Brutus on the Optimal Size of Nations

In a republic, the manners, sentiments, and interests of the people should be similar. If this be not the case, there will be a constant clashing of opinions; and the representatives of one part will be continually striving against those of the other. This will retard the operations of government, and prevent such conclusions as will promote the public good. If we apply this remark to the condition of the United States, we shall be convinced that it forbids that we should be one government. The United States includes a variety of climates. The productions of the different parts of the union are very variant, and their interests, of consequence, diverse. Their manners and habits differ as much as their climates and productions; and their sentiments are by no means coincident. The laws and customs of the several states are, in many respects, very diverse, and in some opposite; each would be in favor of its own interests and customs, and, of consequence, a legislature, formed of representatives from the respective parts, would not only be too numerous to act with any care or decision, but would be composed of such heterogenous and discordant principles, as would constantly be contending with each other.

That’s from Brutus #1. He has half (and by far the most important half) of Alesina and Spolaore’s model of the optimal size of government. Speaking of which, you should go check out today’s secession week topic at LaTNB!

When I first read the Federalist Papers, I remember being struck by the subtlety of Madison’s public choice theorising. Now that I’m reading the Anti-Federalist Papers, I’m far more impressed with them and inclined to see Madison as naive in comparison. Sadly, I suspect he remains more realistic about politics than any politician who has come since.

Tobacco Taxes

So, the New Zealand government has voted 118-4 to increase the sin tax on tobacco.  The funny thing is, the move was led by the Maori party, whose supporters contain a disproportionate number of smokers who probably don’t want a tax increase, and supported by the centre-right National party, who campaigned on an anti-nanny state platform.  I’m with Eric on this:

You know who I really feel bad for? The folks who voted National thinking they’d get less nanny-state as consequence. And, worse, the folks who campaigned for them on that basis. Think harder about it next time, guys.

While I know most politicians don’t feel the need to justify the passing of laws, surely there must be some among those 118 who think that there should be some sort of reason.

Do we need to increase tobacco taxes to pay for the costs of smoking on the health system? Nope: smokers pay more than their share. On that basis, we’d decrease the excise tax considerably.

Does ignorance among smokers as to the true health costs of smoking undermine the welfare-maximising tendency of free choice, meaning we need to force people to do what they’d do given full information. Nope. Even if you think ignorance justifies coercion, the fact is that people radically overestimate the health risks of smoking. If we wanted to encourage people to make the decisions they’d make if they were fully informed, we’d subsidize tobacco.

The real reason for increasing the excise tax on tobacco is a combination of arrogant paternalism and bigotry. Turia and Key think they know what’s best for you better than you do yourself and see smokers as disgusting deviants who must be punished. As Joseph Gusfield (writing about alcohol) says:

As his own claim to social respect and honor are diminished, the sober, abstaining citizen seeks for public acts through which he may reaffirm the dominance and prestige of his way of life. Converting the sinner to virtue is one way; law is another.

Anyone in favour of the increase care to offer another explanation?

Constitutional Dilemmas: The Push for Proportional Representation

Luke Malpass of the Centre for Independent Studies gives an interesting talk (based on a forthcoming paper) on proportional representation and the possibility of bicameralism in New Zealand. In my view, bicameralism is the best constitutional reform for New Zealand which has much hope of succeeding. I’m not sure why it isn’t more of a political issue.

The ‘cult’ political following that Proportional Representation electoral systems achieve in Westminster countries means that it is a matter of when not if pressure for comprehensive PR is going to arrive in Australia. New Zealand has it, Scotland has it, and British Prime Minister Gordon Brown is holding a referendum on it in England, the very home of the Westminster system of government.

Curiously perhaps, New Zealand is holding a binding referendum on the future of its Mixed Member Proportional (MMP) electoral system which was modelled on the German electoral system, and early polling indicates its future is far from assured, due to concerns about its efficacy, and widespread lack of public understanding.

CIS NZ Policy Analyst Luke Malpass discusses his research in this area, looking at MMP, how it has operated and what alternatives exist. With an introduction by CIS Research Fellow Dr Oliver Hartwich.

This Week in Moral Panic

A few stories from New Zealand over the past few days:

Cheap smokes!

“I’m bloody horrified, but not surprised at their tactics,” [Maori Party MP Hone Harawira] said. “There’s now overwhelming support from New Zealanders to get rid of tobacco in this country and companies are doing their best to hook as many people as possible now, so they’re lowering prices and upping nicotine and marketing into places like Aranui and Otara.”

“What they are doing is maximising their profit before their demise and they don’t care that they’re killing New Zealanders to achieve it,” he said.

Gangs!

Local government leaders are seeking a law change to allow other councils to follow Whanganui’s lead and ban gang patches.

Whanganui was given the right to pass a bylaw last year banning all gang insignia except tattoos from public places, but other councils wanting to do the same must get their own enabling law through Parliament.

Party pills!

Police and customs officials are worried a party drug linked to the deaths of two teenagers in Britain is now circulating in New Zealand.

It is feared the banned drug mephedrone, also known as M-cat, meow and plant food, is growing in popularity as a substitute for ecstasy. (…)

Although no cases have turned up at hospital emergency departments as yet, potential side effects of the drug range from vomitting, nausea and nose bleeds, right through to hallucinations, fits, paranoia, anxiety and depression.

The long-term side effects are still not known.

Child sexualization!

“It is time to confront the issue of ‘corporate pedophilia’ and the ‘raunch culture’ which is harming the self-esteem, body image and academic performance of our young people,” says Mr McCoskrie.

Gambling!

The findings were clear – every additional pokie machine in a community results in .8 new problem gamblers. Further, there is no evidence that this plateaus.

Graeme Ramsey, Problem Gambling Foundation CEO, says research such as this should inform gambling policy.

Stand by for regulation.

Behind the Moral Curtain

I’m slow in posting this video of Elise Parham presenting her monograph Behind the Moral Curtain: The Politics of a Charter of Rights. The paper and video are both well worth checking out. Astute viewers may even be able to spot the back of my head in the video.

Elise’s argument is that bills of rights are fundamentally political, rather than legal, documents. This is true in the sense that rights will be interpreted and enforced based on political expediency and prevailing ideologies, as Robert Higgs and others have argued. Elise’s argument is that the writing of a bill of rights is also political. Once a government decides to draft a charter, many competing interests will compete to have their preferences reflected and the end result is unlikely to be a liberal document. Rather, we’ll end up with a whole lot of illiberal, and constitutionally protected, positive rights.

Wiggling it Around in Excrement

Some family-values conservative explains how gay male sex works:

Hat tip: Xaq Fixx.

The Key Speech

John Key’s speech to parliament today hardly signalled the commitment to reform he has been talking up. Summaries of the speech here and here, with commentary with which I largely agree here.

There’s unlikely to be much in the way of tax reform.  With only the possibility of a 2.5% increase in GST, probably some minor tinkering with depreciation rules, and no indication of spending cuts, there could only be very minor reductions to income and corporate tax rates.  The rejection of the introduction of new taxes, notably on land, is good, though for public choice rather than public finance reasons. There was some empty rhetoric about welfare reform, but major changes to the god-awful Working for Families were ruled out.

One thing really pissed me off though: the suggestion of unspecified reforms to liquor licensing rules to address the Problem of Binge Drinking. This means that beer is likely to get more expensive and less conveniently available so the government seems like they’re doing something. Not cool, John.

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