Economics

Home Economics Page 3

The Missing Ingredient – Assimilation

When Al Grassby was Immigration Minister in the Whitlam government in the early 1970s, he announced that multiculturalism was to be Australia’s future policy. Assimilation was over. 

There was a time when Australia actively promoted assimilation. It was the late nineteenth and early twentieth centuries  and applied to Aborigines, varied by state and location, involved the removal of vulnerable children from families, included an obligation to learn English, discouraged speaking local languages, and prohibited certain customary practices – particularly those involving violence. 

But Grassby was not referring here to Aborigines or to policies from the distant past. Nor was it a reference to the White Australia policy, which the Whitlam government had officially ended. His comment was about new immigrants and implied that they had been subject to a policy of assimilation. 

In the generally accepted meaning of the word, this was complete nonsense. What Australia had was a policy of promoting integration. And, as history shows, it had been remarkably successful. 

The point is, values matter. Australia does not need multiculturalism.

Mostly European and British, Australia’s post-war immigrants were referred to as “New Australians”. Although encouraged to learn English, they were never asked to disown their origins. There were free English classes for adults, and parents were required to send their children to school, like everyone else, where lessons were conducted in English. The kids often became interpreters for their parents. 

Most immigrants became Australian citizens relatively quickly, the only negative being they had to renounce the citizenship of their original country; Australia did not permit dual citizenship until 2000. 

If the immigrants themselves had mixed feelings, the second or third generations saw themselves as Australians first and their country of origin second. Immigrants married other immigrants, their children married other immigrant children, and many went on to be highly successful. 

The Whitlam government also began to admit significant numbers of people from Asia, initially Vietnam and Cambodia. And while there were pockets of resistance to this, with Whitlam himself wary of accepting anti-communist Vietnamese refugees, these also integrated well. Later waves from places such as Sri Lanka, Mauritius, Hong Kong, Malaysia and India were equally successful. 

But then something changed. Certain immigrants began to form enclaves and avoid contact with other Australians They also made minimal effort to learn English. The men often went back to their country of origin to find a wife, even if they were born in Australia, refusing to contemplate finding one locally. 

Most importantly, they became contemptuous of Australian culture and values while demanding respect for their own. This was not about football, music or food, but core aspects of liberal democracy: equality before the law, presumption of innocence, respect, democracy, free speech, economic opportunity, and tolerance. This was accompanied by a major upsurge in violent crime and welfare fraud. 

While it obviously reflects a failure to integrate, this is nonetheless multiculturalism. The culture of these people is maintained in parallel with Australia’s traditional culture. 

If the immigrants themselves had mixed feelings, the second or third generations saw themselves as Australians first and their country of origin second.

After several decades of this, Australia’s laidback ‘live and let live’ culture is now under serious challenge. 

In a number of countries in Europe, the same issue has arisen. Several are now abandoning multiculturalism in favour of active integration. Perhaps it could even be called assimilation. 

The Netherlands, for example, now requires most immigrants (including asylum seekers) to undertake a “civic integration” examination within three years of arrival. The examination tests knowledge of the Dutch language and society, and a pass is required to obtain permanent residence and citizenship. Certain classes of prospective immigrants must also pass a test even before they first enter the country. The pass mark is being steadily raised. 

It is obvious that Al Grassby’s policy is no longer appropriate, if it ever was. Liberal democratic values are jeopardised when authoritarian, doctrinaire or anti-liberal cultures are given equal standing. The presumption of innocence took a major hit in the Higgins case, for example; equality before the law came under threat with the Voice referendum; freedom of speech faces yet more limits with the Government’s Misinformation and Disinformation bill; and economic opportunity is being squeezed by excessive taxation and red tape. Meanwhile, tolerance is challenged by cancel culture and antisemitism.

None of these is directly attributable to a failure of immigrants to integrate, but they indicate a lack of national commitment. If traditional values are not defended, alternative values will inevitably gain a foothold. 

There are multiple ways to rectify this problem. Australia already has an integration test for citizenship, for example, but it could be made more like that of the Dutch. There are many sources of potential immigrants, so we could select those most likely to integrate (most of those refusing to integrate come from the Middle East). And we could also make it abundantly clear to prospective immigrants that they are expected to adapt to Australian culture, not vice versa.  

The point is, values matter. Australia does not need multiculturalism.

E-Scooters: A Two Wheeled Burden?

Since approximately 2016 there has been a rapid increase in personal and for-hire electric scooters (e-scooters) in cities around the world. Over 600 cities now have e-scooter for-hire services and, globally, the electric scooter market is valued at more than AUD $49 billion and growing at 10% per year. In Australia, there was an 800% increase in e-scooters from 2016 to 2021.

However, there are serious concerns regarding e-scooter related injuries.  

The Victorian Emergency Minimum Dataset has released figures regarding e-scooter riders seeking emergency care in hospitals: 502 in the 2022 financial year, then 958 in the 2023 financial year; nearly a twofold increase year on year. Victoria introduced its e-scooter trial with 2500 rental scooters in Melbourne, Port Phillip, and Yarra council areas in February 2022, and legalised  private e-scooters on public roads in March 2022.

Despite the minimum riding age being 16 there have been 193 presentations by children below this age over the past 3 years. Royal Australasian College of Surgeons Victorian chair Dr Patrick Lo has stated that 3 children presented in one week with a brain haemorrhage, brain swelling and a broken neck. 42 unfortunate pedestrians have also been treated for e-scooter-related accidents.

Mortality due to e-scooter traffic accidents was 9.2%.

Queensland has released similar figures. In that state, e-scooter injuries admitted to hospitals were as follows: 279 in 2019, 877 in 2022, and 801 by September of 2023.

In Western Australia there was a 386% percent increase in hospital admissions in the year July 2021 to June 2022. There was a 200% increase in injuries between 2017 and 2022.

A study by the University of California San Francisco found that in the US, e-scooter-related injuries and hospital admissions increased by 222% from 2014 to 2018, climbing above 39,000. Hospital admissions expanded by 365%.

Severe Injuries, Lack of Helmets

The study “Comparison of Injuries Associated With Electric Scooters, Motorbikes, and Bicycles in France, 2019-2022”, published in the Journal of the American Medical Association (JAMA), looked at 5,233 e-scooter injury patients. Mortality due to e-scooter traffic accidents was 9.2%. The risk of severe traumatic brain injury, 26%.

In a study done by University of California San Francisco, electric scooter injuries included fractures 27%, contusions/abrasions 23% and lacerations 14%. Most concerning, almost one third reported head trauma. 

The study “Characteristics of Electric Scooter and Bicycle Injuries After Introduction of Electric Scooter Rentals in Oslo, Norway”, published in the JAMA, found that e-scooter injuries often occur at night, to young adults, who aren’t wearing helmets, and have a high blood alcohol reading. Dr Sarah Whitelaw, an emergency doctor in Victoria, echoes this sentiment. She said in addition, riders were often travelling at high speeds.

In Australia, there was an 800% increase in e-scooters from 2016 to 2021.

Economic Burden

In the US, UCLA research reveals that the healthcare cost of e-scooter injuries increased from $6.6 million in 2016 to $35.5 million in 2020.

Doctors in New Zealand reviewed data of surgeries on injured scooter riders from October 2018 to February 2019. Adding up costs including anaesthetic, theatres, staff, implants, time in hospital and lost income, each injury averaged $19,282 NZD. Over $400,000 was spent in less than five months. 

The study “The impact of electric scooters in Melbourne: data from a major trauma service” published on Wiley, looked at e-scooter injuries admitted to Royal Melbourne Hospital from January 2022 to January 2023. 247 riders and 9 pedestrians presented for treatment. 33% of riders were wearing helmets at the time of incident. 50% reported head injuries. Hospital cost totalled $1.9 million, and median cost was $1321.66 per patient. 

According to the hospital’s website, “The Royal Melbourne Hospital is part of Australia’s public health care system and offers hospital care to any Australian resident under Medicare arrangements.” This also applies to the 696 other public hospitals across Australia many of which would be treating e-scooter injuries, paid for by the taxpayer. 

Solution

The question for libertarians is not whether to restrict or ban e-scooters, which is what authoritarians prefer, but how to move the financial risk and economic burden of injuries from taxpayers to e-scooter riders.

One potential solution is to establish an insurance requirement for both rental and private e-scooter owners. Purchased by riders, this would function like first-party and third-party car insurance. In the event of an accident, the insurance would cover resultant medical costs. 

Consistent with the concept of personal responsibility, this approach would shift financial liability to individual riders and decrease reliance on public healthcare funds. It might even become a model for managing other health risks.

Part II:Programmable Money

Two years ago the Deputy Governor of the Bank of England, Sir John Cunliffe, spoke the most sinister sentence I’d heard in a long while. The menace was unmistakable: 

“giving your children pocket money but programming the money so that it couldn’t be used for sweets.” 

This statement was offered in the context of Central Bank Digital Currencies. Let me explain what these are and why Sir John’s statement is terrifying. 

Everyone knows about cryptocurrencies such as Bitcoin. In January 2024 their total market capitalisation reached $US 1.77 trillion. For central banks that is an inordinate amount of money sitting outside traditional financial systems and regulatory frameworks. 

The crypto market has evolved. Until fairly recently it was difficult to spend, so it tended to be treated more as an investment asset than as a mechanism of exchange. The time taken to process transactions was the most inhibiting factor. Unlike the near-instantaneous transactions of current electronic payment systems, cryptocurrency processing can take minutes.

Imagine the government decides the economy requires stimulation by encouraging spending – your pay-cheque will lose 20% of its value if you don’t spend it within a month.

That made it suitable for a making a purchase from an online retailer, but not so good for buying a coffee in the local café.

Technology has evolved to address this limitation. Cryptocurrency exchanges (much like a brokerage) now offer a variety of financial tools and services in partnership with credit card companies. One such service is a debit card directly linked to a crypto account.  

This resolves the usability issue. A card such as a WireX can be used wherever Visa is accepted with transactions debited from the user’s crypto account at the speed of a standard EFTPOS transaction. Spending cryptocurrency to buy an espresso has become mundane.

And in consequence, financial technology (fintech) becomes tomorrow’s battlefield. 

Conducting private transactions with a democratised digital currency is nirvana for libertarians but a nightmare for the state. Tax departments find it difficult to levy goods and services taxes on transactions that are opaque, while central banks can struggle to set monetary policy when sections of the populace are using a different currency. In New Zealand the Reserve Bank’s ‘Future of Money’ discussion paper identifies this as the primary risk to New Zealand’s monetary sovereignty. For a small economy, the prospect of goods and services being priced in a cryptocurrency instead of $NZD is a very real challenge to the Reserve Bank’s overarching objective of stewarding a stable anchor of value.

What to do? For the state the answer is to co-opt and regulate, which is where Central Bank Digital Currencies (CBDCs) come in. 

Like most central banks, the Bank of England realises digital currencies are inevitable. Their plan is to mandate a state-controlled alternative, linked to the traditional local currency. 

As Sir John points out, CBDCs can be programmed like any other cryptocurrency. From the point of view of the state this is fantastic: improved efficiencies in the financial system generating economic benefit whilst enhancing the control that states traditionally exert over fiat currency. 

From the point of view of the people it is not so good. Programmability has the potential to enable totalitarian micro-control over every aspect of our financial lives. When every transaction is recorded and the state can manipulate the currency with immediate effect, the people are reduced to mere economic units whose financial behaviours can be strictly monitored, manipulated and mandated.

 Cryptocurrency exchanges (much like a brokerage) now offer a variety of financial tools and services in partnership with credit card companies.

Imagine the government decides the economy requires stimulation by encouraging spending – your pay-cheque will lose 20% of its value if you don’t spend it within a month. Imagine being automatically sent to the bottom of the queue for diabetes treatment because the health system has determined you spent too much on Coca-Cola over the last 12 months. The possibilities afforded by control of currency at this granularity are endless. 

In New Zealand the Reserve Bank’s discussion papers are at pains to obfuscate the essence of this aspect. In response to concerns raised by the public, industry and no less than the Privacy Commissioner himself, the Reserve Bank stressed that privacy would be a consideration. It has not been elevated to the status of principle. Of perhaps greater concern is the Reserve Bank’s differentiation between the definitions of privacy and anonymity:

“’Privacy’ means that it is possible that data was collected but has not been shared, while ‘anonymity’ means data was not collected.”

Between the competing regulatory demands of the Privacy Act and the Anti-Money Laundering and Countering Financing of Terrorism Act, the Reserve Bank’s view of precisely where on the spectrum New Zealand should reside certainly isn’t leaning towards privacy or the anonymity Kiwis currently enjoy with physical cash currency.

Alongside the introduction of CBDCs will be initiatives to hobble the competition. Governments will endeavour to regulate existing cryptocurrencies out of existence and are likely to impose stiff penalties on those who trade in them, an aspect the Reserve Bank addresses with the vague and rather euphemistic intention to ‘Regulate new forms of money and payments that impact stewardship goals.’ 

This is already happening in China: the introduction of the Digital Renminbi CBDC in 2021 was accompanied by an outright ban on other cryptocurrencies, the Standing Committee knowing full well that control of the digital currency was essential to the long-term success of the overlying Social Credit System.

Western governments are likely to put a friendlier face on CBDCs, arguing trust, convenience and efficiency. Despite those arguments and the fluffy, paternalistic authoritarianism espoused by technocrats such as Sir John, no-one but your mum should have the right to tell you how many sweets you can buy with your own money. 

Because she has your best interests at heart. Sir John espouses the best interests of the state.

Brave New World Wide Web

The reverse correlation between the internet’s growing accessibility and its diminishing freedom can only be arrested by changes in user habits

Much has been made of the ACMA ‘misinformation bill’ and its potential impact on free speech online in Australia. But the internet hasn’t been a bastion of free expression for quite some time now, and like always, it ultimately comes down to choice and the power of the consumer. 

Prior to the rise of social media giants such as YouTube, Facebook and Twitter/X, the internet was largely a decentralised hub of independent content, websites, blogs and message boards. It was something of a wild west – not as easy to navigate or as accessible as it is today. 

The market responds to genuine economic incentives far more than it does to vitriolic comments online.

Speech online was regulated not by law as much as in-house moderation, which sought primarily to improve the user experience. Google search functioned properly, as your search terms would deliver you to websites or listings which were actually relevant. Anonymity online was a key tenet of staying safe – people were actually encouraged to separate their online and offline lives. 

This has now been replaced or superseded. Mostly gone are the volunteer admins of message boards – automated or paid moderation teams on large sites such as YouTube now ban users with no remit and apply terms and conditions selectively. Google search has descended into a bidding war for top place between AI-generated SEO-optimised junk listicles that attract clicks but ultimately waste your time (hint – use Reddit instead). 

As for anonymity, KYC (know your customer), verification ticks and ID verification on account of frauds and criminals have largely taken care of that. Even Bitcoin, created to store wealth and transact outside the traditional finance system, has instead limped into Wall St via ETFs as dreams of mass adoption turned to mass investment by the very institutions it sought to subvert. 

Alternatives exist, of course: you can source your news and editorials from independent publications like this one, or via Substack and other such platforms. You can even support creators directly who can no longer exist on YouTube or Facebook via platforms such as Rumble or Locals.

But we often don’t – it takes extra time, extra money, extra effort. Just like acting to protect our freedoms offline – we could use cash more, we could avoid supermarkets and shop local, we could live off-grid. 

Speech online was regulated not by law as much as in-house moderation, which sought primarily to improve the user experience.

Ultimately, our collective need for security and convenience has allowed larger players to create monopolies in online spaces. As the internet has become more centralised and increased traffic (ie revenue) flows to the major players, we have subsequently seen an alarming but unsurprising partnership between ‘big tech’ and government develop. One that has sought to suppress free expression and crush competition.    

We have largely allowed the same offline of course. It’s not just government either – consider the extra restrictions and occasional obstacles we face when transferring money from bank accounts for certain purposes. This is at least in part due to the collective risk of scams and fraud that is being passed on as a reduction in the ability to transact freely.   

Achieving political, cultural or economic change which protects or expands freedom requires you to act, not just to think, not just to post online

The market responds to genuine economic incentives far more than it does to vitriolic comments online. 

As with the internet, when demand for security and convenience grew, the market adjusted. Aldous Huxley’s Brave New World perfectly described a society that had sleep-walked willingly into dystopia by simply having their base needs and comforts met conveniently. 

We mustn’t follow a similar pattern.  So don’t just demand freedom — create demand for freedom!       

The New UAE Corporate Tax

The United Arab Emirates (UAE) is famous for, among other things, zero tax. That ended this year. The UAE now has a 9% tax rate for all but a very few exempted industries.

The implementation of a corporate tax is not because the UAE needs the money to build new roads, hospitals, schools or public facilities. The UAE is home to some of the most extraordinarily modern, effective and high-quality public utilities and infrastructure in the world. None of it required tax revenues. Nor was it all paid for with money from oil revenues.

Similarly, the UAE is not implementing a tax regime to fund public services such as policing, rubbish collection, healthcare or education. Again, the UAE embarrasses high-tax countries when it comes to public safety, maintenance of public spaces, healthcare and education. People in the UAE cannot even conceive of being robbed, let alone mugged; or even seeing a homeless drug addict. The unparalleled safety and cleanliness of the UAE has not required tax revenues; nor was it all funded by oil revenues.

The UAE has massive, diverse, revenue generating investments within itself, and throughout the world.

The UAE is also not implementing a tax regime to fund a social welfare program. 89% of the UAE’s 9 million residents are expatriates. They must support their residency through work sponsorship or business profits, or else they have to leave. Technically, there is limited assistance available to the 11% minority of native emirate citizens. In reality, there is an unspoken positive discrimination applied to emirate citizens for various job positions. So taxes are not needed for welfare.

The UAE is also not implementing a corporate tax to cover a ballooning government bureaucracy and out-of-control public indebtedness, like that seen throughout the “developed” Western nations, such as Australia. The UAE has massive, diverse, revenue generating investments within itself, and throughout the world.

The idea that Governments need an instrument as crude as tax to monetise a national economy is as archaic as it is absurd. We live in a world in which some of the largest and most successful companies lose money on their core business in order to drive greater profits from tangential sources. Airlines, for example, knowingly lose money from the business of flying planes, because greater profits come from the financialisation of their frequent flyer programs. Google and Facebook also stand out as companies whose revenues exceed the GDP of entire countries despite their ‘core products’ being ostensibly given away for “free”.

The UAE has attracted literally trillions of dollars of foreign investment, hundreds of thousands of companies, millions of residents, tens-of-millions of visitors each year, and built some of the most incredible cities on earth in scarcely a few decades; primarily, arguably, as a result of eschewing taxation. So why would the UAE change direction after achieving such success following a far more sophisticated business model?

UAE is home to some of the most extraordinarily modern, effective and high-quality public utilities and infrastructure in the world.

The reason the UAE is sacrificing the zero-tax brand it worked so hard to build, is due to political pressure from socialist, globalist, kleptocratic politicians in high-tax, western nations. That is, the same politicians responsible for the terminal decline and humiliation of the West – the exponentially increasing debt, monetary debasement, deindustrialisation, illegal migration, growing homelessness, increasing crime, energy shortages, insane ‘woke’ politics, military weakness, civil unrest etc etc etc – are demanding that other nations, like the UAE, follow their lead.

Unfortunately, the last time the UAE ignored the bullying of Western politicians they were placed on a so-called international ‘grey list’ by the Financial Action Task Force (FTAF) for not doing “enough” to “fight money laundering”. Compared to the money laundering taking place in the US, the volume going through the UAE is a pittance. But the issue was never about money laundering; it was demonstrating fealty to the Western political cabal. The ‘grey-listing’ was to embarrass the UAE rulers. The practical effect was simply to increase the paperwork burden placed on UAE banks moving money to and from overseas. That burden has made routine banking more difficult and expensive for legitimate SMEs, while having virtually no impact on companies and individuals transacting large sums. 

So the embarrassingly incompetent boobs overseeing the decline of the world’s richest countries have finally forced the UAE to start penalising businesses for being successful. The question now is: what is the likely impact going to be? 

In 2018, the UAE was similarly pressured into implementing a goods and services tax (VAT) that included precious metals. The new 5% tax caused a 75% reduction in precious metal trade. Just 6 months later the Government exempted precious metals from the tax, restoring trade to previous levels.

So it will be very interesting to see what comes of the new UAE tax.

The Misguided Quest for “Fair Share”

“Grab your torch and pitch-fork” was the rallying cry of the left in the recent debate over stage three tax cuts.  And so the mob was led to follow a trail of sprinkled money to the door of high income earners to rob them of tax relief. 

In the debate over Australia’s tax system, the concept of “fair share” has been wielded like a moral cudgel. Advocates argue high-income earners should pay more under the guise of affordability. Yet when we examine the impact of progressive taxation, especially through the lens of real-life financial pressures, the narrative of fairness starts to show cracks. 

Taxpayers deserve a system that not only is fair but also reflects a government that is accountable for its financial decisions. 

Consider someone earning $200,000 annually. Contrary to the image of affluence often portrayed, they face substantial financial obligations: mortgages, rising living costs, and family expenses. Despite these challenges, they’re taxed at a rate significantly higher than those earning $70,000.

Under the new “Stage 3” regime, the person on $200,000 pays $55,000, which is $45,000 more than the person on $70,000 who pays $10,000. That is, more than five times as much in absolute dollars. Fairness isn’t just about percentages; it’s about the impact on individuals’ lives. The dialogue around tax rates frequently ignores these actual dollars paid, masking the true disparity. (See graph).

Furthermore, this focus on rates overlooks a critical issue: bracket creep. As wages increase over time, individuals are pushed into higher tax brackets without a corresponding real increase in their purchasing power. This is an insidious form of taxation that exacerbates the burden on middle and higher-income earners, eroding the principle of fairness the system claims to uphold. 

Moreover, the strategy of progressive taxation, while politically popular, overlooks the broader economic implications. High tax rates for top earners disincentivize the innovation and investment that drive economic growth. It is a short-sighted approach that prioritizes immediate political gain over long-term prosperity. 

As wages increase over time, individuals are pushed into higher tax brackets without a corresponding real increase in their purchasing power.

But the conversation about fairness must also challenge the government’s role in fiscal management. Instead of relying on tax increases, especially through bracket creep, as a default solution for budget shortfalls, there’s a pressing need for government to exercise fiscal restraint. This involves cutting wasteful spending, prioritizing essential services, and treating taxpayers’ money with the respect it deserves. Taxpayers deserve a system that not only is fair but also reflects a government that is accountable for its financial decisions. 

A fair tax system would mitigate the effects of bracket creep, ensuring that individuals are not penalised for nominal increases in income that don’t reflect real gains in wealth. Alternatives such as a flat tax could offer more equitable solutions, ensuring everyone pays their share in a manner that encourages economic growth and innovation. 

In advocating for a truly “fair share” we must demand comprehensive tax reform that addresses not only the rate of taxation but also the underlying issues of bracket creep and fiscal responsibility. The aim should be a system that encourages prosperity, treats every taxpayer with fairness, and holds the government accountable for the stewardship of public funds. The quest for fairness in taxation is not just about adjusting rates; it’s about crafting policies that encourage a vibrant economy, respect individual contributions, and ensure the government treats taxpayer money with the care it warrants.

The Nation State

As another Australia Day passes, it gives us the opportunity to reflect on our national identity and what it truly means to be Australian with the number purporting to opt out of celebrating our national day increasing.

CHANGE THE DATE

26 January 1788 marks the landing of the First Fleet and raising of the Union Jack in Sydney Harbour. While it is true it has only been granted public-holiday status since 1994, the term “Australia Day” has been used to celebrate 26 January in all states and territories since 1935. In New South Wales, 26 January celebrations date back to 1808.

While changing the date may sound like a way of keeping more people happy, in fact complaints about the date are nothing more than a facade for the true anti-Australian and anti-Western motivations behind the movement.

History is replete with actions that we would find abhorrent in modern society – and some of the actions of Australia’s first settlers are no exception. Regardless of what new date we may find, the grievance industry would have absolutely no hesitation finding some historical injustice on that new date to complain about. Which is precisely the point.

Australia has now become the global roadmap for Western tyranny.

The true intention behind those campaigning to “change the date” is to abolish Australia Day in its entirety. In fact, these grievance professionals do not believe Australia, or its culture, is worth celebrating. They are the Australian subsidiary of the global grievance industry’s efforts to prevent the celebration of any aspect of Western culture, despite it being responsible for the most free and equitable societies in human history.

A BROKEN CLOCK

But what if they’re right? What if these grievance professionals have stumbled onto something, inadvertently of course? The irony is that Australia is the wet dream of the very authoritarians who attempt to suppress the celebration of any of its achievements.

Contrary to the popular narrative of the laid-back Aussie, we are an incredibly orderly and compliant bunch. If Shakespeare was right and all the world is indeed a stage, Australia is the usher, dutifully ensuring the audience is seated correctly and quickly shushing those who dare exceed the permitted level of fun.

And what do we have to be proud of? Let’s look to modern times. Having the world’s longest and harshest lockdowns? Excessive levels of taxation? Forced participation in the political system? A disarmed populace?

“But we were once a great nation” all the boomers will cry! Perhaps we were; I was not alive to see, but I suspect that is nothing more than a nice comfort to cling to.

THE LUCKY COUNTRY

Our history suggests we were always orderly and compliant, inheriting our love for order from Mother Britian and never seeking independence from her. Like an overly dependent child and a helicopter mother: the mother fearful of the harms that freedom may entail, and the child comforted by a familiar dependence.

The true intention behind those campaigning to “change the date” is to abolish Australia Day in its entirety.

Australian liberty is no better summarised than by our closest encounter with homegrown rebellion: the Eureaka Stockade. It lasted a grand total of 15 minutes before the rebels were overrun by security forces.

While the founding documents of the rebel miners proclaims that “taxation without representation is tyranny”, echoing the language of the United States Declaration of Independence, the Eureka flag now hangs in the offices of tyrants across the country.

The symbol of our failed rebellion is captured by the tax collectors and tyrants it once opposed. All to the rapturous applause and adulation of the captive populace.

GOLDEN SOIL

Australia has now become the global roadmap for Western tyranny. American gun-grabbers point to “the Australian model” to disarm their populace. Global health bureaucrats gushed over “the Australian approach” to Covid tyranny. Regulators worldwide were inspired by Australia’s plain-package cigarettes and sky-high tobacco excise.

While the Australian economy was once described as “a farm on top of a mine”, it should now be updated to “an unrelenting bureaucracy on top of a mine”. By revenue, state government administration is now the biggest industry in Australia. And tyranny is our biggest export.
And even though I celebrated Australia Day the most Aussie way I know how, in front of a barbeque, with a beer in hand and the cricket on TV, as the state-mandated bedtime approached, I couldn’t help but wonder: am I truly proud to be Australian?

Decommissioning Solar & Wind Projects: A Costly Endeavour

Over the last decade, decommissioning and waste management of solar and wind energy projects has grown into a thriving industry. In the decades to come, with the continued deployment of projects all over the world, it will massively expand.

Solar and wind projects require highly specialised recycling and waste management processes. Decommissioning large plants can run up costs of millions, or even billions.

Solar

As solar capacity expands, demand for decommissioning services will increase. International Renewable Energy Agency estimates that global solar project waste will reach 212 million tonnes a year by 2050. 

Despite photovoltaic projects supposedly lasting 20 years, owners often decommission early. Reasons include broken panels, manufacturers out of business, outdated technical attributes and unprofitable projects. 

The Global Energy Monitor estimates China will pass this five years ahead of schedule.

Solar systems require highly specialised waste management. To reduce landfill waste and promote sustainability, responsible disposal and recycling practices are crucial.

Environmental concerns regarding solar waste components include gallium arsenide, tellurium, crystalline silicon, lead, chromium, cadmium, sulfuric acid, mercury, radioactive materials and heavy earth minerals. Inadequate disposal leads to chemicals leaching into groundwater, stressing nature and agriculture and poisoning drinking water. 

Solar panels also contain valuable raw materials such as copper, steel, aluminium, zinc, and silver. These are wasted in landfill.

Wind 

Waste management of wind turbine blades is also complicated, expensive and raises environmental concerns.

Each blade is 50 to 90 metres long. It must be cut up using specialised equipment. Blades consist of resin and fibreglass, which cannot be recycled or crushed. Existing landfills do not have space for them and setting up new landfills is expensive.

To understand the scope of the issues, let’s take a look at the two largest economies, the US and China. 

US 

Solar 

Commenting on a report by the Energy Information Administration, Solarcycle CEO Suvi Sharma said, “Solar is becoming the dominant form of power generation, but with that comes a new set of challenges and opportunities. We have not done anything yet on making [solar] circular and dealing with end-of-life [panels].”

There are approximately 500 million solar panels installed across the US, increasing 20% each year. Ninety percent of decommissioned panels currently go to landfill due to recycling costs. From 2030 to 2060, the US will accumulate 9.8 million tonnes of solar panel waste, according to a 2019 study published in Renewable Energy.

Sharma stated that, “We see that gap closing over the next five to 10 years significantly, through a combination of recycling becoming more cost-effective and landfill costs only increasing.” 

Time will tell whether or not this prediction is accurate. 

Solar and wind projects require highly specialised recycling and waste management processes.

Wind

The lifespan of a wind turbine is purportedly 20 years. However, as Julie Angulo, senior vice president of Veolia stated “We are seeing a wave of blades that are 10 to 12 years old, we know that number is going to go up.”

Decommissioned wind turbine blades have joined solar panels in landfills, and are known as ‘forever waste’.

According to a 2021 study released by the National Renewable Energy Laboratory, the US will decommission 3,000 to 9,000 blades every year until 2026, 10,000 to 20,000 blades a year until 2040, and 235,000 blades a year by 2050. 

China 

China leads the world in wind and solar energy equipment manufacture. China’s initial aim was 1,200 gigawatts of wind and solar by 2030. The Global Energy Monitor estimates China will pass this five years ahead of schedule.

Waste volumes will rise as projects are decommissioned and replaced, emphasising the need for recycling measures. China currently doesn’t have specific regulations or processes for solar panel and wind turbine waste management. The State has announced it is working on industrial standards and rules to address this.

The state planning agency advised that China aims to have a “basically mature” full-process recycling system for wind turbines and solar panels by the end of the decade. 

Solar 

China is the world’s leading solar market. It has surpassed everyone in terms of expenditure, manufactured panels and energy production.

The International Renewable Energy Agency reported that in 2023, China dominated global solar panel additions with a record-breaking year, adding an estimated 180 to 230 gigawatts. 

However, in June last year China’s official Science and Technology Daily newspaper advised that in spite of the lifespan of 20 years, many of China’s solar projects show significant wear. The paper cited experts saying that China will have 1.5 million metric tonnes of decommissioned panels by 2030. This rises to 20 million tonnes by 2050 and is also in line with The International Renewable Energy Agency’s estimations. China will have the greatest amount of solar panel waste in the world.

Conclusion

The burgeoning solar and wind energy sectors demand attention to the economic implications of decommissioning and waste management. We need to face the fact that “sustainable” energy might not be so sustainable, and fossil fuels alongside nuclear are still necessary to keep costs and environmental damage to a minimum.

China 2024 and Beyond: A Troubled Future

My recent discussions on Liberty Itch have painted a picture of China’s landscape as a prison-like surveillance-intensive system, and as a no-privacy technology-driven cashless society. In this article, I want to further explore the future of China as we look towards 2024 and beyond. I will examine the implications of China’s expanding surveillance state, the tightening grip of authoritarian power, the simmering economic challenges, and the looming demographic crisis.

A Safe Prison

In China, particularly within its major cities where surveillance cameras are omnipresent, the situation resembles a vast yet secure prison. Proponents may argue that it ensures unparalleled safety, but high security is also a characteristic of prisons, largely due to extensive surveillance, with only a few exceptions like Jeffrey Epstein.

Beyond what I discussed in my previous article, emerging technologies are being used by the government to further erode any remaining privacy. A recent example I heard from a friend is a discreet device, easily overlooked, capable of extracting comprehensive information from your phone within a short range. Although not widely deployed yet, the potential of such technology is horrifying. While the most secure phone option in China is an overseas iPhone, these have been banned by all government bodies and affiliated organisations – a decision aimed at facilitating surveillance under the guise of patriotism.

 The youth unemployment rate in China reached new highs each month in 2023

A Loyal Empire

Xi Jinping’s regime is imposing a concentration of power unprecedented since Mao’s era. This communist empire demands not just loyalty, but absolute allegiance from its members. Figures like the recently deceased former Premier Li Keqiang, known for their more liberal stances on society and the economy, have been conspicuously absent from the new cabinet for a year.

With the aid of AI and new technology, examining loyalty to the supreme leader has become easier. In various government bodies and affiliated institutions, such as banks and universities, advanced AI-embedded cameras are being employed to analyse people’s facial reactions. These sophisticated systems scrutinise subtle changes in lips, noses, chins, eyes, and eyebrows to infer individuals’ emotions – admiration, confusion, indifference, or even dissent. The leap from mere “facial recognition” to “mind reading” is deeply troubling.

A Growth Mirage

China’s economy is facing severe challenges. Despite optimistic forecasts for a robust recovery following China’s post-COVID reopening at the end of 2022, the reality in 2023 has been starkly different.

Stock Market: In contrast to the significant gains in global share markets in 2023, with the US up by 24.2%, the Eurozone by 15.7%, and Australia by 7.8%, China’s stock market has seen a decline, down by 11.4%.

Property Market: The real estate sector, once a cornerstone of China’s economic growth, has seen a decline of 20-30% across most major cities. In cities like Shanghai, luxury properties have seen even steeper declines of 30-40%. This downturn is more pronounced in smaller cities experiencing a net population outflow. Additionally, a report in August 2023 indicated that the vacancy rate in 28 major cities was at 12%. (For comparison, Australia’s vacancy rate was recorded at 1.02% in October 2023.)

Local Government Debts: Local governments need to repay a record US$651 billion in bonds in 2024. The deep property slump is reducing their ability to generate income from land sales, which is a crucial revenue source. The slowdown in the broader economy has also affected their tax revenue. Growing concerns about potential defaults could trigger a widespread economic crisis.

Spending: Although people are still showing off with travelling photos on popular Chinese social media platforms, overall spending has reduced significantly, leading to the phenomenon termed “selfie travel.” A friend, whose business has suffered a significant downturn, satirically remarked, “I used to shop at Hermes, but now I shop at Uniqlo.”

With the aid of AI and new technology, examining loyalty to the supreme leader has become easier.

Youth Unemployment: The youth unemployment rate in China reached new highs each month in 2023, leading to the government’s decision to cease publishing the data. The last official youth unemployment rate was over 20%. This trend is attributed to a slowing economy and a mismatch between graduates’ skills and job market demands, as well as their expectations and “lying flat” attitudes, which pose serious implications for social and political unrest.

Baby Boom Bust

China’s future is increasingly influenced by a significant demographic issue: its declining birth rate. In early 2023, China experienced its first decline in birth rates in 60 years, a trend that only intensified as the year progressed. Despite policy shifts from the One-Child to the Two-Child and later the Three-Child policies, young families remain reluctant to have more children. This trend, along with minimal population growth, threatens to strain social security systems, potentially leading to a critical tipping point.

Conclusion

While numerous factors, such as potential war with Taiwan and evolving political and economic relations with Western countries, play a role in shaping China’s future, the areas discussed here are particularly significant. The increasing reliance on surveillance, a heightened emphasis on ideological conformity, and a declining population, point towards significant difficulties ahead. Though Xi Jinping, persistently criticised for lacking the capability to advance China’s progress, remains the unchallenged supreme leader, China is in urgent need of a new Deng Xiaoping—a true reformist—to take the country back onto the right track.

(Don’t) Be Your Own Boss

By ‘closing the loopholes’, Labor ultimately seeks to undermine self-employment, casual employment and competition, Libertarians must take note. 

November 17 2023 The scene is the 2023 HR Nicholls Society conference in North Sydney; the speaker is Ken Phillips; the topic: Federal Labor’s ‘Closing the Loopholes’ bill. 

Phillips is unassuming, plainly dressed, but he means business. In a conference otherwise dominated by partisan interests and the society’s own history, he cuts through with a powerful and practical message. Having dissected and analysed all 274 pages of the ‘Loophole’ bill and written his own submission (on behalf of Self-Employed Australia [SEA]), he has been in regular contact with the crossbench, who Labor currently relies on to pass legislation. 

Ken Phillips

Phillips was optimistic then, satisfied that the crossbench were heeding his call for caution and discernment over the prevailing narrative. But it was not to last; Senators David Pocock and Jackie Lambie combined to split, then pass, the first tranche of the bill, including concerning new provisions that escalate the power of union delegates. But the worst is yet to come.

Subject to an inquiry this year, the remainder of the bill seeks to undermine commercial contracts, create strict pre-conditions that define ‘casual’ employees, and effectively prevent workers from being their own boss. 

The loophole bill relies on the rhetoric of exploitation: pitting workers against employers and removing agency from consenting participants in the ‘gig economy’. 

90% of people working for digital gig platforms are also employed elsewhere.

The reality is quite different – I should know, having been a contract worker and a casual for much of my working life. These reforms in fact represent a direct attack on my livelihood. 

Keep it casual

As Phillips demonstrates in his analysis of wages by employee type, casual workers are financially better off on an hours-worked basis to the tune of about 6% (more if you consider the higher super contributions). What’s more, being a casual employee allows for the worker to ramp up or down their hours, take on a different employer and maintain flexibility much more readily – something I made use of as a student particularly.  

Businesses also require flexibility to operate effectively in the marketplace, as demand and staffing requirements fluctuate. The loopholes bill creates stringent regulations on how an employee can be considered casual. This will simply disincentivise businesses from hiring staff as employers will have fewer options to reduce their wage liability when business is slower. 

Fixed contracts

Contract and self-employed workers are also in the sights of Labor and the unions. The proposed legislation coins a new term – ‘employee like’ – to describe self-employed workers. This means self-employed workers will be subject to the industrial relations system, undermining the nature of commercial contracts between consenting parties. 

As a contract worker myself, I do not miss the IR system. My generous employers allow me paid leave entitlements anyway, and I can readily work for an employer based anywhere in the world, making my own choices with regards to super contributions.  

Pitting workers against employers and removing agency from consenting participants in the ‘gig economy’.

Getting a gig

A major objective of the loophole bill is supposedly to protect workers from exploitation in the ‘gig economy.’ The reality is quite different: well over 90% of people working for digital gig platforms are also employed elsewhere – they are ‘hustlers’, earning top-up income outside of regular employment.

There are concerns for market competition too. By eliminating self-employed workers from the marketplace, large operators in industries such as transport and construction will face less competition. How this market concentration will benefit workers and consumers, or is consistent with Labor’s message to voters, I cannot reconcile.  

An unlikely union

It is a good deal for those large operators though, and it’s an especially good deal for the unions, perhaps revealing the true motivations behind this bill. Trade union membership has dwindled for decades, and the availability of flexible or casual work has further undermined their influence. 

By forcing all workers into employment contracts subject to IR law, the unions can once again wield significant influence. Large employers can collude with these unions and suppress competition, diluting the influence of smaller or independent players in their respective industries. 

The big loser is of course the workers, who lose flexibility in their employment arrangements, are forced to work in industries dominated by a few large players, and are financially less well off if they are casual. 

It is truly a sad state of affairs that the party of workers would propose such a bill, but it is characteristic of Australian politics, long divorced from the interests of common workers.
Further reading: https://selfemployedaustralia.com.au/be-your-own-boss/

Popular Posts

My Favorites

The Missing Ingredient – Assimilation

0
When Al Grassby was Immigration Minister in the Whitlam government in the early 1970s, he announced that multiculturalism was to be Australia’s future policy....