Tuesday, July 9, 2013

Do 19th Century principles of political economy explain British policies towards the Irish during the great famine?

Front CoverThis question has arisen from my reading of ‘The Great Famine’, by Ciarán Ó Murchadha. But I have an interest in the question for two additional reasons: I have some Irish ancestors who would have been affected by the great famine; and in the course of my work as an economist I have developed a great deal of respect for 19th Century political economics.

I found Ó Muchadha’s book to be enlightening in explaining why a substantial proportion of the Irish population were heavily dependent on potatoes and highly vulnerable when crops were destroyed by a fungal disease in most of the years from 1845 to 1849. Prior to the famine, about one-third of the population was completely dependent on potatoes because no other crop could provide as much nutritional value from small plots of land. Over 600,000 households subsisted without tenure rights on small plots of land under the conacre system, which gave them access to land in exchange for their labour. A further 300, 000 cottier households had a more formal tenancy relationship which entailed working for set wages, which were offset against the rent for their plots. Many tenants on small holdings paid their rents in cash rather than by providing labour, but were also completely dependent on potatoes for subsistence. 

In the decades leading up to 1845, access to land for potato-growing was becoming more difficult, partly because of an increasing tendency for landowners to consolidate holdings for grazing purposes. In their struggle to obtain access to land it had apparently become common for poor people to offer more rent than they could possibly pay, in the hope that once possession was obtained it would be less bothersome for landlords to reduce rents than to initiate eviction proceedings. The transactions costs associated with evictions were often substantial. Tenants had a set of ‘tradition-sanctioned’ modes of proceeding under cover of darkness against people whom they believed to be perpetrators of injustice. 

Such secret society activity did not persist after 1847, however.  By that time, those who would have been likely to exact retribution for evictions were apparently ‘for the most part dead, in the workhouses, in prison or had departed overseas as emigrants or as transported felons’. The famine added impetus to the number of evictions, not just because many tenants were unable to pay rent, but also because landlords anticipated that their rates would rise dramatically to pay for relief under the Poor Law. Evictions would have substantially increased the death toll from the famine, but from a landlord’s perspective, consolidation of holdings was necessary in order to avoid bankruptcy.

The relief provided by voluntary contributions and the British government was not sufficient to prevent over a million deaths occurring during the famine period. The British Treasury spent about £8 million on famine relief in Ireland, much of which consisted of advances that were intended to be repaid. The government’s contribution was relatively small by comparison, for example, with the £69 million spent on the Crimean War of 1854-1856. The government could have done more to help the Irish without causing much hardship within Britain.

So, why didn’t the British government provide more help to the victims of the Irish famine? The explanation offered by the author is as follows:
‘Political economy … combined with ‘providentialist’ and ‘moralist’ views, provided the assumptions underlying the decision-making of the small London-based political elite whose views translated into legislation for Ireland, and none of whom ever witnessed its effects first hand’ (page 194).

However, that doesn’t line up well with what I know about the views of prominent 19th Century political economists. For example, in discussing the limits of laissez faire in his book ‘Principles of Political Economy’, published in 1948, J S Mill wrote:
‘Apart from any metaphysical considerations respecting the foundation of morals or of the social union, it will be admitted to be right that human beings should help one another; and the more so, in proportion to the urgency of the need: and none needs help so urgently as one who is starving. The claim to help, therefore, created by destitution, is one of the strongest which can exist; and there is prima facie the amplest reason for making the relief of so extreme an exigency as certain to those who require it, as by any arrangements of society it can be made.’

Ciarán Ó Murchadha implies that his view is based on research by Peter Gray, which demonstrates
 ‘that the ideological framework was part of a wider set of beliefs shared across the British political spectrum, including the conviction that the Famine had been sent by providence, and that it furnished the British state with both the opportunity and the moral authority to reform Ireland thoroughly’.

A paper by Peter Gray has explained British policies towards the Irish in terms of
‘a readiness to attribute mass famine mortality in Ireland to the wilful immorality of the Irish, and to insist on the implementation of the penal mechanism of the poor law on all social classes’.
Immediately afterwards, Gray adds:
‘This, rather than any unthinking adherence to “laissez faire” is what informed the doctrine of “natural causes” in the latter stages of the Irish famine’ (IEHC 2006 Helsinki Session 123).

It seems to me that British views relating to providence and morality might have been advanced by English people to avoid acknowledging that they did not feel much sympathy for starving people in Ireland. In his book, ‘Why Ireland Starved’ (1983) Joel Mokyr suggests:
‘It is not unreasonable to surmise that had anything like the famine occurred in England or Wales, the British government would have overcome its theoretical scruples and would have come to the rescue of the starving at a much larger scale. Ireland was not considered part of the British community. Had it been, its income per capita may not have been much higher, perhaps, but mass starvation due to a subsistence crisis would have been averted …’ (p 292).


Even though Britain and Ireland were part of a political union, there are strong historical reasons why many British and Irish people did not see each other as members of the same community. There is evidence that British political economists, including J S Mill, shared the prejudices against the Irish of many other British people. But the principles of political economy espoused by 19th Century political economists did not require the British government to allow large numbers of people to die during the Irish famine. 

Tuesday, July 2, 2013

Do Australians elect the prime minister?

In a recent post entitled ‘The importance of representative democracy’, my friend, Jim Belshaw, takes the Leader of the Opposition, Tony Abbott, to task for saying that the Australian people elect the Prime Minister.

Jim writes:
‘They don't, nor should they if you want to maintain our current system of Government’. Maybe you don't so, so present your alternative.
In our system, Parliament is the supreme being. Parliament appoints the Prime Minister by awarding confidence. It is Parliament that stands between us and the overbearing coercive power of Executive Government.’

It seems to me that while Jim is technically correct, it has been unusual for party leaders to be deposed while their party is in government. That has led to a situation where most people have tended to vote for party leaders and perceptions of leadership have a massive influence on the popularity of political parties. The recent lift in the Labor party’s electoral prospects did not occur because of some radical change in the party’s policies. It occurred because caucus elected a new leader.

As previously noted, I am pleased that the Labor caucus has restored Kevin Rudd to the leadership and have given voters the opportunity to vote against him. It does seem reasonable for voters to expect that the leader of the party they vote into office will remain prime minister until they vote him or her out of office. On the basis of Labor’s recent track record, however, it also seems reasonable for voters to question how long Kevin Rudd will remain prime minister if Labor is returned to government. Will Kevin Rudd again be replaced by his deputy next time around? Could a vote for Kevin end up as a vote for Albo?

Unfortunately for the line of argument Tony Abbott seems to be running, the Liberal party also has recent form (in Victoria) in deposing an elected leader while it is in government. And it is possible to imagine circumstances arising where a vote for Tony might end up as a vote for Malcolm. Some voters might view that as a good reason to vote Liberal!

What effect will it have on our system of government if it becomes become more common for prime ministers to be deposed by their own parties? I’m not sure. If it makes voters focus to a greater extent on policies rather than the personalities of leaders that would be a good thing. However, I don’t think that will happen. It seems more likely to attract attention to the personalities of the leader’s rivals in his or her party and could lead to greater political instability as those rivals seek to exploit their popularity with voters. But it may also cause voters to pay more attention to the ability of current leaders to work harmoniously with their rivals. People may become more conscious that when they vote for clowns they end up with a circus.

I am broadly in agreement with Jim about the importance of parliament and representative democracy. I don’t want to change the system. In practice, however, I don’t think parliament does much to protect us from what Jim describes as ‘the overbearing coercive power of Executive Government’. Thank God that we also have a constitution, rule of law, regular elections, two houses of parliament, and a federal system of government.

Another important merit of our representative system of democracy, with single member electorates, is that it normally produces accountable government. One party or stable coalition normally wins a majority of seats and is able to form a government that usually lasts until the next election is held. The elected government doesn’t have unlimited power to implement the policies it is elected to pursue, but it can be held accountable for the policies that it implements.


By contrast, when overall budgetary and regulatory outcomes are the result of unstable alliances involving minor parties and independents, voters have great difficulty in holding any party accountable. 

Monday, July 1, 2013

What is so good about 'Send Round the Hat?'

‘Now this is the creed from the Book of the Bush--
Should be simple and plain to a dunce:
"If a man's in a hole you must pass round the hat--
Were he jail-bird or gentleman once."

Henry Lawson, a renowned Australian bush poet and story teller, used that verse to begin his story, ‘Send Round the Hat’. The story is based on his experience in the Bourke district of New South Wales in the early 1890s and would have been intended to be read mainly by Australian pastoral workers.

I came to re-read the story a month or so ago when I was asked to recommend some historical references for an Argentinian visitor who was interested in the cultural tradition in rural Australia of people sticking together and supporting each other in this vast harsh land. I suggested that ‘Send Round the Hat’ was excellent.   The comment that came back was: ‘Not necessarily that easy for an Argentinean to understand!’
That response is fair enough. There are probably a lot of Australians who would also struggle to understand English as it was spoken in rural Australia in the 1890s.

 Some people might even struggle to understand the message of the poem quoted above. A person who is ‘in a hole’ is in a difficult situation, often involving a financial problem. To ‘pass round the hat’ is to ask people to donate money to help the person concerned – traditionally, by asking them to place a contribution into a hat. The message is to be kind to people who are in difficulty, irrespective of their background.

The storyline is very simple. The author presents a series of anecdotes to explain how Bob Brothers (more commonly known as the Giraffe or Long-‘un because he was tall) has gained a reputation for passing around the hat to help others. He tells us that Bob is always the first to make a contribution when he passes around the hat and that he sometimes has to borrow money in order to do this. The story ends with Bob’s friends stealing his hat and passing it around to raise money to help him on his way back to Bendigo in Victoria to marry the girl he loves.

The story is brought to life by Lawson’s description of the characters involved and their attitudes. Most regard Bob Brothers as a nuisance, or pretend to. One of the characters, Jack Mitchell, is even permitted to suggest that Bob is ‘is one of those chaps that is always shoving their noses into other people’s troubles’ because of ‘vulgar curiosity and selfishness’. According to Jack’s theory, Bob makes his collections because he is ambitious and likes public life.

Fairly early in the story, Lawson has Bob explain his philosophy as follows:
"The feller as knows can battle around for himself," he'd say. "But I always like to do what I can for a hard-up stranger cove. I was a green-hand jackeroo once meself, and I know what it is."
Bob was saying that he does what he can to help strangers in need because he knows what it is like to be one. The ‘feller as knows’ would have a great deal of local knowledge and networks to support him. A ‘hard-up stranger cove’ is a stranger with little money. A green-hand jackeroo is an inexperienced worker in the pastoral industry.

The main reason why I consider ‘Send Round the Hat’ to be excellent is because Lawson is using the story as a gentle way to suggest to his readers that kindness involves helping strangers as well as your mates (friends and people you know well) and fellow members of trade unions, religions and ethnic groups.

The anecdote that makes the point most strongly, in my view, is the description of Bob’s attempt to take around the hat for the benefit of a sick Afghan camel driver:
‘Some years before, camels and Afghan drivers had been imported to the Bourke district; the camels did very well in the dry country, they went right across country and carried everythink from sardines to flooring-boards. And the teamsters loved the Afghans nearly as much as Sydney furniture makers love the cheap Chinese in the same line. They love 'em even as union shearers on strike love blacklegs brought up-country to take their places.
Now the Giraffe was a good, straight unionist, but in cases of sickness or trouble he was as apt to forget his unionism, as all bushmen are, at all times (and for all time), to forget their creed. So, one evening, the Giraffe blundered into the Carriers' Arms--of all places in the world--when it was full of teamsters; he had his hat in his hand and some small silver and coppers in it.
"I say, you fellers, there's a poor, sick Afghan in the camp down there along the----"
A big, brawny bullock-driver took him firmly by the shoulders, or, rather by the elbows, and ran him out before any damage was done. The Giraffe took it as he took most things, good-humouredly; but, about dusk, he was seen slipping down towards the Afghan camp with a billy of soup.’

The point being made was that Bob was even prepared to pass the hat around among bullock-drivers - a notoriously tough and profane group - asking them to make a contribution for the benefit of an economic competitor belonging to a different religious and ethnic group.

‘Send Round the Hat’ might not be great literature, but it makes some important points about the inclusiveness, or otherwise, of Australia’s cultural heritage of supporting people in need. After re-reading it I am still of the view that the tradition of passing around the hat has always been largely about ‘looking after your mates’. However, I greatly admire Henry Lawson’s attempt to promote higher ideals.

Friday, June 28, 2013

Do you know what?

Kevin Rudd is back. He is rocking around the place, cooking with gas. But will he be able to save the Labor party? On the face of it, there is a natural complementarity between his two philosophical approaches and a complementarity that could be developed further in the direction of some form of conceptual synthesis. All he has to do is to reverse engineer and start at the third year and move back to the first.

You might be thinking that is just a load of balderdash, a load of absolute bunkum. Well, fair shake of the sauce bottle! Let’s be fair dinkum.

It seems to me that Kevin 07’s second coming has brought humour back into Australian politics. I had to laugh when, just after his re-election to leadership of the Labor party, he said that there is too much negative personal politics in Australia and that ‘all this must stop’. He didn’t seem to be aware of the irony of saying that after having told us earlier in the day that he was contesting the leadership of the Labor party in order to ‘prevent Mr Abbott from becoming prime minister’. It would be hard to imagine anything more negative and personal than a political campaign to prevent another person from being elected.

Unfortunately, I don’t think Kevin would have known he was joking. I don’t think he knew he was joking either during the 2007 election campaign when he accused John Howard of engaging in an ‘irresponsible spending spree’ and said that this ‘reckless spending’ must stop. I didn’t know he was joking then, either. I thought that we had seen a convergence between the two sides of Australian politics and that the Labor party under Kevin Rudd would give high priority to responsible economic management. I even hoped that it might pursue productivity-enhancing reform with some vigour.

Looking back now, I must have been aware that some of the policies announced by Rudd were jokes played on a gullible electorate. For example, I must have suspected that fuel watch and grocery watch were political exercises designed to tell voters that Kevin was listening to their concerns and was prepared to engage in frenzied activity to give the appearance of doing something about them without actually doing anything. I suppose I thought that all governments have a tendency to play those kinds of games.

However, it is now clear that nearly all Kevin Rudd’s policies were like that. Rudd’s first government was like a swan attempting to do backstroke. Rather than gliding effortlessly across the surface of the water, with all its energy being expended below the surface, there was a lot of splashing around in public and a tendency to move backwards. It was as though Rudd saw his purpose in politics as being to just splash around and improve his popularity rating.

My book, Free to Flourish, contains the following suggestion:
‘A more critical attitude should be taken toward the efforts of politicians to be seen to be responding to public opinion. Democratic politics is reduced to comedy when individual members of the public look to politicians for leadership when forming their opinions and politicians look to public opinion polls in developing their policies. Politicians should be expected to maintain principled positions that are not blown around by changes in public sentiment.’

There is no prize for guessing which politician was at the forefront of my mind when I wrote that.


Like many other people in this country, I feel that the Labor caucus has righted a wrong in restoring Kevin Rudd to leadership of the Labor party. It is pleasing that those voters who are able to see through the practical jokes that Kevin 07 played on them (and himself) when he was previously prime minister have now been given the opportunity to vote against him.