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The Unknown Libertarian

Jorge Luis Borges (1899-1986) is widely regarded as one of the most important writers of the 20th century. It’s a big call; but as someone who has been fascinated by his writings for many years, I’m not about to disagree. The Argentine is perhaps less well-known than the great novelists of the Latin American Boom, such as Nobel laureates Gabriel Garcia Marquez and Mario Vargas Llosa; and yet, Borges was a major influence in the renowned magic realism of their novels.

Borges’ body of work consist of poems, short stories, and essays. He speaks of fundamental human mysteries, life’s journey, the passage of time, the universe; mythological labyrinths, minotaurs, wars, heroes; but also, alleyways, patios, chess, and coffee.

In life and in fiction he avoided politics with questionable success. He was the target of criticism from people who thought he had a moral responsibility to use his notoriety to influence political life in every which way. He claimed to have a profound disinterest in such matters: “I know little about contemporary life. I don’t read a newspaper. I dislike politics and politicians.” [A Conversation with Jorge Luis Borges – Artful Dodge Magazine, 1980].

Borges didn’t set-out to make political statements in his work, arguing that art should be “free not revolutionary”, but he was naturally inspired by contemporary and historical events, particularly from his troubled Argentina. His political sympathies changed over time (“I was a communist, a socialist, a conservatist and now an anarchist” – he confessed later in life) but there was a consistency of thought throughout his life.

What emerges from his writings, interviews and public appearances is a political position that can be seen as ambivalent in the context of the traditional left-right dichotomy.

In an essay titled Our Poor Individualism he writes: “The most urgent problem of our time (already denounced with prophetic lucidity by the near-forgotten Spencer) is the gradual interference of the State in the acts of the individual; in the battle with this evil, whose names are communism and Nazism, Argentine individualism, though perhaps useless or harmful until now, will find its justification and its duties.” This Argentine individual “does not identify with the State”, something Borges attributes “to the circumstance that the governments in this country tend to be awful, or to the general fact that the State is an inconceivable abstraction”. It is the same sentiment expressed by Murray Rothbard in his Anatomy of the State‘We’ are not the government; the government is not ‘us.’”

In opposition to the collectivism of the State, Borges praised and exalted ordinary people, fallible and imperfect, practising their craft one way or the other, in a complex network of individuality and togetherness. Some might call this Human Action. In his poem The Just, Borges enumerates a series of people carrying out daily activities only to conclude that they are, unbeknownst to them, “saving the world.”

Jorge Luis Borges. The Unknown Libertarian.

In The Other, Borges finds himself talking to his younger double who is writing a new book of poems about “the brotherhood of all mankind”. The dialogue includes this passage:

I thought about this for a while, and then asked if he really felt that he was brother to every living person—every undertaker, for example? every letter carrier? every undersea diver, everybody that lives on the even-numbered side of the street, all the people with laryngitis? (The list could go on.)

He said his book would address the great oppressed and outcast masses. “Your oppressed and outcast masses,” I replied, “are nothing but an abstraction. Only individuals exist.”

As Professor Alejandra Salinas explains, “the political philosophy latent in Borges’s works rests on the belief in a self-sufficient individual, the pre-eminence of liberty, a distrust of government, and nostalgia for anarchy understood as a self-organized order.” [Liberty, Individuality, and Democracy in Jorge Luis Borges]

The Congress is a tale about a failed Uruguayan congressman, Alejandro Glencoewho decides to create a new representative body of much greater scope, one that could represent people from all over the world. As the debates in the new Congress unfold, they soon run into the impossibility of representing an infinite diversity. At some point, someone suggests that “don Alejandro Glencoe might represent not only cattlemen but also Uruguayans, and also human great forerunners and also men with red beards, and also those who are seated in armchairs.”  

The Congress of the World not only fails to represent anyone, but it also becomes a dysfunctional, corrupted, self-serving, ever-expanding, redundant indulgence of don Alejandro, before he decides, faced with the reality of its inadequacy, to dissolve it.  

It’s impossible not to draw parallels here with the proposed “Voice” to parliament. As Warren Mundine argues, “[The Voice] is based on a false premise that Indigenous Australians are one homogenous group and will constitutionally enshrine us as a single race of people, ignoring our unique first nations.” It doesn’t take an Argentine genius to understand his point. 

Jorge Luis Borges vehemently rejected all forms of collectivism and masterfully wove individualism and liberty into his literary world. Libertarians and classical liberals will gain much pleasure from reading him. The great man from Buenos Aires deserves a place in the Libertarian canon.    

I turn again to Our Poor Individualism:

[the utopian] vision of an infinitely tiresome State, once established on earth, would have the providential virtue of making everyone yearn for, and finally build, its antithesis.

Tobacco Smuggling: A Problem of Government

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If smuggling isn’t the world’s oldest profession, it’s likely a smuggler was one of its first customers. The moment a tax or restriction is imposed on any trade, an incentive for smuggling is created.

Smuggling has also influenced world affairs. Britain’s heavy-handed attempts to prevent its US colonies from trading with the Spanish empire, which were circumvented by smuggling, stirred the desire for independence.

The Chinese government’s efforts to stop opium smuggling in the 1840s led to the opium wars, two outcomes of which were Britain’s acquisition of Hong Kong and China’s distaste for foreigners. And of course, smuggling of alcohol in America during Prohibition gave a huge boost to organised crime and led to the creation of the FBI.

In the twentieth century, the prohibition of recreational drugs led to smuggling becoming a vast international industry, funding organised crime and corrupting entire countries.  Moreover, laws passed to suppress it were often fundamentally at odds with a free society.

Them that ask no questions isn’t told a lie

Given this history you might expect the Australian government to be wary of creating another opportunity for smugglers. As the saying goes, those who fail to learn from history are doomed to repeat it. Yet that is exactly what Australia is doing; a large and growing smuggling industry has developed as a direct result of its massive increases in tobacco excise.

Tobacco excise is increased in March and September each year by average weekly ordinary time earnings (AWOTE) plus whatever the government decides. The big jumps began in 2010 under Labor with a 25% increase followed by yearly increases of 12.5%. This continued until 2020 under the Coalition.

In July 2006 tobacco excise was 23 cents per stick, or $291 per kg. By February 2023 it was $1.14 per stick or $1,629 per kg, an increase of 490% and 560% respectively. Over the same period the CPI increased by 152%.  In other words, tobacco excise increased about 3.5 times as fast as inflation.

Cigarettes in Australia are now the most expensive in the world at about $2 per stick at retail level. This has contributed significantly to government revenue: three or four years ago tobacco excise raised around $18 billion dollars a year. For reasons that will become obvious, it is now around $14 billion.  

With the price of an entire pack of cigarettes costing less than $2 in some countries, there is an enormous incentive to smuggle tobacco products into Australia. It is said that even if nine out of ten containers of illicit tobacco products are intercepted, the profits on the tenth are sufficient to not only cover the losses but also reward the smugglers handsomely.

Smokers, a large proportion of whom have low incomes, at first responded to the increase in excise by reducing consumption, prompting health bureaucrats and anti-tobacco activists to pat themselves on the back. But, unlike in the rest of the world, the decline virtually ceased a few years ago. Many just switched to smuggled cigarettes and tobacco.

The periodic survey of tobacco consumption by KPMG found illicit tobacco increased from 14% of the market in 2018 to over 20% in 2019. A total of 3.1 million kilograms of tobacco, loose and packaged, was smuggled into the country, avoiding $3.4 billion in excise. 

The response of the federal government has been to boost deterrence and interdiction efforts. Penalties have been increased and, in 2018, it established an Illicit Tobacco Taskforce to “proactively detect, disrupt and dismantle serious organised crime syndicates that deal in illicit tobacco”.

The Australian Tax Office, which is responsible for stopping local tobacco production, also ramped up its efforts. It uses satellite surveillance to detect crops based on their biological signature, the same technology used to identify cannabis, and boasts loudly whenever it detects and destroys a tobacco crop.  

The availability of smuggled cigarettes and loose tobacco has not faltered.

To some extent this is of no great concern to anyone except the federal government. Cheap smokes are no more dangerous than the legal kind and the smugglers are merely evading taxes, not something most of us would seriously criticise.  The smokers who consume illicit tobacco products can hardly be blamed for wanting to save money.

The real problem is that the people smuggling tobacco are also smuggling other things. They are organised, sophisticated, dangerous criminals. Profits from tobacco smuggling are funding these other activities, including human trafficking. According to the US Department of State, traffickers are denying nearly 25 million people “their fundamental right to freedom, forcing them to live enslaved and toil for their exploiter’s profit.”

Whether the government should even expect to make a difference, given smuggling’s history, is a good question.

You would have to search long and hard to find where
smuggling has been substantially suppressed through law enforcement,
particularly in a country that respects legal rights and due process.

If the enormous resources devoted to the control of drugs have failed to limit their availability, why should it succeed with tobacco?The alternative of removing the incentive to smuggle tobacco into Australia by reducing the excise is never considered. Yet smokers would gladly buy their favourite legal brands if they were cheaper, legitimate tobacco suppliers and retailers would not be competing against illicit suppliers, and much less money would be spent on law enforcement.

The simple fact is there is no prospect of controlling the illicit tobacco market through enforcement, just as it was not possible to enforce alcohol prohibition in America or prohibition of drugs anywhere in the world. As the police would say, this is not a problem you can arrest your way out of.

Why I Oppose The Voice

Whether to oppose or support the Voice referendum is an easy decision for me. The proposal is fundamentally racist, and I’m a libertarian. Racism is a collective concept and simply incompatible with libertarianism.

Libertarians see people as individuals, not as members of a group.

The proposal is for people of the Aboriginal race to elect members of the Voice, which will have the right to give advice to the government and executive. Non-Aborigines will not have a vote for the Voice, and will have no comparable means of giving advice. Australians will thus be divided into two groups – Aborigines and non-Aborigines, with Aborigines having rights that non-Aborigines do not have. Moreover, by being in the Constitution, the Voice will have a status not held by any other advisory body.  

Dividing people into groups, whether it is race, gender, ethnicity, religion or sexual preference, is collectivism.  It might be appropriate on occasions for statistical purposes, but it is not acceptable as a basis for government policy.  The only legitimate approach, to libertarians like me, is to treat people as individuals.

That does not mean we lack concern for the welfare of Aborigines. Like Australians generally, we are distressed at the pathetic improvements revealed by the Closing the Gap surveys. Indeed, the third world conditions of Aborigines in remote regions is a national disgrace that I railed about regularly when in the Senate.

And yet, there are plenty of Aborigines who participate in Australian society on the same terms as other Australians. They have jobs, are not poor, their children attend school, and they are not involved in substance abuse. Moreover, there are plenty of non-Aborigines who do not have jobs, are poor, abuse drugs, and neglect their children.

Treating all Aborigines differently because some are poor and disadvantaged makes no more sense than treating non-Aborigines differently because some of them are poor and disadvantaged. The problem is that these issues exist, not the race of those who suffer them.

Libertarians see people as individuals, not as members of a group.

We share Martin Luther King’s dream, in which he hoped that one day his four little children would be judged on the basis of their character, not the colour of their skin.

Racism is a collective concept and simply incompatible with libertarianism.

Collectivism, which includes defining people by their race, is rejected. If someone is poor and disadvantaged, the appropriate response is to overcome the disadvantage that keeps them poor. This is true irrespective of the race of those concerned, or indeed any other collective characteristics with which they might be defined.

Voting no to the voice referendum can be justified on several grounds, including the fact that it will seriously compromise the role of parliament once the High Court gets its hands on it. But for libertarians, the simple fact that it is based on racism is sufficient.

5 Magic Apps For Prosperity

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In his famous 1964 “A Time for Choosing” speech, Ronald Regan recounted a story:

“Not too long ago, two friends of mine were talking to a Cuban refugee, a businessman who had escaped from Castro, and in the midst of his story one of my friends turned to the other and said, “We don’t know how lucky we are.” And the Cuban stopped and said, “How lucky you are? I had someplace to escape to.” And in that sentence he told us the entire story. If we lose freedom here, there’s no place to escape to. This is the last stand on earth.”

I was brought back to this speech and this story when I opened my email this morning to an alert from Visual Capitalist, a wonderful website that produces graphics of important data sets.  This morning’s alert was to show the richest and poorest nations in the world based on per capita income.

The Richest. Ireland #2, US #7, Australia #9, Canada #12, UK #18, NZ #22.

The top 3 richest are in Europe: Luxembourg, Ireland, and Switzerland.  The 3 poorest are in Africa: Burundi, Sierra Leone, and Malawi.  Europe versus Africa. 

Looking at these charts should make one wonder.  But in a world of diversity, there will always be rich and poor, but the important questions are why are the rich rich and the poor poor. 

The social justice intelligentsia would have people believe that poor are poor because the rich are rich.  As if the rich took wealth from the poor.  They would also have people believe that poverty is a function of resources.  Yet the poorest nations are in Africa where resources are ample, and the richest nations are in Europe where resources are sparse.

If recent history has shown anything, the drivers of longer term economic and social prosperity are not geography or resources.  It is not climate or race.  The difference is the software that these countries run.

It has been seen, time and time again, anywhere and everywhere, that the key ingredients, the five magic apps for prosperity are:

  1. the rule of law;
  2. limited government;
  3. low taxes;
  4. property rights; and
  5. competitive markets.

Evidence?  Sure.  Look at North Korea vs South Korea, East Germany vs West Germany.  Look even at North America and South America.

Capitalist South Korea fully lit at night. Anti-capitalist North Korea dark.

You will note that democracy is not on that list because these are the apps for economic and not political freedom.  China has proven that you can increase a nation’s wealth by running these economic magic apps.  But China has also shown that economic freedom creates pressures for political freedom which is why it is starting to delete these apps, and watching its economic prosperity slowly erode.

What is the lesson here?  Well, these wealthy nations, including Australia, that have become wealthy and prosperous by running these five magic apps, by having the rule of law, limited government, low taxes, property rights and competitive markets are, slowly deleting these apps.  And wealth and prosperity is slowly being deleted in parallel.  The first sign of the economic atrophy is inflation.  Next will come recession/depression.  What comes next?  Have a look at the nations that don’t run these magic 5 apps.

After economic freedom disappears, then political freedom will disappear.

As Ronald Regan said: “If we lose freedom here, there’s no place to escape to”.

Brave Little Trooper

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“To these people, the war is simply a continuous calamity which sweeps to and fro over their bodies like a tidal wave.”
                                                                                                              1984. George Orwell.
We are at war.                                             
We shall prevail at all costs.
                                                                         (The reputations of many are on the line)
It’s time for you to shelter in place.
                                       Hunker down.
When the wild dogs of the night come pouncing on you; call the helpline. Y­­ou will feel less lonely. But be patient: they are busy and they are doing the best they can.
                                                                                                 (I’m sure you’ll understand)
You know this is the right thing to do. Surrender your wishes, your passions and your aspirations. Make sacrifices. Don’t complain (you selfish prick!). We are here for you. We look after you.
It will be over soon. A quick operation with military precision. The objectives are very clear. We are authorised to report that we are winning. The enemy will try to adapt but we will defeat it every time. Every. Single. Time.
This is the stuff heroes are made of.
We ask that you do what the Nation demands of you.
                                                                                                      Be a brave little trooper.
                                                                                                           (Soon to be forgotten)

Free Will, Libertarians and Easter

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Sam Harris does not believe ‘free will’ exists.

He believes we are creatures playing out compulsive, repetitious behavioural cycles like any other animal and, like them, we just don’t realise it.

Except for him.

He knows what none of us can see, apparently.

He has elevated himself above the primal, it is suggested we acccept.

Forgive my skepticism.

On the contrary, I see ‘free will’ exercised daily, at life’s inflection points and in our beliefs.

We are free agents, individuals making an individual’s decision, not some kind of habitual, near-clone automatons.

‘Free Will’: individuals’ ability to decide independently of evolutionary reflex

Daily ‘Free Will’

We exercise ‘free will’ daily in the decisions we make: walk across the road now or when the cars come, read a chapter of a book now or later or not at all, compliment a person or not. This is obvious.

‘Free Will’ At Life’s Inflection Points

We exercise ‘free will’ at great inflection points in our lives when long-lasting, significant decisions are made: a marriage, a move overseas, a decision to start volunteering for a charity for the next ten years, the ascent of a rugged mountain.

When a child is born, is it preordained that this individual would go on to a life of crime or become a Rhodes Scholar? No. A million choices are made along life’s path to reach that point.

Daily and at life’s inflection points, ‘free will’ is exercised.

So too with our belief systems.

‘Free Will’ In Our Beliefs

The more counter-intuitive our belief systems, the more likely we are to be free agents and individuals making an individual’s decision.

It’s easy to follow the herd. Not much ‘free will’ in that.

The more unusual or challenging the ideas we embrace, the less likely we are some kind of habitual, near-clone automaton and the more evidence there is that we are NOT creatures playing out compulsive, repetitious behavioural cycles like any other animal.

The harder to understand or more complicated our beliefs, the less likely our adherence to them is an evolutionary reflex. Unusual or radical ideas have to be formed, absorbed and finally proactively accepted. This all takes prodigious helpings of ‘free will’.

Let me give two examples of counter-intuitive belief systems which prove ‘free will’ is in play.

First, in the political realm, classical liberal and libertarian principles.

Adam Smith. Classical Liberal.

In a world of predictable, herd-following progressive versus conservative debates, our views are counter-intuitive and don’t fit their narrative. Our ideas take discipline to apply. We have to constantly think to hold true to them. We are exercising ‘free will’ just to maintain philosophical consistency. In a Left-Right world, we are thinking outside the box and reshaping the political landscape as an Authoritarian-Libertarian world.

Does this sound like the product of an automaton in a matrix, or thinking individuals weighing a fresh and exciting political philosophy?

It smacks of individual thinking and ‘free will’ to me.

Second, in the religious world, Christian faith.

Do you want an example of a mind-bender of a belief, a counter-intuitive thought which takes all of our ‘free will’ – all of us – to absorb and embrace?

OK. I’ll give you one, timely since today is Good Friday:

“For God so loved the world that he gave us his only Son,
that whoever shall believe in him, shall not perish but have eternal life.”

Tell me that doesn’t take a large dose of ‘free will’ to accept! Let’s call this idea what it is: über radical! There’s nothing automatic or mundane about this concept. To truly accept the idea, there can be no coercion, only free-thinking and a big leap of faith, individuals making an individual’s decision on a concept well outside the norm.

As I meet more and more classical liberals and libertarians, I become less and less surprised that so many happen to be Christians in their private lives. Of course, you don’t have to be a Christian to be libertarian. The former is a personal moral code, the latter a political one. But, wow, there are a lot of Christian libertarians. Start with the most famous: Ron Paul.

Ron Paul. Christian Libertarian.

None of us should be shocked by this.

Libertarian and Christian ideas are for the free-thinker. Both are challenging to apply. Both respect the dignity of the individual. Both call for personal responsibility. Both respect those who’s lives we touch. Both require the exercise of ‘free will’ and both will be judged on the decisions made with the ‘free will’.

This is a very different person from a conservative who trades on Christianity with words like “I am a cultural Christian. I believe in Judeo-Christian values” but doesn’t even believe let alone go to church on Easter, the singular most important day on the Christian calendar.

No, in my experience, libertarian Christians not only have a parish church and attend on Easter Day, but are actually in the leadership groups of their local church. No virtue signalling over it. Just belief and quiet action. They work hard in their local communities and volunteer because, as one of many reasons, the act of charity is authentic not the act of being charitable with other people’s money.

The inherent tension built into the idea that you should live freely as long as you don’t harm another, John Stuart Mill’s Harm Principle, mirrors the ‘free will’ Biblical narrative from the consequences of free choice in Eden to the consequences of choosing to submit in Gethsemane.

These are not ideas for mere creatures playing out compulsive, repetitious behavioural cycles like any other animal.

Rather, these are daring, challenging ideas for the enlightened free-thinker.

Sam Harris is wrong. ‘Free will’ is everywhere and Easter service awaits you this Sunday.

How will you use your ‘free will’?

On Guns, Feelings Are Not Facts

Whenever there is a public shooting in America, Australian media and politicians give a sigh and shake their heads in mock despair. How is it, they ask, that a smart country like America cannot do what is necessary to stop this from occurring, by implementing gun laws similar to those in Australia?

The gun laws Australia introduced in 1997 were some of the most restrictive in the world.  They included bans on many types of firearms, universal gun registration, and a gun confiscation program costing taxpayers a billion dollars. 

1997 Australian Gun Confiscation Program

It has become perceived wisdom that the laws reduced gun violence and prevented further mass shootings. That perception has spread outside the country too. When she was running for president in 2016, Hillary Clinton argued that the US should follow Australia’s lead.

Joseph Goebbels, Hitler’s master of propaganda, is infamous for his claim that
a lie told once is still a lie, but a lie told a thousand times becomes the truth. Australia’s 1996 gun laws did not make Australia safer, did not prevent mass shootings and are not an example for other countries, but you will have a hard time convincing most people of that. They have heard the opposite so often.

The data shows that Australia’s murder rate, already steadily declining prior to 1996, continued to decline at the same rate after the laws took effect. Several academic studies using Australian Bureau of Statistics data have confirmed this. Furthermore, there have been several mass shootings since the gun laws were introduced.

There is a simple explanation for this.

There is no correlation between gun control and crime.

Some countries with low crime rates have strict gun control while others have relaxed gun control. Some with high crime rates have strict gun laws while others have relaxed gun laws.

Malaysia, for example, has both corporal and capital punishment for using a gun to commit a crime, yet its murder rate is roughly double that of Australia’s. On the other hand, the Czech Republic has very relaxed gun laws including the right to carry a gun for self-defence, similar to most states of America, yet its murder rate is the same as Australia’s.

It is the same within the US, notwithstanding assumptions that it is uniformly violent. The places with the worst gun violence, Chicago and Washington DC for example, have quite strict gun laws while other places, such as the state of Vermont, have virtually no restrictions on gun ownership and a murder rate comparable to that of Australia’s.

The conclusion is unavoidable. If Australia were to adopt the same relaxed gun laws as Vermont, there would be no change in the crime rate. If Vermont were to adopt the same gun control laws as Australia, it would remain a safe, non-violent place. Gun control and crime are independent variables.

The obvious question from this is, what purpose do gun control laws serve? Some people feel nervous about guns and are happier knowing they are heavily restricted, but feelings should never be the basis for placing restrictions on other people. Moreover, such people are rarely nervous about police carrying guns.

Another awkward fact is that gun control laws have a sinister history. For example, their origins are deeply racist, being introduced to keep guns out of the hands of freed slaves in America, aborigines in Australia and Māoris in New Zealand. In Britain they were introduced soon after the First World War in response to concerns that returning soldiers might be tempted to emulate the recent Communist revolution in Russia.

If there is one purpose for gun laws that users and anti-gun people agree on, it is that they should seek to keep guns away from those who are likely to become violent, whether the mentally ill or those with violent intentions. How to achieve this in a sensible manner, without imposing on the freedom of those who are not violent, is what ought to be the subject of debate by reasonable people. 

David Leyonhjelm was a senator from 2014 to 2019. His book Gun Control – What Australia did, what other countries do and is any of it sensible, is available from Connor Court and online booksellers.

12 Visionary Reasons To Just Embrace The Postmodernists, Damn It!

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Welcome to your very own, brand-new Commonwealth of Postmodernism. The early stages of Idiocracy. Coming to you right now …

  1. World’s first postmodern capitalism, Chalmers edition. Praised by WEF for phasing-out that pesky private property anomoly.
  2. Tax feels less like a lean social contract for essentials and more like big fat cannula in the vein draining away your life. Oh jooooy!
  3. Local councils scrapped. 576 land councils replace them. Oh wait, don’t we already have both …
  4. 576 languages taught in schools. English scrapped. We’re all co-parents of your children now. One big Mummy state. Come to Daddy!
  5. We’re going to demolish the Sydney Opera House. Opera is elitist afterall. Instead of a Big Banana or Big Pineapple in its place, we’ll install a Big Mehreen Faruqi bathed in warm dung-powered eco-green light. Lit. Coooool!
  6. Lord’s Prayer out. Drag Show in, which can follow the Smoking Ceremony. Parliament never began so dignified. And family-friendly. All good. We’ll turn off the fire sprinklers.
  7. Prayers and repeated incantations still allowed. Not so much “Our Father …”. Patriarchies are sooooo yesterday. No, more like “We acknowledge the traditional owners …”. Say it once. Say it twice. Say it thrice. Who needs God? It’s a new take on theocracy, vested-interest version. You’ll love it. Apply for your government grants now.
  8. Change of job title. Prime Minister becomes Club Med Tour Guide for washed-up former US Presidents.
  9. Marcia Langton is sent to the Coronation. The Debarkle Markle suggests she make her new Voice heard louder by rushing Charles’ Throne and proclaim Westminster Abbey Yiman and Bidjara sovereign land. No Magna Carta to King John. No. More like a minerals royalty contract. Marcia The Magnificent. Winter is coming.
  10. Renters become owners. Owners become renters. New owners pay government-run banks $20 million mortgage repayments until they are 117 years old. New renters are evicted.
  11. Recently evicted renters are then evicted from the country and, under 576 treaties, sent to Nauru for diversity and inclusion re-education.
  12. China finishes the job of quarrying iron ore and coal deposits at Marxist rates.

Welcome to Postmodernist Australiaaaaa!

Academic Independence Under Question

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Australia is implementing tangible measures to counter the security threats imposed by Communist China.

The AUKUS security pact has turned out to be a robust, bipartisan commitment and our PM has recently sealed the deal with India to strengthen the two countries’ trade and defence cooperation.

Australian PM Anthony Albanese, United States President Joe Biden and United Kingdom PM Rishi Sunak on 13 March 2023 in San Diego.

These actions are loud and clear: Australia no longer wants to put all its eggs in one big communist basket. The resulting key trading-partner risk threatens our democracy and sovereignty.

Despite the fast-changing political landscape, the Director of the Australia China Relations Institute (ACRI) at the University of Technology Sydney (UTS), Professor James Laurenceson, continues to advocate for maintaining our dependence on Communist China and suggests, in his piece for the Guardian on 18 March 2023, that the AUKUS alliance must be accompanied by “reassurance to Beijing”, in that Australia should have no intention of impeding China’s economic growth or changing its One China policy.

While we acknowledge that Prof. Laurenceson is entitled to his view, Liberty Itch does not believe it is necessary to placate Beijing like we would a child with a dummy.

It is concerning that a UTS professor calls for Australia to sooth Beijing,
ignoring security threats imposed by the human rights crushing Chinese state.

In fact, if any reassurance is required, it should be given by Beijing that they won’t invade or annex Taiwan, given the record-breaking increase in Chinese military activity towards the self-ruled democracy.

Liberty Itch isn’t in the habit of citing anti free market activists and former political candidates for the Australian Greens. However, even from that end of the political spectrum, Australian scholar Professor Clive Hamilton, in his book Silent Invasion, suggests that the ACRI served as a means of promoting China’s interests in Australia. He further suggested that the ACRI sought to influence Australian public opinion in favour of closer ties with China, despite concerns about China’s human rights record and its global domination agenda.

The Conversation has also reported on 5 June 2017 that the ACRI was founded with a donation of AUD$2.8 million from two affluent Chinese immigrants. The founding chairman of ACRI was billionaire political donor, Huang Xiangmo, who The Guardian reported on 6 February 2019 had his Australian permanent residency revoked and was deported in 2019 due to his deep links with the communist regime’s top ruling class.

CCP diplomat, Xiao Qian, and James Laurenceson, Director, ACRI at UTS.

Bob Carr, a CCP enthusiast and former Foreign Minister, was ACRI’s founding Director and succeeded by Prof. Laurenceson. Interestingly, both are advocating for ‘reassurance to Beijing’. They also share the same grievances towards the pro-democracy Australian Strategic Policy Institute (ASPI) in Canberra.

https://www.youtube-nocookie.com/embed/xlp5V8bkJTE?rel=0&autoplay=0&showinfo=0&enablejsapi=0

Rather out of touch in the above video, Mr. Carr keeps talking about the old time, old strategy in dealing with China. His inability to accept the current geopolitical situation in relation to the CCP’s aggression towards Taiwan and the Chinese state’s new alliance with other autocratic countries in the Middle East is, to put in mildly, concerning.

Although Mr. Carr had to distance himself from the ACRI due to the above controversy and public outcry, Prof. Laurenceson continues to encourage Australia to align with Communist China, rather than with other democratic nations.

“If any country is a drag on Australia’s economy, it’s the United States rather than China”, said Prof. Laurenceson.

Bob Carr and James Laurenceson at the 2018 ACRI Launch

Such an argument aligns with the goal of the CCP, which aims to divert people’s attention towards economic and financial benefits rather than universal principles and values. Such a position has the potential to weaken Australia’s democratic partnerships and persuade its citizens to support China’s authoritarian, communist ideologies under the guise of economic advancement.

Most importantly, the ACRI routinely leaves out the severity and extensiveness of the Chinese state’s human rights abuses, nor does it discuss the depth and aggressiveness of CCP interference in Australia. The ACRI does not discuss how these issues negatively impact the Australia-China relationship.

Liberty Itch calls for more transparency from the UTS
to reveal ACRI’s past and present funding sources,
including all staff trips to China funded by the CCP.

The ACRI is supposedly an ‘independent, nonpartisan, research institute’. The head of this Institute, who claims to be on the payroll of a publicly-funded university, should not be ‘singing duo’ with Bob Carr and together acting like ‘relationship brokers’ between Australia and the Chinese Communist Party.

Remembering Bert Kelly

In my last piece, Remembering Frederick Douglass, I discussed the evils and folly of centralised wage-fixing which, amongst other things, prevented people – young people in particular – from getting a start in the workforce; a foot on that first rung of the employment ladder.

Today, we look at centralized wage-fixing’s partner-in-crime – tariff protection. The other side of the micro-economic coin, if you like.

It was Bert Kelly (1912–1997) who once said, ‘The really bad ideas never go away’.

Bert Kelly. Member for Wakefield (Lib, SA). Leading advocate for free markets.

Along with centralised wage-fixing, protectionism is another of those really bad ideas.

The Australian settlement of 1900 was based on five key principles – two were economic, two were social and one was the imperial benevolence of the mother country.

The two social principles were the White Australia Policy and State Paternalism.

The two economic principles were regulated labour markets and tariff protection. These two went hand in hand. As centralised wage-fixing delivered arbitrary pay increases, thus increasing the cost of production, the price of the goods rose commensurately. As a result, imported goods became more competitive. In response, an import tax – a tariff – was placed on these imported goods to ‘protect’ Australian jobs from competition.

By the late 19th century, NSW had prospered under its free trade regime and had overtaken protectionist Victoria, becoming the continent’s leading colony. Following the collapse of the gold-rush, and to sustain its economy, Victoria borrowed heavily in the British capital markets but soon found itself impoverished and losing population – the consequences of 30 years of protectionism. NSW political leaders such as George Reid speculated that Victoria was desperate for federation so that its economic problems could be shared with the other colonies!

By the early 1920s, the newly-formed Country Party under Earle Page – influenced by the rural export industries of wool, meat and wheat – was officially opposed to protection, yet supported the Scullin Government’s belief that tariffs on imports would help restore employment during the Great Depression (1929–1932) by handing out tariffs virtually on demand. It didn’t work.

In 1930, Australian historian Keith Hancock had published his book Australia which contains this memorable reference to protectionism in Australia:

‘Protection in Australia is more than a policy: it is a faith and a dogma. Its critics, during the second decade of the twentieth century, dwindled into a despised and detected sect suspected of nursing an anti-national heresy. Protection is interwoven with almost every strand of Australia’s democratic nationalism. It professes to be a policy of plenty, but it is a policy of power.’

Bert Kelly arrived in Federal Parliament in 1958 as the Member for the South Australian seat of Wakefield and from then until he left the Parliament in 1977 fought a long and often bitter campaign against protectionism – first against a very powerful Deputy Prime Minister and Country Party Leader in John ‘Black Jack’ McEwen, and then against the strongly-defended populism of ‘protecting Australian jobs’.

Bert Kelly was opposed to protectionism because, like centralised wage-fixing, it was not only economically foolish, it was also morally wrong. It was wrong, he said, because it created a situation in which governments granted favours to some, who became greatly enriched, at the expense of others, who were at best impoverished and at worst, ruined.

On a parliamentary delegation to India, Bert visited a factory making bed sheets which wanted to sell in Australia but was unable to do so due to the high tariff (import tax) placed on imported bed linen. It was the same at an Indian shirt factory.

For example, a shirt made in Australia cost $50 to buy. An imported shirt $20. By imposing a $30 tariff on the imported shirt, consumers were told they had to pay $50 for a shirt to ‘protect Australian jobs’. If there were no tariff, however, and consumers were able to buy a shirt for $20 instead of $50, that would give them Bert argued, $30 to spend on something else. And it is that something else that is the catalyst for emerging industries.

Tariffs support declining industries, free trade supports emerging industries.

Bert also learned that Indians were desperate to buy Australian milk powder for their children but did not have the foreign exchange – Australian or US dollars – due to the insurmountable tariff on their textile goods entering Australia.

Thus, both India and Australia suffered. To quote Bert Kelly:

‘Australian dairy farmers can’t sell their skim milk powder, Australian families have to buy expensive ‘Australian-made’ sheets and shirts, Indian children don’t get milk and Indian factories can’t make textiles. A lose-lose situation if ever there was one. All this brought to you by our good and wise government’.

At the same time, Australia was giving aid money to India.

Bert spoke frequently in favour of Community Aid Abroad but against aid being given with no strings attached. ‘Trading with poor countries is a far better way to help them than giving them aid,” he argued.

With the union movement’s new friends in Canberra, expect to see more on the wages/tariff front.

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