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Use a VPN, but don’t stop there

The socialist government of Anthony Albanese is, once again, proposing legislation to de-anonymise, monitor and censor the Internet. From across the Tasman Sea in New Zealand I can smell the American eKaren Julie Inman Grant’s enthusiasm for this sort of authoritarian crackdown.

As always the justification amounts to “Please! Won’t Someone Think of The Children!”, along with misdirections concerning child safety and insulating young minds from dangerous misinformation and disinformation. Coded language that really means truths that are inconvenient obstacles for leftist narratives.

Attacks on free speech and Internet privacy are nothing new. Leftists in Western democracies have been endeavouring to implement them for decades. The problem has been public resistance, with opponents able to point to China and its Great Firewall as a handy example of how such initiatives enable totalitarianism.

There are risks associated with all circumvention technologies but that always amounts to getting caught

A massive public relations campaign has been underway across the West for many years, conducted by western governments, aligned NGOs and supra-national organisations such as the WEF, attempting to sway public opinion against the maintenance of civil liberties across the Internet. A recent example is the coordinated attacks upon Elon Musk’s 𝕏 platform, which has largely refused to comply with government demands for censorship and state surveillance of 𝕏 users: censorship and surveillance to which other social media platforms such as Mark Zuckerberg’s Facebook have been only too willing to comply.

Musk’s intransigence has attracted the ire of the authoritarian elites across the world, and not just Australia’s petulant eKaren Julie Inman Grant. From European Union Commissioner Thierry Breton’s jackboot demands for 𝕏 to comply with oppressive provisions of the bloc’s Digital Service (DSA) Act through Brazil’s Justice Alexandre de Moraes banning 𝕏 altogether in the country at the behest of the ruling leftist regime, to French president Emmanuel Macron luring Telegram CEO Pavel Durov to France so he could be arrested, the social media platforms allowing resistance to state censorship and surveillance have been put on notice.

Nonetheless, the attacks on the social media giants are a sideshow. The leftist elites are well aware that compliance by the social media companies does not solve the underlying issue of users themselves circumventing surveillance and censorship on platforms simply by moving to alternative platforms that refuse to comply. 

We’re seeing this already as frustrated users flee Facebook en masse for platforms that don’t block their content and suspend their accounts when they post about Hunter Biden’s transgressions. The more adventurous migrate to decentralised platforms (or federated as the terminology goes) that don’t even have a corporation behind them for governments to bully. Remember MySpace? When one social media platform loses prominence, another rises to take its place.

The solution is to impose surveillance and censorship at the source rather than the destination: the users themselves. The preferred approach of the leftist elites is to impose technological restrictions and then to enact punitive punishments against those who circumvent them. Brazil has implemented this, with users caught using a Virtual Private Network (VPN) to access banned sites such as 𝕏 facing fines of up to $US9,800 per infraction. China employs a similar technology/legislation regime though the punishments meted out to transgressors are considerably worse.

What is a citizen opposed to this totalitarian crackdown on basic civil liberties to do? In a democracy the true solution lies at source: cease voting for leftwing political parties that promulgate and promote this hateful ideology. But if you happen to live under such a government such as Australia, there are technical mitigations available too. In recent days I’ve heard chatter similar to “just use a VPN. Everyone will have a VPN app installed on their device in two minutes” to bypass restrictions. It’s not that simple.

Attacks on free speech and Internet privacy are nothing new.

VPNs are great and everyone should use one. They are a trivially easy method of routing your traffic through another country, one with a better commitment to fundamental human rights. The problem is that VPNs are also trivially easy to detect. Detection by the state -such as in Brazil and China- is rapidly followed by state enforcement. I have heard sotto voce that the Australian Labor party intends such a ban on VPNs. Bring on the organ harvesting. 

Fortunately for Aussies, people living under other repressive regimes have developed solutions. Technical advances from those on the side of freedom against the enforcement mechanisms of the leftists are in the ascendency, though it must be said there is no such thing as perfect security. The technique with the most value is obfuscation, a method of giving VPN traffic the appearance of being a different type of traffic, making it far more difficult to detect. The most mature and readily-available suite of sophisticated tools to obfuscate Internet traffic is the Tor network, a component of which the leftist elites endeavour to scare you about by using the bogeyman term Dark Net.

Tor works by bouncing traffic from ingress nodes through intermediary nodes to exits nodes back onto the Surface Internet in order to obfuscate the origin, meaning the user. This comes at the cost of additional latency but Tor has an equally valuable feature: the facility to obfuscate the type of traffic with pluggable transports, better known as bridges. Two of the most popular are OBFS4 bridges running on Tor relays and Snowflake, which operates as a simple peer-to-peer browser extension. Alongside VPNs, both of these are technologies Australians would be well advised to utilise.

In the escalating technology war against Internet civil liberties, advances in AI analysis of obfuscated traffic poses the most critical risk. A simple VPN may suffice for Australian Internet users and I recommend using one. Tor is the next step up and you should start using that too. It’s available for all platforms and devices. 

There are risks associated with all circumvention technologies but that always amounts to getting caught: following in the footsteps of other oppressive regimes the Australian Labor government is likely to discourage circumvention through VPNs and Tor with punitive penalties.

And as I alluded earlier, technology is merely mitigation. The solution is to vote the nasty bastards enacting these attacks upon civil liberties out of office.

Why We Should Oppose Government Efforts to Age Restrict Social Media

There are increasing efforts to mandate age restrictions for social media. These efforts have occurred at federal level with a proposed minimum age of 16, and in Victoria with a proposed minimum age of 14 with parental consent for 14- and 15-year-olds. My home state of South Australia is also considering something similar.

This legislation is motivated by concerns about some of the negative effects of social media use on teenage mental health. I do not believe this type of legislation is the right solution to the problem and that it constitutes government overreach.  I am concerned about its effects on civil liberties and internet privacy along with how it may be implemented. 

My first major concern is the effect on internet privacy. In the event that such legislation is strictly enforced, social media companies will require ID verification for all participants to join their networks in Australia. This will severely compromise internet anonymity, which is important as it allows people to more openly discuss uncomfortable but important issues and protects the identities of people who are at risk of political persecution. 

Ironically it seems there is a segment of parents asking for the legislation in an effort to outsource parental responsibility

This is of particular concern given the increasing trend in Commonwealth countries of people being arrested for saying things online related to hot button political topics or that for some reason have been deemed offensive.

There is also the issue of data privacy. Forcing people to hand over their ID involves the disclosure of sensitive personal data which could then be exposed in a data leak, stolen by hackers, or sold to third parties by the social media company itself.

My second major concern is that such a law takes choice out of the hands of parents and increases government interference in the lives of families. All teenagers are different, and some are more mature than others. The decision to engage on social media should be made by parents, not the government.

Ironically it seems there is a segment of parents asking for the legislation in an effort to outsource parental responsibility.  When some parents are asked why they don’t restrict social media for their children despite complaining about it, the conversation seems to go like this:

Parent: I’m concerned that social media is harming my child’s mental health.

Me: Why don’t you stop them from using social media or restrict its use?

Parent: No. I can’t do that. I want my child to fit in and be popular!!!

Me in my head: WTF?

My third major concern is that the policy may have unintended consequences. Like many things, social media has both good and bad aspects, with the bad aspects more pronounced when used excessively. However, social media also allows people to interact with others regardless of how far away they are and to connect with like-minded people.

This can be particularly beneficial to teenagers who live in remote communities, have family that lives far away, seek a family group chat, want to let the world know what is happening in their communities, or for some reason have limited opportunities to socialise in person.  

For example, I recently had a friend who was committed to a psych ward. Social media allowed us to talk to each other when I couldn’t visit and outside of visiting hours. A policy of restricting social media would create a government-imposed one-size-fits -all approach affecting all teenagers that will not work for all. Such a policy simply doesn’t distinguish between excessive and moderate social media use.

Social media companies will require ID verification for all participants to join their networks in Australia.

My fourth major concern is what the government defines as social media. Not all social media is the same. I personally have Facebook, Discord and Signal. All these apps function differently despite falling under the umbrella of social media.

Facebook mandates that people use their real name to create a profile. On Facebook you can create both public and private events, comment on things publicly, message people privately, and a range of other things. On Discord, you create a username and then can message people and join private and semi-public groups. 

Signal works like text messaging, but you can create group chats and relies on the internet rather than phone data. Signal does not have public pages like Facebook. As someone who intends to become a parent in the future, I would approach all these apps differently and allow them each at different ages.

I would also like to point out that many social media sites already have age restrictions.  Facebook, for example, requires a minimum age to join of 13. There are also apps that you can get on phones and computers that limit social media use or block certain sites. 

Given this, I believe the best alternative solution to this legislation would be increased parental responsibility surrounding social media, and social and societal support for parents who choose to limit excessive teen social media use.

Whose Ethics make it Ethical

When I started my business 35 years ago, very few investment funds were describing themselves as ethical investors. 

Some years later I joined an organisation of CEOs, business owners and senior executives that meets to share and discuss their challenges. I enjoyed our meetings right up until my group was required to listen to a speaker on ethics. When I asked for a definition of ethics and who decides what is ethical, I was told I was out of order.  Not long after that I was asked to leave the group. 

Some funds then began describing themselves as sustainable investors. I wrote a column about it, asking who defines sustainable, and has anyone ever knowingly invested in a company that was unsustainable? There were letters to the editor criticising me. 

It then became ESG, or Environmental, Social, and Governance. Still seeking definitions, I found it supposedly incorporates sustainable investing, responsible investing, impact investing and socially responsible investing. 

Australian agriculture often generates meagre returns on investment, but larger operations utilising modern technology do better.

I also found a claim that ESG criteria can “help investors avoid companies that might pose a greater financial risk due to their environmental or other practices.” That sounded like the focus was on financial performance, which is good, but in fact it was not the case. The more I looked, the more I found it was all just virtue signalling. 

Then came DEI, or Diversity, Equity and Inclusion, which is all about how many women, black or disabled people are on the payroll. Not just virtue signalling, but bragging about it.  

Funds that differentiate themselves like this are motivated by the desire to attract more investors and generate more fees for their managers. Furthermore, very few of those choosing to invest in these funds are using their own money; both the fund managers and their investors are deciding what is ethical or sustainable using other people’s money. 

The problem is, most ESG funds deliver lower returns to investors. And, as I discovered, they don’t agree with each other about what it all means, and also don’t much like being questioned. 

As it happens, I am an investor of my own money and regard myself as both ethical and sustainable. Moreover, I have no difficulty offering coherent definitions. 

My favourite definition comes from former Norwegian Prime Minister Gro Harlem Brundtland, who said, “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.  In my view that’s also ethical. 

As to what it means in practice, here are a few thoughts. 

I will never reject an investment in coal unless there are better nuclear or hydro options, delivering cheaper and more reliable power. It is not sustainable to subject the community to the vagaries of expensive and intermittent wind and solar power, and it is grossly unethical to compel families in India to continue burning cow manure for fuel or force children to do their homework in the dark. 

I will absolutely invest in forestry. Not only is it renewable, in Australia it is also totally sustainable. When the alternatives are importing timber from other countries or building in steel and concrete, it’s no contest. 

Australian agriculture often generates meagre returns on investment, but larger operations utilising modern technology do better. Genetically modified crops, modern herbicides, precision farming and minimum or zero tillage are not only sustainable but also boost yields, leaving more land for conservation. There is absolutely nothing ethical about staying rooted in the past, using out-dated technology to produce food that some people cannot afford to buy. 

Help investors avoid companies that might pose a greater financial risk due to their environmental or other practices.

Some ethical funds say they refuse to invest in companies that harm animals, by which they mean those that use animals to determine whether pharmaceuticals or cosmetics adversely affect humans. By what ethical standard is it preferable to expose our loved ones to the risk of life-threatening or disfiguring harm? 

As for things like tobacco, alcohol and cannabis, these are matters of personal choice. Whatever we might think of them, the ethical approach is to not interfere in the choices of others. I’d happily invest in them if the returns were adequate. And if it means protecting liberal democracy from authoritarianism, I’d certainly consider it ethical to invest in armament companies. 

That leaves a fairly small unethical and unsustainable list.  Anything that funds or apologises for terrorism, racism, anti-Semitism, Islamism or corruption is on it.  I’m also wary of companies that foster a woke culture; not only are they hypocrites but ‘go woke, go broke’ is more than a slogan. 

But that’s just me – I don’t expect others to necessarily share my views, although it’s clear that an increasing number of people seem to be doing just that. For those with control over their own money, my suggestion is to simply invest in businesses that offer the best returns, and ignore those that virtue signal. You can then use the dividends or capital gains to help make a difference based on your own values.

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The Unholy Union

Conceptually, worker unions are quite compatible with libertarian ideology. Workers voluntarily leveraging their collective bargaining power is a perfectly acceptable free-market response to what can oftentimes be an unbalanced relationship between employers and employees. All libertarians would prefer to see these kinds of voluntary associations dealing with some of the natural consequences that markets create, rather than the coercive and violent state trying, unsuccessfully, to regulate them away.

LABOR MAFIA

However, the true purpose of the vast majority of mainstream unions in Australia is obvious to anyone who is politically active: to funnel money and membership towards the Labor Party. It is no secret that the only way to advance in the Labor Party is to become a union leader; it’s not even an open secret, it’s basically written on the door. Union thugs also provide a handy tool during election season; ripping down opposition corflutes and intimidating volunteers at polling stations.

The vast majority of contributions to the Labor Party come from the unions

This is not to say that there aren’t any good unions out there; plenty of unions do great work, but they are usually smaller and are eventually intimidated out of the space. Similarly, it is possible that in the time union leaders spend factionalising, politicking and satiating their political ambitions, they occasionally help a few workers along the way. But politics always comes first.

The recent news tying the Construction, Forestry and Maritime Employees Union (CFMEU) to criminal organisations and intimidation tactics came as very little surprise to anyone who has spent even five minutes in politics. The only thing I was surprised about is that people didn’t know this already. The day we get to see the unions fully exposed, and their relationship with the Labor Party properly examined, is probably still a long way off though.

UNHOLY TRINITY

There is one other player in this tripartite corruption ring: industry super funds. In 2019, industry super funds paid over $10 million to Labor-aligned unions – up from just over $4 million ten years earlier. By 2030 it is projected the funds will be pumping over $30 million per year into unions.

Industry super funds are far and away the biggest political donors in Australia. However, these aren’t donations, it’s just plain corruption. Industry super funds pay their members’ retirement money to unions for vastly inflated and vaguely worded services: sponsorship fees, marketing costs and events. The industry super funds are adamant these are not political donations but legitimate expenses, which the Australian Electoral Commission happily goes along with.

Additionally, industry super funds invest heavily in union-backed infrastructure projects. The unholy trinity of the industry super funds financing the unions through the retirement savings of millions of Australians, which then go on to funnel that money to the Labor Party, is not only blatantly stealing from hardworking Aussies, but also propping up an inflated sector of the economy with politically influenced investment. These funds are also some of the most prolific when it comes to shareholder activism, driving much of the ESG-investing movement and wokification of corporate Australia.

Union thugs also provide a handy tool during election season

PAST PERFORMANCES

Prime Minister Albanese was heavily criticised for reneging on his election promise to stay out of our super, but the truth is that the Labor Party has been getting a big chunk of our super for years. The recent changes only further entrench industry super funds as the default choice for most Australians and push people further from having some degree of autonomy via self-managed super funds (SMSFs). 

While much noise was made about the tax changes towards super, and rightly so, the payday superannuation guarantee starting from 1 July 2026 went past largely unnoticed. A change from which smaller funds and SMSFs will see largely no benefit.

The real beneficiary of these changes is ultimately the Labor Party. The vast majority of contributions to the Labor Party come from the unions – that almost goes without saying. Only 15 per cent of Australia’s workforce is unionised, yet the CFMEU alone donated over $3 million to the Labor Party in the last election year. 

Industry super funds, with $1.2 trillion assets under management (AUM), control over a third of the AUM of all Australian super funds. There is no doubt that some of the exorbitant fees they charge their members are ending up in the hands of unions, and the money that they are actually investing is heavily skewed towards union-backed projects. Imagine when they can start relying on regular weekly or fortnightly inflows.

Resisting centralist power – Part 3

In a speech entitled, Rebuilding the Federation, Richard Court, then Premier of Western Australia, described the tide of centralism as follows:

“All the things that the States do best are under attack from the empire builders in Canberra. The bureaucracy running the Federal education system, as you know, is large but it doesn’t teach any students. There is an equally large health bureaucracy which doesn’t treat any patients.”

Court went on to make the point that the Constitution recognised that State governments were better placed to respond to local priorities. 

Many of the most stable, productive and influential nations on earth are federations.

The States are left with constitutional responsibility for education, health, housing, law and order, commerce and industry, transport, and natural resources including land and essential services. But Court noted that, with the help of the High Court, the Commonwealth now has almost complete control in some of these areas.

Benefits of Federalism

Those who live in the major population centres on Australia’s eastern seaboard may not understand the importance of local decision making in the same way that those who live in the regions and smaller States do. In a country as large and diverse as Australia it is very difficult for a political administration and bureaucracy based in a distant national capital to take full account of, and understand, the interests and needs of local communities.

As a principle not only of government, but also of life, the best decisions are taken when all the parties to the decision know and understand the issues intimately. A federalist approach that seeks to allow States to exercise power in making decisions on local matters is infinitely better than centralised decisions at a distance. Those who framed the Constitution understood this and sought to embed it in both the spirit and letter of the document.

Economic Benefits

The Productivity Commission has outlined the competitive benefits of federalism in improving performance in the Australian economy, saying:

“The competitive dimension of federalism, which provides in-built incentives for governments to perform better across a variety of areas, is operating well.” 

There is an inherent competitiveness between the States that should be encouraged. State governments have a vital role to play in creating the right environment to attract and retain capital. We live in a global market environment in which competition between States will only serve to make each of them more efficient.

Those who framed the Constitution understood this and sought to embed it in both the spirit and letter of the document.

By competitiveness, however, I mean real low cost, light regulation efficiency competitiveness, not taxpayer funded inducements to lure business from one State to another.

Perhaps the most valuable attribute of successful federations is the way in which they lead to a disbursement of power that fosters democracy and restrains corruption and abuse. While the division of powers among the stakeholders may cause frustration for those who desire an unfettered capacity to determine the course of events, it does introduce important checks and balances to the political process.

There is a creative tension that comes from the consensus building required to make a federation work, in the longer term serving both the individual and common interest.

Many of the most stable, productive and influential nations on earth are federations. The reason I am such a committed federalist is because it is by far the best way to govern a large and diverse country like Australia; far better than its alternative, centralism – power and law making centralised in one place. 

Whilst it may seem counter-intuitive that six (or even eight), separate State service providers could be more efficient and cost effective than one big, centralized service provider, it is true nonetheless.

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Resisting centralist power – Part 2

Following the Second World War, the most dramatic shift in the balance of tax power between the States and Commonwealth occurred.

In 1942, under the leadership of John Curtin as Prime Minister and Ben Chifley as Federal Treasurer, all income taxing authority was handed over to the Commonwealth by the States for the duration of the war under the defence power of the Constitution. This was intended to be temporary and to last for a year after the end of the war. However, while the war ended in 1945, the role of the Commonwealth as the sole income taxing authority did not.

For those concerned at the erosion of State rights through judicial activism, even worse was to come when, following the end of the Second World War, the High Court ruled that income tax collections could exist as an exclusive Commonwealth right under the normal powers of the Constitution.

Australia has the highest level of vertical fiscal imbalance of any federation in the world.

During the 1950s the State of Victoria mounted two legal challenges to the uniform tax legislation without success, and in 1959 at a Special Premiers’ Conference discussion of a return of income tax power to the States was on the agenda but could not be agreed. While there remains no legal barrier to the States exercising their right to levy income tax, there are practical (and political) reasons not to do so.

In the post war era, the centralisation of power continued to be affirmed through decisions of the High Court including the Franklin Dam case in 1988, the Queensland Rainforest case in 1989, Mabo in 1992, and the Wik Peoples case in 1996.

In speaking of the influence of the High Court and the threat to federalism arising from its decisions, Sir Harry Gibbs, former Chief Justice of the High Court of Australia said:

“It is a basic rule in the interpretation of any written document and indeed a matter of common sense that the whole document must be looked at in order to ascertain the meaning of any particular part. It might therefore have been supposed that in deciding on the meaning of the paragraphs of the Constitution which confer power on the Commonwealth Parliament, the Courts would have resolved any ambiguity by interpreting the provisions in a way that would maintain the federal distribution of power which the Constitution so obviously appears to guarantee ….. However, since 1920 the High Court has consistently rejected an approach of that kind.”

The struggle for power continued in the High Court in 2006 with the States challenging the Commonwealth over the validity of the federal WorkChoices legislation, which was enacted under the Corporations power. The High Court overwhelmingly came down in favour of the Commonwealth. While workplace relations laws, prior to the WorkChoices legislation, were a relic of a bygone era and desperately in need of reform, the rights of States in the area of industrial relations were now all but gone. For example, the 1999 decision of the High Court to allow SA State government public servants to be covered by a Federal Award undermined that State’s competitiveness.

The ability of a small, low cost-of-living State to use its industrial relations system to create a competitive edge over the larger States is important. South Australia, for example, under Premier Sir Thomas Playford, used this strategy (in conjunction with tariffs) to build a manufacturing base in Adelaide in the 1950s and 60s. Likewise Tasmania may wish to trade-off high salaries for quality of life and a green and clean environment.

The most dramatic shift in the balance of tax power between the States and Commonwealth occurred.

Undermining the rights of States is also evident in the actions of a burgeoning and, at times, arrogant Federal bureaucracy where the controlling hand of the Commonwealth is exercised through the terms and conditions embedded in funding arrangements with State government agencies.

Since federation the tax revenue balance has moved dramatically from the States to the Commonwealth. The imbalance that now exists, known as Vertical Fiscal Imbalance, has put the Commonwealth in an all-powerful position, able to dictate to the States how and where funds are spent.

Australia has the highest level of vertical fiscal imbalance of any federation in the world. The Federal government raises over 70% of all general government revenues, much more than is required to fund its own operations. The States raise just over half what they require to fund theirs. The balance of the States’ financial requirements is met through Commonwealth grants. This gives the Commonwealth enormous economic power and influence, and is inefficient and inequitable. It has the effect of keeping States like South Australia and Tasmania in a position of mendicancy.

Ideally, the States and the Commonwealth should only collect taxes for their own purposes with taxpayers and consumers fully informed as to what is a State tax and what is a Commonwealth tax. Those who spend the money should have the responsibility of raising it. It is about accountability, and governments of all persuasions should be specifically accountable for the money they raise and spend.

The use of Section 96 of the Australian Constitution, which empowers the Commonwealth to make grants to any State “on such terms and conditions as the Parliament thinks fit”, has been used by Federal governments to wield power over the States.

The Commonwealth’s control over State borrowings has further served to erode the power of States and their capacity to control their own destiny.

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Resisting Centralist Power – Part 1

In 1901, when six individual British colonies came together as a federation, it was in an environment of extensive and, at times, torrid debate. While there was widespread acceptance that the colonies could achieve together what they could not achieve alone, there was also apprehension about the extent to which the power to govern would become centralised.

The enthusiasm and sense of expectation surrounding the birth of a nation was tempered by concerns about the future autonomy of individual colonies. The smaller colonies were also apprehensive about the power and influence the larger colonies might exercise.

As a consequence, the process leading to the formation of the Australian Constitution was both painstaking and torturous.

One can imagine how much this would have helped the fledgling Commonwealth-State relationship.

During the first of the convention debates in 1891, Sir Samuel Griffith, who would later become the first Chief Justice of the High Court of Australia, captured the essence of concerns saying:

“We must not lose sight of the essential condition that this is to be a federation of states and not a single government of Australia. The separate states are to continue as autonomous bodies, surrendering only so much of their power as is necessary for the establishment of a general government to do for them collectively what they cannot do individually for themselves.”

In uniting as a nation, each colony agreed to cede a portion of its powers so that the nation might become “one indissoluble Federal Commonwealth under the Crown.” It is clear, both from the Constitution and from the record of the Convention debates, that the Federal government was to have significant but well-defined powers. All powers not defined in the Constitution, known as the residual powers, were to remain the province of the States. However, the ink was barely dry on the Constitution before a growing appetite for centralised power emerged.

Foundations of Power

The powers of the Commonwealth were set out in Section 51 of the Constitution, and their scope described in 39 subsections known as a head of power. While the States retained the right to legislate on these matters as well, the Constitution provided that where any inconsistency existed between Federal and State legislation, the Federal legislation prevailed.

The powers ceded to the Federal government were very wide and included interstate trade and commerce, corporations, external affairs, taxation, defence, quarantine, currency, pensions, banking and many more.

Centralisation of Power

As one might expect, the first issue on which the boundaries of authority between the States and Commonwealth were tested related to tax, with the High Court becoming the arena for argument. The gloves came off, the lawyers were primed, and the fight over money began.

The first tests came in 1904 in Peterwald v Bartley where the High Court examined whether the Constitution prohibited the States from imposing excise duty. This was followed the same year with D’Emden v Pedder, in which the power of the States to impose taxes on Commonwealth activities was rejected. 

In 1908, in response to the Constitutional requirement that any surplus tax revenues in the first decade of Federation be returned to the States, the Commonwealth enacted legislation to pay these surpluses into a trust account thereby avoiding payment to the States. One can imagine how much this would have helped the fledgling Commonwealth-State relationship.

In 1910, the Constitutional obligation that not less than 75 per cent of the Commonwealth’s customs and excise revenue be distributed to the States came to an end. While the arrangement was mandated for only the first decade of Federation, the Commonwealth terminated the arrangement as soon as it was legally able to do so, much to the ire of the States.

In uniting as a nation, each colony agreed to cede a portion of its powers so that the nation might become “one indissoluble Federal Commonwealth under the Crown.”

Commonwealth government activity and bureaucracy then began to grow rapidly, fed by its growing tax harvest. The years leading up to World War 1 (1910-1914) saw increases in Commonwealth control of the economy and in social services. In 1915, following the entry of Australia into the war, the Commonwealth introduced income tax which co-existed with income tax applied by the States.

Over the next few decades, both in the High Court and through legislation, the Commonwealth and States battled for territory in a number of areas including tax, defence and welfare services. So extreme was the discontent with the way the federation was heading that some States, most notably Western Australia, South Australia and Tasmania, contemplated secession. In 1933 a referendum was held in Western Australia.

At the time there was a Great Depression and every State was struggling. Some believed the problems were a result of Federal government policies and actions, particularly in respect of tariffs imposed to protect the manufacturing and sugar industries.

The result of the WA referendum sent shock waves through the rest of Australia with 68% of West Australians voting in favour of secession. This was about the same number who had voted to join the Federation only 33 years earlier. The desire of West Australians to separate from the Federation was not fulfilled as the British Imperial Parliament refused to act, claiming that such an action could only be taken with the consent of the Commonwealth Parliament of Australia.

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No Headspace Evidence

Is there a pandemic of mental illness among young people? Is almost one in two young women affected by mental illness? 

In an opinion article in The Australian, Patrick McGorry, a celebrated psychiatrist, 2010 Australian of the Year and recipient of an Order of Australia Award for his services to youth mental health, claimed this was so.  

McGorry quoted a paper in The Lancet Psychiatry, of which he is lead author, to argue that mental ill health in young people (defined as 12 to 25) is a silent public health crisis threatening the lives and futures of a whole generation. 

He says youth mental health has been steadily declining over the past two decades, and suffered a major deterioration driven by the COVID-19 pandemic, the measures taken to contain it, and its aftermath. In addition, he says intergenerational wealth inequality, student debt, insecure work, unaffordable housing, climate change, and social media have contributed. 

The prevalence of mental illness is highest among 18-24 year olds and decreases with age

It has now “entered a dangerous phase”, he says, with a 50 per cent increase in “diagnosable mental health conditions among 16–25 year-olds since 2007” He believes governments have a responsibility to “wind back harmful policy settings and regulate powerful private forces.” 

This will take time, he admits, and suggests a more immediate solution is to “reimagine and strengthen” the youth mental health program he pioneered known as headspace, “buttressed by a new specialised, multidisciplinary platform of community health care”.

This is obviously a campaign for additional public funding of his pet project, a classic case of special pleading. There are hundreds like it, ranging from childhood cancer to aged care. Libertarians tend to dismiss special pleading out of hand, on the basis that it is simply a call for increased government intervention using taxpayers’ money. 

But most people are not libertarian, and there are legitimate questions: is the situation as McGorry describes? If so, is it any business of the government, and are his solutions appropriate? 

There is something inherently dubious about a claim that almost half of all young women are suffering from mental ill health. It is certainly not my experience. While it is true that the Covid measures were both painful and unnecessary, is the current generation more mentally fragile than the generations that experienced world wars or the threat of nuclear war? And why should fear of climate change be causing more mental ill health than Ehrlich’s predictions of an overpopulation catastrophe?  

As for the other factors nominated by McGorry, when has it ever been different? Indeed, the only new element in his list is social media. While it is true that being abused and insulted by strangers online is new, it seems a stretch to suggest it is causing a lot more mental ill health. 

Patrick McGorry

What’s needed is evidence relevant to McGorry’s claims: an objective definition of “diagnosable mental health condition”, plus data on the number of cases. 

His article in The Australian and the Lancet paper had neither. Furthermore, despite the paper being a review of multiple sources, it did not cite any data that substantiated the claims. 

One source it listed is an Australian study, the National Study of Mental Health and Wellbeing, undertaken by the Australian Bureau of Statistics in 2020-2022. It reported that 42.9% of people aged 16–85 years had experienced a mental disorder at some time in their life. However, it is entirely based on what respondents told interviewers face to face. 

Moreover, its definition of mental disorder includes not only illnesses such as depression, psychosis and eating disorders, but also anxiety and substance abuse. In other words, if respondents indicated they felt anxious, or had overdone the substances, it was likely to be classified as mental illness.  

Youth mental health has been steadily declining over the past two decades, and suffered a major deterioration driven by the COVID-19 pandemic

Current understanding of mental illness is roughly where our understanding of infectious diseases was a century and a half ago – the causes are not known, and there are no cures. In many cases it cannot even be objectively defined. Almost everyone experiences anxiety in their life, but obviously not everyone characterises it as mental illness. 

Current therapy involves talking about it (technically known as psychotherapy) and medication. These can be helpful, just as measures to reduce a fever helped with infections prior to the invention of antibiotics, but most cases recover irrespective. This is shown by the fact that the prevalence of mental illness is highest among 18-24 year olds and decreases with age. 

Indeed, perhaps the best treatment for most so-called mental illness among young people is time. Like pimples and adolescence, they grow out of it. Puberty blues is not merely the name of a movie. 

What is abundantly clear is that the picture painted by McGorry cannot be substantiated. His long-term solutions are progressive claptrap, while he offers no evidence to show that his headspace project is making a difference and deserves additional government funding. Indeed, if there was such evidence it would probably attract philanthropic support.  

If there is a sound argument for the government involving itself in youth mental health, McGorry does not offer one. It is not just libertarians who should be sceptical.

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Liberty Itch is Australia’s leading libertarian media outlet. Its stable of writers has promoted the cause of liberty and freedom across the economic and social spectrum through the publication of more than 300 quality articles.

Do you have something you’d like to say? If so, please send your contribution to editor@libertyitch.com

The Libertarian Perspective on the Controversy of XY Boxers

The recent controversy surrounding two boxers, Imane Khelif from Algeria and Lin Yu-ting from Taiwan, who won gold medals in the women’s events at the Paris Olympics, has ignited a worldwide debate. The key issue at the heart of this controversy is whether athletes with XY chromosomes who live as female, should be allowed to compete in women’s sports, given the potential genetic advantages that male physiology may give. From a libertarian standpoint, this debate also intersects with individual freedom, freedom of association, and the role of competition among organisations.

The Facts: No Dispute on XY Chromosomes

First and foremost, it is undisputed that the two athletes in question have XY chromosomes. This genetic marker is typically associated with male physiology, which includes traits like increased muscle mass, greater bone density, and overall physical strength. These traits can provide a significant competitive advantage in sports, particularly in a physically demanding sport like boxing.

The focus should remain on whether allowing athletes with XY chromosomes to compete in women’s events upholds the integrity of the sport

IOC’s Policy Shift: From Gender Testing to Passport Recognition

Historically, the International Olympic Committee (IOC) disqualified women with XY chromosomes from competing in women’s events. However, in 1999 it stopped mandatory gender testing, a move influenced by the growing recognition of the complexities of gender identity. The IOC now accepts the gender listed on an athlete’s passport as the sole criterion for gender classification in sports. This policy shift has been both praised for its inclusivity and criticised for undermining fairness in women’s sports.

The Issue of Fairness: A Level Playing Field?

The principle of fairness in sports is paramount. In boxing, for example, athletes are not allowed to compete across different weight classes because doing so would create an inherent imbalance in competition. The same logic should apply when considering the participation of XY chromosome athletes in women’s events. The genetic advantages associated with XY chromosomes, such as greater physical strength, raise ethical questions about whether it is fair to allow these athletes to compete against women with XX chromosomes.

The IBA’s Role: Irrelevant to the Core Issue

Some have questioned the International Boxing Association’s (IBA) stance, with allegations of being pro-Russia or corrupt. However, these concerns are irrelevant. The focus should remain on whether allowing athletes with XY chromosomes to compete in women’s events upholds the integrity of the sport. Notably, neither of the athletes in question disputed the IBA’s decision, with Imane Khelif initially challenging the results before later withdrawing the objection.

Respecting Identity vs. Maintaining Fairness

As a libertarian, I fully respect these athletes for competing to the best of their abilities. It is perhaps a sad reality that they have XY chromosomes, which presents challenges in their personal lives and public identities. However, respecting them as individuals does not mean that they should be allowed to compete in women’s events where their genetic makeup could provide an unfair advantage. The core principle of fair competition must take precedence in this context.

Individual Freedom and Freedom of Association

Libertarianism strongly advocates for individual freedom, including the right to self-identify and even to change one’s gender. Individuals should have the freedom to disclose whatever gender they wish and live according to their identity without coercion from the state or other entities. However, this freedom also extends to organisations like the IOC and IBA, which should have the autonomy to set their own rules regarding gender recognition and participation criteria. If athletes or the public disagree with these policies, they should have the freedom to boycott these organisations and seek alternative platforms that align better with their values.

It is undisputed that the two athletes in question have XY chromosomes

The Role of Organisational Competition

In a free market, competition among organisations like the IOC and IBA ensures that those which offer the fairest and most transparent rules will ultimately succeed. If one organisation’s policies are viewed as unfair, another organisation with more balanced criteria could emerge and gain popularity. Over time, this competition would lead to a natural selection of policies that best serve the interests of athletes and sports fans alike.

Censorship and Free Speech

The controversy also touches on broader societal issues such as censorship and free speech. After winning their gold medals, one of the athletes, Khalif, filed a legal complaint against what they termed online harassment. Although online harassment can be a nasty issue, the sanctity of free speech must be upheld. Some celebrities like Richard Dawkins complained about Facebook’s censorship after his post suggesting genetically male boxers should not fight women in Olympics. Censorship is censorship, whether it’s initiated by private entities or the government. The truth can only emerge in the “free speech town square,” where ideas can be debated freely, and the so-called “misinformation and disinformation” are not censored but countered with better arguments.

Conclusion: Upholding Fairness in Sports

In conclusion, while recognising the challenges faced by women with XY chromosomes, it is essential to maintain fairness in women’s sports by upholding the principle that genetically male athletes should not compete in women’s events. By allowing market forces and free association to shape the rules, we may strike a balance that honours both individual rights and the essential fairness of competitive sports. 

Got something to say?

Liberty Itch is Australia’s leading libertarian media outlet. Its stable of writers has promoted the cause of liberty and freedom across the economic and social spectrum through the publication of more than 300 quality articles.

Do you have something you’d like to say? If so, please send your contribution to editor@libertyitch.com

Windfall?

The Guardian recently said the quiet part out loud – the Coalition’s pivot towards nuclear energy is scaring away the big money that is backing renewables. 

That’s right, the mere fact that the Federal Opposition (who aren’t fancied to win the next election mind you) has proposed nuclear energy for Australia is enough to put investors off backing renewable projects. And yes, we are at the point in the energy debate where The Guardian is now simping for big investors. 

While the battle of energy technologies will continue to rage, we can say one thing about the big money behind renewables.

We are constantly told that Australia is ripe for renewable energy – be it solar, wind or hydro. But the truth of the matter is that without unequivocal bi-partisan legislative support, private capital is unwilling to back projects even against the prospect of competition. That should tell you everything you need to know about the reality of the economics of renewables.  

The Investor Group on Climate Change reported that ‘more than one’ major investor had decided to hold off on future investment decisions in Australia. General sentiment was that investors would prefer to back projects in jurisdictions with bi-partisan political support for a renewables-led transition to net-zero. 

What is clear from these developments is that investing in renewable technology is not a vote of confidence in how the projects stack up. Rather, it’s simply an attempt to bet on government-backed guarantees, and once that guarantee is potentially threatened the investors flee. 

We are at the point in the energy debate where The Guardian is now simping for big investors.

To play devil’s advocate, nuclear technology may potentially suffer from similar issues. Due to the high upfront costs and long lead times of nuclear energy projects, even strong advocates of the technology freely admit that significant public funding would be needed to get projects off the ground and to induce private investment. It is unclear how competitive nuclear energy might be in the new energy market as well – would investors expect legislative guarantees to ensure returns? 

What is clear though, is that the threat of (or lack of) government intervention in the energy marketplace is destroying investor confidence. Be it renewables, potentially nuclear, or the ridiculous net-zero targets that are annihilating investment confidence in coal and gas, the sources that actually do the heavy lifting in the energy market.   

While the battle of energy technologies will continue to rage, we can say one thing about the big money behind renewables. They aren’t betting on the tech, or on a technologically robust transition to net-zero. They are betting on a government guarantee to ensure their returns. 

Got something to say?

Liberty Itch is Australia’s leading libertarian media outlet.

Its stable of writers has promoted the cause of liberty and freedom across

the economic and social spectrum through the publication of more than 300 quality articles.

Do you have something you’d like to say? If so, please send your contribution to editor@libertyitch.com

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