Category Archives: Taxation

Are we heading towards peak globalisation? The ages of trade, globalisation and IT

This is based on a comment I made here. The history of (long distance) trade can be divided into 4 eras, one of which is regional and transitional: Continental-coastal: outside local areas, trade was limited to thin networks of high value items with some (highly fluctuating) upward tendency in the extent of such networks, but […]

Defending openness with cognitive closure

The Economist recently had a piece claiming that the left-right divide had been overtaken by the open-closed divide. It had this to say on the Brexit vote: So far, Britain’s decision to leave the European Union has been the anti-globalists’ biggest prize: the vote in June to abandon the world’s most successful free-trade club was […]

Black boxes, the rectification of names and the revival of slavery

The Chinese sage Kong Qiu (551-479 BC) (Kongzi “Master Kong”), known to the West as Confucius–which is derived from Kong Fuzi “Grand Master Kong”–had a doctrine Zhèngmíng, normally translated as “rectification of names“. There is a straightforward statement of the doctrine in the Analects: A superior man, in regard to what he does not know, shows a cautious reserve. If names […]

States start with violence and expropriation

I came across this passage in a collection entitled States and Development: Historical Antecedents of Stagnation and Advance (pdf): A realistic, even if stylized, account begins with the coalition building in which the elites of an emergent state are likely to engage, both with other power holders and with economically successful interests (p.11). It is in a similar […]

History and surplus: 10,000 years in one blog post

Human history has largely been driven by the creation and use of surplus production — that is, production beyond subsistence. (Subsistence meaning sufficient to sustain life and reproduction.) The change from prehistory to history is very much a matter of the generation and use of surplus production. There are essentially only three ways for such surplus […]

The hollow states of Islam

Reading Norman Davies’s Vanished Kingdoms, it struck me how much Islamic states–across most of the history of Islam–resembled the fluid warlord states of Europe in the centuries immediately after the collapse of the Western Roman Empire, but did not resemble the institutionally resilient Christian states of the later medieval period. These divergent paths came from the very different internal dynamics […]

The three ages of trade and the distorting retro-perspective of the modern

The history of long distance trade can be broadly divided into three periods: the globalisation or mass trade period (from the 1820s onwards), a transition period (in an integrating Atlantic economy, from the C16th onwards) and the pre-globalisation or network trade period (prior to the 1820s outside the Atlantic economy). What drives the transition from one period to another is communication and transport costs. Prior […]

Ethos and welfare

The OECD Secretariat released recently (November 2014) a revealing summary (pdf) of public social expenditure by OECD countries. The database the study is based on is available online. (Private social expenditure–i.e. private charity–is not covered by this post.) Social expenditure being defined as: Social expenditure comprises cash benefits, direct in-kind provision of goods and services, and tax breaks with social purposes. … To […]

Thinking about states

While writing a paper on state dynamics in Latin Christendom, it was useful to try and think (think out aloud indeed) coherently about states as historical entities. State understood as an institutionalised structure of expropriation and coercion dominant in a particular territory. The notion that a state has to have, or even aspire to, a monopoly of coercion does not make […]

Domain states, tax states and fiscal states

Have been reading a Ph.D dissertation by Wenkai He on the consolidation of a modern fiscal state in C18th England and late C19th Japan and the failure to do so in late Qing China. (The dissertation has since become a book.) The dissertation references history of public finance literature I was previously largely unaware of. The literature covers domain states and fiscal […]