to people getting ready for the mother of all revolts on Thursday, I want to point out the crucial difference between a real revolt and a fake one. The elite does not usually lead the real ones. In a real revolt, the rich and powerful usually head for the hills, terrified. Nor are the Sun and the Daily Mail usually to be found egging on a real insurrection.

But, all over Britain, people have fallen for the scam. In the Brexit referendum, we’ve seen what happens when working-class culture gets hijacked – and when the party that is supposed to be defending working people just cannot find the language or the offer to separate a fake revolt from a real one. In many working-class communities, people are getting ready to vote leave not just as a way of telling the neoliberal elite to get stuffed. They also want to discomfort the metropolitan, liberal, university-educated salariat for good measure. For many people involved, it feels like their first ever effective political choice.

The shambles of the First World War was memorably satirised by (I think) Alan Clark as “Lions led by donkeys”. Brexit, in those terms, is donkeys led by weasels.

Bayes’s theorem, Brexit and the world economy

This is something you won’t hear from either Brexit or Remain camps:

Statistical theory even allows us to quantify how expectations about the US presidential election should shift if Brexit wins in Britain. Suppose, for the sake of simplicity, that we start by giving equal credibility to opinion polls showing Brexit and Trump with almost 50% support and expert opinions, which gave them only a 25% chance. Now suppose that Brexit wins. A statistical formula called Bayes’ theorem then shows that belief in opinion polls would increase from 50% to 67%, while the credibility of expert opinion would fall from 50% to 33%.

Since bond markets hate uncertainty, you can imagine what happens next.

So is England ready for self-government?

Lovely Irish Times column by Fintan O’Toole:

Is England ready for self-government? It’s a question that the English used to ask of peoples less obviously made from the right stuff than they are, such as the Indians and the Irish. But it’s time they asked it of themselves.

Brexit is essentially Exit: if the Leave side wins the referendum it will almost certainly be without securing majorities in Scotland or Northern Ireland. For all the talk of reasserting the sovereignty of the United Kingdom, the desire to leave the European Union is driven above all by the rise of English nationalism.

And the chief consequence of Brexit will be the emergence of England as a stand-alone nation. Whatever entity might eventually emerge from a tumultuous breach with the European Union will almost certainly not, in the long term, include Scotland: a second referendum on Scottish independence will be inevitable, and this time Scots would be voting to stay in the EU…

Worth reading in full.

Brexit and cognitive dissonance

One thing that always astonishes me during election campaigns is the way one’s fellow-citizens appear to have no difficulty holding two contradictory opinions simultaneously. So it is with the current Referendum debate in the UK. A friend who lives in a deeply rural constituency, for example, reports that many of the neighbouring farmers — who are substantial beneficiaries of the EU’s Common Agricultural Policy and subsidies flowing therefrom — are determined to vote for Brexit. And so, it seems, is their local Tory MP. In one way, one could see this as wholly admirable: people who are willing to vote for a deeply-held principle, even when doing so goes against their economic interests. But it sure as hell runs counter to the economists’ conception of people as rational economic agents.

I used to think that this capacity to believe two contradictory things at the same time was an instance of what psychologists call ‘cognitive dissonance’. This is a theory of behavioural psychology which says that “people experience uneasiness after acting in a way that appears to conflict with their beliefs and preferences about themselves or others. To minimise that mental discomfort, the theory posits, a person will adapt his or her attitude to better fit with or justify previous actions.”

The only problem with that is that many of the people I’ve met who hold contradictory beliefs don’t seem in the least uneasy. In fact, they appear to be completely relaxed about it.

There’s an interesting piece by Nathan Brooker in today’s Financial Times (sadly behind a paywall) in which he reports on a visit to British ex-pats who have settled in Europe. “Why”, he asks, “are some UK expats voting for Brexit when it could hit their healthcare, pensions and pockets?”

Why indeed? But maybe it is cognitive dissonance at work. The theory, after all, posits that people adopt beliefs that reduce the gap between their contradictory beliefs. If you apply that to Mr Brooker’s ex-pats, it may be that the reason they are pro-Brexit is because, years ago, they made an analogous radical decision to “get out” of the UK. So they want the UK now to make a similar radical break.

Hmmm… Deep waters, Holmes, eh?

LATER This interesting post by Nick Tyrone:

Several areas in London are odds on to be the place that votes to Remain in the EU in the largest numbers. Clacton-on-Sea is odds on to be the place which votes most heavily for Leave. Two things are interesting about this. One, the places in London voting for Remain are the areas most directly affected by EU immigration, i.e. that’s where the EU immigrants live. Meanwhile, Clacton is 95% both white and British born. They blame their woes on immigrants – despite the fact that there are none where they live, and if immigration fell to 0%, it would affect them and their lives 0%.

The second thing that is interesting about the London-Clacton divide is that if we vote to leave the EU, one way or another London will be fine. Either we go for the full course WTO deal, or despite what everyone’s been saying about a Norway deal being off the table that’s what we do in the end anyway, it doesn’t really matter to the capital in the long term. London is London and it will find a way of pulling through, even if the shock is really bad to the system post-Brexit.

It is places like Clacton that will really feel it. If there is a recession, those are the people who won’t be able to suck it up and say it’s temporary; they are barely making it now. If further funds are taken out of benefits, and there’s not even any EU money around for regeneration projects anymore, places like Clacton have nowhere to turn when it turns out a post-Brexit world has simply made regional inequalities even starker.

Careless talk costs lives

Xenopho

During the war there were posters in every public place in Britain saying “Careless talk costs lives”. Pondering the savage murder of Jo Cox MP, I wonder if this thought strikes any of the Brexiteers. Or any of the journalists who produce British tabloid newspapers.

Did their careless talk just cost a young mother her life?

The Chinese economic miracle, Part 2

The Chinese economic miracle is built on cheap and dextrous manual labour. But labour costs are rising sharply, so…

China already imports a huge number of industrial robots, but the country lags far behind competitors in the ratio of robots to workers. In South Korea, for instance, there are 478 robots per 10,000 workers; in Japan the figure is 315; in Germany, 292; in the United States it is 164. In China that number is only 36.

The Chinese government is keen to change this.

You bet they are. But what happens to all the folks who no longer have work? Stay tuned.

How to manage the Internet – part 2

This morning’s Observer column:

If you ever wanted an illustration of why academic research is not just important but vital, then the work of Gary King, professor of sociology at Harvard, could serve as exhibit A. Why? Well, one of the more pressing strategic issues that faces western governments is how to adjust to the emergence of China as a new global superpower. The first requirement for intelligent reorientation is a rounded understanding of this new reality. And while it may be that in the foreign offices and chancelleries of the west officials and policy makers are busily boning up on Chinese industrial and geopolitical strategy (what the hell are they up to in the South China Sea, for example?), I see little evidence that anyone in government has been paying attention to how the Beijing regime seems to have solved a problem that no other government has cracked: namely, how to control, manage and harness the internet for its own purposes.

Strangely, our rulers still seem blissfully unaware of this, which is odd because – as I pointed out ages ago – there’s no longer any excuse for ignorance: Professor King has done most of the heavy lifting required…

Read on

Brexit is also an elite project

The FT‘s Janan Ganesh has an acute take (behind the paywall, alas) on the Brexit campaigners. I particularly liked this bit:

“What damns the Leavers is not their belief that the Treasury forecast is wrong. It is the hint they give off that they do not really mind if it is right. They can live with a recession if they must. If others cannot, well, nobody said the path to freedom is lined with cherry blossom. Their nonchalance is all the worse for their pose as underdog yeomen, a droll routine that has cabinet members and an Etonian former mayor of London deploring the “establishment”, presumably while buffing one another’s brass necks.”

Trump’s only supporter in Silicon Valley

This morning’s Observer column:

“Peter who?” I hear you say. Mr Thiel is not exactly a household name in these parts, but in Silicon Valley he’s a big cheese, as a co-founder of PayPal and the first investor in Facebook. He is therefore rich beyond the dreams of avarice. But he is also: a philosophy graduate; a lawyer; a former bond trader; a hedge-fund manager; a venture capitalist; a philanthropist; a far-out libertarian; and an entertaining author. So what is a guy like that doing supporting Trump?

One answer might be that he’s as much of an irritant to the Silicon Valley crowd as Trump is to the Republican establishment. Although the Valley’s tech titans like to portray themselves as non-statist disruptors, in fact most of them are – politically speaking – Democratic party supporters, albeit of an unusual kind. They may detest trade unions, for example, but they’re very keen on immigration – so long as the immigrants have PhDs from elite Indian or Chinese universities. And they’re not opposed to big government, so long as it’s “smart”, whatever that means.

Peter Thiel doesn’t fit this template at all. In 2009, he published an intriguing essay entitled The Education of a Libertarian. “I remain committed to the faith of my teenage years”, it began: “to authentic human freedom as a precondition for the highest good. I stand against confiscatory taxes, totalitarian collectives, and the ideology of the inevitability of the death of every individual. For all these reasons, I still call myself ‘libertarian’.” But, he confessed, “over the last two decades, I have changed radically on the question of how to achieve these goals. Most importantly, I no longer believe that freedom and democracy are compatible.”

Read on