Showing posts with label Nick Smith. Show all posts
Showing posts with label Nick Smith. Show all posts

Monday, April 09, 2018

Lion Rock 23, Our “Should” “Must” Society

I am reposting this beautiful article by a friend and Chairman of the Lion Rock Institute in Hong Kong, Nick Smith. Too many "bright" boys and girls these days and they think their "bright ideas" should be legislated and enforced/imposed on everyone else in society. Enjoy.
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Nick Sallnow-Smith  2018-01-31

Open any op-ed page of most newspapers (at least the English language ones that I read) and you enter the world of “should” and “must”. Many, on some days most, of the opinions expressed are about what others should be doing, or must be compelled to do, to make Hong Kong/the world a “better” place.

Many of you in my age group may remember a world when the advice of our mothers tended to include well-worn phrases like “mind your own business”, “live and let live”, “don’t interfere” and similar pieces of ancient wisdom. Underpinning this view of society was the thought that you should look after your own affairs and not interfere with others in pursuit of theirs. This had the admirable result that one focussed on one’s own responsibilities, rather than spending energy trying to alter the activities of others. I think the benefit of that concern with one’s own life and accountabilities first has been lost at a great cost. Today, the focus is not on what you are going to do with your life but an obsession with why others are not helping you. I am not sure when this view of an individual’s role in society changed. But it seems to me that there may be a link between the public policy angle to this and the “social” aspect. Let me explain.

As expectations of the role of the state have changed, so has the focus of discussion in newspapers’ pages shifted. Politics in the West was largely a class-based debate in the postwar period; rights in the workplace etc. The idea that the state could have a role to play in all walks of life, including what happens within a family was not thought of. But as the interventions of the state have grown, then the need for ordinary citizens to take an interest in, and push for, policy changes has also grown. Because public policy will affect your daily life, the need to be heard grows. Op-ed writers accordingly appeal to you to support their pet way of changing the world. And you may take an interest, because if the state responds and enacts laws, then indeed your pet project may be forced on everyone. If you don’t take a position, then perhaps someone else’s pet project will be imposed upon you. What is, for many, a natural aspiration to want society engineered into a shape that they desire, leads politicians to propose such schemes for popular support.

The process becomes self feeding. The more states seek to enact legislation to intervene in more and more areas of previously private conduct, the more important it is to push parties to adopt your pet scheme. That “activism” then motivates and empowers the State to increase the intervention yet further.

As I indicated, this had gone far beyond the push to protect employees in the workplace. Today, well meaning folk will write urging parents to stop their children from using smartphones, urging laws against sugary drinks, and so on. Already in the West the range of behaviours in the home for which children can legally be taken into care is quite astonishing. Gradually as the spiral of ever more policy intervention gathers pace, what for all of human history has been the responsibility of parents is now being assumed by the State particularly in Europe.

The extent to which this assumption, that there must be intervention in every aspect of society, was borne out for me when reading an op-ed article last week on school curricula. Written from the perspective of desiring more “diversity” of thinking amongst the younger generation, the writer actually uses the phrase “schools must teach respect for different views”. There is no way, in that authors’ view, to have respect for diverse opinion unless we force schools to teach it. And of course there must be a common platform of curricula content and means of analysis. The writer seems not to see the irony in compulsory education on freedom of thought.

So much for the public policy aspect of this. What about the social sphere? My belief is that the “social justice warrior” world that Western societies have now entered is in effect an extension of this public policy dynamic into all of social life. Look at discrimination as an example, there are inevitably limits to the effective enforcement of anti-discrimination laws by the state, as these have grown since the 1960s. Those “should” “must” citizens, to which I alluded at the beginning of this piece therefore move into the social sphere. Enforcement can now move on from the state, to impose social penalties: ostracism, shaming, career destruction. Many have been claiming that this is somehow caused by social media. I disagree. It is of course enabled by social media but the cause is much deeper. If politics is conducted in a way that if your group can command enough support, it can enable you to enforce your mores on the whole community, this encourages behaviour in the social sphere towards imposition of your view. The effect is more frightening however. In politics, there are some institutional constraints on the speed with which this happens and on the levels of madness it assumes. In the social context, no such restraints exist.

In the West today, it is no longer enough to obey the law and “mind your own business” (and it is hard enough to know all the laws you are required to obey). Now you need to adhere to an ever changing morass of “social” codes of behaviour the breaching of which may lay you open to social exclusion. Even more concerning for freedom of thought and behaviour, is that these codes are applied retrospectively. Even the law is seldom does that. But today you can be found to have transgressed a new social code of behaviour 30 years ago and have your social standing destroyed. You should have known that, 30 years later, it would have become “politically incorrect”.

Now you might be thinking that this is only a problem in the West. The East is of a different culture and could never see such a transformation. I am not so sure. The media flows that influence so much of the thinking of new generations are now global, not local as they were 50 years ago. A slide into a world where your peers try to impose what you “should” and “must” do in every aspect of your daily lives, may not be too far ahead.

There is a thought for a Happy New Year!

Nick Sallnow-Smith
Chairman
The Lion Rock Institute
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See also: 
Lion Rock 20, Hong Kong's labor welfarism and rising unemployment, July 08, 2016 

Lion Rock 21, Dangers of Universal basic income (UBI) philosophy, August 11, 2017 
Lion Rock 22, Hong Kong's early policies on free trade, zero income tax, October 24, 2017

Friday, August 11, 2017

Lion Rock 21, Dangers of Universal basic income (UBI) philosophy

The philosophy of universal basic income (UBI) is floated and discussed in many countries now including the Philippines. The philosophy is lousy because even the lazy or irrelevant-thinking people will have guaranteed universal income.

I am reposting a good article by a friend, Nick Sallnow-Smith, Chairman of The Lion Rock Institute (LRI) in Hong Kong. This was published in the LRI Newsletter, June 2017.



Nick Sallnow-Smith

It is often suggested by those skeptical about the value of free markets, that to contribute to the community you need to be active in the world of charities, NGOs, or what is called “public service”. By implication, to work in the business sector is an indication of selfishness and greed. You are only out for yourself is the implied slur. This approach finds the idea of Universal Basic Income (UBI) very attractive because it is claimed it enables the detachment of the income you receive from the work you do. The promoters of this idea seem to find it self evident that this a “good thing” because people will be spared the drudgery of work and can instead follow their dreams to be creative, or make other life choices unconstrained by the need to earn income. Let’s examine if either of the elements of this argument make sense: that working in business is selfish, and that detaching income from what you do with your life is inherently desirable.

The growth in our standard of living since most human beings were engaged in subsistence farming is largely due to the division of labour; to specialisation in activities in which you are relatively more able than others. For this specialisation to be facilitated, we need a means to exchange our skills with the products and services produced by others. This means is money (whether gold, fiat money, shells and any other accepted exchange medium). Money does more than enable us to exchange with others, it provides a measuring device by which we can assess the cost of products and services against their relative value to us. But more than that, the market enables us to assess the relative value to others of the skills we have.

When I choose whether to be an artist or a banker or a tour guide, I know my own preferences for what I’d like to spend my time doing. The income I am offered by potential customers of my art, banking skills or tour guide work tells me the relative assessment by others of my prowess in these areas. I may still choose to be an artist, and settle for a low income if I love it enough, but market pricing tells me that the community would prefer me to stick to being a tour guide and not bother with my rather poor oil painting. By pricing my skills in a free market, my value to the community – what I am worth – is laid bare.

By contrast, if I work in a charity, NGO, or the public sector generally, there is no test of the value of what I do; certainly not one that enables relative value to be assessed. I might be a rather poor schoolmaster (actually in 1974 I was!) but since the students’ parents did not pay my wages, had no way to dispense with my services, and had no input into the process by which their children were taught, I had no information about whether what I did was valued at the level of my income, nor whether I would be contributing more to society as a barman.

Which is more selfish then? To offer your services in a competitive labour market and see how the community truly values what you do; or to take a position in those sectors which never submit you to a market test.

It is concerning to me that those who work in “public service” frequently imply that theirs is a more noble calling than the down and dirty private sector, where everyone is in it “only for the money”. In fact, the opposite is the case. Only if you subject yourself to the market test can you ever know whether the community of which you are a part, values what you do.

Let me turn now to the UBI idea, which is currently such a hot topic in policy debates about how to respond the feared loss of jobs resulting from AI. If what you do is detached from the income you receive, you sever completely any possibility of knowing whether what you do is of any value to the community. Indeed the policy proponents are claiming this severance is a benefit, that what we do should have no relationship to what others value in us. We should all be supported by the state so that we can do whatever we like, without regard to its value to society. This seems to me to be a policy of institutionalising the disregard of our value to the community. In answer to the question in my title, it does not matter what you are worth, say the proponents of UBI, it need never be measured. Many who disapprove of free market libertarianism claim it “atomises” the community, rendering us all completely separate uncaring individuals, alone in the social universe. Yet the opposite is the truth. Selling your skills in the market means you are taking account of what others value in what you do, while UBI is the truly “atomising” policy.

There is one last aspect of this which I believe to be of even more importance; the “self-worth” that any of us feels every day as a result of what we do. If others have valued what you do (apart from your own satisfaction in a job well done), you feel good. This is deeply important for the way communities are bound together. Not only have you found a way of selling your skills that gives you an income but you have done so in a way that is evidently valued by others. The baker whose cakes are wildly popular is not only happy to be paid for his efforts, his can and does take pride in being valued by his customers. If the future consists of millions of people detached from the feeling that what they did that day was valued, I fear there will be a serious deterioration in self worth and self reliance; the stuff of many apocalyptic sci-fi movies.

Of course proponents of UBI will argue that it will meet only “basic” requirements (let’s see how the demands for it to be increased are resisted before we are confident about  that). But the drive to find the best use of your skills for the community at large will still have been significantly eroded. You will be paid to be useless, not useful. It is suggested by common sense as well as economic theory that if you subsidise something you will get more of it. Communities should be very careful before they embark on large scale subsidisation of uselessness.
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See also: Lion Rock 18, Nick Smith as new Chairman of LRI, April 05, 2016 
Lion Rock 19, Not enough capitalism in Hong Kong, May 12, 2016 

Lion Rock 20, Hong Kong's labor welfarism and rising unemployment, July 08, 2016

Tuesday, April 05, 2016

Lion Rock 18, Nick Smith as new Chairman of LRI

The Lion Rock Institute (LRI), Hong Kong's first and only independent free market think tank, has a new Chairman, Mr. Nick Sallnow-Smith. For 10 years, 2004-2014, LRI Chairman was Bill Stacey. Then in 2015, he changed job I think and he needed more time there, so LRI Exec. Dir. Peter Wong acted as interim Chairman in 2015 until March 2016.

Below is Nick's letter as posted in the LRI website.
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1 April 2016

A Message From Our New Chairman

Dear Lionrockers,

Despite the date, this is not an April fool’s message! Rather it is my means of expressing my pleasure today in saying a formal hello to all involved in the Institute.  I had the honour (with a ‘u’  for all you North Americans!)  of being asked, in our own “small circle” election, to take over today from Peter Wong as the Chairman of LRI.

It is a role I am happy to take up. The “Lion Rock spirit” in Hong Kong has been one of the key factors attracting me to stay in this city for the rest of my life. But it is a spirit which is at risk of damaging erosion.  For all of its modern history, our city has been an international role model for free enterprise and open markets. Hong Kong’s success has demonstrated to the world the value that these freedoms create for the whole community. That they could be questioned here of all places is astonishing, and is a challenge which we should not shirk.

We have a duty to speak up for the spirit of individual freedom and accountability that the Lion rock represents, so that new generations of Hong Kongers understand what made this city such a success, and realise that its loss could irreparably damage it.

For over 150 years politics were effectively “outsourced” to London. Free markets here were an economic issue. Today, they are also critical for personal freedom. The two cannot be separated. Without freedom to exchange, there can be no genuine personal freedom, and without the personal freedom to benefit from it, free trade means nothing.

I look forward to joining you in our own “free enterprise” collaboration at LRI aimed at standing up for these freedoms and explaining their fundamental value. This stand is increasingly important, as we face a growing global wave of collectivist fervour, which urges the denial of individual freedoms because they prevent those who would “socially engineer” our lives from doing so.

I hope to meet more of you over the coming months to share ideas on how we can be more effective in this mission.

Best wishes,

Nick Sallnow-Smith
Chairman
The Lion Rock Institute
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I have met Nick 3x in HK, during the LRI's Reading Club Salon 2012, 2013 and 2014. I attended those 3 events of small-group reading-discussion sessions, courtesy of LRI travel scholarship, along with Barun Mitra, Feng Xingyuan and Mao Shoulong. Our group photos on those 3 events in 2012, 2013 and 2014, respectively.


In the last photo, Nick is 2nd from left standing, Peter Wong is 4th from right standing, and Bill is in the center, seated.

Nick is British, been living and doing business in HK for decades. Soft-spoken guy, I can't imagine how he gets angry because he seems to be smiling often.

Congrats LRI for having Nick on the board.
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See also: 
Lion Rock 4: Leftism and Populism by Intellectuals, November 05, 2012 
Lion Rock 11: Barun Mitra on Democracy, Reading Salon 2013, October 28, 2013
Lion Rock 15: Mary Ruwart's Book, "Healing Our World", November 03, 2014
Lion Rock 16: 10th Anniversary of LRI, November 07, 2014 

Lion Rock 17: Photos and Discussions in Reading Club Salon 2014, November 25, 2014