Thanks to Stephen Glenn for pointing me to this lovely new descriptive word for the supermarket giants, and to the Lib Dem media release website for highlighting this issue via Tim Farron.  But I'm afraid unlike Stephen or Tim I cannot actually see just in what way the Lib Dems have any better policies than the other two vacuous parties on the issue of how to protect our farmers from exploitation by the supermarket oligrarchy, or, as the title says, the "trolleygarchy".

What I do see is all three parties falling over themselves to think of new things for the state to do to address some perceived problem that even the Competition Commission seems to have suggested was not such a big issue.  But I suppose it was a farming conference so they're bound to have been wanting to promise these potential voters that they would each do something to defend their interests in return for their earth salted votes - such is what politicians do.

But it provides a useful example as to what the real, liberal, process should be to such issues.  Why on earth are we, or anyone else, calling for more regulation, more bureaucracy, more costs?  Why don't we look at how this market got to this position?  At the state's role previously and now, in disadvantaging one group and protecting the other.  And see whether there are things the state should stop doing to make this a fairer market rather than creating another state bureaucracy to try and fix problems still being created by state action?

For on both the demand and the supply side of the market for this most basic of commodities, the food that keeps us all alive, we find a trail of evidence leading back to state action that has made it ever more likely that these giant retailers would emerge in the first place and dominate from then.  Not that I am saying that big is necessarily bad of course - if they are delivering what consumers want at the right price and quality, they could have a monopoly for all I care, so long as there are no barriers for others to enter the market should they see that efficiency slip and see a way of doing better for the consumer. 

But they have had help in achieving that dominance.  There's a huge amount of food regulation that, inevitably, the bigger firm is better placed to meet, and not just to meet, but to lobby regulators to suit them too.  On the demand side, state mismanagement of everything from money supply to housing markets has resulted in a vanishingly small number of households now being able to house themselves on one income, and so hard pressed home-makers juggling jobs and home life demand more convenience foods.  No longer is a leisurely trip to a local market for raw ingredients, freshness and quality decided by eye, nose and trust in the local man or woman behind the counter, followed by an hour by the stove and time to feed the family all at once the familiar way of doing things.  So there is more demand for, and thence regulation of, more conveniently packaged and ready-prepared food - ever more ranges to stock; ever larger stores to accommodate them.

On the supply side, we caved into the EU some years ago now in losing most of our local abattoirs, so farmers are more likely to have to sell into a mass market with smaller margins than be able to sell more locally with fewer middle-men taking a cut.  The fact that we do not charge for road use means that there are benefits of scale in moving food in huge quantities around the country, again meaning you are less likely to sell direct to local retailers, but through buying groups that aggregate whole regional and even national production and put pressure on prices.  This same factor means we are happier jumping in the car and traveling ten miles to a superstore than patronising local stores in a local supply chain - and those out of town stores are not fairly taxed on their land use, as they can offer massive free car parks with no rates on them.

As premium produce tends to be more labour intensive, our tax system, based on employment, creates big disincentives in an already narrow margin industry to employing those extra people and getting better prices for premium goods.  And on the retail side, low skill jobs that sometimes probably would not be worth the minimum wage to smaller retailers can be better afforded by big operators offering shift work and annualised hours to enable them to operate when family owned retailers would all want to be in bed because their overheads for waiting up for one romantic couple in aisle three at three in the morning are just too high.

So, whilst it is obvious that this is all a lot more complicated that merely being about defending the farmer against the trolleygarchy, it should also be quite clear that the trail of blame as often as not lies in earlier and ongoing state action that helps protect the big retailers and squeeze the farmers - we have not even looked at the history of land subsidy (how do farmers expect to make money out of things that only a few years ago, relatively speaking, we kept lakes and mountains of across Europe?).  Instead of having yet more bureaucracy and regulation, the liberal response should be to look at where the market is already heavily skewed by state action and stop doing it!

Employment regulation, food laws and "consumer protection" (once it was enough to ensure that the meat wasn't green and smelly when you bought it, now it all expires days or weeks before it would actually be unfit and so in thrown out), transport policy, taxation policy, the openness of our political system to lobbying for favours - always benefiting the bigger players, all these need looking at before another layer of regulatory bollocks is imposed.

But has anyone spotted the little irony - that one of the biggest retailers the farmers are complaining about, ASDA, was once a farmers' collective, and their last Chief Executive was also a Tory MP!

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You know who you are. Those liberals (in particular) who always claim that "libertarian free markets" will result in a corporate plutocracy, or that the current turmoil in world financial markets (yes, it's still going on you know!) is a result of "libertarian free markets". Here, especially for you (but of interest to others I hope too), is a brilliant explanation of how this mutualist understands that free markets benefit people, not corporations.

CORPORATIONS VERSUS THE MARKET; OR, WHIP CONFLATION NOW

by RODERICK LONG - LEAD ESSAY - November 10th, 2008

Defenders of the free market are often accused of being apologists for big business and shills for the corporate elite. Is this a fair charge? No and yes. Emphatically no—because corporate power and the free market are actually antithetical; genuine competition is big business’s worst nightmare. But also, in all too many cases, yes —because although liberty and plutocracy cannot coexist, simultaneous advocacy of both is all too possible.

Read the rest...

...that "government is the problem", or because anti-regulator Alan Greenspan named Ayn Rand as his biggest political influence, it's time you did some reading.

Each year the Libertarian Alliance awards the Chris R Tame Memorial Prize (named for the late founder of the Libertarian Alliance) for the best essay on a title chosen by its Director, Dr Sean Gabb, and this year's winner was announced this weekend at the Libertarian Alliance annual conference at the National Liberal Club - more on which in upcoming posts.

The Libertarian Alliance is the biggest grouping of the broad church known as Libertarianism in the UK, and this year's essay title was set just ahead of the main round of recent financial market troubles but focussing on the common idea that Libertarians would demolish the state, leaving what we currently know as big corporate capitalism to run amok. The full brief for contestants ran as follows:

Essay Title: "Can a Libertarian Society be Described as 'Tesco minus the State'?"

Explanatory Note

Many socialists and conservatives regard libertarians as cheerleaders for big business. Our belief in free enterprise is understood as support for the bigger, and therefore the more successful, corporations - General Motors, Microsoft, HSBC, Tesco, and so forth - and for an international financial system centred on the City of London.

Some libertarians are happy to be so regarded. They dislike the way in which big government provides opportunities for big business to acquire privileges that shelter it from competition. Even so, they believe that a world without government, or a world with much less government, would be broadly similar in its patterns of enterprise to the world that we now have. It would be much improved, but not fundamentally dissimilar.

Other libertarians disagree. They regard big business as fundamentally a creation of big government. Incorporation laws free entrepreneurs from personal risk and personal responsibility, and allow the growth of large business organisations that are bureaucratically managed. These organisations then cartellise their markets and externalise many of their costs. The result is systematic distortion of market behaviour from the forms it would take without government intervention. These libertarians often go further in their analysis by denying the legitimacy of intellectual property rights and ownership rights in land beyond what any individual can directly use.

Where do you stand in this debate? Are you broadly comfortable with a global capitalism that is raising billions of people from starvation towards affluence. Or are you a radical with a vision of a society that has never yet been tried and is as alien and even frightening to most people as anything promised by the Marxists.

You tell us.

No go and read the winning essay. Congratulations go to Keith Preston, for his entry entitled "Free enterprise: the antidote to corporate plutocracy"

But if you are too lazy to read the whole lot (c 3000 words - so no more than one of my usual posts!), it concludes...

"An economy organized on the basis of worker-owned and operated industries,peoples’ banks, mutuals, consumer cooperatives, anarcho-syndicalist labor unions, individual and family enterprises, small farms and crafts workers associations engaged in local production for local use, voluntary charitable institutions, land trusts, or voluntary collectives, communes and kibbutzim may seem farfetched to some, but no more so and probably less so than a modern industrial, high-tech economy where the merchant class is the ruling class and the working class is a frequently affluent middle class would have seemed to residents of the feudal societies of pre-modern times. If the expansion of the market economy, specialization, the division of labor, industrialization and technological advancements can bring about the achievements of modern societies in eradicating disease, starvation, infant mortality and early death, one can only wonder what a genuine free enterprise system might achieve, and would have already achieved were it not for the scourge of statism and the corresponding plutocracy. "

Now, you may still not be convinced that "government is the problem", but do us the decency of not conflating "deregulation" with "evil right wing global corporatism" and blaming "libertarianism" for the great big pile of dog-doo the state and economy is in right now. Especially those of you who claim to be Liberals, fellow travelers of Libertarianism for the past 150 years.

...and we still don't seem to know what to do about bankers!

The Bank of Scotland, whatever is now left of it, is 312 years old. That of England just two years older. Ever since the banking system has been built on state protectionism, corporate welfare, monopoly privilege and, at its heart, a gigantic fraud.

The fraud was that a goldsmith could give both you and I receipts for my gold stored in his vaults and make money on both - from me a fee for keeping my gold, from you interest on the receipt you had borrowed from him. Indeed they found they could duplicate this so frequently, fraud upon fraud if you like, that though gold is perhaps regrettably no longer the basis of our money, the "hardest money", real "hard cash", amounts now to just three per cent of our total money supply in terms of everything we all have collectively borrowed and deposited.

To be fair, most goldsmiths at least issued notes of their own. Customers - both depositors and borrowers - chose which goldsmith to bank with on their reputation. If they became overstretched, issued what was felt to be too many receipts for the same gold, their notes would be less desirable in trade, there may even be a "run" when all the receipt holders tried to get their "real" money, the gold, out of the bank, which of course had much less gold than he had issued such receipts for. Nowadays, however, what they create and destroy in their lending business is denominated in the national currency, a currency issued nominally at least, by the state and guaranteed by the state.

This means it is no longer a private affair between a bank and its customers as to whether their business practices jeopardise their customers' savings; it is a problem for us all. We have ceded control of the supply of money issued in our name to private businesses whose main aim is to make profit for themselves and who, in the course of that otherwise noble pursuit, play fast and loose with the very air the entire economic system requires to function. And states protect them, bail them out as seems about to be the case in the US to the tune of almost countless billions, because they have to guarantee the currency they have so little control over.

Regular readers will know I am very fond of a quotation from Josiah Stamp, Liberal politican, Chairman of the Midland Bank in the 1920s and reputedly second wealthiest man in Britain in his lifetime:

"Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again.

"However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits."

It rather seems to me that with the events of the past few days, we may be "taking the earth away from them" (or, more accurately and nauseatingly, buying it back from them) which they have stolen from us with their inflationary approach to money, but leaving them the power to create those deposits all over again with which, in the next bubble, they will buy it all back again.

Everyone seems to think that money has somehow been pretty constant. The way it works I mean, not whether we call it shillings and guineas or pounds and pence. But the current confidence trick really began in earnest in 1913 with the work of two extremely wealthy, powerful men in the US who persuaded the government of their day to set up the system that enabled them to create "our" money according to their corporate priorities. The results of John D Rockerfeller and John P Morgan Jnrs' work was the Federal Reserve and the rapid ramping up of fractional reserve banking, and the eventual demise of real solid backing for that currency.

If the current crisis really does turn out to be the "big crunch" at the end of the cycle begun by that 1913 disastrous collaboration between politicians and financiers we should be ready with policy to replace that fraudulent, anti-competitive, oligarchical system, designed by the very wealthy to keep them that way for little actual productive work with something different. Entirely different. I do not detect any mainstream politicians with the cojones to say so. Our governments and politicians are but eunuchs to the bankers, and the longer that continues, the more the vast majority of us will suffer.

...and is not "liberal" either.

There are often attempts by ministers (Jacqui Smith is mentioned in Sunday's Independent for example about the recent prisoner data loss) to shirk their responsibility for government cock-ups. There are also left wing commentators who crow that these incidents are clear proof that "neo-liberal" policies of "privatising" government functions are evil and should be stopped; that the "free market" does not work in the public sphere.

But I don't consider such contracting out of work as either liberal nor as implying that ministers are no longer responsible for their incompetence. Nor, even, are they truly "privatisation". To me the doctrine that says some things are better done by profit motivated companies (or other, non-government organizations) does not mean merely sub-contracting to a government service level agreement.

Yes, such arrangements may save on costs or similar. But all they are doing is delivering the same policies and procedures designed by government. This is the "corporatisation" of government. It is inherently protectionist - the government grants usually monopolistic contracts to firms, sometimes even, like Capita, that started life as a bunch of civil servants deciding they could do better for themselves by making a profit out of what they do.

No, real privatisation, so called "liberalisation" of government functions, should mean the state divesting themselves completely from interference in that policy area. For example, just because DVLA contracts out its computer systems and administration does not mean the registration and licensing of vehicles and drivers has been "privatised". Not bothering with a DVLA at all and allowing insurance companies to work out ways of ensuring the drivers and vehicles they are prepared to insure comply with what they consider to be safe would be. i.e. a different way of working, free from government entirely, and open to proper competition where new ideas and ways of achieving similar ends can be developed. Finding new structures, free from the dead hand of government to do the things we need, rather than what politicians think we ought to need.

Similarly with ID cards or passports - it is not "privatising" simply to contract out the development and implementation of a government policy to profit making firms. Indeed, this is anathema to true economic liberals - for it is corporate welfare, money for old rope if you like. My idea from yesterday about getting rid of government validated passports entirely and instead letting people buy their own guarantee of identity if and when they need one using a new mechanism such as digital certificates would be liberal; the true privatisation of functions the state previously chose to regulate and deliver itself.

And of course, such liberalisation may not end up being delivered by "for-profit" corporations at all.

So Jacqui, stop trying to hide from your responsibilities. You have cocked up just as surely as if the person with the memory stick were your permanent secretary. You are incompetent. Indeed doubly so - for not only have you failed to do your job, but you've even failed to make sure the simpler option - getting someone else to do it for you is done properly.  You should go.

I'm very busy at the moment trying to get a web database up for my old school former pupils' society, but I noticed today a lot of discussion about Tesco and its market dominance.

Personally, I patronize the Co-op and local shops as much as possible and am in some ways fortunate to be able to do so, and I abhor monopoly and monopsony, and it is clear that Tesco, ASDA and others are getting pretty close to such a position if they haven't already. But there's a simple little step that could at a stroke force Tesco and others to account properly for some of the externalities of out of town shopping...

They currently don't pay uniform business rates on their massive free parking areas at out of town developments - a massive subsidy from town centre retailers to the big sheds. With Site Value Rating (Land Value Tax levied at a local level), with which the Lib Dems propose to replace the Uniform Business Rate, such land would be properly valued and taxed.

What a bugger. San Pellegrino belongs to Nestle. Did you know that? Are they proud enough to put their logo on the bottle? Are they bollox. Indeed even their original bottled water, Vittel, is only discoverable as a Nestle product by the tiniest of tiny small print on the bottle. But San Pellegrino drinkers do not even get that warning.

Now, this is not a Nestle rant. There are lots of reasons why I try not to consume Nestle products as is my right as a consumer. And I'm not trying to force people to do likewise, merely exercising that consumer right on my own behalf.

So, I know Volvic and Buxton are Coke; Perrier, Vittel and San Pellegrino now are Nestle; Highland Spring is the Makhtoums' I understand. And I steer clear as a result of all of them. The stuff that comes out of my tap is owned by German investors who are about to flog it to whoever wants it, but not the people it belongs to.

Water, water everywhere but not an ethical drop to drink.

I need a friend with a borehole or the Duke of Marlborough to do some better marketing so Blenheim water is on some shop shelves rather than just corporate sales. Otherwise I am utterly dependent on global multi-brands for the very stuff of life.