Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Friday, 31 December 2010

A Tax on your Strangeness

So on New Year's Eve, 1695, a window tax was introduced in England. This was, literally, a tax on windows (but not, as I first misread, widows...). In honour of the fact that this was not nearly the weirdest thing to have been taxed, here is a list of 10 very odd taxes.

1) Window Tax:
Now, I am quite a fan of windows. They allow me to, y'know, see stuff that's outside without actually having to go into the outside, which is quite nice, especially when it is snowing or raining. They also are a very good means of keeping bugs and other unwanted objects away from my personage. Of course, being a modern, twenty-first century type, you know this already, and I am sure you are a fan of windows too. In 1695, many of the rich men and women of England also were fans of windows. 
 
However, when their King, William III decided that, under the Act of Making Good the Deficiency of the Clipped Money (yeah...that...uh...), windows should be taxed, the elite of England decided to brick up their windows so they wouldn't have to pay the tax, which is, I suppose, one way of getting around the problem. The tax itself had been introduced because the government was in need of money, but unable to pass a law which allowed them to collect a simple Income Tax, as  it was believed by many that disclosing your personal income to the government was an act of unacceptable intrusiveness into your personal liberties (an excuse I fear wouldn't go down too well today with HM Revenue and Customs).

The rate of tax was 2 shillings per house, with houses with more than ten windows incurring a variable rate of tax, and wasn't repealed until 1851, when 'House Duty' was introduced. 

2) Beard Tax:
In England, in 1535, King Henry VIII introduced a tax on beards. This was actually quite a clever idea to raise money - obviously the King and his government needed money, but it was often hard for them to raise it. However, anything that the King was seen to do or wear suddenly became highly fashionable, as people were keen to show the ruler what an excellent idea His Majesty had had in choosing to play bowls/wear clogs/learn the lute and so on. So naturally, when Henry grew a beard, those of his courtiers who were able to immediately followed suit (imitation is, after all, the sincerest form of flattery). Henry then introduced the tax, knowing that no one would dare shave off their beards in case they were seen as being against something the King believed in - which was a pretty clever way of thinking, actually.

The tax was variable, and those with more income paid more, rather that those with larger beards paying more. However, when Elizabeth I reintroduced the tax a few years down the line, she taxed every beard of more than two week growth, which must have been very hard to measure, though I'd imagine that 18 year old weedy boys managed to get away with not paying it for several years...

3) Beard Tax, the sequel:
The beard tax was introduced again in 1705, but this time by Peter the Great of Russia. All men with beards were required to pay a tax, and carry around a token which stated that they had indeed paid their tax. The token was inscribed with two phrases - "the beard tax has been taken" (fairly self explanatory), and "the beard is a superfluous burden". The tax had been designed to encourage Russian men to get rid of their beards, as Peter believed that their hirsuteness meant that they weren't as forward-thinking as other Western European countries, and Russia could only become truly modern when the men were clean shaven like their clean-shaven fellow Europeans, which is a real shame.

4) Cooking Oil Tax:
Now, anyone who has seen the pyramids or Tutankhamen's death mask knows how much the Pharaohs liked their extravagances, but even though they were considered literal Gods on the Earth, they still had to find the money to pay for all the jewelery, fancy palaces and eyeliner. Possibly the strangest way they thought would allow them to collect this money from their subjects was to tax cooking oil - or rather, force their citizens to buy cooking oil only from the Pharaohs themselves. The scribes (Ancient Egyptian taxmen) would go round to all houses to ensure they were using enough oil and, in possibly the oddest twist, refuse to allow them to recycle the used oil, instead binning it and forcing the people to buy new, Pharaoh-approved oil.

5) Hat Tax:
By 1784, it had become apparent that the Window Tax in Britain was not enough to keep the country afloat, and so new methods of taxation were introduced. The government, led by William Pitt the Younger, once again tried to introduce an Income Tax, but were once again prevented from doing so by a public who believed that this was an outrageous infringement on their right to privacy, and so decided to introduce a tax on hats.

This isn't actually as absurd as is sounds. The theory was that, the richer you were the more hats you would own, and the better quality these hats would be. Whereas a poor person might have just the one hat, which wasn't of a very good quality (and so wouldn't have to pay very much tax at all), a member of the aristocracy would have a lot of very expensive hats, and so would have to pay a lot of tax. The problem with this, though, was that it was very unpopular, and apparently led to people insisting that what they were wearing on their head wasn't actually a hat at all, so they wouldn't have to pay the tax ("Oh, this? It's not a hat, no not at all...it's er...a kilt! Yes, a kilt. I'm embracing my Scottish heritage! Och aye, and all..."). 

6) The 'anything-but-Income-Tax' Tax:
As people were so very unwilling to admit their income to the taxman, the government of the eighteenth century introduced many taxes on various household items, in an attempt to raise revenue this way. Some of the items they taxed included taxes on building materials such as wallpaper and bricks; taxes on leisure items, including dice and almanacs and taxes on clothing and make-up, such as glove tax, perfume tax and hair-powder tax (though the Royal Family and their servants, and clergymen were exempt from paying this particular tax). The British people responded to this by not purchasing any more hair-powder, and walking around with very greasy hair for a good number of years, until someone worked out how to invent shampoo.

7) Urine Tax:
Not a tax on those who produced it, but on those who sold it on (er, of course...). In ancient Rome, it became very easy for the owners of public toilets to sell on the urine they collected to tanners and cleaners, who used the ammonia in it (yum...). Officials noticed how rich the toilet owners were becoming, and, on discovering why, introduced a tax on urine.  

8) Salt Tax:
As salt has so many uses in our lives, it has always been taxed, in India as much as anywhere. However, when the British took over India as part of their Empire they raised the tax extortionately. From 1858, the Indian people were forced to pay an incredibly high rate of tax on their salt - something which continued for another 80 years. During March 1930, Gandhi led the first Salt March to Dandi. This was his very first non-violent protest against British rule of India, and though it didn't actually do anything about the Salt Tax, it did help to increase the levels of awareness of the Indians' plight, and gave them international support for their campaign for independence.


9) Artistic Exemption:
This, in fact, is the opposite of tax - in 1969, Ireland brought in a rule which stated that income derived from the sale of art (books, music, paintings, sculpture, film and so on) was exempt from taxation, allowing us to perpetuate the image of a starving artist. The act was introduced to allow artists who had fallen on hard times to recover more easily, but ended up being a bit of a problem when it became apparent in the mid 2000s that Irish rock group U2 were paying no tax on their millions. The law was modified so that only those artists with an income of less than 250,000 euros were exempt, and Bono and co. moved their savings to the Netherlands, so they ensure that they still didn't have to pay tax. Huh. 

10) Poll Tax:
A Poll Tax is very popular with governments because it can be implemented at any time, very easily, and is very unpopular with the public because it can be implemented at any time, very easily. In the 1980s, Margaret Thatcher tried to introduce the tax, but was thwarted by the rioting and protesting of the public who were outraged at it's unfairness. (Anyone who doesn't think it's fair should imagine that I have 100 gold coins and am asked to pay just 1 in tax; whereas you, who have only 2 gold coins, are also asked to pay 1 in tax, and then consider its fairness...) Though they may have gotten their History a little bit confused ("Yeah! We're rioting in the spirit of the revolting peasants of thirteen-something who didn't want a Poll Tax either so they forced Queen Victoria to sign the Magna Carta and that's why Henry VIII broke with Rome!") but I can't fault them for their passion, and they did help strongly contribute to the ousting of Thatcher as PM, so it definitely wasn't a bad thing.                     

Monday, 27 December 2010

The Port Wine Treaty

You know how you sometimes come across utterly, utterly ridiculous events in History? I think I may have just found one. Another one... Basically, I've just been reading about a treaty to end a war, which seems to be mostly about wine. WINE.

Now don't get me wrong, I have no problem with wine at all. But to sign a treaty promising an alliance based on the sale of wine...did no one stop to think that this would go down in History as something future generations might find slightly strange and somewhat amusing? No one at all?
 
The treaty in question was the Methuen Treaty, and it was signed on 27 December, 1703 by the countries of Portugal and England, and it wasn't totally about wine. At the time, there was a big war going on (the War of Spanish Succession) and all the big European powers were fighting it out to see who would become 'top dog'. The country of Portugal, whilst obviously a source of great importance and national pride to those who lived there, wasn't a big European power, and so consequently wasn't considered that important to the other countries. However, they did have a few good exports (namely wine), so they weren't going to be completely ignored by the other countries.

When the War of Spanish Succession broke out, in 1702, the Portuguese allied with the French, which basically meant that the French promised to protect them from attacks by the British navy (the French navy, whilst better than the Portuguese - which from some reports, seems to have consisted of two rowing boats and a dinghy - was not as good as the British, which was truly a force to be reckoned with, so Portugal's request for protection seems fairly understandable). 

However, the British kept sailing really close to Lisbon on their way to and from Cadiz, and the Portuguese were understandably upset when the French did nothing to stop them. Believing that they were untrustworthy, Portugal soon entered into negotiations with Great Britain to switch sides. (Because obviously, the way to counter untrustworthiness is to be even more untrustworthy!) This was very appealing to the British, as they believed that the war could be won much more cheaply and easily if they were able to use Portugal's deep-water naval ports to attack the French ports at Toulon, so the MP John Methuen was sent as an ambassador extraordinary to Portugal where he negotiated the treaty.

The treaty had three main parts. Firstly, it established the Alliance's war aims. Despite the fact that, at the time of the treaty, the war had been going on for a year or so, no one had thought to write down - or even officially state - why they were fighting, so the treaty duly noted that the purpose of the war was to secure the Spanish Empire for the Austrian claimant, the Archduke Charles, with whom Britain had already made an alliance, which was A Good Thing because it reminded everyone in the Alliance whose side they were on this time. 

The second part of the treaty was to do with the actual military part of the war - it established that Spain would become the main theater of war, and established things like the number of troops each country would provide - which again, is a very important thing in a war, and something you'd've thought they would have thought about earlier on in the conflict.

Finally, it 'regulated the establishment of trade relations between Britain and Portugal', or, in layman's terms, ensured that the British could keep drinking. Before the war, France had been supplying Britain with wine, which a lot of people found very agreeable. However, when they went to war, the French stopped trading with the British, and so no one had anything to drink, which many people felt was a Very Bad Thing. Now, the Portuguese realised that, as they had a wine industry, they would be able to fill this gap in British lives, but they were also scared that, when the war was over, the British would just revert to trading with the French and they would be stuffed. An agreement was come to, which stated that all trading between Portugal and Britain would be tax free, so the wine which was being imported would be able to be bought much more cheaply than any the French tried to sell. (Though technically, they were selling Port, rather than straight wine, which lead to a massive market for the drink in Britain, a fact which my Grandmother remains eternally grateful.) 

This makes sound economic sense and everything...it's just a shame that the treaty became known as the Port Wine Treaty, and no one in the country remembered anything about the parts which actually related to the war...

Tuesday, 5 October 2010

Ellen Wilkinson and the Jarrow March

Seventy four years ago today, on October 5th, 1936, 200 able-bodied men from the north-eastern town of Jarrow set off for London. Over the next few days, they marched 300 miles, accompanied by a second-hand bus which carried their cooking utensils and bedding. Whilst marching, they sang songs and played mouth organs to keep up morale, and carried an oak box with gold lettering, containing a petition, signed by 11,000 citizens of the town. Signatures were  also collected on a second petition from the numerous sympathetic people they passed on their way down to London. The march was hard, but medical care was provided by the Inter Hospital Socialist Society's students. 

Why were they marching? What did their protest hope to achieve?

About a year previously, the main employer in the town - Palmer's shipyard - had been closed down. In Jarrow, as with many towns in the north-east, employment rates were at 70%. The men of Jarrow were dependent on their wives' or daughters' wages (themselves hardly substantial), which was not something that was culturally acceptable at that time. The town itself was in dire shape. In the words of the local MP, Ellen Wilkinson, it was 
"... utterly stagnant. There was no work. No one had a job except a few railwaymen, officials, the workers in the co-operative stores, and a few workmen who went out of the town... the plain fact [is] that if people have to live and bear and bring up their children in bad houses on too little food, their resistance to disease is lowered and they die before they should." [source]
Wilkinson herself is a very interesting figure. Born in 1891, she won a scholarship to the University of Manchester, never married, was briefly a member of the Communist Party, often visited Spain (during the Civil War there) and Germany to protest against Fascist groups - especially the rise of Hitler - and as Minister for Education during the post-war Labour government, managed to get the school leaving age raised to 15, despite the huge demand for extra buildings and teachers this would require. All in all, she was an amazing woman, achieving more in her lifetime than most people could in several. I would very much like to be her.


Ellen Wilkinson MP, 1891-1947

She also went on the march with the men of Jarrow, and presented their petition to parliament for them. As the shipyard had been closed, due to the worldwide economic downturn (sound familiar?), the men demanded that a steelworks be built to bring employment back to their town. The government, despite being largely Conservative, were not unsympathetic to their plight - nor indeed the similar plight of other men in the working towns who had been laid off due to the Depression, but there was very little they could do. There was a general lack of response to the Jarrow situation (though a ship-breaking yard was established in 1938), although their policies of  increasing domestic consumption and implementing a cheap mortgage scheme which lead to a house building boom did help boost the economy slightly.

Ultimately, though, it took World War Two, and the need for armaments and the like to give industry the boost it needed, and therefore lift the economy out of depression. I do not pretend to understand economics at all, and will defer to almost anyone's knowledge on how to avoid recessions and depressions, but surely, surely there must be a way of finding enough jobs so that everyone is employed and can afford to put food on the table, without having said jobs involve making weapons to kill others? I hope that that is not just wishful socialist thinking...