Category: Economy

Finding Balance

Regulation can be a contentious issue. That’s an understatement. A spectrum of views extends from the complete libertarian to the past soviet model. Citizens shouldn’t be encumbered by any restrictions to the State has the right to dictate every aspect of life. Clearly, there are immense downsides to either of these extremes. Luckily, although not everyone will agree, the set of political choices available in the UK covers the wide range from the far-right to the far-left. These labels are deficient when it comes to the detail. Often these two camps are similar in their authoritarian ways and means.

Rejecting the extremes, being a liberal, means finding a balance. That means a minimal number of rules and regulations to achieve the prosperity, safety and security goals that most people happily support.

A pendulum swings in the British political cycle. Never quite sure what the cycle time is on this one. What’s for sure is that our society’s tendency is to go from urges to tighten-up rules and regulations to impulses to eliminate or relax them with gusto. Often, the aim is to tweak or protect economic stability or tweak or promote economic growth. After the banking crisis of 2008 it was the first of these, now it’s the second.

Brexit is a strange oddity. Although, great claims were made for the loosening of the ties that bind us, the reality has been much onshoring of past rules and regulation. The forces of continuity have some good arguments.

It’s reported that Prime Minister Starmer is considering dynamically aligning UK regulations with EU regulations, as if that’s not happening pragmatically and piecemeal already. OK, this is not consistent across every sector of the economy. It’s a mixed bag. Politicians banging the drum but not doing much.

Let’s say the financial services market goes a different way from the technology sector. One has a history as long as your arm the other is being made-up as we speak. Clearly, there are risks in both deregulation and overregulation. Thus, I get back to that notion of finding a balance.

To hardened Brexiters EU and UK rules constrain. To their supporters they enable, facilitate and transform.

Now, what’s difficult to discern is where do Starmer and Reeves stand?

A direction of travel, to encourage investment in the UK, has been touted. That implies alignment rules. Investors rightly seek the largest market on offer. Like it or not, the UK is not the US, or even the EU when it comes to the size of its economy. Maybe, it’s taken Brexit to realise that we align as a matter of common interest. Mutual benefit.

Most of our safety and security goals are not subjects of intense competition. If you fly internationally, why would it make sense to compete on safety or security? The general expectation is that common high levels of safety and security are desirable.

As the weather improves so we are heading towards a year of the Labour Party in power. There’s disappointment and concern about the timidity of their actions. The word “reset” is banded about. A ridiculous word. Press the reset button to restore a past condition. No, choices need to be made. Closer alignment and partnership with the EU are the rational choices.

Travel’s Societal Impact

Privilege is all around us. It’s, by definition, not equality. It’s a privilege to live in a country not torn by war or where the environment has not been decimated. It’s a privilege to be able to protest and strongly disagree with the powers that be. Indeed, in this country it’s a right too.

Debates about the moral or ethical grounds of inequality will never cease. That’s a hope of mine. For the minute we become timid and cowed by an authority that would rather supress such debates, then that’s the end of our democracy. We’d be free no more.

A large part of my career has been in the aviation industry, in one way or another. Putting aside the military uses of aviation, that’s another debate, civil aviation and the travel industry are two peas in a pod. Flying facilitates travel. Largely international travel. Apologies to the cargo industry, leisure flying and so many others.

One phenomenon that is not new, is that of raising the issue of responsibility. For example, the consequences of tourism to natural environments are often negative. Not always so. Huge effort is made by some countries and organisations to make tourism a positive. However, generally there are significant challenges to be grappled with in making travel affordable for all.

Wealthy young Europeans have been roving across boarders as part of a rite of passage since the 1600s. A “Grand Tour” was a form of discovery, education and cultural enrichment. Today, a student might call that a gap-year. Time taken out of formal studies to travel abroad. The aim, as well as having fun, is to return a more rounded person ready for whatever life might throw up.

Where do we sit as a society in terms of the balance between personal freedom and our collective responsibilities? Are activists right to attempt to slam or shame travellers for the negative impacts that they can trigger? These are uncomfortable questions. Ironically, these difficult questions are often raised by the people who have enjoyed the privilege of travel.

In my mind, a debate on this subject of balance reflects greater societal issues. When we look at a basic hierarchy of human needs then international leisure travel may not be top priority. However, life would be less rich and colourful without it. Embarking on an epic journey, that takes a traveller outside their comfort zone, can be a life changing event.

To defend the freedom to travel, I cannot avoid looking at the other side of the equation. There is an overwhelming responsibility to do something restorative. Ignoring the impact of travel, particularly civil aviation, is not an option anymore.

I know there are some politicians who scream for the abandonment of Net Zero policies and all they entail, but they are extremely foolish. Shifting the burden onto future generations is reckless. Appealing to those who want to escape the debate, or force a return to mythical age, is nothing more than doomed short-termism.

This is one reason I’m an advocate for electrification and the exportation of radical solutions, like hydrogen powered civil aviation. Technological solutions are part of the path to take. That, in of itself, may not be enough but at least engineering change is permanent.

Solutions by design are far more powerful than ephemeral political posturing. Legislation can be overturned in a weekend. A whole new way of operating aviation can be sustained for decades.

Revolution: Hype vs Reality

Talk is of a revolution[1]. That sounds sensational. It sounds like marketing talk aimed at creating an insatiable desire for something new. So, that kind of talk immediately switches on the cynical side of my brain. Is this hype or is it real?

We’ve had plenty of both in my lifetime. Colourful boys adventure books with novelties like nuclear powered aircraft and moonbase vacations. It’s not that “flying a kite” is entirely bad. Those imaginings of the future had pictures of prototype flying cars. Now, we maybe on the verge of that prediction becoming real.

AI is not new. It’s been a research subject for decades. What we have most recently is the coming together of concepts and the practical machines on which to run those concepts. Amazing has been the speed of progress. That’s a modest word considering the sudden adoption of new tools that go way beyond simple INTERNET search engines.

Bill Hunter’s line: “You can’t stop progress”. At least that’s the line I remember of the 1994 film Muriel’s Wedding[2]. It was said on a rocky path to “progress” induced disaster.

My curiosity centres around avoiding the hype and finding out what’s real. That’s in the vain hope that I might not be left behind in this rapid surge of “progress”. So, to keep up with the latest technical developments I clicked on a TED App. The boss of TED, Chris Anderson has recently interviewed Sam Altman, the CEO of OpenAI[3]. He’s the guy behind ChatGPT. AI has elevated new people into the spotlight. It’s given established technology companies a headache. Their desire to be in the pack, or leading the pack is mighty strong.

My takeaways form this interview are that AI will outpace human intelligence, in time. No one knows how much time, but the path is set. The direction of travel isn’t in the control of traditional institutions or government departments. Society must get its head around a time when we live with machines that out pace us.

Second, it would be nice to have an enlightened global regulator to ensure that the massive amount of development going on produces outcomes that are for the public good. Chances of that happening are about zero, although not zero. There’s even a possibility that the industry at work on this technology realises the need for a set of enforceable rules.

Questions of safety are paramount. Even though society debated the impact that the INTERNET would have on us, steps to provide protections and boundaries only came about after the event. Lost in a storage box, I once had a book called “The Sleeping Sentinels”. Basically, the thought was that political parties and the legal profession are always more than ten steps behind the technologists. We are highly reactive.

One interesting aspect of the interview was the pauses. What was evident is that it’s hard to find the right language to describe what’s happening. Walking a tight rope between sounding like Chicken Little[4] and a wise respected elderly professor. Revolution is the right word.

POST: It’s not just IT Why AI Demands a New Breed of Leaders

[1] https://youtu.be/Xv8FBjo1Y8I

[2] https://www.youtube.com/watch?v=PLDcevp5w5o

[3] https://www.ted.com/talks/sam_altman_openai_s_sam_altman_talks_chatgpt_ai_agents_and_superintelligence_live_at_ted2025

[4] https://www.rottentomatoes.com/m/chicken_little

Transform of Future Careers

My education was an industrial one. I guess I was fortunate. No “A” levels for me.

Part of my apprentice programme was to move around the different departments of a major electronics company. That included a range from demanding technical areas, testing new designs, to the everyday pressure of a print room run by an ex-Army man who ran it as if he’d never left the Army. Yes, print rooms were once a staple part of an engineering company. Huge dyeline machines that constantly ponged of ammonia twinned with the noisiest dot-matrix printers ever made. I even got to learn some COBAL[1] with the business unit that put together our payslips. Amazingly enough I was introduced to mathematical concepts, like Fast Fourier Transforms (FFT), at a time when the digital logic needed to implement such algorithms consisted of large cabinet loads of discrete electronics. Now, my simple mobile phone can crunch numbers in this way.

Several weeks here, and several weeks there. One excursion meant spending hot summer days in the Mendip Hills at a quarry testing equipment in deep water. Another meant time working in a former brick-built railway shed that served as a small machine shop.

Of all the different experiences that I had in those formative years (16-18 years) the one that I’ll never forget was a secondment to a London based factory. The company’s training officer recognised that this small village country boy needed to go to the big city. Uppark Drive, Ilford no longer exists as a manufacturing plant. That’s no surprise. In the late 1970s that factory handled the company’s long-lived products. Technology that has gone forever.

Anyway, this is not so much about me. What I’m led to speculate about is what sort of modern-day engineering apprenticeship offers. Does it offer the variety of experiences that I had? Is industrial sponsorship as generous and altruistic as it once was? Do industry and government work hand in hand to ensure a future workforce has the skills that are needed?

Simply the answer is probably “no”. In fact, the structure and organisation of design and manufacturing organisations has changed dramatically. In aerospace there are some companies that have a major factory with every facility at their heart but most subcontract extensively. Colleges have been turned into educational shops, paid by student numbers.

Here’s a thought. It’s not so much what’s taught that’s key as much as the exposure to a variety of ways of thinking and working. A variety of exposure give a student a toolbox from which they can then draw. Finding interesting work will depend on adaptation and repurposing past skills. That’ll be the only way to assure the world doesn’t pass by at an ever-increasing pace.

I’m sure that advances in artificial intelligence (AI) will affect everyone[2]. The idea that all AI will do is displace people is wrong. It just means that, like my recollections above, the types of activities that needs to be done will be entirely different in 2065. Unless I’m highly unusual, I will be long gone. But if you are 25 years old this is worth a thought.

[1] https://archive.org/details/historyofprogram0000hist/page/n7/mode/2up

[2] https://nap.nationalacademies.org/download/27644#

Unlocking Prosperity

“So, whatever you wish that others would do to you, do also to them, ………”

This is the code of reciprocity. In other words, I’d like you to be generous to me, so I’ll be generous to you. Now, of course this works the other way around in a perverse way. Perfectly human, although it’s tainted with suspicion. I’d like you to be generous to me, but I think you are unkind, so I’ll be unkind to you.

I don’t think that’s what Apostles had in mind. Their teaching is first to urge us to be generous as a way of encouraging others to act similarly. A lot there depends on how you view human nature.

For a long time, the United States (US) has had relatively low import tariffs based on adopting a leadership position. It’s to say, you should be like us. If you do that, there’s a chance that we will both become more prosperous.

Generally, argue how you will, as a result the US has become the most prosperous nation in the world. I know it’s only one measure but looking at the numbers of billionaires by country 2025[1] the US stands out. Over a quarter of the world’s billionaires live in the US.

I started with a Christian quotation and so it may be appropriate to ask how generous those fortunate billionaires are towards the people of their own country? I won’t go there. A nations prosperity should not depend on the philanthropic endeavours.

This year a lot has changed. Established ways of working are getting all shook-up. Ambition, suspicion and rivalry are all taking centre stage. An ambition to be unquestionably greater than all others. A suspicion that most others are taking advantage. A fight over valuable and often limited resources.

Again, human history is littered with times when such forces took over. Interestingly, Christianity gained a footing at a time when the Roman empire was plundering anything it could get its hands on. However, I’m not advocating a moral code to moderate the instinct to be imperial.

All to often those moral codes are just moulded and shaped to fit the prevailing circumstances.

No, my appeal is to mutual advantage. The simple idea that 2+2=4 is not the be all and end all of reality. In human affairs we can with effort make 2+2 equal more. It’s that saying that the whole is greater than the sum of the parts. It’s why people work together for common advantage.

Yesterday, I don’t suppose for a moment that ancient monument that I drove past would be there if it were not for the above benefits of having common goals and a willingness to cooperate. Stonehenge.

Trade barriers are foolish. Walls prevent the spreading of prosperity.

[1] https://worldpopulationreview.com/country-rankings/billionaires-by-country

The Curious Case of Lists

How on earth does a humble soul like me make any comment at a time like this? Adding to the realms of things already said seems a bit pointless. We now have echo chambers sounding in echo chambers. Instead, I’ll take a sideways look. Mention one or two of the items that struck me during the week.

Penguins are getting a lot of Press. Ever since Trump decided to slap a tariff on an island inhabited by penguins there’s been a lot of speculations as to his ultimate motives. If I take Feathers McGraw as an example, I can well understand the need to make a pre-emptive strike against such a potentially villainous bird.

Of other notable penguins, I can only surmise that Trump has never heard of Pingu[1]. Now, there’s a subversive penguin if ever I saw one. He originated in Switzerland, which is strange to say the least.

I almost forgot another memorable fictional penguin of the past. A threatening comic character that combines menace with a gentlemanly swager[1]. One of Batman’s greatest foes. A well dressed master criminal unlike other criminals one might mention.

[1] https://youtu.be/yxqz9JqXdJU

I forgot it this year. Next year, I will pay attention to Penguin Awareness Day. 20 January might be winter to us but its summer to them. Birds that have the decency to dress up in black and white dinner jackets deserve some respect. I for one, will express my concern that the exports of our feathered friends may be taxed. Could it be that Trump is confused. Afterall the real penguins love the ice in the southern hemisphere. In fact, nowhere near Greenland.

“I’ve Got a Little List”. There’s a phrase that comes to mind. Lists, one in particular, does seem to have hit the News this week. I ask, why is there no modern-day equivalent of Gilbert and Sullivan? Accepted, companies do play with their songs and make words to fit the situation of the day[2]. There’s a great deal of scope for new lyrics.

The fabric of social media would rupture if there were no lists. I’m often entertained by an animation that shows a compilation of data as it ripples through the years. Something with colourful bar graphs that go up and down as the rank and order changes. A musical accompaniment that has no relation to what’s being presented. Lists are captivating. They spur a natural curiosity to look for the item of most personal interest. So, over time the economy of X or Y country goes up and then down and then up again. For sure, nothing stays the same for long. That maybe the moral of the week.

[1] https://youtu.be/7Uoug3d3AJE

[2] https://youtu.be/1NLV24qTnlg

1985 to 2025 Trends

On reading J. C. Chaplin’s paper on the first 100-years of aviation safety regulation in the UK[1], it struck me that the journey from the 1910s to the 2010s was one of constant change. That change has not slowed down. In fact, the last 40-years of my aviation career have seen dramatic technological changes that have demanded ever new regulatory methods and practices.  

Overwhelmingly aviation history writings obsess about the early days of flying or the start of the jet age. It’s as if those periods were so dominated by great pioneers that nothing worthy has happened since. I exaggerate for effect, but I think you get the meaning of my comment.

So, what of the race from the 1985 to the 2025? I think that is useful period to look at. One of the reasons is that those years are mark the transition from an analogue era to a digital one.

The early 1980s saw experimentation with the potential for digital technologies, most particularly fly-by-wire systems. Quickly the military understood the increase in aircraft performance that could be gained by use of such technologies. Groundbreaking was Concorde in that it demonstrated that critical electronic control systems could safely go into everyday operation. That project drove the development of new regulatory methods and practices. 

A turning point occurred in the mid-1980s. That silicon revolution that impacted so much of life was dramatically put to use in civil aviation. Computing power had so miniaturised and become affordable so that past theoretical possibilities could now be practically realised.

The Airbus A320 aircraft first flew in 1987. It was a shaky start. Not everyone was convinced that safety critical systems were indeed safe. The not so obvious discovery that the human factor was even more important for a computerised aircraft. Learning to adapt and adjust ways of operating didn’t happen overnight.

The lesson is that learning lessons must be part of the process. Through applying continuous improvement, the Airbus A320 family has grown ever since.

Maybe there needs to be a short paper to cover civil aviation safety regulation from 1985 to 2025. It’s needed now. It’s needed because the next 40-years are going to see equally dramatic changes. In the time to come the main driver will be the environment.

[1] https://www.aerosociety.com/media/4858/safety-regulation-the-first-100-years.pdf

Tariffs Fail

Do you need to be a monster brain in economics to get the hang of tariffs? If you deep-dive into all the complexities surrounding every possibility, maybe you do. Nevertheless, the basics are the basics. Much like erecting a wall. Putting up a barrier makes it harder to do business. Harder to communicate. Harder to understand common concerns.

It’s a perfectly human thing to do. We erect barriers all over the place. That garden hedge, wooden fence or brick-built wall are a statement that says, this bit is mine and that bit is yours. Rarely is this absolute. Both sides of these unnatural barriers have mutual interests. Not admitting that reality is a problem. In fact, disputes between neighbours are one of the most common forms of dispute.

A barrier isn’t an invitation for you to disregard the concerns of your neighbours, and vice versa. That all night party, with the music turned up to eleven, maybe fine once a year but don’t do it every week. Well, don’t do it unless you are quarrelsome.

Economic barriers, like tariffs, are going to happen. When perception is all, the idea that one party can protect itself from those who would wish to do harm or take advantage, is very powerful. I say “perception” because a threat doesn’t need to be real. Politics is much about perception.

Trouble is that erecting barriers has a painfully poor history of failure. If we go back to walls, there’s not one that has stood the test of time. Maginot Line[1] is a case in point. The lesson there is that a barrier concentrates the opponents mind on how to overcome it. The elaborate nature of a barrier is no defence to the inventive mind. Barriers are time limited.

Tariffs, and non-tariff barriers are much the same. They may work to advantage for a while only to crumble when their weaknesses have been discovered. Although, I would say that non-tariff barriers are more powerful than straightforward economic barriers. The point being that the former is far more difficult to understand, counter and control.

2025 is a year of volatility, at least so far. Talk of tariffs is on, then it’s off, then it’s on again. It’s the real cat on the hot tin roof. A hop, a jump, and a skip. Everyone is left wondering what comes next. Even if there’s to be any return to a form of reasonable stability anytime soon. That’s the point.

Disruption offers opportunities. At least, for those quick inventive minds with resources to hand. If you don’t fit into that category, then chances are there’s a big downside and a lot of hurt.

To give the monopoly of the home market in the produce of domestic industry…………………must, in almost all cases, be either a useless or hurtful regulation. Adam Smith. The Wealth of Nations (1776).

[1] https://www.britannica.com/topic/Maginot-Line

The UK’s Path Back to the EU

It’s great to see a debate in the UK Parliament[1]. Monday, 24 March saw a debate on the UK joining the European Union (EU). A public electronic petition[2] called for this debate. UK MPs get the opportunity to speak openly of their experiences of the outcomes of Brexit. There’s little that is positive and an ocean of negative.

Lucky for them, at the end of the debate, MPs are not called to vote on the issues raised in this petition. Nevertheless, there’s enormous merit in putting the facts in the public domain.

The 2016 Brexit vote was an unpatriotic act of self-harm, but it is history. Gradually, bit by bit, every part of British society is coming to the realisation that we need to do differently in the future. One day, I have no doubt that the UK will join the EU. The “will of the people” is not static. It is incredibly arrogant of Brexit supporters to say that it is static.

Besides, the inevitability of change means that new ways of cooperating will be found because it is in the best interest of all the parties. The UK is a liberal free-trading country that believes in the rule of law.

In the debate, Government Ministers can take what is being said and rethink. It is no threat to democracy to consider a rethink. In fact, for democracy to be stuck in a deep rut – now, that would be dangerous.

Today, Brexit has been a wonderful generator of piles of meaningless paperwork. It’s destroyed businesses and ruined lives. The enormous damage that has been caused is clear. Sadly, the people who cause that damage are not inclined to take any accountability for the mess.

In the debate, a shadow minister digs-up the grumpy past. It is shameful that the Conservative Party has nothing useful to say on this important issue. It is like listening to a bad recording of an old set of lies and proven nonsense. In speaking, this politician displayed no interest what-so-ever in improving the position of the country.

With all the talk of “growth” being so important to our future, it is difficult to understand a reluctance to address the festering wound that has been caused by Brexit. We can only be more secure and prosperous if we work more closely with our nearest neighbours.

The Labour Party leans on its election manifesto of last July. It’s an awkward act of sitting on the fence and sticking their head in the sand. Now, that paints a picture.

So called, “ruthless pragmatism” is a peculiar Government policy position. It can mean 101 things to 101 different people in 101 different places. Citing “global headwinds” to excuse obvious failings is no excuse for sustaining a burnt-out Brexit winding on like a runaway train. It would be wiser to question everything as the wholly new circumstances dictate.

2025 is dramatically different from 2015. When I first returned to the UK from Germany. The tectonic plates of global affairs have shifted. The Atlantic is wider. The Channel is narrower.

Oceanus Britannicus should be no barrier to trade and cooperation.

[1] https://youtu.be/yJdFBSAvAhU

[2]  https://petition.parliament.uk/

A Key Political Agenda?

Whatever you might think, I think Keir Starmer is turning out to be a better conservative Prime Minister (PM) than most have been in the last couple of decades. On his list of things to do is reforming this, and reforming that, and making bullish statements on the world stage. Agreed that there’s the usual amount of crafted BS. Compromise and dealing with reality, not the world as one might wish it to be, are as they ever are in politics.

He’s in the business of stealing the clothes of the official opposition. Across the chamber they panic. Yes, further along the benches, the howling menace continues to howl. Fighting amongst themselves this week. Questioning their leader is not allowed. However, it’s surprising how high they stand in opinion polls, even if this is meaningless at this point in the electoral cycle.

The normal opposition now comes from the Liberal Democrats and a small number of unhappy Labour Members of Parliament.

This week I was amused to read of the concerns about Quangos[1]. That takes me back. I remember writing a motion for a conference on that subject back in the early 1990s. At that time there was questioning of why there was so many Quangos.

As a country we seem to go through waves. They go like this.

For a while national politicians take the view that day-to-day operational decisions of a sector should be made by dedicated professionals and at arm’s length. This has the advantage of getting politicians out of the complex detail, avoiding blame when things go wrong, a degree of continuity and setting their minds to the higher calling of top-level budgets and policy.

Then, if sector hasn’t performed as well as desired, the Quango at the heart of the storm is set ripe for taking apart. Thus, day-to-day operational decisions go back to “accountable” politicians, surely to do better. This has the advantage of reigniting the pace of change, a chance to be radical, securitising lower-level budgets and the satisfaction of blaming the past system.

I think you can tell which part of the wave that has hit now.

A point of reference here is, as so often is the case, Yes Minister. There’s a story line where the civil service pack the Minister’s red box with so much information and decisions to be made that he’s completely overwhelmed. Initially, he’s keen to have information on everything. Then the realisation that path leads to madness slowly dawns.

Now, it’s not clear what type of civil service, and associated Quangos, the PM thinks work best. It’s not strange to say I don’t like what I’ve got. It’s better to have an idea what it is that you want. A reform agenda in name is a headline grabber. It’s not a substitute to having a plan.

[1] https://www.bbc.co.uk/news/uk-politics-11405840