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George Pell Reveals Serious Violations in Australian Law

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One of the most common misconceptions is that justice means getting what you want. It is a misconception that is not only wrong, but one that also carries the very real risk of perverting the course of justice. As the legal farce against Cardinal George Pell has proven: when such a belief is commonly held, it can lead to the imprisonment of innocent people and the disgrace of the entire legal system.

The Pell legal fiasco involved two trials and two appeals which culminated in George Pell’s conviction for historic child sex abuse being overturned by the High Court of Australia. The two trials began in August 2018 in the Victorian County Court. Pell pleaded not guilty to all charges. The first trial ended in a mistrial after the jury proved unable to deliver a verdict. The second trial ended in a guilty predict.

After his sentencing, Pell’s defence team appealed to Victoria’s Appeals Court. They argued that Pell’s conviction “could not be supported by the whole of the evidence” and that, therefore, no reasonable jury could have found him guilty. It was an unusual approach. Most appeals will attempt to overturn a jury verdict by arguing that the trial judge failed to properly instruct the jury. Pell’s defence team, on the other hand, were claiming that the jury itself made the error. In order to show that the jury verdict was “not open”, Pell’s defence team had to show that the evidence presented at trial “precluded a guilty verdict.” As the Court of Appeals stated:

“Where the unreasonableness ground is relied upon, the task for the appeal court is to decide whether, on the whole of the evidence, it was open to the jury to be satisfied beyond reasonable doubt that the accused was guilty.

The inquiry which this ground requires is a purely factual one, rather than a discrete question of law where the agreement is that the trial judge has made an error. When the reasonableness ground is relied upon, the appeal court reviews the evidence as it was presented to the jury. The appeal court asks itself whether – on that factual material – it was unreasonably open to the jury to convict the accused.”

According to the Court of Appeal’s review, the prosecution’s case rested on the argument that the accuser was a credible witness upon whom the jury could justify a guilty verdict. This view was shared by both Chief Justice Anne Ferguson and Justice Chris Maxwell:

“Throughout his evidence, [the complainant] came across as someone who was telling the truth. He did not seek to embellish his evidence or tailor it in a manner favourable to the prosecution. As might have been expected, there were somethings which he could remember and many things which he could not. And his explanations of why that was so had the ring of truth.”

Conversely, both Ferguson and Maxwell judged that there was justifiable reason to doubt the testimonies of the “opportunity witnesses” whose testimonies contradicted the prosecution’s case. Ferguson and Maxwell both found that “the evidence of the opportunity witnesses varied greatly in quality and consistency, and in the degree of recall, both as witnesses and within the evidence of individual witnesses.” They argued that the repetition of events combined with the lengthy passage of time had conspired to put the validity of their testimonies under question. Incredibly, both Ferguson and Maxwell were willing to accept the accuser’s testimony as a true and accurate version of events even though their reasons for discounting the testimonies of the opportunity witnesses could be applied just as easily to him as it could to the others.

The Victorian Court of Appeals upheld Pell’s conviction with a two-to-one majority. The lone dissenter, Justice Mark Weinberg delivered a two-hundred-and-four-page dissent statingthat “in light of the unchallenged evidence of the opportunity witnesses, the odds against [A’s] account of how the abuse occurred, would have to be substantial.” Weinberg did not believe that the prosecution had successfully discounted the testimonies of the “opportunity witnesses” and concluded that a reasonable jury would not have been able to reach a verdict of guilty beyond a reasonable doubt.

Unperturbed, Pell’s defence team applied to appeal to the High Court. It was granted because the highest court in the land believed there was sufficient argument to suggest that Pell had been convicted on insufficient evidence. Pell’s defence team based their appeal on the argument that Pell’s conviction could not be supported by the evidence and that the Court of Appeals had misapplied the legal test by requiring him to prove that the offending was impossible.

According to the High Court Summary, ‘A’ (the accuser is identified as ‘A’ in the High Court summary) testified that ‘B’ and himself had slipped out of the procession as it was approaching the metal gate to the toilet corridor. (A full description of both the layout of the Cathedral and the procession are contained within the High Court summary). From there they re-entered the Cathedral through the door to the south transept, made their way into the sacristy corridor, slipped into the Priest’s sacristy, and partook in a bottle of red communion wine. ‘A’ alleged that Pell caught them, exposed his penis, orally raped ‘A’, and forced his to remove him trousers so he could fondle his genitals. At this stage both ‘A’ and ‘B’ were crying and Pell is alleged to have told them to be quiet. ‘A’ further claimed that Pell re-assaulted him a month later by pushing him up against a wall and fondling his genitals.

The Court of Appeals had found ‘A’ to be a credible witness, partly because he had knowledge of the interior layout of both the interior of Saint Patrick’s Cathedral and the Priest’s sacristy. (Clearly it didn’t occur to them that he could have attained such knowledge without being abused). There are, however, two problems with ‘A’s testimony. The first concerns the lack of opportunity Pell would have had to commit the crime without being caught. If ‘A’, the prosecution, Ferguson, and Maxwell are to be believed, Pell was a brazen enough offender to molest two choir boys directly after Sunday Mass when the chances of getting caught would have been extremely high.

The second concerns the time of the offending. The prosecution placed the date range for the alleged offending between December 15th and 22nd 1996 for the first offence and February 23rd for the second offence. Saint Patrick’s Cathedral was closed for renovations between Easter and November 1996. After it was reopened, Pell officiated two Sunday masses there – December 15th and 22nd December and presided over, though he did not celebrate, Sunday solemn mass on February 23rd, 1997. During this time, renovations to the Archbishop’s sacristy forced him to use the Priest’s sacristy, further enhancing the likelihood of getting caught.

It should come as little surprise that High Court found major inconsistencies between the way the Court of Appeals regarded the accuser’s testimony and the way they regarded the testimony of the “opportunity witnesses”:

“The Court of Appeal majority’s treatment of what their Honours rightly identified as the critical issue in the case was wrong for two reasons. First, Portelli’s evidence was unchallenged. Secondly, their Honours were required to reason in a manner that is consistent with the way in which a jury would be directed in accordance with the Jury Direction Act 2015 (Vic). Their Honours were required to take into account the forensic disadvantage experienced by the applicant arising from the delay of some 20 years in being confronted with these allegations. Their Honours, however, reasoned to satisfaction of the applicant’s guilt by discounting a body of evidence that raised lively doubts as to the commission of the offences because they considered the likelihood that the memories of honest witnesses might have been affected by delay.”

The testimony of Monsignor Charles Portelli, the former Master of Ceremonies, was of particular interest to the High Court. As Master of Ceremonies, Portelli’s duties included meeting Pell when he arrived at the Cathedral, assisting him with his vestments, and so on. Portelli testified that the two occasions Pell celebrated Mass in December 1996 were memorable because of the large number of people who wanted to meet Pell. He recalled standing beside Pell during the procession and seeing Pell hand his mitre and crosier to two altar boys whilst he stood at the west door greeting congregants. During the cross examination, Portelli stated that whilst it was possible that Pell only remained at the west door greeting people for a couple of minutes, he did not remember it. Furthermore, Portelli testified that even if he had, Pell would have been accompanied by Max Potter or another Priest.

Sacristan Max Potter concurred with much of Portelli’s testimony. Potter claimed that Pell spent twenty minutes to half-an-hour greeting congregants. When asked he stated that whilst it was possible for Pell to have left earlier than normal, it would have been unlikely at first because “it took him [Pell] a while to readjust, and [he] stayed in there welcoming people for a couple of months in the Cathedral.” Potter also backed up Portelli’s assertion that Pell would not have returned to the Priest’s sacristy to remove his vestments alone. Furthermore, Potter stated that he unlocked the Priest’s sacristy as the procession was making its way down the centre aisle and that he gave congregants five to six minutes to pray in the sanctuary before he and the altar servers removed the sacred vessels, a task that generally took around a quarter-of-an-hour.

Potter was suffering memory issues during Pell’s trial. In particularly, his testimony makes it unclear as to when exactly he unlocked the Priest’s sacristy. Other witnesses, however, also testified in Pell’s favour. Both Doctor Cox, the assistant organist, and Peter Finnigan, the choir marshal, recalled the Priest’s sacristy being a “hive of activity” following the Mass. Likewise, Jeffrey Connor and McGlone, both of whom were altar servers at the time, stated that they could recall no occasion in which the Priest’s sacristy had been left either unlocked or unattended. They testified that Potter had been waiting to unlock the Priest’s sacristy so they could bow to the crucifix and complete their duties.

Connor wrote of Pell’s “invariable” practice of greeting congregants on the steps of the Cathedral in his personal diary. Connor testified that he had never seen Pell alone whilst wearing his vestments, and that if he had the event would certainly have been memorable. McGlone concurred with Connor’s version of events testifying that he understood the Archbishop’s vestments were sacred and that certain prayers had to be said as they were being donned or removed. McGlone recalled he and his mother having a brief interaction with Pell.

The High Court unanimously concluded that no reasonable jury, working to the standard that guilt must be proven beyond a reasonable doubt, could find George Pell guilty. They found that the possibility of reasonable doubt arising from the unchallenged evidence of multiple witnesses should have prompted the jury to entertain the possibility of reasonable doubt. As a result, they overturned Pell’s conviction.

It is not difficult to see Pell as a casualty of the broader culture war – the ideological conflict over the fate of western culture – that has enveloped modern society. Pell’s outspoken traditionalism and fervent Catholicism combined with his contentious views on gay marriage, the morning-after pill, and the ordination of women has made him persona non grata for many social groups. Combine this with the Catholic Church’s admittedly abysmal response to child sex abuse allegations, and it isn’t hard to see why Pell was targeted. It is as though they thought they could punish the Church by convicting Pell.

It should go without saying that the sexual abuse of a child, whether it is committed by a stranger, a scoutmaster, or a Catholic Cardinal is abhorrent. It is more than reasonable to hold child abusers accountable for their crimes. However, it is more important to uphold those principles upon which our legal system is based. It is these principles that have allowed us to live in freedom and (relative) prosperity for as long as we have.

Although most people recognise the necessity of legal protections against miscarriages of justice, many do not believe that these protections should extend to people accused of sex crimes. There is an alarming trend where politicians attempt to use the spectre of child abuse to curry favour with the public. In many cases, these attempts involve violating time honoured legal principles. The Royal Commission into Institutional Responses to Child Sexual Abuse, for example, has made several recommendations that state governments have only been too eager to lap up. Among the Royal Commission’s recommendations have been the abolition of statutory limitations on child sex abuse allegations and reformations to evidence law so juries can learn more about a defendant’s past.

In 2020, Victoria’s Attorney General, Martin Pakula introduced the Limitations of Actions Amendment (Child Abuse) Act 2015 which exempted cases where injuries had been acquired from the psychological, physical, or sexual abuse of a minor from the usual statutory limitations. Similarly, the Conversation reported in February 2020 that the New South Wales government had introduced a new would that would “make it easier for a jury to be informed about the prior convictions of a person on trial for a sex offence.” Similar laws are expected to be introduced in Victoria, Tasmania, the Northern Territory, and the Australian Capital Territory.

These blatant violations of western legal jurisprudence have emerged from a pernicious belief that all who claim to have been sexually abused must be telling the truth. Pell’s lone accuser perfectly summarised this view in his statement following the High Court’s decision:

“I respect the decision of the High Court. I respect the outcome. I understand their view that there was not enough evidence to satisfy the court beyond all reasonable doubt that the offending occurred.

No one wants to live in a society where people can be imprisoned without due process and proper processes. This is a basic civil liberty. But the price we pay for weighting the system in favour of the accused is that many sexual offences against children go unpunished.”

Merely being accused of a crime does not make someone guilty. Our legal system requires that guilt be proven beyond a reasonable doubt Weighting the system in the favour of the ‘victim’, as Pell’s accuser is suggesting, is no different than weighting the system in favour of the state. Under such circumstances a defendant would have no chance of defending himself against any charge brought against him.

Shortly after he was convicted, Anne Manne wrote in The Monthly that Pell’s conviction “enacted the dignity and power of the rule of law.” In reality, precisely the opposite happened. The rule of law is defined by the Australian Constitution Centre as “the idea that every person is subject to the laws of the land regardless of their status. It is the idea that you cannot be punished or have your rights affected other than in accordance with a law, and only after a breach of the law has been established in a court of law.” George Pell was treated with a special kind of vindictiveness because he was a Catholic Cardinal. He was not treated like everybody else.

The Rule of Law is supposed to be the opposite of the rule of power. It recognises that whilst it may be necessary to have leaders, no one individual ought to be master over his fellows. As Clive Staples Lewis once noted: “Aristotle said that some men were only fit to be slaves. I do not contradict him. But I reject slavery because I see no men fit to be masters.” The Rule of Law is supposed to reflect the fact that Australia is a nation governed by law, not by rulers. The Australian legal system has tainted this principle by treating George Pell differently just because he is a Cardinal.

The George Pell legal fiasco has revealed deep corruption inside the Victorian legal establishment. When one considers the Supreme Court of Victoria and the Court of Appeals proclivity to ignore evidence that did not support the prosecution, the weakness of the prosecution’s case, and the relentless media witch hunt, it is hard not to think of the Pell trial as anything less than a calculated attempt to silence an outspoken conservative Cardinal. When cases like Pell’s come along, we should remind ourselves of that old Latin maxim: “let just be done though the heavens fall.”

The Consequences of Coronavirus

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Like most Australians, I have spent the past few weeks isolated in my home. With stores closed and public events cancelled, many of us have had to find new ways of keeping ourselves entertained. For me, this period of isolation has been spent reading, writing, and reflecting. However, when one is relaxing it can become easy to forget about the outside world. And it is easy to forget that the long-term consequences of Covid-19 will far outweigh any short-term inconveniences we may be suffering.

Economic

After its human victims, the first casualty of Covid-19 will be the health and vitality of the global economy. Nations like Australia have decided, quite rightly, that their most immediate priority is to protect the health of its citizens. The lockdowns, social-distancing, and other measures taken to prevent the spread of Covid-19 have certainly been effective, but they have come with negative economic consequences.

This fact has been recognised by authorities ranging from the Australian Prime Minister to the World Economic Forum. The World Economic Forum has warned that Covid-19 will keep “large parts of the global economy shuttered” through April. This view was reflected by J.P. Morgan who stated that Covid-19 had pushed the world’s economy into a twelve per cent contraction.

Particularly hard hit will be the tourism and hospitality industries. The Asia Conference stated that the negative impacts of the virus are “likely to worsen as the outbreak continues to disrupt tourism, trade, supply chains, and investments in China.” Likewise, the World Travel and Tourism Council has warned that the economic impacts of Covid-19 could wipe out fifty-million jobs in the travel and tourism industries.

Political

The second casualty will be a change in the way much of the world thinks about its relationship with China. It took the Chinese Communist Party a month to be bothered informing the World Health Organisation of the existence of Covid-19. Thanks to their incompetence, the virus has been able to spread beyond China’s borders. Many people will be left asking: can we really trust a government that has proven itself to be so intrinsically untrustworthy?

The Chinese Communist Party’s reaction to negative press hasn’t exactly endeared them, either. Chinese authorities have been quick to clamp down on anyone who contradicts the claim that the Chinese response to the virus has been effective. In one notable case, a post made by Dr. Li Wenliang on WeChat was dismissed as “illegal acts of fabricating, spreading rumours, and disrupting social order” because it claimed that victims of Covid-19 were being quarantined at the hospital he worked at.

China’s attempts to crack down on negative press outside their borders have been less successful In February, Ivo Daadler wrote in the Chicago Tribune that the Chinese government’s secrecy over Covid-19 made the situation worse than it needed to be. “The fact that China chose secrecy and inaction turned the possibility of an epidemic into a reality”, Daadler wrote in his article.

Daadler’s article has been picked up by several publications, including the Korea Herald and the Kathmandu Post, who published it with an illustration of Chairman Mao wearing a surgical mask. The Chinese Embassy in Nepal dismissed the article as “malicious.” The Nepalese press, however, responded to the accusation by accusing the Chinese embassy of making a “direct threat to the Nepali people’s right to a free press.”

Social

The third casualty of Covid-19 will be the globalist philosophy that has dominated politics over the past few years. People have discovered, much to their chagrin, that the spread of Covid-19 has been facilitated by the ideals of openness that globalism espouses. They are discovering that open borders, mass migration, and crowded housing are harbingers of disease. It is very unlikely that people will be as accepting of open borders and high immigration as they once were.

The ability to share products and ideas is a wonderful innovation. However, people must be willing to accept that the transfer of these things from one place to another also comes with the transfer of less palatable things, like crime and disease. And, truth be told, most people aren’t. This fact has not been lost on many of Europe’s right-wing political parties who are now calling for tighter restrictions on borders during the pandemic.

Although the decline in globalism is sorely needed, Covid-19 has also come with an increase in racism and xenophobia, particularly against Asian people. According to Business Insider, instances of racist and xenophobic attacks, ranging from mere verbal abuse to physical assault, have increased with the Covid-19 pandemic. The sad truth is that discrimination and hatred go hand-in-hand with pandemics. If you associate a group of people with a particular disease and then refuse to associate with them you are much less likely to catch that disease yourself.

Conclusion

The long-term consequences of Covid-19 are going to be far more severe than the current inconveniences it poses. Measures to restrict its spread have caused profound economic penalties, especially in the hospitality and tourism sectors, that will take years to heal. Similarly, relations between China and the world have been tarnished by the Communist Party’s vehement attacks against negative (and richly deserved) criticism and their refusal to be honest about the situation. Finally, Covid-19 will see a decline in the popularity of globalism, open border policies, and mass migration. This pandemic has marked the beginning of a brave new world.

ISRAEL FALOU’S BATTLE WITH RUGBY AUSTRALIA IS A TEST FOR ALL AUSTRALIANS

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Where does society end and the rights of the individual begin? That is the true question that lies at the bottom of the Israel Folau controversy. The courts have been given the unenvious task of determining whether an organisation has the right to punish those members who don’t share its views, or if the rights of the individual should be upheld.

Former rugby player, Israel Folau and his lawyers are seeking up to AuS$15 million (including Aus$5m for the irreparable damage done to Folau’s reputation) from Rugby Australia. Folau had had his contract with Rugby Australia terminated after he was found guilty of a high-level breach (the only kind that can result in termination) of their code of conduct. This high-level breach came from Folau’s decision to post a picture on Instagram stating that hell awaited “drunks, homosexuals, liars, fornicators, thieves, atheists, and idolaters.”

Having failed to reach a settlement with Rugby Australia at a Fair Work hearing, Folau and his lawyers have moved their case on to the Federal Court. Folau himself has merely expressed his desire for Rugby Australia to admit they terminated his contract because of his religious beliefs. In a video, Folau stated: “Hopefully, Rugby Australia will accept that my termination was unlawful and we can reach an agreement about how they can fix that mistake. First and foremost, I am hoping for an apology from Rugby Australia and an acknowledgement that even if they disagree with my views, I should be free to peacefully express my religious beliefs without fear of retribution or punishment.”

According to Rugby Australia’s, Folau’s contract was terminated on the basis that he had violated their requirement to “treat everyone equally, fairly and with dignity regardless of gender or gender identity, sexual orientation, ethnicity, cultural or religious background, age or disability.”

Of course, what really lies at the centre of the Folau case is not homophobia, but freedom of speech and freedom of religion. It is really a question of whether Israel Folau should be allowed to express his religious views without suffering economic or judicial penalty.

Both the US Supreme Court and the Australian Law Reform Commission have placed a special emphasis on freedom of speech. The US Supreme Court has noted that all other rights and freedoms are put in peril when freedom of speech is not protected. Similarly, the Australian Law Reform Commission has stated: “freedom of speech is a fundamental common law right. It has been described as the ‘freedom part excellence: for without it, no other freedom can survive.’

Likewise, the Australian Magna Carta Institute stated:

“Freedom of speech is an essential aspect of the rule of law and ensures there is accountability in government. People must be free to express their opinion about the content of laws, as well as the decisions of government or accountability is greatly reduced. Freedom of expression is a boarder term which incorporates free speech, the right to assemble, and other important ways of expressing ideas and opinions. The balance the law of Australia strikes between protecting and restricting freedom expression generally is very important to understand the health of the rule of law in Australia.”

It is remarkable to note, however, that freedom of speech is protected by neither the Constitution of Australia nor by Federal Legislation. In fact, there is a wide array of laws and regulations that place legal restrictions on expression. One cannot publish military secrets, incite criminal activity, or defame or libel another person.

Rather, freedom of speech is considered a common-law right adopted from the Westminster system. It is a feature of our political and legal traditions. The Australian High Court has stated that there is an implied right to freedom of expression embedded in the Australian Constitution (they did not say anything, however, about non-political expression). Likewise, Australia is also a signatory of the International Covenant on Civil and Political Rights which lists freedom of expression as a fundamental right.

Freedom of religion is a natural extension of freedom of speech, expression, and association. It is derived from the simple fact that the government has no right to dictate what my beliefs should be. The government has no right to force me, a Christian, to accept gay marriage, abortion, or anything else I find incompatible with my beliefs.

Unlike freedom of speech, freedom of religion is a right guaranteed by the Australian Constitution. Section 116 of the Australian Constitution reads:

Commonwealth not to legislate in respect of religion

The Commonwealth shall not make any law for establishing any religion, or for imposing any religious observance, or for prohibiting the free exercise of any religion, and no religious test shall be required for any office or public trust under the Commonwealth.”

Similarly, freedom of religion is protected by Australian case law. In the case of Church of the New Faith v. Commissioner for Payroll Tax (Vic), the Judges Mason ACJ and Brennan J. commented: “freedom of religion, the paradigm freedom of conscience, is the essence of a free society.” Similarly, in the case of Evans v. New South Wales, the Federal Court decreed that religious freedom as an “important freedom generally accepted in society.”

The road to hell is paved with good intentions. A decision that favours Rugby Australia will give large organisations the legal mandate to bully and intimidate those that don’t agree with their views. If Australia’s Federal Court truly believes in freedom, it will uphold Israel Folau’s right to freedom of speech and religion, and rule against Rugby Australia.

TRANSGENDERISM IS NO BASIS FOR PUBLIC POLICY

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It has been over fourteen-year since David Reimer, the victim of an insane and evil scientific experiment, committed suicide. After his penis had been burnt off in a botched circumcision, David’s parents had turned to the infamous sexologist and social constructionist, Dr. John Money for help. Following Dr. Money’s advice, David’s parents agreed to allow a sex change operation to be performed on their young son and raised him as a girl.

Despite Dr. Money’s boasting that his experiment had been a success, however, David Reimer did not settle comfortably into his female identity. David tore up his dresses at three, asked if he could have his head shaved like his father, and engaged in all manner of boyish behaviour. David was bullied at school and, upon hitting puberty, decided that he was a homosexual (in reality, of course, he was heterosexual).

Finally, when he was fourteen David’s parents revealed the truth about his gender identity. David reverted to his masculine identity, broke off contact with Dr. Money whom he described as an abusive brainwasher, and received a non-functioning penis through phalloplasty. Unable to handle the immense psychological damage that had been inflicted upon him, David Reimer blew his brains out with a shotgun at the age of thirty-eight.

For all of human history, boy has meant boy and girl has meant girl. Traditionally, sex was used to refer to the biological markers of gender. If you were born with a penis and an XY chromosome, you were a man. If you were born with a vagina and an XX chromosome, you were a woman. One’s gender expression was thought to compliment one’s biological sex. A biological man would have masculine personality traits and a biological female would have feminine personality traits. These complimentary characteristics, among them body shape, dress, mannerisms, and personality, were thought to be produced by a mixture of natural and environmental forces.

Recently, however, gender theorists have begun to question the relationship between biological sex and gender identity. They argue that gender, which they see as distinctive from sex, is a social construct. Since gender refers to the expression of masculinity and femininity, gender is something that a person acquires. (Needless to say, this movement is driven by a pernicious post-modern, Neo-Marxist worldview). Under this philosophy, gender expression is the manner in which a person expresses their gender identity. Gender identity is expressed through dress, behaviour, speech, and nothing else besides.

Neuroplasticity provides the gender theorist with perhaps his greatest argument. If underlying brain processes are theoretically strengthened through repetitive use, it follows that gender identity comes from a narrowing down of potential gender categories through the repetitive use of certain brain processes. However, it also reveals a fatal flaw in the gender theorist’s (and social constructionist’s) philosophy. If the human brain is so malleable that an individual’s gender identity is constructed, then why can’t the brain of a transgender person be adapted out of its transgenderism?

The primary problem with gender theory is that it just plain wrong. The idea that gender is distinct from sex has absolutely no basis in science whatsoever. As Jordan Peterson, the Canadian psychology/philosopher, has stated: “the idea that gender identity is independent of biological sex is insane. It’s wrong. The scientific data is clear beyond dispute. It’s as bad as claiming that the world is flat.” Men and women differ both at the cellular and the temperamental level. Unlike men, for example, women menstruate, they can have babies, and they show a slew of personality characteristics that mark them as different from men. David C. Page, the Director of the Whitehead Institution at the Massachusetts Institute of Technology, has even claimed that genetic differences exist at the cellular level asserting that “throughout human bodies, the cells of males and females are biochemically different.” These differences even affect how men and women contract and fight diseases.

The philosopher Alain de Benoist has also strongly criticised gender theory. De Benoist argued against the scientific errors and philosophical absurdities in his work Non à la théorie de genre (No to Gender Theory).

First, De Benoist points out that the gender theorists have used the fact that some gender characteristics are socially constructed to argue that all characteristics are socially constructed.

Second, De Benoist argued that the “hormonal impregnation of the foetus” (as De Benoist puts it) causes the brain to become genderised because it has a “direct effect on the organisation of neural circuits, creating a masculine brain and a feminine brain, which can be distinguished by a variety of anatomical, physiological, and biochemical markers.”

Third, De Benoist argued that biological sex has a profound effect on the way people think, act, and feel. In order to support their theory, gender theorists are forced to deny the natural differences between men and women. De Benoist wrote:

“From the first days of life, boys look primarily at mechanized objects or objects in movement while girls most often search for visual contact with human faces. Only a few hours after birth, a girl responds to the cries of other infants while a boy shows no interest. The tendency to show empathy is stronger in girls than in boys long before any external influence (or “social expectations”) have been able to assert themselves. At all ages and stages of development, girls are more sensitive to their emotional states and to those of others than boys … From a young age, boys resort to physical strategies where girls turn to verbal ones … From the age of two, boys are more aggressive and take more risks than girls.”

Furthermore, gender theory cheapens what it means to be a man or a woman. And, by extension, it denigrates the contributions that each gender has to make to civil society. Gender values give people ideals to strive for and helps them determine the rules that govern human interactions. The idea that men and women ought to be treated the same is ludicrous beyond belief. No parent would like to see their son treat a woman the same way they treat their male friends. Men have been taught to be gentlemen and women have been taught to be ladies for a reason.

All of this is not to say, however, that those pushing transgender rights do not have a case. They are right when they claim that the transgender peoples of the world face discrimination, prejudice, and violence. Some countries treat transgenderism as a crime, and it is certainly true that transgender people are more likely to be victims of violence, including murder. A reasonable transgender rights argument would be that transgender people cannot help their affliction and that society ought to treat them with kindness, tolerance, and compassion.

Unfortunately, that is not the argument that gender activists like to make. Rather than focusing on promoting tolerance, gender activists have instead sought to do away with gender distinctions altogether (which is, more likely than not, their actual aim). Using a very tiny minority of the population as their moral basis, the gender activists are attempting to force society to sacrifice its traditional classifications of male and female.

Transgenderism is clearly a mental health disorder. In the past, it was referred to as “gender dysphoria”, considered a mental illness, and treated as such. To assert the fact that transgenderism is a mental health disorder is not a denial of an individual’s integral worth as a human being. It is merely the acknowledgement of the existence of an objective reality in which gender is both binary and distinct. Unfortunately, this is not the attitude of those who influence public opinion. Consequently, programs for LGBTQ youth have seen an increase in youth who identify as transgender. The transgender journalist, Libby Down Under, has blamed instances of rapid-onset gender dysphoria on the normalisation of transgenderism in the culture. With a slew of celebrities coming out as transgender (former Olympian Bruce Jenner being a primary example), and with transgender characters being featured on numerous television shows, many teens and tweens have suddenly decided that they are transgender despite having no prior history of gender confusion.

Transgender youth increasingly feel that it is their right to express themselves however they please. And they feel that it is their right to silence all who dare to criticise or disagree with that expression. Cross-living, hormone therapy, and sex reassignment surgery are seen as part of this self-expression. Alarmingly, the mainstream response of psychotherapists to these children and adolescents is the “immediate affirmation of [their] self-diagnosis, which often leads to support for social and even medical transition.”

It is a classic case of political posturing overshadowing the pursuit of truth. Most youth suffering from gender dysphoria grow out of their predilection. Dr. James Cantor of the University of Toronto has cited three large-scale studies, along with other smaller studies, to show that transgender children eventually grow out of their gender dysphoria. The Diagnostic and Statistics Manual 5th Edition claims that desistance rates for gender dysphoria is seventy to ninety percent in “natal males” and fifty to eighty-eight percent in “natal females.” Similarly, the American Psychological Association’s Handbook of Sexuality and Psychology concludes that the vast majority of gender dysphoria-afflicted children learn to accept their gender by the time they have reached adolescence or adulthood.

It is not a secret that transgenderism lends itself to other mental health problems. Forty-one percent of transgender people have either self-harmed or experienced suicidal ideation (this percentage, of course, does not reveal at what stage of transition suicidal ideation or attempts occur). The postmodern, neo-Marxist answer to this problem is that transgender people are an oppressed minority and that they are driven to mental illness as a result of transphobia, social exclusion, bullying, and discrimination.

It is typical of the left to presume that society is to blame for an individual’s suffering. And to a certain extent, they are right. Transgender people are the victims of discrimination, prejudice, and violence. But it is more than likely that these abuses exacerbate their problems rather than causing them. One in eight transgender people, for example, rely on sex and drug work to survive. Is that the fault of society or the fault of the individual? The National Center for Transgender Equality claims that it is common for transgender people to have their privacy violated, to experience harassment, physical and sexuality violence, and to face discrimination when it comes to employment. They claim that a quarter of all transgender people have lost their jobs and three-quarters have faced workplace discrimination because of their transgender status.

In Australia, there has been a move to allow transgender children access to hormone-blocking drugs and sex-change surgeries. Australian gender activists – surprise, surprise – support the idea of as a way to reduce the rates of suicide among transgender people. The Medical Journal of Australia has approved the use of hormone therapy on thirteen-year-olds despite the fact that the scientific community remains, as of 2018, undecided on whether or not puberty-blocking drugs are either safe or reversible.

In the United States, a great deal of debate has occurred over transgender rights. In particular, there have been debates over what bathroom they should be allowed to use, how they should be recognised on official documents, and whether they should be allowed to serve in the military. In 2016, former President Barack Obama ordered state schools to allow transgender students to use whatever bathroom they desire. Similar ordinances have been passed in hundreds of cities and counties across the United States. Seventeen states and the District of Columbia are subject to ‘non-discrimination’ laws which include gender identity and gender expression. These include restrooms, locker rooms, and change rooms.

In March of 2016, North Carolina passed a law which required people in government buildings to use the bathroom appropriate to their biological gender. The US Federal Government decried the decision as bigotry and accused the government of North Carolina of violating the Civil Rights Act. The Federal Government threatened to withhold over US$4 billion in education funding. The government of North Carolina responded by filing suit against the government of the United States. The US government responded by filing suit against North Carolina. North Carolina received support from Mississippi, Tennessee, and Texas whilst Washington received support from most of the northern states.

Pro-transgender bathroom policies are not limited to government, however. Many businesses in the United States have similar bathroom policies. Many large corporations, among them Target, allow transgender people to use the bathroom of their choice. And they are perfectly prepared to enforce these policies, as well. A Macy’s employee in Texas was fired after he refused to allow a man dressed as a woman to use the female change rooms. Similarly, Planet Fitness revoked the membership of a woman who complained that a transgender man was in the female change rooms.

The most alarming trend of the gender theory movement is the attempt to indoctrinate children through changes to the education system. In 2013, France unleashed the ABCD de l’égalité (the ABCs of Equality) on six hundred elementary schools. In their own words, the program was designed to teach students that gender was a social construct:

“Gender is a sociological concept that is based on the fact that relations between men and women are socially and culturally constructed. The theory of gender holds that there is a socially constructed sex based on differentiated social roles and stereotypes in addition to anatomical, biological sex, which is innate.”

The creators of the program are smart enough to include the disclaimer: “biological differences should not be denied, of course, but those differences should not be fate.”

Fortunately, it would seem that many people are not taken in by this race to fantasyland. They are not taken in by the idea that the program merely exists to combat gender stereotypes and teach respect, and have protested. The French Minister of Education dismissed the protestors by saying that they “have allowed themselves to be fooled by a completely false rumour… at school we are teaching little boys to become little girls. That is absolutely false, and it needs to stop.” In America, The Boston Globe dismissed the protests against the program as being motivated by fear. Judith Butler event went as far as to say that France’s financial instability was the true cause of the protests.

And such a profound misuse of the education system isn’t limited to France, either. In Scotland, teachers are given guidance by LGBT Youth Scotland, children are expected to demonstrate “understanding of diversity in sexuality and gender identity”, and children are allowed to identify as either a girl or boy, or neither. The government of the United Kingdom has mandated that transgender issues be taught as part of the sex and relationships curriculum in primary and secondary school. Justine Greening, the education secretary, said: “it is unacceptable that relationships and sex education guidance has not been updated for almost twenty years especially given the online risks, such as sexting and cyberbullying, our children and young people face.”

It is in Australia, however, that there is the most shocking case of gender theory indoctrination. A great deal of controversy has been generated over the Safe Schools program. The program, which was established by the Victorian government in 2010, is supposedly designed to provide a safe, supportive, and inclusive environment for LGBTI students. It states that schools have the responsibility to challenge “all forms of homophobia, biphobia, transphobia, intersexism to prevent discrimination and bullying.”

The Safe Schools program promotes itself as an anti-bullying resource supporting “sexual diversity, intersex and gender diversity in schools.” It requires Victorian schools to eliminate discrimination based on gender identity, intersex, and sexual orientation, including in terms of an inclusive school environment.

The program addresses the issues of sleeping and bathroom arrangements and dress code. In terms of dress code, the program states:

“An inflexible dress code policy that requires a person to wear a uniform (or assume characteristics) of the sex that they do not identify with is likely to be in breach of anti-discrimination legislation including under the Equal Opportunity Act (1984) SA”

Likewise, the program states on the issue of bathrooms and change rooms that “transgender and diverse students should have the choice of accessing a toilet/changeroom that matches their gender identity.” In addition, the program states:

“Schools may also have unisex/gender neutral facilities. While this is a helpful strategy for creating an inclusive school environment for gender diverse students broadly, it is not appropriate to insist that any student, including a transgender student, use this toilet if they are not comfortable doing so.”

The idea that a transgender boy or girl should be allowed to sleep, shower, and defecate in the same place as a group of boys or girls ought to ring alarm bells for everyone. It increases the risk of sexual activity, sexual assault, pregnancy, and the transmission of sexually-transmitted-diseases. There is a reason why schools segregate changerooms, toilets, and dormitories.

The tragedy of David Reimer reveals just how dangerous it is to ignore the truth in favour of a false and malevolent social philosophy. It is one thing to seek tolerance and compassion for those in the community who may be struggling with their identity. It is something else entirely to use the plight of transgender peoples as a means of cording society to change the way it categorises gender. And it is completely insane to allow a false philosophy like gender theory to be used as the basis of public policy. If we don’t want more tragedies like David Reimer’s, we should put gender theory out in the trash where it belongs.

PRIESTS SHOULDN’T BE FORCED TO VIOLATE THE SEAL OF THE CONFESSIONAL

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Priests and Ministers of Religion in South Australia will be required to report child abuse confessed to them under new laws that come into effect in October.

The Children and Young People (Safety) Act 2017 has replaced the Children’s Protection Act 1993. The Attorney General’s Department has claimed that these changes will “better protect children from potential harm, and align with the recommendations of the recent Royal Commission into Institutional Responses to Child Sex Abuse.”

These new laws represent a disturbing phenomenon. Namely, the use of a highly emotive issue as a means for undermining the rights and freedoms of others. This law, and others around Australia (the ACT Parliament has passed similar laws with almost universal support), blatantly violates both religious liberty and the right to privacy.

Confession is one of the most important aspects of the Catholic Faith. Comprising one of the seven sacraments (the others being Baptism, Eucharist, Confirmation, the anointing of the sick, and Holy Orders), Catholics believe that an individual who confesses his sins is speaking directly with God. Whatever is confessed remains between that individual and God.

The privacy of the Confessional is known as “the Seal.” The Vatican has had strict rules on the privacy of the confessional since 1215 and Priests are bound by a sacred vow not to break the seal. A Priest who breaks the seal, even after the penitent has died, faces excommunication.

Some critics have accused the supporters of these new laws of undermining religious liberty and of targeting the Catholic Church. The Archbishop of Canberra and Goulburn, Christopher Prowse, criticised the law, say: “The Government threatens religion freedom by appointing itself an expert on religious practices and by attempting to change the sacrament of confession while delivering no improvement on the safety of children.”

Some priests have even claimed that they would rather go to prison than break the seal of the confessional.

At some point, people are going to have to realise that children are not the centre of the universe. They are going to have realise that their safety is not so important that it trumps the rights and freedoms of everybody else. The laws passed by the Parliament of South Australia are an absolute violation of religious liberty and the separation of church and state.

Countries like Australia have had a great tradition of separating politics from religion. Now it seems that this distinction only goes one way. It is seen as totally unacceptable for the Church to use its power and influence to affect politics, but for some reason it is seen as perfectly acceptable for the state to interfere in religion.

One cannot help but cynically suspect that politicians in South Australia are using children as a backdoor method for allowing the all-seeing eye of the state into relationships that were once deemed absolutely private. That which is confessed to a Priest ought to remain absolutely private. The contents of my conscience (or anyone else’s, for that matter) are none of the state’s business.

Those who support this blatant attack on the rights and liberties of others should ask themselves what their opinion would be if the law violated their private relationship with their doctor, lawyer, or psychiatrist.

DEMAND-SIDE ECONOMICS VERSUS SUPPLY-SIDE ECONOMICS

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On May 9th, 2018, the YouTube Channel, Juice Media uploaded a video entitled “Honest Government Ad: Trickle Down Economics.” In the video, the rather obnoxious and condescending female presenter tells the audience that the reason Australia has “one of the fastest growing inequality rates in the world” is trickle-down economics, which she defines as “when we [the government] piss on you and tell you it’s raining.”

According to the video, tax cuts for investors, entrepreneurs, and business are directly correlated with poverty and the lack of wage growth in Australia. The presenter argues that the government cuts taxes on the rich while simultaneously claiming that they don’t have enough money for healthcare (which would be a lot more effective if people took responsibility for their own health), renewable energy (which is really an excuse to take control of the energy market), and the ABC (which doesn’t deserve a cent of anyone’s money).

The primary problem with the video is that the premise of its argument does not actually exist. There is not a single economic theory that can be identified as trickle-down economics (also known as trickle-down theory). No reputable economist has ever used the term, nor have they ever presented an argument that could be said to conform to the idea of what it is supposed to be. As Thomas Sowell (1930 – ) wrote in his book, Basic Economics:

“There have been many economic theories over the centuries accompanies by controversies among different schools and economists, but one of the most politically prominent economic theories today is one that has never existed among economists: the trickle-down theory. People who are politically committed to policies of redistributing income and who tend to emphasise the conflicts between business and labour rather than their mutual interdependence often accuse those opposed to them of believing that benefits must be given wealthy in general, or to business in particular that these benefits will eventually trickle down to the masses of ordinary people. But no recognised economist of any school of thought has ever had any such theory or made any such proposal.”

The key to understanding why political players disparage pro-capitalist and pro-free market economic policies as trickle-down economics is understanding how economics is used to deceive and manipulate. Political players understand that simple and emotionally-charged arguments tend to be more effective because very few people understand actual economics. Anti-capitalists and anti-free marketeers, therefore, use the term trickle-down economics to disparage economic policy that disproportionately benefits the wealthy in the short term, and increases the standards of living for all peoples in the long-term

The economic theory championed by liberals (read: leftists) is demand-side economics. Classical economics rejected demand-side economic theory for two reasons. First, manipulating demands is futile because demand is the result of product, not its cause. Second, it is (supposedly) impossible to over-produce something. The French economist, Jean-Baptiste Say (1767 – 1832) demonstrated the irrelevance of demand-side economics by pointing out that demand is derived from the supply of goods and services to the market. As a consequence of the works of Jean-Baptiste Say, the British economist, David Ricardo (1772 – 1823), and other classical economists, demand-side economic theory lay dormant for more than a century.

One classical economist, however, was prepared to challenge the classical economic view of demand-side economics. The English economist, Thomas Robert Malthus (1766 – 1834) challenged the anti-demand view of classical economics by arguing that the recession Great Britain experienced in the aftermath Napoleonic Wars (1803 – 1815) was caused by a failure of demand. In other words, purchasing power fell below the number of goods and services in the market. Malthus wrote:

“A nation must certainly have the power of purchasing all that it produces, but I can easily conceive it not to have the will… You have never I think taken sufficiently into consideration the wants and tastes of mankind. It is not merely the proportion of commodities to each other but their proportion to the wants and tastes of mankind that determines prices.”

Using this as his basis, Malthus argued that goods and services on the market could outstrip demand if consumers choose not to spend their money. Malthus believed that while production could increase demand, it was powerless to create the will to consume among individuals.

Demand-side economics works on the theory that economic growth can be stimulated by increasing the demand for goods and services. The American economist, J.D. Foster, the Norman B. Ture Fellow in the Economics of Fiscal Policy at the Heritage Foundation, argued that demand-side works on the theory that the economy is underperforming because the total demand is low, and, as a consequence, the supply needed to meet this demand is likewise low.

The American economist, Paul Krugman (1953 – ), and other economists believe that recessions and depressions are the results of a decrease in demand and that the most effective method of revivifying the economy is to stimulate that demand. The way to do this is to engage in large-scale infrastructure projects such as the building of bridges, railways, and highways. These projects create a greater demand for things like steel, asphalt, and so forth. And, furthermore, it provides people with a wage which they can spend on things like food, housing, clothing, entertainment, so on and so forth.

Policies based on demand-side economics aims to change the aggregate demand in the economy. Aggregate demand is consumer spending + investment + net import/export. Demand-side economics policies are either expansive or contractive. Expansive demand-side policies aim at stimulating spending during a recession. By contrast, contractive demand-side policies aim at reducing expenditure during an inflationary economy.

Demand-side policy can be split into fiscal policy and monetary policy. The purpose of fiscal policy in this regard is to increase aggregate demand. Demand-side based fiscal policy can help close the deflationary gap but is often not sustainable over the long-term and can have the effect of increasing the national debt. When such policies aim at cutting spending and increasing taxes, they tend to be politically unpopular. But when such policies that involve lowering taxes and increasing spending, they tend to be politically popular and therefore easy to execute (of course they never bother to explain where they plan to get the money from).

In terms of monetary policy, expansive demand-side economic aims at increasing aggregate demand while contractive monetary policy in demand-side economics aims at decreasing it. Monetary expansive policies are less efficient because it is less predictable and efficient than contractive policies.

Needless to say, demand-side economics has plenty of critics. According to D.W. McKenzie of the Mises Institute, demand-side economics works on the idea that “there are times when total spending in the economy will not be enough to provide employment to all want to and should be working.” McKenzie argued that the “notion that economics as a whole, sometimes lacks sufficient drive derives from a faulty set of economic doctrines that focus on the demand side of the aggregate economy.” Likewise, Thomas Sowell argued in Supply-Side Politics that there is too much emphasis placed on demand-side economics to the detriment of supply-side economics. He wrote in an article for Forbes:

“If Keynesian economics stressed the supposed benefit of having government manipulate aggregate demand, supply-side economics stressed what the marketplace could accomplish, one it was freed from government control and taxes.”

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John Maynard Keynes

The man who greatly popularised demand-side economics was the British economist, John Maynard Keynes (1883 – 1946). Keynes, along with many other economists, analysed the arguments of the classical economists against the realities of the Great Depression. Their analysis led many economists to question the arguments of the classical economists. They noted that classical economics failed to answer how financial disasters like the Great Depression could happen.

Keynesian economics challenged the views of the classical economists. In his 1936 book, The General Theory of Employment, Interest and Money (one of the foundational texts on the subject of modern macroeconomics) Keynes revivified demand-side economics. According to Keynes, output is determined by the level of aggregate demand. Keynes argued that resources are not scarce in many cases, but that they are underutilised due to a lack of demand. Therefore, an increase in production requires an increase in demand. Keynes’ concluded that when this occurs it is the duty of the government to raise output and total employment by stimulating aggregate demand through fiscal and monetary policy.

The Great Depression is often seen as a failure of capitalism. It popularised Keynesian economics and monetary central planning which, together, “eroded and eventually destroyed the great policy barrier – that is, the old-time religion of balanced budgets – that had kept America relatively peaceful Republic until 1914.”

David Stockman of the Mises Institute argues that the Great Depression was the result of the delayed consequences of the Great War (1914 – 1918) and financial deformations created by modern central banking. However, the view that the Great Depression was a failure of capitalism is not one shared by every economist. The American economist, Milton Friedman (1912 – 2006), for example, argued that the Great Depression was a failure of monetary policy. Friedman pointed out that the total quantity of money in the United States – currency, bank deposits, and so forth – between 1929 and 1933 declined by one-third. He argued that the Federal Reserve had failed to prevent the decline of the quantity of money despite having the power and obligation to do so. According to Friedman, had the Federal Reserve acted to prevent the decline in the quantity of money, the United States (and subsequently, the world) would only have suffered a “garden variety recession” rather than a prolonged economic depression.

It is not possible to determine the exact dimensions of the Great Depression using quantitative data. What is known, however, is that it caused a great deal of misery and despair among the peoples of the world. Failed macroeconomic policies combined with negative shocks caused the economic output of several countries to fall between twenty-five and thirty-percent between 1929 and 1932/33. In America between 1929 and 1933, production in mines, factories, and utilities fell by more than fifty-percent, stock prices collapsed to 1/10th of what they had been prior to the Wall Street crash, real disposable income fell by twenty-eight percent, and unemployment rose from 1.6 to 12.8 million.

According to an article for the Foundation for Economic Education, What Caused the Great Depression, the Great Depression occurred in three phases. First, the rise of “easy money policies” caused an economic boom followed by a subsequent crash. Second, following the crash, President Herbert Hoover (1874 – 1964) attempted to suppress the self-adjusting aspect of the market by engaging in interventionist policies. This caused a prolonged recession and prevented recovery. Hourly rates dropped by fifty-percent, millions lost their jobs (a reality made worse by the absence of unemployment insurance), prices on agricultural products dropped to their lowest point since the Civil War (1861 – 1865), more than thirty-thousand businesses failed, and hundreds of banks failed. Third, in 1933, the lowest point of the Depression, the newly-elected President Franklin Delano Roosevelt (1882 – 1945) combatted the economic crisis by using “new deal” economic policies to expand interventionist measures into almost every facet of the American economy.

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Let’s talk about the New Deal a little bit more. The New Deal was the name for the Keynesian-based economic policies that President Roosevelt used to try and end the Great Depression. It included forty-seven Congress-approved programs that abandoned laissez-faire capitalism and enacted the kind of social and economic reforms that Europe had enjoyed for more than a generation. Ultimately, the New Deal aimed to create jobs, provide relief for farmers, boost manufacturing by building partnerships between the private and public sectors, and stabilise the US financial system.

The New Deal was largely inspired by the events of the Great War. During the War, the US Government had managed to increase economic activity by establishing planning boards to set wages and prices. President Roosevelt took this as proof positive that it was government guidance, not private business, that helped grow the economy. However, Roosevelt failed to realise that the increase in economic activity during the Great War came as the result of inflated war demands, not as the achievement of government planning. Roosevelt believed, falsely, that it was better to have government control the economy in times of crisis rather than relying on the market to correct itself.

The New Deal came in three waves. During his first hundred days in office, President Roosevelt approved the Emergency Banking Act, Government Economy Act, the Civilian Conservation Corps, the Federal Emergency Relief Act, Agricultural Adjustment Act, Emergency Farm Mortgage Act, the Tennessee Valley Authority Act, the Security Act, Abrogation of Gold Payment Clause, the Home Owners Refinancing Act, the Glass-Steagall Banking Act, the National Industrial Recovery Act, the Emergency Railroad Transportation Act, and the Civil Works Administration.

In 1934, President Roosevelt bolstered his initial efforts by pushing through the Gold Reserve Act, the National Housing Act, the Securities Exchange Act, and the Federal Communications Act.

In 1935, the Supreme Court rejected the National Industrial Act. President Roosevelt, concerned that other New Deal programs could also be in jeopardy, embarked on a litany of programs that would help the poor, the unemployed, and farmers. Second-wave New Deal programs included Soil Conservation and Domestic Allotment Act, Emergency Relief Appropriation, the Rural Electrification Act, the National Labor Relations Act, the Resettlement Act, and the Social Securities Act.

In 1937, Roosevelt unleashed the third wave of the New Deal by aiming to combat budget deficits. It included the United States Housing Act (Wagner-Steagall), the Bonneville Power Administration, the Farm Tenancy Act, the Farm Security Administration, the Federal National Mortgage, the New Agriculture Adjustment Act, and the Labor Standards Act.

According to the historical consensus, the New Deal proved effective in boosting the American economy. Economic growth increased by 1.8% in 1935, 12.9% in 1936, and 3.3% in 1937. It built schools, roads, hospitals, and more, prevented the collapse of the banking system, reemployed millions, and restored confidence among the American people.

Some even claim that the New Deal didn’t go far enough. Adam Cohen, the author of Nothing to Fear: FDR’s Inner Circle and the Hundred Days that Created Modern America, claims that the longevity of the Depression (the American economy didn’t return to pre-depression prosperity until the 1950s) is evidence that more New Deal spending was needed. Cohen commented that the New Deal had the effect of steadily increasing GDP (gross domestic product) and reducing unemployment. And, which is more, it reimagined the US Federal government as a welfare provider, a stock-market regulator, and a helper of people in financial difficulty.

However, the historical consensus is not to say that the New Deal is without its critics. The New Deal was criticised by many conservative businessmen for being too socialist. Others, such as Huey Long (1893 – 1935), criticised it for failing to do enough for the poor. Henry Morgenthau, Jr. (1891 – 1967), the Secretary of the Treasury, confessed before Democrats in the House Ways and Means Committee on May 9th, 1939 that the New Deal had failed as public policy. According to Morgenthau, it failed to produce an economic recovery and did not erase historic unemployment. Instead, it created a recession – the Roosevelt Recession – in 1937, failed to adequately combat unemployment because it created jobs that were only temporary, became the costliest government program in US history, and wasted money.

Conservatives offer supply-side economics as an alternative to demand-side economics. Supply-side economics aims at increasing aggregate supply. According to supply-side economics, the best way to stimulate economic growth or recovery is to lower taxes and thus increase the supply of goods and services. This increase leads, in turn, to lower prices and higher standards of living.

The lower-taxes policy has proved quite popular with politicians. The American businessman and industrialist, Andrew Mellon (1855 – 1937) argued for lower taxes in the 1920s, President John Fitzgerald Kennedy (1917 – 1963) argued for lower taxes in the 1960s, and both President Ronald Reagan (1911 – 2004) and President George Walker Bush (1946 – ) lowered taxes in the 1980s and 2000s, respectively.

Supply-side economics works on the principle that producers will create new and better products if they are allowed to keep their money. Put simply, supply-side economics (supply merely refers to the production of goods and services) works on the theory that cutting taxes on entrepreneurs, investors, and business-people incentives them to invest more in their endeavours. This money can be invested in capital – industrial machinery, factories, software, office buildings, and so forth.

The idea that lower taxes lead to greater economic prosperity is one of the central tenants of supply-side economics. Supporters of supply-side economics believe that providing financial benefits for investors (cutting capital gains tax, for example) stimulates economic growth. By contrast, high taxes, especially those metered out on businesses, discourage investment and encourages stagnation.

Tax rates and tax revenue are not the same thing, they can move in opposite directions depending on economic factors. The revenue collected from income tax for each year of the Reagan Presidency was higher than the revenues collected during any year of any previous Presidency. It can be argued that people change their economic behaviour according to the way they are taxed. The problem with increasing taxes on the rich is that the rich will use legal, and sometimes illegal, strategies for avoiding paying it. A businessman who is forced to pay forty-percent of his business’ profits on taxation is less likely to increase his productivity. As a consequence, high tax rates on businesses leads to economic stagnation.

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Supply-side supporters use Arthur Laffer’s (1940 – ) – an advisor to President Ronald Regan –  Laffer Curve to argue that lower taxes lead to higher tax revenue. The Laffer curve showed the dichotomy between tax revenue and the amount of tax that is collected. Laffer’s idea that the more taxation increased, the more tax revenue is collected. However, if taxes are increased beyond a certain point, less revenue is collected because people are no longer willing to make an economic contribution.

Taxation only works when the price of engaging in productive behaviour is likewise reduced. Daniel Mitchell of the Heritage Foundation stated in an article entitled a “Supply-Side” Success Story, that tax cuts are not created equally. Mitchell wrote: “Tax cuts based on the Keynesian notion of putting money in people’s pockets in the form of rebates and credits do not work. Supply-side cuts, by contrast, do improve economic performance because they reduce tax rates on work, saving, and investment.” Mitchell used the differences between the 2001 and 2003 tax cuts as evidence for his argument. Mitchell pointed out that tax collections fell after the 2001 tax cuts whereas they grew by six-percent annually after the 2003 cuts. Mitchell points out that job numbers declined after the 2001 cuts whereas net job creation averaged more than 150,000 after the 2003 cuts. Mitchell points out that economic growth averaged 1.9% after the 2001 tax cuts, compared to 4.4% after the 2003 cuts.

Proposals to cut taxes have always been characterised by its opponents as “tax cuts for the rich.” The left believes that tax cuts, especially cuts on the top rate of tax, does not spur economic growth for lower and middle-class people and only serves to widen income inequality. They argue that tax cuts benefit the wealthy because they invest their newfound money in enterprises that benefit themselves. Bernie Sanders (1941 – ), the Independent Senator from Vermont, has argued that “trickle-down economics” is pushed by lobbyists and corporations to expand the wealth of the rich. Whilst opponents of President Ronal Reagan’s tax cuts likewise referred to the policy as “trickle-down economics.”

In reality, the left-wing slander of tax cuts can best be described as “tax lies for the gullible.” The rich do not become wealthy by spending frivolously or by hiding their money under the mattress. The rich become rich because they are prepared to invest their money in new products and ventures that will generate greater wealth. In reality, it is far more prudent to give an investor, entrepreneur, or business owner a tax cut because they are more likely to use their newfound wealth more prudently.

According to Prateek Agarwal at Intelligent Economist, supply-side economics is useful for lowering the natural rate of unemployment. Thomas Sowell, a supporter of supply-side economics, claims that while tax cuts are applied primarily to the wealthy, it is the working and middle classes who are the first and primary beneficiaries. This occurs because the wealthy, in Sowell’s view, are more likely to invest more money in their businesses which will provide jobs for the working class.

The purpose of economic policy is to facilitate the economic independence of their citizens by encouraging economic prosperity. Demand-side economics and supply-side economics represent two different approaches to achieving this endeavour. Demand-side economics argues that economic prosperity can be achieved by having the government increase demand by taking control of the economy. By contrast, supply-side economics, which is falsely denounced as “trickle-down economics” by the likes of people like Juice Media, champions the idea that the best way to achieve economic prosperity is by withdrawing, as far as humanly possible, government interference from the private sector of the economy. Supply-side economics is the economic philosophy of freedom, demand-side economics is not.

AUSTRALIA’S BANKS ARE WOUNDED, BUT NOT SLAIN

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The Royal Commission into the banking and finance sectors has uncovered damning evidence of inappropriate conduct among Australia’s top banks. The Commonwealth Bank was found to have charged fees to a client despite knowing that they had died in 2007. Anthony Ryan confessed that AMP had essentially stolen client’s money by charging fees for no service (a practice the Commonwealth Bank was also found to have engaged in).

And then there were the instances of dishonesty, the falsification of documents, and the handing out of irresponsible loans uncovered by the Commission.

As one may well imagine, the fallout from the Commission has had a largely negative effect on the banks. AMP has rejected criminal charges. But their CEO, Craig Mellor resigned in the middle of April, and they have replaced their Chairman, Catherine Brenner, with David Murray. Similarly, the Commonwealth Bank agreed to pay twenty-five million dollars in legal settlements after ASIC brought legal action against them over bank bill swap rates.

Analyst Morgan Stanley expressed concern over the outlook of the 2019 financial year, according to a report by Business Insider. Mr. Stanley has argued that the “negative stance” on the major banks reflects a more bearish economy.

Similarly, Financial Review reported that foreign investors had taken a negative view towards Australia’s banking sector, and the financial services firm AMP. The Chief Investment Officer of Credit Suisse Private Banking in Australia, Andrew McAuley commented that “our intel is telling us that banks are being shorted by overseas investors.”

And, by extension, there is a clear and present danger that Canberra will act in a knee-jerk reaction and vote for more stringent regulations on banks. The kind of regulations that will make it harder for the banks to operate effectively.

Despite all this, it would foolish to write off Australia’s top banks. The finds of the Commission, though damning, does not change the fact that banks play an integral role in Australia’s economy. Banks provide a place for people to store and protect their money, facilitates loans, and helps people invest their wealth. And in a culture that seems more interested by which overgrown monkey will kick the most goals in a football game, or which brain-dead contestant on The Bachelor will break down into tears first, it is very likely that the banking scandal will be forgotten rather quickly. Australia’s banks may be wounded, but they have not been slain.

WE’RE NOT SUPPOSED TO TRUST POLITICIANS

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The rise to power of Nationals leader and Deputy Prime Minister, Barnaby Joyce has come to a dramatic halt as news of his marital infidelity dominates the headlines.

The political fallout has been immense, but predictable. On Thursday, the Senate passed a motion that called for Joyce for to relinquish his post as Deputy Prime Minister. Greens leader, Richard Di Natale called on Joyce to resign and even demanded that the Nationals fire him if he refuses.

The Prime Minister, who commented that Joyce had made a “shocking error of judgement”, responded to the scandal by changing the ministerial code of conduct to prevent Federal Ministers from having sexual relations with members of their staff.

Joyce’s shocking lack of moral fibre has jeopardised any real political power conservatives in Australia have, and has threatened the delicate balance of power between the right-wing and left-wing factions of the coalition Government.

Following the usurpation of the conservative Prime Minister, Tony Abbott by Malcolm Turnbull – a prominent voice of the left-wing faction of the Liberal Party – many on the right hoped that a Joyce-led Nationals would be able to counteract the centre-left leaning Liberal Party with their brand of traditionalism.

Naturally, Barnaby Joyce’s marital infidelity and dishonesty puts the trustworthiness of politicians in question.

A large part of the fury over Joyce’s affair is not the sexual infidelity, but the fact that he dipped into the public purse to finance the charade. As the political scientist and commentator, Jennifer Oriel stated in her article, “Barnaby Joyce’s Greatest Sin is Being Conservative”, the combination of corruption and marital infidelity violates the most basic codes of common decency.

Barnaby Joyce’s behaviour is precisely the reason Australians are cynical about politicians.

The idea that people ought to be cynical about politicians is hardly news to anyone with any real knowledge of history, politics, or human nature.

The reason countries like Australia place so many checks and balances – separation of powers, the Constitution, an independent judiciary – on those in power is that power tends to have a corrupting effect on the human soul.

As Lord Acton famously put it: “Power tends to corrupt, and absolute power corrupts absolutely.”

The greatest measure against tyranny is the establishment of a political and legal system that places restrictions on power. We should be thankful that Barnaby Joyce’s biggest transgression was marital infidelity, and not much worse besides.

 

SMALL GOVERNMENT MATTERS

 

big-government

(This is derived from an old essay I wrote for university)

The size of government is an important yet seldom discussed issue. This is a peculiar phenomenon as the size of government is integral to our freedom. When government power is not limited those with power are able to encroach upon the freedoms of the people. However, when the powers of government are limited people are able to live in peace, freedom, and prosperity.

The Age of Enlightenment (c. 1685 – c. 1815) represents a period in history where the principles of the old world were replaced by new ideals. It was during the Enlightenment that the concepts of modern democracy (democracy originated with the Ancient Greeks, albeit in a rather primitive form), liberty, and inalienable rights began to emerge. One of its key concepts, limited government, came about during the High Enlightenment (c. 1730 – 1780). The English philosopher John Locke (1632 – 1704), perhaps the greatest defender of limited government, believed civil power should be derived from individual autonomy and that the separation of powers was necessary to protect people from tyranny.

Limited government works on the idea that governments should have a little interference in people’s lives as possible. Supporters of small government believe that big government destroys human creativity and innovation because. As the Austro-Hungarian philosopher, Friedrich Hayek (1899 – 1992) stated: “the more the state plans, the more difficult planning becomes for the individual”. Numerous supporters of democracy and liberty had held limited government as an important, and necessary, ideal. The American statesmen, founding father, and President, James Madison (1751 – 1836) sought institutions which would limit the scope of government and give more rights to the individual. Similarly, the Australian Prime Minister, Malcolm Fraser (1930 – 2015) argued that “the power of the state should be limited and contained”.

In no other area is this been clearer than the economy. The economist, Adam Smith (1723 – 1790) argued that regulations on commerce are not only ill-founded but also counter-productive as countries depend on capital accumulation . According to James Madison, guarding persons and property would: “encourage industry by securing the enjoyment of its fruits.” Nations with small governments create their own fortune by allowing the people to participate freely in the marketplace.

Small government makes them master of their own destinies rather than making the government master of them. The people should never forget, as Ronal Reagan put it, “we the people are the driver, the government is the car.” Only small government can continue to survive into the future, only small government can protect the rights of the individual, and only small government celebrates human achievement. This is why small government matters.

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