The Rebel Alliance

We've all heard the calls at some point. That the UK is not producing enough scientists. Which in turn will hurt the UK's ability to compete in the global economy, especially with (as the Daily Torygraph[sic]claims) 'India and China now churning out science graduates on an industrial scale'.

I'm worried as well but about something slightly different. The UK's competitiveness in the underwear market. After all, China is churning out underwear on an industrial scale! If we are to compete in any way, the Government must look to make sure that we recover our underwear competitiveness.

Hopefully this (humorous?) example serves to illustrate that there is no need to compete with China on anything. If China enjoys a comparative, or absolute advantage, in the production of underwear or science graduates then we should buy them from their. In turn they will buy into what we have advantages in- e.g Teen Big Brother or the insurance industry.

After all if there is a shortage of science graduates, then their price-their pay-will increase. Students, who seek high incomes, will respond to this increase and will be inclined to take up these courses. In a free market, skills shortages should soon be eliminated. Only when the 'planning urge' overcomes out great leaders do we risk permanent shortages or surpluses.

A good example of this would be, ironically, in science degrees. The government generously subsidies science degrees(like all degrees). Students pay under half of the full cost but receive over half the benefits. This is an incentive to British students to become scientists, leading to what is almost certainly a surplus of British scientists. Following the rules of supply and demand, it explains why science graduates, in general, receive relatively little pay.

Those who lobby for state support of their industry, be they French farmers, US steel makers or British scientist can claim to be the backbone of the nation, the foundation of the future or vital to the global competitiveness. But this is a strange argument. If what they produce is so valuable then why can they not find a buyer at an unsubsidised market price?

I am indebted to Jamie Whyte, author of Bad Thoughts:A guide to clear thinking in writing this.