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Eliot Wilson's avatar

Very strongly agree. Local government has become far too much of a funnel for spending the block grant, which means it lacks financial accountability and responsibility, which means people pay little attention, which means the calibre of candidates is poor and the choice restricted, and then the cycle begins again. I raised this in CapX back in November:

https://capx.co/financial-dependency-is-wrecking-local-government

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Geary Johansen's avatar

I do think there are a couple of exceptions. The OBR stats show that legal mass migration has proven disastrous for the UK. There is literally no way that importing low income workers in the low skilled or no skilled categories isn't going to lead to a dilution of public spending and services per person as a result of less in tax contributions per person. Also, American economic history shows that whilst migration adds to GDP, tighter labour markets are vital for productivity growth, (at a guess) characterised by business owners prioritising productivity over expansion, due to fears over an inability to source employees. Productivity growth rates per annum before Reagan ended the restrictive era of inward migration were twice those of the period since.

The other area is energy. Despite the literal library of online 'proof' showing that solar and wind are cheaper, it has become quite clear that those who have gone furthest in deploying wind and solar have the highest energy prices by a matter of multiples. California, the UK and Germany are the dumpster fires of energy economics, whilst more sensible countries like Norway, Sweden and France demonstrate a more rational path towards tackling climate change, just as America's fracking revolution shows that natural gas remains a vital transition source of energy while the world waits for new technology and the West remains desperate for governments and regulatory systems which can deliver nuclear at prices which the Asian economies have proven can be done cheaply, safety and on-time. Norway in particular is beginning to make noises about the legal requirement to transfer energy to countries with bad ideologically-driven energy planning, causing higher energy costs for their own consumers.

As a side note on the nuclear energy issue, Sam Dimitrui's Notes On Growth essay on 'Why regulators need a ‘red team’' is an amazing essay which is well worth a read for anyone who understands high energy prices are a sure and certain road to poverty for Western populations. There are no energy-poor, rich countries. The less energy a country consumes per person, the poorer it is.

https://www.samdumitriu.com/p/why-regulators-need-a-red-team

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