Where’s the money coming from ?

The classic problem facing an opposition is that of funding its promises. In most election campaigns, the government has first move by virtue of its capacity to bring down a pre-election budget. The government can snaffle appealing Opposition policies, while leaving little in the way of a Budget surplus to fund any new promises from the other side.

Here are some suggestions as to how Labor could answer the question “Where’s the money coming from”, and fund up to $10 billion in tax cuts and new expenditure
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An interesting comparison

In view of the full court press being applied by the US Administration with respect to Mark Latham’s promise to pull Australian troops out of Iraq by Christmas, it’s interesting to note that the Dutch government is not subject to similar pressure to “stay the course”, even though it has just announced a pullout date of March 15, 2005, less than 90 days after Latham’s. This is an extension of a previous commitment that expires on June 30, but the government, part of the Coalition of the Willing, sounds more like Latham than Howard.

Dutch troops will leave Iraq in March 2005 as the Dutch government will not renew their mandate after an eight-month extension, Prime Minister Jan Peter Balkenende said Friday.

“We are linking our stay to the formation of a new government in Iraq,” Mr. Balkenende told a news conference. “Eight months and that’s that …In extraordinary circumstances the mandate could be extended for another 10 days or so after March 15, but in principle the troops will leave on that date”

Meanwhile, the Dutch government has lost ground to the left in EU elections while Blair’s Labor government has lost ground to everybody finishing a dismal third in local elections.

Riemann hypothesis proved ?

According to this report, Louis De Branges claims to have proved the Riemann Hypothesis. If correct, it’s very significant – much more so than the proof of Fermat’s Last Theorem by Wiles.

It is also, I think, the last of the big and well-known unsolved problems in mathematics, and its nice to see the search ending in success. Some of the other big problems have been closed, rather than solved. The classic problems of the Greeks such as squaring the circle were shown to be insoluble in the 19th century, and the Hilbert program of formalisation was shown by Godel to be infeasible. And the four-colour problem (not a really important problem, but a big one because it was easily described, interesting and very tough) was dealt with by a brute-force computer enumeration.

Almost instant update Commenter Eric points to Mathworld which says “Much ado about nothing”. On the other hand, the same page reports a proof of the infinitude of twin primes which has been an open question for a long time, though not a problem in the same league as those mentioned above.

A real bargain

For those of you who like end-of-financial year bargains, here’s one that’s hard to beat. The Australian government has a scheme under which it matches donations to certain aid projects on a $3 for $1 basis[1].So if you give $500, the matching funds can bring the grant up to $2000 which is enough to buy books for an entire school in a poor country. In addition, the donations themselves are tax deductible, so if you’re one of those groaning under our top marginal tax rate, the effective cost is only $250.

I got the info on this from PLAN, but a lot of other organisations have access to the same scheme. In addition to PLAN, I’ve always found Oxfam/CAA to be pretty impressive, but there is a wide range of worthwhile options.

I found this info on the Ausaid website. In particular, if all the funds allocated to this program aren’t spent by June 30, they’ll go back to consolidated revenue. So if, like me, you think that aid to the world’s poor ought to have a higher priority in the budget, you can get a lot of effective leverage from this program. I assume the program will continue next year, and I don’t know what would happen if an increase in donations used up the budget allocation early in the year, but it couldn’t hurt to try. Maybe the government would be shamed into allocating more money.

fn1. There’s an “up to” in there, which always rings alarm bells when you’re looking at bargains, but it does appear that the full 3:1 amount is available in most cases.

Disputed terminology

Via Eugene Volokh, I came to this Boston Globe piece by Jeff Jacoby, who complains that the term “partial birth abortion”, when used in news stories, is normally surrounded by scare quotes, with the explanation that this term is used by opponents of abortion, but disputed by supporters. Jacoby complains about liberal bias here and says, among other thing “when reporting on the same-sex marriage controversy, they should observe that “what critics call ‘homophobia’ — a term promoted by gay and lesbian activists — is not recognized by medical authorities”

As far as I can recall, I’ve never seen the word “homophobia” used in a news story in a major newspaper, other than in quotes, usually direct, but occasionally indirect (“activist X is concerned about homophobia”) Certainly I’ve never seen it used as if it referred to a recognised medical condition analogous to, say, claustrophobia. I looked in Google News and the recent uses I could find were all either in direct or indirect quotes, opinion pieces (including reprints of Jacoby!) or in publications such as Gay Times and Alternet, which don’t claim to be unbiased. Can anyone point to examples that would support Jacoby?
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Sinclair Davidson rediscovers the Laffer hypothesis

In today’s Fin (subscription required), Sinclair Davidson, author of a recent Centre for Independent Studies monograph on income tax, restates the hypothesis[1] , most famously associated with Arthur Laffer, that governments could reduce revenue by raising tax rates. He claims that his own calculations have revealed that revenue would be maximized with a marginal tax rate of 35 per cent.

Does the CIS endorse this claim? I don’t recall seeing it in the monograph. But the article refers to Davidson as the author of the CIS monograph, and this piece is associated with a broader campaign by the CIS on this issue, which has included a number of policy monographs and opinion pieces, including a recent attack on me by Peter Saunders. In the absence of some specific disclaimer, I think it’s reasonable to take this piece as part of the CIS campaign[2].

I commented previously that the Davidson monograph represented an alarming lapse in quality control on the part of the CIS, but I’m now coming to think that the problem may be more systemic.

fn1. It is common to refer to the Laffer curve, but the idea behind the curve is obvious, and had been observed by many writers before Laffer. Laffer’s justified claim to fame is the assertion that the US in the early 1980s was on the declining section of the curve. This was one of the arguments supporting the Reagan tax cut. Of course, revenue fell after the Reagan tax cut and Reagan partially reversed it.

fn2. Of course the CIS doesn’t have an official set of policy positions. But it seems reasonable to speak of a CIS viewpoint and to regard Davidson as being representative of that viewpoint as regards tax policy.

Bremer's last trick

Juan Cole is spot-on, as usual

The Guardian reports that US civil administrator Paul Bremer signed an order Monday banning Muqtada al-Sadr and his lieutenants from running for elective office for 3 years because of their membership in an illegal militia. Muqtada and his lieutenants rejected this decree and said that the CPA and the caretaker government had no right to make such decisions.

Bremer’s action in excluding the Sadrists from parliament is one final piece of stupidity to cap all the other moronic things he has done in Iraq . The whole beauty of parliamentary governance is that it can hope to draw off the energies of groups like the Sadrists. Look at how parliamentary bargaining moderated the Shiite AMAL party in Lebanon, which had a phase as a terrorist group in the 1980s but gradually outgrew it. AMAL is now a pillar of the Lebanese establishment and a big supporter of a separation of religion and state. The only hope for dealing with the Sadrists nonviolently was to entice them into civil politics, as well. Now that they have been excluded from the political process and made outlaws in the near to medium term, we may expect them to act like outlaws and to be spoilers in the new Iraq. (emphasis added)

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Elect the Governor-General !

Governor-General Michael Jeffrey has been criticised, again, for political comments, this time backing George Bush against Mark Latham. Such criticism, in my view, is obsolete. Although he was more subtle about it, Jeffrey’s predecessor-but-one, William Deane made his disagreement with some of the more brutal policies of the current government pretty clear. The attempt to restore the status of the GG as an impressive nonentity was tried with Peter Hollingworth, and failed miserably. Next time around, not surprisingly, Howard chose to play it safe and appoint a Liberal party loyalist.

The real problem is with the GG position itself. It is now inherently political, but the appointment is entirely in the personal gift of the PM. This is most unsatisfactory, particularly when a change of government produces a situation where the GG and PM are of opposite parties. Under our current system, this will produce increasing pressure for the GG to resign when the government that appointed him/her loses office.

The only adequate remedy is direct election. A directly elected GG (or President) would be free to speak out on public issues from time to time, while maintaining a primarily ceremonial role. The case for direct election would be even stronger if we became a republic, but it’s overwhelming in any case.

Hat tips: The title of this post is from a book by David Solomon and Ken Parish revived the idea a while back.