Popular topics: blockchain | free speech | regulation | privacy | taxation

Put A Cork In It, Mr Rudd – You’re Missing The Point

Very quickly, Kevin Rudd has set the tone for his first term. His is a government that doesn’t just want to govern, it wants to parent.

Health Minister Nicola Roxon announced earlier this week that the taxes on alcopops – canned or bottled spirits premixed with soft drink – were to be doubled.

The tax increase was announced as a response to the 2007 National Drug Strategy Household Survey. But the survey reported that not only has binge-drinking among young females remained steady over the past few years, but the number of those who were endangering their long-term health had actually decreased slightly. If there is a binge-drinking crisis, as the Government claims, then it appears to be one which is resolving itself.

Nevertheless, since the federal election, booze has become a bread-and-butter issue of high politics. But the Government’s policy is based on a big leap of logic. Why will raising the price of alcopops result in healthier teenagers? Invariably, government policies have consequences unintended by the politicians who design them.

Certainly, the tax increase might reduce the amount of alcopops sold. Like most products, the demand for alcopops is elastic – that is, if the price goes up, some people who would have bought the drinks at a lower price may now choose not to. But those customers for whom the pre-mixed drinks are now too expensive can easily replace them with other alcoholic beverages. There is no shortage of choice in your average neighbourhood bottle shop.

After all, for a teenager looking to spend an evening drinking with friends, the choice isn’t between alcopops and a healthy glass of water. Would, for instance, the Federal Government prefer teenage children to try to mix their own drinks? It is not easy to estimate the safe ratio of spirits to soft drink while you are at a loud and crowded house party, slightly tipsy and leaning over a kitchen bench trying to pour cheap vodka into a plastic cup.

When alcohol is bottled in premeasured quantities, it is easy for teenagers to gauge just how much they are drinking. The Federal Government might be making it harder for teenagers to regulate their own alcohol consumption. If even a single teenager has to get their stomach pumped because they now have no idea how much they’re drinking, this policy will have been an abject failure.

When teenagers are unable to afford pre-mixed drinks, they will move on to their next choice of alcohol. If politicians increase the tax on every alcoholic beverage – as the Government’s advisers are publicly recommending – then teens may move to taking other, non-alcoholic drugs when they are socialising.

There is another possible unintended consequence of the tax increase that is even more worrying. When a new range of pre-mixed drinks was released earlier this decade, alcohol manufacturers asserted that young drinkers felt safer drinking out of bottles because they were harder to spike with date-rape drugs.

That claim may or may not be true. But it should at the very least remind us that when teenagers choose to buy their alcohol pre-mixed, they often do so for complex and personal reasons – not merely because they have been conned into doing so by stylish ad campaigns.

The alcopop tax increase is the first to come into effect of the many sin taxes that have been flagged by the new Government and its advisory bodies. The federal preventative health task force has now called for taxes on all alcohol to be increased by 300%, and a similar increase to be imposed on tobacco taxes. And the best and brightest summiteers were eager that the Government tax junk food.

When you add to this list last month’s proposed bans on alcohol and candy advertising, it becomes clear that few individual decisions are immune from the disapproval of the Rudd Government.

The left used to ridicule John Howard’s attraction to the moral universe of the 1950s. But the Labor Party is trying to introduce a new moral code that is just as severe – one which is designed to scare parents into supporting the Government’s policies. Don’t worry – Kevin Rudd is working just as hard to look after your children as you are.

But this anti-binge drinking campaign is not very well thought out. Artificially changing people’s behaviour isn’t that easy. Too often it makes the original problem worse.

IPA Review Editorial, May 2008

It’s always interesting to see how newly elected leaders respond to stimuli. And Kevin Rudd gave a clear indication of his tolerance for criticism at the beginning of April.

The Prime Minister’s trip abroad had a peculiar schedule. He was to visit China, which had just reemphasised its military control of Tibet. But he was to shun Japan, whose only crime seemed to be that its citizens like dining on whales. Rudd’s implied priorities-that whales are more important than human rights-is sadly indicative of the warped moral calculus of the modern environment movement. And it is worrying that the Australian federal government is taking its diplomatic cues from environmental populism.

This strange diplomatic decision was identified by Tony Parkinson, writing in this edition of the IPA Review. As he writes, ‘any hint Australia is into the business of picking winners, giving undue priority to one over another, would be contrary to the national interest.’

The Institute of Public Affairs’ Executive Director, John Roskam, referring to Parkinson’s upcoming piece, wrote in The Age on March 26 that this contradicted Labor’s election campaign line that the ALP would pursue a gentler, nicer, more loving foreign policy: ‘Australia would do more to uphold international standards of human rights, and we wouldn’t acquiesce so easily to alleged human rights violations committed in the pursuit of the war on terror.’ China’s activities in Tibet, surely, fall under some of those categories. Andrew Bolt in Melbourne’s Herald Sun on the same day, and Greg Sheridan in The Australian on March 27 made similar points.

And so, just a few days later, the Prime Minister announced that he had changed his plans, and was now going to go to Tokyo in June. Parkinson, Roskam, Bolt and Sheridan are excellent writers. Their critiques of Rudd’s initial decision to shun Japan were eloquent and well made. John Roskam’s was particularly good. (He is, after all, my boss).

But: seriously? Australian diplomatic strategy was unable to endure the withering onslaught of four disapproving columnists? Is that really all it takes to change federal policy?

Winston Churchill once said there is no such thing as public opinion – there is only published opinion. But it’s not even as if Rudd was castigated across the board by the commentariat. Other columnists defended Rudd, arguing that China will be a far more important trading partner than Japan over the next few decades. Perhaps this is fair enough-perhaps our relationship with Japan should be sacrificed for the sake of the Labor Party’s green vote.

Kevin Rudd is proud of his diplomatic background. But decisions made as a foreign affairs bureaucrat are very different from the highly public and highly scrutinised diplomatic decisions made as a Prime Minister. Avoiding Japan and flattering China may be great diplomacy-the nuances of high geopolitics are, we are told, a Rudd speciality. But foreign affairs is as much about domestic politics as international diplomacy. As John Kunkel, John Howard’s former speechwriter, reflects in his retrospective of the Howard Project in this issue of the IPA Review, Rudd’s predecessor understood the necessity for foreign policy to be just as democratically minded as domestic affairs. With his Japan stumble, Kevin Rudd may have begun to realise that.

This edition of the IPA Review continues our ‘What Next for Liberalism?’ feature, asking whether it is ever going to be possible for government to be shrunk, considering that no Australian government has ever managed to do so. Sinclair Davidson, Des Moore and Alan Moran look at the strategies for reducing the size of the state and its powers. Christopher Pyne argues that only major reform to the Liberal Party’s approach to selecting candidates and leaders will re-engage the party’s supporters, and John Pyke crunches the numbers to find a startling level of support for the republic amongst those who voted against it nearly ten years ago.

Richard Allsop reveals how the left have managed to convert the sporting field into yet another battlefield for the culture wars. Greg Melleuish looks at why smart people believe stupid things, and Scott Ryan looks behind the health debate to the health providers who are holding back reform. And of course, the usual book reviews, regular columns and cultural snippets that have helped the IPA Review become Australia’s longest running political magazine.

The Patriot Games

Is there anyone, anywhere, who believes Olympic bureaucrats when they declare that the Games are about athletics, not politics? Even the athletes themselves — standing upon the winners’ podium, draped in their national flag and singing their national anthem — must realise that the Olympics are actually undisguised geopolitics and taxpayer financed publicity stunts.

One need only look at the opening ceremony to realise that the Olympics are little more than an excuse for nation states to preen in front of each other like ostriches in mating season.

By August, the three largest totalitarian states of the 20th century — Nazi Germany, the USSR and China — will all have been Olympic hosts. Certainly, China’s appalling human rights record has improved since the Great Leap Forward. But providing dictatorships with a pre-packaged marketing program is hard to reconcile with the Olympic charter, which argues that the Games are to reflect “universal fundamental ethical principles”.

But everybody knows the torch relay has its origins in the Nazi Ministry for Public Enlightenment and Propaganda. Everybody knows how the USSR seized upon the Moscow Games, proclaiming that it was an acknowledgement of their fantastic record of maintaining world peace.

The relationship between totalitarianism and the Olympics is old news.

The modern Olympics have always been a potent mix of late 19th century nationalism and elite athleticism. The Olympics may now sparkle with the glitter of cutting-edge telecommunications infrastructure and high-performance sports apparel, but the Games have never quite shed their legacy of stern pseudo-militarism.

Even when peaceful liberal democracies host the Olympics, they are drenched with propaganda. As everybody remembers from last year’s federal election, democratic governments are always happy to spend gigantic sums on public relations. The Olympics are a publicity stunt on a colossally expensive scale.

Few of the other justifications for staging the Olympics stack up. Whatever jobs are “created” during the two weeks of events are quickly extinguished when the flame is.

Some Games supporters claim that staging the Olympics provides an opportunity to make much-needed infrastructure upgrades, particularly in transportation. Those who still hold this view clearly haven’t been to Sydney recently.

Others claim that the Olympic publicity encourages international tourism once the festivities are over. But we only ever hear politicians predict tourism bonanzas when they can’t think of anything else to say. What potential visitors were unaware of the existence of Athens, Beijing or London until they heard that those cities would be Olympic cities?

Whatever economic spillovers hosting the Games can bring, they nowhere near justify the enormous cost. If there is an economic benefit to staging the Olympics, then the economy hasn’t heard about it.

Looking at the impact of the announcement in 1993 that Sydney would host the Games, a group of RMIT economists concluded that the stock market didn’t budge at all. Only building firms saw their values rise.

The two biggest beneficiaries of the Olympics are politicians hoping to bask in the loving glow of the international media, and property developers looking for stadium contracts.

In Beijing, Chinese taxpayers have to support an event designed to glorify the Communist Party that has ruled over them for more than half a century.

But boycotting the Beijing Games is no more likely to pressure China into repairing its human rights record than granting them the Olympics did in the first place. There have been dozens of Games boycotts over the past century, and none have had any significant political impact.

In fact, political controversy has shared the stage with athletics at almost every modern Olympics. Even innocent Melbourne in 1956 was marred by boycotts — China withdrew because the Games committee recognised Taiwan, three countries withdrew because of Israel, and another three withdrew in protest at the Soviet invasion of Hungary. When the USSR played Hungary in water polo that year, the match resembled a pub brawl.

Boycotts and underwater fisticuffs may be rarer since the end of the Cold War, but politics still infuses every aspect of the Games.

The official website of the Chinese Olympic Committee is unambiguous about Beijing’s ideological content, advertising its National Fitness Program, which has been hard at work since 1995 “promoting mass sporting activities on an extensive scale, improving the people’s physique, and spurring the socialist modernisation of our country”.

In the same breath — or, at least, on the same page — the website laments the attempted politicisation of the Beijing Games by “some Western forces” and “separatists”.

Remember the tedious controversy about non-Australian marching bands in the Sydney opening ceremony? Every moment of the Beijing Games will be stage-managed to shed the best light on a dictatorship that has more than 4000 domestic political prisoners.

So, rather than pretending that politics can be hidden under the woolly feel-goodness of the officially prescribed “Olympic Spirit”, we should encourage the Games’ politicisation.

The Chinese Government is welcome to its publicity stunt, but while the country is under the full glare of the world’s media, there is probably no better time for demonstrations and counter-stunts.

Despite their lofty ambitions, the Olympics have never brought world peace. Nevertheless, if the press corps manages to outflank China’s propaganda machine, they might be able to turn this expensive political advertisement into something good for human rights.

Don’t forget — it’s not about the sport.

Come On, Aunty, Time To Work Out Where You’re At

Management guru Peter Drucker famously asked the chief executive of General Electric two simple questions: “If you weren’t in the business you’re in, would you enter it today? If the answer is no, what are you going to do about it?” Has our ABC ever asked itself these questions?

The GE chief took Drucker’s questioning as an opportunity to radically restructure the company and re-examine its core business. The ABC should use the challenges brought on by new media and the internet to do the same.

A poorly kept secret of Australian libertarian and conservative politics is that when we complain about bias, it’s usually only because we faithfully watch and adore the ABC.

The network’s nickname – Aunty – makes it seem more like a kindly relative who has cats and loves having you over for quiche than a major government program that employs 4500 people and receives nearly $1billion dollars of taxpayers’ money.

Aunties don’t have to justify their own existence; government programs do. Certainly, the broadcaster has a charter. But that charter consists of little more than vague platitudes towards diversity, community and “awareness of Australia”.

Unfortunately, the reforms announced over the past month – the introduction of a 24-hour news-gathering service, a few local websites, and some shedding of in-house production staff – do little to clarify the ABC’s proper role.

But that is hardly surprising. In fact, in her 76 years of operation, Aunty has never really known what she is for. Australia has public broadcasting primarily because our pre-WWII federal government didn’t trust the commercial radio stations to sufficiently educate the lumpen masses on the finer points of Brahms and Shakespeare.

Since everybody in parliament agreed that Britain’s BBC was really cool, the government set up an Australian version. But unlike the original BBC, the ABC has tried to be “for all Australians” and tried to compete with commercial broadcasters, adopting an uncomfortable mix of highbrow and lowbrow programming.

But a core foundation of liberal democracy is that the government should not do anything that society can do itself. The government should not directly compete with the private sector.

What then would the ABC be doing now if it took Drucker’s advice?

There seems little reason for the network to have a commercial arm – should the ABC be directly competing with bookstores? Why, too, should it be broadcasting highly popular sporting events when there is no lack of private networks willing to do so? As a rule, the ABC should never out-bid another broadcaster for programming.

ABC director Mark Scott argued that not only can the network provide local news and commentary to remote and rural communities, but it could also provide a digital “town square” for community engagement.

Among public broadcasting advocates, this view is popular – it is a convenient way to imagine a role for the ABC far into the online future. But it is again indicative of the ABC’s drifting purpose. Why should taxpayers be paying the government to imitate the thousands of bulletin boards and forums that already pepper the internet? And genuine communities are built by individuals, not governments.

There are, unquestionably, roles for which the ABC is necessary. Government is responsible for broadcasting political events such as Parliament. And the ABC has an enormous back catalogue of Australian history it should be immediately digitising.

Its cultural role needs to be examined in the context of the entire broadcasting market – in particular, the Australian content regulations that apply to commercial channels. If government is convinced that artificially promoting Australian culture is vital even in the age of media abundance, then that may be a task for public broadcasting alone.

But these are unasked questions. The ABC is seen by commentators from the left and the right as a sort of gift from the government for the politically obsessed, rather than a major public policy initiative of the Federal Government.

All media organisations across the world need to go through similar soul-searching. But because the ABC is insulated from the punishing winds of the market, it has consistently avoided tough decisions about what services it should provide. If it is to adjust to the future, that will need to change.

Nanny State Ad Bans Won’t Stop Kids Liking Junk Food

It used to be that if the government didn’t like something, it would ban it. Now, if the government disapproves of a product, it just bans it from being advertised.

A Senate committee is currently examining the feasibility of restricting advertisements for alcohol, and Kevin Rudd has expressed interest in making such a measure part of his binge drinking campaign.

Similarly, the Australian Medical Association wants to ban junk food advertising during children’s TV shows. Advertising restrictions are the new coolest thing for paternalistic policy-makers and their nanny state.

But are we that easily manipulated by brand managers and advertising firms? Does the Government have to step in to protect us, and our children, from harmful ads? Advertising is, at its core, just the simple delivery of information. Those who oppose it are essentially arguing that this information is too challenging for individuals to process safely; that, if told the wrong thing, they will be unable to resist self-harm.

The anti-capitalist Naomi Klein famously took this argument one step further when she decried the psychological power of corporate brands – we are all, apparently, oppressed by tyrannical graphic designers. Mining would be finally recognised as the environmental catastrophe it is if only everybody wasn’t so disorientated by BHP’s trendy looking bubble logo.

This view does not just reduce us to the level of dumb automatons, passively waiting for advertising executives to beam their instructions directly into our brains, it also creates a profound dilemma for democratic politics. If we don’t have free will in the shopping centre, we certainly don’t have free will in the voting booth. And figuring out which political party would be better for interest rates is far more complex than figuring out which brand of shampoo to buy.

Nevertheless, most people acknowledge that adults are sensibly sceptical about marketing claims.What is surprising is just how advertising savvy children are.

Minors are depicted by policy-makers as unable to defend themselves against a well-planned onslaught of marketing. However, as the new book Prohibitions published by Britain’s Institute of Economic Affairs shows, children as young as five form preferences about their favourite TV programs. And by the age of 11, children demonstrate a pronounced scepticism about claims made in ads.

During the federal election campaign, anti-advertising rhetoric took a decidedly surreal turn. In response to the Labor Party’s dislike of Shrek-themed merchandising, the Howard government promised to fund a new ABC channel for children completely free of junk food ads. It was a bizarre train of thought that led Liberal policy-makers to think that the best way to combat childhood obesity was to make sitting on the couch and watching TV more appealing.

The belief that an individual’s free will is crushed under the jackboot of catchy advertising jingles is, of course, nonsense. We have just as much autonomy over our personal decisions as we did before an ad break.

So what, then, is advertising for? It informs us that new products are available in the marketplace. We may, after having watched an ad, have a different idea of what our next purchase may be. But that isn’t because we have been manipulated by a ruthless marketing department.

An ad that informs us that McDonald’s now sells salad only interests those people who would probably like to buy a salad from McDonald’s. If the preference for salad doesn’t already exist, then no ad, no matter how brilliant, is going to be effective.

This logic is fairly obvious. What child is going to abandon chocolates and lollies when their ads disappear off television? Kids will always like junk food. Any parents who think that a government ban will make walking up the chocolate aisle less stressful are deceiving themselves. And anybody who thinks that teenagers will refuse the next “alcopop” just because they are no longer being specifically marketed to under-25s has forgotten a lot about their youth.

Politicians and activists are attracted to the theory that advertising manipulates consumers. It gives them yet another reason to regulate the media, and a way to appear to be doing something about the latest health scare. But they won’t change our behaviour. Instead, politicians should face the hideous truth – people are smarter than advertisements.

Pedestal To The Metal

The car is doomed announced two Melbourne academics in The Age last week. According to them, carbon emissions targets compel us to reduce automobile travel by 80%. And the State Government should probably stop building new roads. We won’t need them anyway.

Sure, it’s easy to criticise research that is little more than media bait. But after years of abuse, the humble car still can’t catch a break. And the reasons the car still has a long, healthy life ahead of it highlight the biggest problem in the debate over public transport. When people choose to drive, they do so because it is more comfortable and more convenient than the alternatives. No public transport policy is going to change that.

A lot of factors stack up in favour of the car. As Roads Minister Tim Pallas pointed out on Wednesday, public transport may be convenient for those living in the inner suburbs, where the average distance to a train station is less than a kilometre, but in the outer suburbs that distance expands to 10 kilometres.

A more critical issue is that only a small, declining percentage of journeys are from the suburbs into the city, as workplaces move out of the CBD. And it is these journeys that are the most suitable for public transport – when everybody is travelling the same direction it is easy to map out a new train line.

The remaining suburb-to-suburb journeys are exponentially harder to service, not least because the origins and destinations are dispersed. It is impossible for transport planners to account for the huge variety of journeys taken every day in modern Melbourne.

To put it simply, people like having a car. For most Australians, owning a car means having the freedom to travel wherever you want, whenever you want – just ask any giddy teenager with their newly acquired driver’s licence.

The urban historian Graeme Davidson describes how the automobile was a major impetus behind postwar gender equality in Australia, as women recognised that the freedom to drive also meant the freedom to do a lot more things. And, for a young person, owning a car – or even just being able to borrow their parents’ car – has long represented a degree of personal autonomy.

No matter how many billions the Victorian Government spends on public transport, it will never be able to challenge the independence provided by an automobile.

You don’t have to wait for your car to arrive, unlike public transport. There is ample room to put your bags of shopping or new flat-packed furniture. Your children can’t run wild in your car like they can in public transport – after all, they’re strapped down. And, unlike a tram, there is no chance that your car will be so full of fellow commuters that you have to hang halfway out the door with someone’s armpit in your face while the driver yells indiscriminately over a damaged loudspeaker.

These objections may seem trivial in comparison to the grave importance of saving the planet. Public transport fantasists – like all radicals who want to change our behaviour – dismiss such considerations as minor. But it is these sorts of minor considerations that inform our everyday transport choices.

In the trade-off between environmental concerns and the importance of the automobile, the Federal Government is trying to have it both ways.

Eager to placate its traditional union support base, but also wanting to be seen as concerned about the environment, Labor is happy to pay $500 million for more cars to be produced in Australia. But it only wants hybrid cars. Industry assistance is getting awfully picky.

A similar mixed message greeted the announcement of the Indian Tata Nano, the world’s cheapest car. The chance that personal motorised transport was suddenly within the reach of some of the poorest people in the world was described by one prominent environmental scientist as a nightmare.

In the developed world, the automobile has been one of the most important sources of social freedom in the 20th century.

How can we think of denying such freedom to the developing world?

For some journeys, public transport is indispensable. Melbourne’s experience since privatisation has shown how trains and trams can be better used – patronage has gone sharply up with the new management.

Similarly, when building new roads, the Government has been aware of the increasing popularity of bicycles. For nearly a decade now, more bikes have been sold each year than cars. New dedicated bicycle lanes may have had some influence on this.

But cars continue to sell in increasing numbers.

The Federal Chamber of Automotive Industries reported last week that monthly sales have been up nearly 10% over last year’s figures. Sales of the much-hated SUVs have gone up even more.

Cars have been getting cheaper and cleaner almost since they were first invented. But the hard reality is that no matter how many train lines or bicycle paths the Government builds, people will continue to use the transport method that they believe best suits their needs. And for most trips in Melbourne, that will continue to be the car.

A responsible government will therefore continue to spend money building roads and relieving traffic congestion – just as taxpayers seem to want it to.

Set Traps For Rats In The Ranks

When Wollongong City Council was sacked late yesterday, it gained the dubious honour of being the eighth council to be dismissed in NSW within the past five years. This is an embarrassing record for the tier of government that is supposed to be the closest to its constituents. The federal government in far-away Canberra has been sacked only once.

The Wollongong council scandal has everything: sex, bribery and an impersonation of a corruption watchdog officer. But, most of all, Wollongong council has inadvertently highlighted the deep problems with local government administration across the country. Compared with other levels of government, there is little accountability and scrutiny of local government. It is no wonder it often makes expensive mistakes and is susceptible to corruption.

Part of the fault lies in the sorts of people who are drawn to council office. Local government politics tends to attract those excited by the machinations and manipulations of political life but disinterested in public policy.

There is one good thing to be said for politicians motivated by ideological fervour: at least they want the best for their constituents.

Too many people stand for local government with little interest in responsible governing.

As Wollongong has been virtually a one-party city for the better part of a century, it is little more than a sandpit for Labor’s factional warfare.

A main cause of the corruption in local government is the often cited problem of lack of transparency and accountability. Few media organisations are interested in the day to day goings-on of individual councils, at least until a corruption watchdog puts a councillor in front of a judge.

Free from the close scrutiny that federal and state governments are subject to, councils are free to follow their whims. It is perhaps indicative that some of the earliest casualties of the sub-prime crisis have been local government investment portfolios.

If the market had not so spectacularly imploded during the past few months, NSW’s Wingecarribee Shire Council would never have been asked why it was investing in mortgages in Houston and Orlando.

One possible remedy for this sense that corruption is endemic in councils has been raised by the Queensland Local Government Association: politicians would be less likely to accept bribes and gifts from property developers if there were more extensive scrutiny of political donations.

This echoes Kevin Rudd’s declaration yesterday that the federal Government plans to drastically limit campaign donations in the name of good government.

Limiting political donations creates its own problems, not least that doing so tends to favour incumbent politicians who are able to harness the full resources of their government.

But, more crucially, limiting political donations to local councillors does not tackle the real problem. Local governments have too much power over questions of property development.

After all, this is virtually the only reason that bribery occurs between councillors and property developers. Most of the time, local governments are doing little more than imposing petty, nanny state, regulations: putting up noise restrictions for street parties; forcing us to use smaller rubbish bins; ensuring that nobody paints their front door red; and other similar important things. But when they deal with the issue of property development, these councillors suddenly hold vast levels of discretionary power, able to approve or reject multimillion-dollar investments with a stroke of a pen.

Furthermore, the approach that many councils take towards property development is also a leading cause of Australia’s housing crisis. Local government tends to resist urban infill, putting extra pressure on our already critical land shortage. It doesn’t take long for councillors to realise that being caught between NIMBY activists and property developers is potentially a lucrative position.

When councillors and their staff have the power to determine town planning restrictions according to their subjective judgment, and the discretionary power to impose heritage restrictions on properties barely a decade old, it is no wonder that developers feel the need to flatter those councillors with friendship, gifts, and brown envelopes full of money.

Corruption exists where there are opportunities for the manipulation of political power for personal gain. So local governments provide the corrupt-minded with ample opportunities. If we are to solve the corruption problem, we should remove the discretionary power and regulations that make that corruption so profitable.

IPA Review Editorial, March 2008

Optimism is a feature rarely seen in contemporary public debate. Rather, the media is full of dreary gloom — whether in the areas of biotechnology, nuclear power, over-population, consumerism, the cultural effects of globalisation, or — the big one — climate change, skilled political commentators can have rewarding careers without ever saying anything positive about the state of the world.

Right-of-centre, we are not immune to this cynical pessimism either. Focusing on public policy and politics can often be as depressing to the right as an endangered species list is to the left. Government spending continues to grow, regulation continues to increase, and hardly a day goes by without a piece of legislation or policy announcement that limits liberal freedoms. With the Rudd government now eyeballing the dubious achievements of Tony Blair, it might be hard to avoid having the occasional cry into our collective beers.

And so it can hardly be emphasised enough that, on almost every possible measure, the world is getting better.In this edition of the IPA Review, Louise Staley walks us through the substantial empirical evidence for that proposition. Infant mortality rates are declining rapidly. Nutrition is improving rapidly. Access to clean water and literacy rates; life expectancy and living standards — across the board, these measures are strongly trending upwards. And developing nations are increasingly sharing the bounty.

As a consequence, when so much of the left’s critical energy is being directed towards the climate change issue, it is absolutely essential that liberals and conservatives aggressively remind people that their standard of living has never been higher. It is a tired old cliché, but ‘if history is any guide’ there is every reason to suspect that this state of affairs will continue. The world will keep improving despite the pessimism of our newspaper columnists.

But improvements to our well-being aren’t limited to dry statistics. Globalisation has given us access to more high-quality culture than we could possibly consume in a lifetime. Socially, it is more possible to live the lifestyle that we choose than at any other time in history.

And it is unfortunate that the word ‘consumerism’ has been co-opted by the left as a term of abuse — there are more niche products available to us than ever before. If you love Romanian hip-hop, or bocconcini, or reproduction Georgian furniture, obtaining them is easy and inexpensive. Somehow, the left manage to caricature this explosion of tastes and choices as a failure of the capitalist system — but it is, on the level of the individual, one of capitalism’s greatest strengths.

There are, of course, many areas of the world desperate to share in this bounty, and many areas of Australian society — indigenous communities for one — which are currently missing out. But their challenge is to follow the trail set by the West.And, as Louise Staley confirms, there is good reason for hope. Optimism is, after all, one of liberalism’s key themes.

Elsewhere in this issue, we focus on the need to increase Australia’s immigration levels. John Humphreys argues that the case for free immigration agreements is just as strong as the case for free trade agreements — perhaps even better. Ken Phillips writes about the importance of immigration to resolving the skills shortage, and why the government just doesn’t get it. And Richard Allsop notes that, contrary to popular opinion, the political party that gives the biggest support to expanding immigration may not be the party we immediately think of.

Stefan Theil reveals the perilous state of European education in economics. If Europe is to kick itself out of its sluggish growth, it might want to start with revising its school textbooks. And all eyes in the Liberal Party will be on the Republican Party and the British Tories. Tim Wilson peers behind the Republican primaries to discover the awkward ideological maneuvering in the GOP. And James Campbell picks up the UK Conservative Party at the high point of its decade in opposition, and shows us just how it got there.

But if there is anything to tie these diverse articles together, it is their optimistic tone. When given political and economic freedom, individuals shape their world for the better.

Goddamn you all to hell: The revealing politics of dystopian movies

 

Available in PDF here.

‘There is, of course, every reason to view the next century with fear,’ wrote a New York Times film reviewer in 1976 after having watched the Charlton Heston vehicle Soylent Green.

Smug pessimism of this type is hardly unusual in political commentary. Indeed, in only the last few years, Hollywood has released V for Vendetta and Children of Men, each of which claim that the Iraq War is the beginning of a cycle of oppression that will lead to dictatorship. Over the last century, the dystopian film has reflected society’s fears of monopoly capitalism, totalitarian socialism, environmental catastrophe, technology out of control, and now, in V for Vendetta and Children of Men, theocracy. The obsessions of the left are reflected in the dystopian movie.

But dystopias are never that simple. Certainly, the dystopian movie presents filmmakers with their opportunity for futuristic pessimism. The dystopia-a fictional society that got lost on the way to utopia-differs from traditional science fiction by its emphasis on political and social systems rather than science or technology, and therefore allows filmmakers to speculate wildly on the political future. But the genre has a tendency to trip up filmmakers, and the way it does so reveals much more about Hollywood leftism than it does the cultural fears of the broader population.

The Orwellian dystopia

George Orwell may not have invented the dystopia – John Stuart Mill coined the word in 1868, and Orwell’s vision was drawn from both Yevgeny Zamyatin’s We and Aldous Huxley’s Brave New World – but with the cultural status of Nineteen Eighty-Four, he owns it. Orwell defined the now archetypical dystopian society in response to the Stalinist communism-an omnipotent, omnipresent state with a single-minded control of its citizens. And the descendants of Nineteen Eighty-Four are many. The films THX 1138, Fahrenheit 451, Alphaville, Sleeper, Brazil, The Island, Equilibrium, Logan’s RunRenaissanceThe Running Man and others are derived from Orwell’s vision of a totalitarian police state.

The traditional dystopia is concerned with the spectre of the over-bearing state-the typical plot trajectory involves the protagonist rejecting the dictatorial controls of the government and finding out the horrible truth. In the 2005 film The Island, Scarlett Johansson and Ewan McGregor escape their post-apocalyptic dictatorship-which is run like a totalitarian fat camp-only to realise that their world was entirely artificial.

The evolution of the dystopian genre can reveal much about the popular obsessions of filmmakers and the audience, but each time those fears fall back upon a fear of the omnipotent state. For instance, even a sub-genre of dystopian films in the 1970s which featured environmental collapse eventually reveal themselves to be more concerned with state oppression than the environment. If this is a reflection of our cultural fears, then the contemporary environmentalists who would like the government to involve itself more and more in our individual choices have a much tougher task ahead of them than current opinion polls suggest.

Dreaming of the apocalypse: environmental dystopias

Paul Ehrlich’s 1968 neo-Malthusian tract The Population Bomb has been entered into history as a colossally inaccurate prediction of apocalyptic overpopulation. Ehrlich’s calculations of hundreds of millions of people starving to death in the 1970s and 1980s as population outstripped resources failed to account for agricultural innovation and slowing birth-rates in developed nations.

But The Population Bomb wasn’t just a simple prediction of global food shortages. To pound his message home, Ehrlich devised an array of future scenarios which could only occur as a consequence of his bleak mathematics. Ehrlich was quick to hedge his bets-‘none of [the scenarios] will come true as stated, but they describe the kinds of disasters that will occur as mankind slips into the famine decades’-but that didn’t stop the Stanford University Professor from wild grade-school speculations that tenuously connected to his arguments. For instance, by 1979, Ehrlich foresaw that:

Only the outbreak of a particularly virulent strain of bubonic plague killing 65 per cent of the starving Egyptian population had averted a direct Soviet-American clash in the Mediterranean.

By 1980:

… general thermonuclear war ensues. Particularly devastating are the high altitude ‘flash’ devices designed to set fire to all flammable materials over huge areas.

After describing his most appealing scenario, which predicts the starvation and death of merely half a billion people, Ehrlich challenges the reader to imagine a more optimistic future, which he is pretty sure can’t be done.

Wild speculations about the future have been a staple of the environmentalist doom-saying ever since; and this sort of casual jumble of non-fiction and undisciplined fantasy doesn’t speak well for environmental pop science.

Ehrlich’s book set the tone in the early 1970s for a whole new type of dystopia. Gone are the obsessions with a monolithic state apparatus and the subjugation of individuality depicted in Zamyatin’s We and Orwell’s Nineteen Eighty-Four – new visions of dystopia arose out of environmental tragedy. And the blame for humanity’s fall no longer lies with power-seeking bureaucrats and dictators, but with humanity itself. In the view of the environmental doomsayers, our own failure to keep pollution and population under control inadvertently leads us towards a dystopian future. And so when Charlton Heston curses mankind at the end of The Planet of the Apes, he speaks for Paul Ehrlich.

The Population Bomb was both serious enough to capture the imagination of the embryonic leftwing environmental movement and fanciful enough to directly inspire a boom in dystopian culture-within a year, Captain Kirk had been abducted by a race of space aliens to solve their overpopulation crisis. The book’s morally repulsive suggestions about coercing Indian males to undertake vasectomies and adding sterilisation to the food supply seem ready made for pot-boiler fiction. The 1971 film The Last Child depicted a society that had implemented a one-child policy and where the elderly were refused medical treatment, and the next year’s Z.P.G. showed a United Nations-esque ban on procreation for a thirty year period. And in 1973 Charlton Heston (an actor who appears to have been purpose-built for dystopia and angry revelations) uncovered the terrible truth behind Soylent Green, a synthetic food substitute made necessary after the United States had suffered complete economic and environmental collapse.

The 1976 classic Logan’s Run sets an Aldous Huxley-style pleasure dictatorship in a Paul Ehrlich world. The free-love and relaxation of the inhabitants of a domed city (a barely disguised shopping mall in Dallas) is only interrupted by the requirement that they have to be killed when they reach the age of thirty. When two escape, they discover themselves in the ruins of a Washington DC that has, it is implied, been decimated by environmental catastrophe caused by overpopulation. Logan’s Run packages all of the major dystopian fears together-a fear of technology (the dictator is in this case what appears to be a self-aware computer), a fear of population controls in the midst of a resource crisis, a fear of the loss of individuality (the Logan character featured in the film’s title actually has a more typically dystopian name-‘Logan 5′) and a fear of environmental apocalypse.

But it isn’t accurate to describe dystopian visions of Logan’s Run, Soylent Green, Z.P.G. andThe Last Child as direct ideological spawn of Paul Ehrlich. The films sympathise with those characters that rebel against the population restrictions-the woman who defies the state by having a baby, the security man who escapes the domed city, and the cop who continues to investigate a murder in defiance of his superiors-and the resolutions inevitably show the masses awakening to the horrible truth. By the time the credits appear, Ehrlich’s suggestions that the government forcibly sterilise the population have been judged as repugnant-as have the suggestions of our modern anti-natalist that we limit population growth under the banner of climate change. The moral simplicity of a Hollywood film turns out to be more ethical than the views of the Sierra Club and other environmentalists who were impressed by the perverse recommendations of The Population Bomb.

Furthermore, the environmental dystopias may initially appear to represent an entirely new cultural fear-that of ecological collapse-but they eventually reveal that they share the obsessions of ‘traditional’ dystopias-a monolithic organisation exerting super-normal controls over an unwilling or ignorant populace. Overpopulation and food shortages may be terrifying, but that terror is trumped by the fear of an omnipotent state.

Orwellian dystopias after the end of the socialist dream

While the dystopian genre has thrived over the last century, depictions of utopias have all but disappeared. The only utopias that are presented are ones that have failed. Part of this is because utopias are inherently dull. For instance, Gulliver’s Travels only loses its pace when Jonathan Swift finally tries to describe his ideal society. The race of intelligent horses called the Houyhnhnms may be perfect, but from a literary perspective they are bland and uninteresting compared to the Lilliputians. George Orwell claimed that this narrative failure of Swift’s presented a major problem for socialist thinkers-the society where everybody is happy is a boring society. And it’s hard to string a narrative around a society in which there is nothing going wrong.

But from a historical perspective, utopias rather than dystopias have been the dominant literary form. Plato and Thomas More used the utopian society to illustrate their political and economic views, which of course were little more than crude socialism. The late nineteenth century was a busy time for utopianist fantasy-classics of this period included Edward Bellamy’s novel Looking Backward and William Morris’ News From Nowhere-but few authors have been able to conceive of utopias that are anything but socialist. (The science fiction writer Robert Heinlein is a notable exception.)

So almost immediately after the world had begun to experience an actual, living communist dictatorship, socialism jumped from a utopian fantasy to a dystopian nightmare. Dystopias replaced utopias just when we realised how bad lived socialism could be-the utopian genre was a casualty of the demise of the socialist dream. Indicatively, We was published in 1921-less than half a decade after the Bolshevik coup d’etat-and was the first novel to be banned by the new Soviet censorship bureau.

As a consequence, from the ‘Khrushchev Thaw’ onwards, political radicals have been unable to come up with a fully-realised alternative to the status quo. Dystopias are much easier to conceive than utopias-after all, who doesn’t oppose dictatorship and forced sterilisation? Devising a plausible non-market economy is much more challenging.

But when Zamyatin and Orwell addressed their audiences in the first half of the twentieth century, it was within the realm of possibility that the Western world could go communist. That same demise of the socialist dream that led to the rise of dominance of the dystopia at the same time made Orwellian vision less poignant-there is simply no chance that the English constitutional monarchy will yield to IngSoc anytime soon.

And so to ensure that their visions remain relevant, filmmakers over the last few decades almost always try to shoe-horn a more modern message into their dystopias. In a particularly grating example of this, THX 1138 awkwardly shoved an anti-consumerist note into its otherwise traditional Orwellian state. A state propaganda machine first extols Robert Duvall’s character to work hard in a typically Stalinist manner: ‘Work hard, increase production, prevent accidents and be happy’. But it then goes on to deliver a message that the Soviet Politburo would have never wanted delivered: ‘Let us be thankful we have commerce. Buy more. Buy more now. Buy. And be happy.’ This clumsy message against consumer capitalism undermines the otherwise compelling vision of THX 1138.

Similarly awkward attempts at relevancy are found in many other dystopian visions. The otherwise clear story of over-population in Logan’s Run is destabilised when the only character who is wise to the cause of humanity’s troubles tries to blame our desire for bigger and bigger houses. More recent films have also tried to ‘contemporise’ their stories uncomfortably-in 2005’s V for Vendetta and 2006’s Children of Men, the War in Iraq is variously described as the catalyst for the end of female fertility, a religious dictatorship in England, the suppression of classical art, total social breakdown, and concentration camps for immigrants. Their political message consists of little more than a list of bad things that could happen-a far cry from the consistent and thematically integrated dystopias of Orwell and Zamyatin. And dystopias are most emotionally powerful when they are seen as possible-nobody but the most smug leftist thinks that George Bush’s occasional affirmation of his religious faith heralds an imminent theocracy.

The 2002 Christian Bale feature Equilibrium completes the migration of the Orwellian vision from the poignant to the absurd. In this totalitarian state, human emotions are suppressed to reduce conflict and ‘Clerics’ police the city to seek out ‘Sense Offenders’. Equilibrium is a successful film from a dramatic perspective, but the improbability of its vision is merely a reflection of the dominant cultural status of Nineteen Eighty-Four – Equilibrium has now achieved cult status on the basis of its fictional martial art ‘gun-kata’ and the ferocity of its fighting sequences rather than any political message it carries.

The inefficient dystopia

By contrast, Terry Gilliam’s joyfully absurdist 1985 film Brazil is a much closer reflection of the lived experience of totalitarian socialism. In Equilibrium and THX 1138, the totalitarian state is an efficient state-public servants are passionate, dedicated, and above all, effective, and the trains run on time. In Brazil, Orwell’s state has fallen into disrepair. The omnipotent eye of the dictator is revealed to be a vast and sluggish bureaucracy. State employees watch old movies when the boss isn’t watching them- the workers are more like Charlie Chaplin than Alexey Stakhanov. Individual bureaucrats act as bullies rather than servants of the state. And in Brazil, tyranny is delivered in triplicate. Terry Gilliam may have set out to make an absurdist comedy out of the traditional dystopia, but in doing so, he made a society which accords more closely with the USSR depicted in memoirs about life in the Soviet Union, especially in the post-Stalin era. Endemic corruption and bureaucratic mismanagement is the experience of socialism, not the clean, streamlined and seamless unitary state of Orwell. Pyongyang’s incomplete and structurally unsound Ryugyong Hotel is more representative of real-world socialist architecture than Oceania’s glistening white Ministry of Love. But in traditional anti-communist dystopias, the government is never so unglamorous as to run out of money. Orwell thought totalitarian communist governments would be terrible, but he also thought they would work.

Perhaps then the most poignant dystopian film made in the last half century is Stanley Kubrick’s 1971 film A Clockwork Orange. Upon first glance, A Clockwork Orange is not immediately recognisable as a dystopia. The biggest indicator – a totalitarian state – is absent in Kubrick’s vision. Indeed, the plot pivots around a politician desperate to solve the crime problem before the next election. And A Clockwork Orange strides across so many themes that its political views are not immediately obvious.

But A Clockwork Orange is a startling film about a decaying socialist Britain-not the socialism of the eastern bloc, but mid-century democratic socialism. The depraved protagonist Alex lives in ‘Municipal Flat Block 18A, Linear North’, part of a vast housing project which is so poorly maintained that it appears to be decomposing. The democratically elected government is revealed to be on a slow decline towards totalitarianism. A writer who eventually kidnaps Alex is described as a ‘subversive’, and perhaps more indicatively, the Minister of the Interior lets slip that he needs to clear the prisons of normal criminals to make room for political prisoners. And it is a society that is about to breakdown. After all, it is quickly indicated that Alex and his droogs are not the only gang terrorising England-law and order appears to be the government’s biggest problem.

When A Clockwork Orange resonates, it does so because social breakdown and socialist decay are very real features of west European states today. The northern banlieues around Paris are just the sort of low-income ghettos which are inhabited by Alex. In these areas, the state is present but ineffective-delivering welfare but not order-and the inhabitants are both oppressed and independent. Indeed, when David Cameron describes England’s ‘broken society’, he raises the spectre of ultra-violent and truant adolescents.

The vision of A Clockwork Orange is, like all dystopias, an exaggeration, but it is far more real than the states of Logan’s Run or THX 1138. And A Clockwork Orange manages to be far more cynical than a democratic socialist like Orwell could ever be. (Both Kubrick’s politics, and the politics of Anthony Burgess who wrote the original novel, could hardly be described as standard arts industry leftyness. Indeed, Burgess went onto write his own dystopian homage to Nineteen Eighty-Four, which he titled 1985, that featured a Britain dominated by trade unions and where Islam had become the dominant political force.)

Images of dystopia are necessarily reflections of their time. When Orwell wrote his book, he addressed it to fellow-travelling socialists-his story was directed at his comrades who supported the Soviet ‘experiment’. Subsequent dystopian visions-at least those ones that have been more than just paint-by-numbers duplications of Nineteen Eighty-Four-have variously railed against environmental destruction, corporate monopolies, genetic engineering, censorship, technological dependence, religious extremism and neo-conservative warmongering. But they always oppose the state-even in those films that blame corporations for the ills of the world, it is the state that provides the power to oppress.

But when a dystopian vision fails, it fails because it misunderstands the nature of the contemporary state. Brazil and A Clockwork Orange are more ominous dystopias because they are-perhaps surprisingly considering that one is an absurdist comedy and the other a violent criticism of behavioural psychology-realistic.

What ‘fascist mob’? Overland and the IPA

Opposing government interference in the economy and society is hardly support for ‘fascism’. An attack on the Institute of Public Affairs in the latest edition of Overland by Shane Cahill shows just how far the socialist literary magazine has strayed off the ranch.

Just the title of the piece – ‘This Fascist Mob’ – indicates Overland’s relaxed approach to scholarship. ‘Fascist’ is a word with a very specific meaning. But its use in this case is drawn from an anonymous critic complaining about that the IPA’s opposition to the Curtin government’s heavy-handed approach to regulation during the war meant that the IPA was probably a Japanese sympathiser.

In 1944, a furious letter written by an anonymous air force officer complaining about the IPA was sent to the Deputy Prime Minister. In this letter, he accused the IPA of sabotaging the war effort by producing a wartime radio programme. This programme, The Harris Family, was a scripted radio play where a family discussed and debated the dangers of over-regulation, price controls, and centralisation.

The show, as the airman pointed out, was rarely very friendly to the Labor government. This letter made its way to the Commonwealth Security Service (CSS) – the precursor to ASIO – and provoked a minor investigation into its allegations. The CSS commenced the serious task of finding out whether the IPA was, as the letter writer claimed, ‘more vile and sinister than any Jap’. In early 1944, the CSS collected reports from its state divisions on the activities of the IPA across the country, but nothing surfaced to indicate that the IPA’s activities were anything outside of the normal political debate.

The scripts for The Harris Family had been duly submitted to the Commonwealth wartime censors and approved; the IPA’s constitutions and executive officers were public record, and apart from an inclination to ‘discredit the Labor government’ – hardly a crime in a liberal democracy, even during the war – the investigation turned up nothing incriminating. Indeed, the CSS file is replete with scrawled notes doubting the necessity of the investigation – ‘this appears to be to be just a political matter’. And the CSS Deputy-Director dismissed the investigation with the comment that ‘the committee and others sponsoring the Institute are well known representative people in Melbourne whose integrity and loyalty should be beyond reproach’.

The rest of the Cahill piece tries to tie this small sidenote in the history of the IPA to broader investigations about sympathy for Japanese fascism in Australia’s business community. Two senior businessmen and members of the IPA council were recorded as members of the pre-war Japan-Australia Society. In the 1920s into the 1930s, Japan was an important trade partner of Australia. By the time of the IPA’s foundation, the Japan-Australia Society was history.

But nevertheless, in Cahill’s hands, this represents the ‘compromised and murky milieu from which the IPA emerged’. The implication of the Overland piece is that, while the IPA may nowadays claim to be a vigorous defender of representative government and liberal freedoms, its founders would have found a fascist dictatorship just as nice. As Cahill writes, ‘In the 1930s and the 1940s the link between freedom and the “free flow of capital” didn’t seem so apparent’.

Perhaps not for the intellectual ancestors of Overland, who, in the mid 1940s, were still debating whether democracy was necessary in a socialist paradise. But the reality is far more mundane than Cahill’s conspiracy theory of fascist Japanese sympathisers undermining the Curtin government from within the business community.

What was the IPA doing during the later stages of the war? The IPA was the first free market think tank in the world. As it had no clear international parallel or precedent to give guidance, each state division of the IPA took a different view of how engaged the think tank should be with the day to day political fray. The Queensland and New South Wales divisions were prolific propagandists – The Harris Family was complemented with imitation cheques which were slid into Queenslanders’ pay packets asking them not to sign away their freedoms to Canberra in the 1944 constitutional referendum. The Victorian division by contrast was more interested in longer-term, and more sober, policy analysis.

In 2008, the IPA is accustomed to abuse from the left, and is too often accused of ‘fascism’-as if the IPA’s mantra of free markets and free societies is the equivalent of totalitarianism and militant nationalism. The tone of Overland is too quasi-scholarly to openly accuse the IPA of fascist sympathies, but, through a careful manipulation of the historical record and abuse of political terminology, Cahill tries to let the anonymous air force officer speak for the modern left. About the only accurate thing in the Overland piece is calling the IPA of 2008 ‘prolific’.