#regulatory failure

[mostlysignssomeportents]

Monopoly is capitalism's gerrymander

For the rest of May, my bestselling solarpunk utopian novel THE LOST CAUSE (2023) is available as a $2.99, DRM-free ebook!

You don't have to accept the arguments of capitalism's defenders to take those arguments seriously. When Adam Smith railed against rentiers and elevated the profit motive to a means of converting the intrinsic selfishness of the wealthy into an engine of production, he had a point:

https://pluralistic.net/2023/09/28/cloudalists/#cloud-capital

Smith – like Marx and Engels in Chapter One of The Communist Manifesto – saw competition as a catalyst that could convert selfishness to the public good: a rich person who craves more riches still will treat their customers, suppliers and workers well, not out of the goodness of their heart, but out of fear of their defection to a rival:

https://pluralistic.net/2024/04/19/make-them-afraid/#fear-is-their-mind-killer

This starting point is imperfect, but it's not wrong. The pre-enshittified internet was run by the same people who later came to enshittify it. They didn't have a change of heart that caused them to wreck the thing they'd worked so hard to build: rather, as they became isolated from the consequences of their enshittificatory impulses, it was easier to yield to them.

Once Google captured its market, its regulators and its workforce, it no longer had to worry about being a good search-engine – it could sacrifice quality for profits, without consequence:

https://pluralistic.net/2024/04/24/naming-names/#prabhakar-raghavan

It could focus on shifting value from its suppliers, its customers and its users to its shareholders:

https://pluralistic.net/2024/05/15/they-trust-me-dumb-fucks/#ai-search

The thing is, all of this is well understood and predicted by traditional capitalist orthodoxy. It was only after a gnostic cult of conspiratorialists hijacked the practice of antitrust law that capitalists started to view monopolies as compatible with capitalism:

https://pluralistic.net/2022/02/20/we-should-not-endure-a-king/

The argument goes like this: companies that attain monopolies might be cheating, but because markets are actually pretty excellent arbiters of quality, it's far more likely that if we discover that everyone is buying the same product from the same store, that this is the best store, selling the best products. How perverse would it be to shut down the very best stores and halt the sale of the very best products merely to satisfy some doctrinal reflex against big business!

To understand the problem with this argument, we should consider another doctrinal reflex: conservatives' insistence that governments just can't do anything well or efficiently. There's a low-information version of this that goes, "Governments are where stupid people who can't get private sector jobs go. They're lazy and entitled." (There's a racial dimension to this, since the federal government has historically led the private sector in hiring and promoting Black workers and workers of color more broadly.)

But beyond that racially tinged caricature, there's a more rigorous version of the argument: government officials are unlikely to face consequences for failure. Appointees and government employees – especially in the unionized federal workforce – are insulated from such consequences by overlapping layers of labor protection and deflection of blame.

Elected officials can in theory be fired in the next election, but if they keep their cheating or incompetence below a certain threshold, most of us won't punish them at the polls. Elected officials can further improve their odds of re-election by cheating some of us and sharing the loot with others, through handouts and programs. Elections themselves have a strong incumbency bias, meaning that once a cheater gets elected, they will likely get re-elected, even if their cheating becomes well-known:

https://www.nbcnews.com/politics/congress/gold-bars-featured-bob-menendez-bribery-case-linked-2013-robbery-recor-rcna128006

What's more, electoral redistricting opens the doors to gerrymandering – designing districts to create safe seats where one party always wins. That way, the real election consists of the official choosing the voters, not the voters choosing the official:

https://en.wikipedia.org/wiki/REDMAP

Inter-party elections – primaries and other nomination processes – have fundamental weaknesses that mean they're no substitute for well-run, democratic elections:

https://pluralistic.net/2023/04/30/weak-institutions/

Contrast this with the theory of competitive markets. For capitalism's "moral philosophers," the physics by which greedy desires led to altruistic outcomes was to be found in the swift retribution of markets. A capitalist, exposed to the possibility of worker and customers defecting to their rival, knows that their greed is best served by playing fair.

But just as importantly, capitalists who don't internalize this lesson are put out of business and superceded by better capitalists. The market's invisible hand can pat you on the head – but it can also choke you to death.

This is where monopoly comes in. Even if you accept the consumer welfare theory that says that monopolies are most often the result of excellence, we should still break up monopolies. Even if someone secures an advantage by being great, that greatness will soon regress to the mean. But if the monopolist can extinguish the possibility of competition, they can maintain their power even after they cease deserving it.

In other words, the monopolist is like a politician who wins power – whether through greatness or by deceit – and then gerrymanders their district so that they can do anything and gain re-election. Even the noblest politician, shorn of accountability, will be hard pressed to avoid yielding to temptation.

Capitalism's theory proceeds from the idea that we are driven by our self-interest, and that competition turns self-interest into communal sentiment. Take away the competition, and all that's left is the self-interest.

I think this is broadly true, even though it's not the main reason I oppose monopolies (I oppose monopolies because they corrupt our democracy and pauperize workers). But even if capitalism's ability to turn greed into public benefit isn't the principle that's uppermost in my mind, it's what capitalists claim to believe – and treasure.

I think that most of the right's defense of monopolies stems from cynical, bad-faith rationalizations – but there are people who've absorbed these rationalizations and find them superficially plausible. It's worth developing these critiques, for their sake.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/05/18/market-discipline/#too-big-to-care

[touchaheartnews]

Mob Vandalizes Telecom Office in Festac Town Amid SIM Blockade

On a scorching afternoon in Festac Town, Lagos, an uproarious scene unfolded at a major telecommunications office. The incident, now widely referred to as the “SIM Blockade,” involved a mob of frustrated locals who took their grievances to the streets, culminating in a significant act of vandalism against the telecom office. The root of this chaos was a recent policy change that left countless…

[mercoglianotrueblog]

They are preparing the new pandemic show

https://salvatoremercogliano.blogspot.com/2023/09/they-are-preparing-new-pandemic-show.html?m=1

#CDC lie:"#masks cannot stop #wildfire smoke" that's 100 times larger than #Cov admitting they're #useless

#regulatory auth. take half of #funding& #media 3/4 of #ads from #pharma

#investors vote on #failure of #mRNA with their feet vs #Moderna #Pfizer

https://salvatoremercogliano.blogspot.com/2023/09/they-are-preparing-new-pandemic-show.html?spref=tw

[reasonsforhope]

"The sleeping giant of the US Environmental Protection Agency (EPA) has stirred.

In the past month, an avalanche of anti-pollution rules, targeting everything from toxic drinking water to planet-heating gases in the atmosphere, have been issued by the agency. Belatedly, the sizable weight of the US federal government is being thrown at longstanding environmental crises, including the climate emergency.

On Thursday [May 18, 2023], the EPA’s month of frenzied activity was crowned by the toughest ever limits upon carbon pollution from America’s power sector, with large, existing coal and gas plants told they must slash their emissions by 90% or face being shut down.

The measure will, the EPA says, wipe out more than 600m tons of carbon emissions over the next two decades, about double what the entire UK emits each year. But even this wasn’t the biggest pollution reduction announced in recent weeks.

In April, new emissions standards for cars and trucks will eliminate an expected 9bn tons of CO2 by the mid-point of the century, while separate rules issued late last year aim to slash hydrofluorocarbons, planet-heating gases used widely in refrigeration and air conditioning, by 4.6bn tons in the same timeframe. Methane, another highly potent greenhouse gas, will be curtailed by 810m tons over the next decade in another EPA edict.

In just a few short months the EPA, diminished and demoralized under Donald Trump, has flexed its regulatory muscles to the extent that 15bn tons of greenhouse gases – equivalent to about three times the US’s carbon pollution, or nearly half of the entire world’s annual fossil fuel emissions – are set to be prevented, transforming the power basis of Americans’ cars and homes in the process...

If last year’s Inflation Reduction Act (IRA), with its $370bn in clean energy subsidies and enticements for electric car buyers, was the carrot to reducing emissions, the EPA now appears to be bringing a hefty stick.

The IRA should help reduce US emissions by about 40% this decade but the cut needs to be deeper, up to half of 2005 levels, to give the world a chance of avoiding catastrophic heatwaves, wildfires, drought and other climate calamities. The new rules suddenly put America, after years of delay and political rancor, tantalizingly within reach of this...

“It’s clear we’ve reached a pivotal point in human history and it’s on all of us to act right now to protect our future,” said Michael Regan, the administrator of the EPA, in a speech last week at the University of Maryland. The venue was chosen in a nod to the young, climate-concerned voters Joe Biden hopes to court in next year’s presidential election, and who have been dismayed by Biden’s acquiescence to large-scale oil and gas drilling.

“Folks, this is our future we are talking about, and we have a once-in-a-generation opportunity for real climate action,” [Michael Regan, the administrator of the EPA], added. “Failure is not an option, indifference is not an option, inaction is not an option.” ...

It’s not just climate the EPA has acted upon in recent months. There are new standards for chemical plants, such as those that blight the so-called "Cancer Alley" the US, from emitting cancer-causing toxins such as benzene, ethylene oxide and vinyl chloride. New rules curbing mercury, arsenic and lead from industrial facilities have been released, as have tighter limits on emissions of soot and the first ever regulations targeting the presence of per- and polyfluoroalkylsubstances (or PFAS) in drinking water.” ...

For those inside the agency, the breakneck pace has been enervating. “It’s definitely a race against time,” said one senior EPA official, who asked not to be named. “The clock is ticking. It is a sprint through a marathon and it is exhausting.” ...

“We know the work to confront the climate crisis doesn’t stop at strong carbon pollution standards,” said Ben Jealous, the executive director of the Sierra Club.

“The continued use or expansion of fossil power plants is incompatible with a livable future. Simply put, we must not merely limit the use of fossil fuel electricity – we must end it entirely.”"

-via The Guardian (US), 5/16/23

[sexymemecoin]

The Rise of DeFi: Revolutionizing the Financial Landscape

Decentralized Finance (DeFi) has emerged as one of the most transformative sectors within the cryptocurrency industry. By leveraging blockchain technology, DeFi aims to recreate and improve upon traditional financial systems, offering a more inclusive, transparent, and efficient financial ecosystem. This article explores the fundamental aspects of DeFi, its key components, benefits, challenges, and notable projects, including a brief mention of Sexy Meme Coin.

What is DeFi?

DeFi stands for Decentralized Finance, a movement that utilizes blockchain technology to build an open and permissionless financial system. Unlike traditional financial systems that rely on centralized intermediaries like banks and brokerages, DeFi operates on decentralized networks, allowing users to interact directly with financial services. This decentralization is achieved through smart contracts, which are self-executing contracts with the terms of the agreement directly written into code.

Key Components of DeFi

Decentralized Exchanges (DEXs): DEXs allow users to trade cryptocurrencies directly with one another without the need for a central authority. Platforms like Uniswap, SushiSwap, and PancakeSwap have gained popularity for their ability to provide liquidity and facilitate peer-to-peer trading.

Lending and Borrowing Platforms: DeFi lending platforms like Aave, Compound, and MakerDAO enable users to lend their assets to earn interest or borrow assets by providing collateral. These platforms use smart contracts to automate the lending process, ensuring transparency and efficiency.

Stablecoins: Stablecoins are cryptocurrencies pegged to stable assets like fiat currencies to reduce volatility. They are crucial for DeFi as they provide a stable medium of exchange and store of value. Popular stablecoins include Tether (USDT), USD Coin (USDC), and Dai (DAI).

Yield Farming and Liquidity Mining: Yield farming involves providing liquidity to DeFi protocols in exchange for rewards, often in the form of additional tokens. Liquidity mining is a similar concept where users earn rewards for providing liquidity to specific pools. These practices incentivize participation and enhance liquidity within the DeFi ecosystem.

Insurance Protocols: DeFi insurance protocols like Nexus Mutual and Cover Protocol offer coverage against risks such as smart contract failures and hacks. These platforms aim to provide users with security and peace of mind when engaging with DeFi services.

Benefits of DeFi

Financial Inclusion: DeFi opens up access to financial services for individuals who are unbanked or underbanked, particularly in regions with limited access to traditional banking infrastructure. Anyone with an internet connection can participate in DeFi, democratizing access to financial services.

Transparency and Trust: DeFi operates on public blockchains, providing transparency for all transactions. This transparency reduces the need for trust in intermediaries and allows users to verify and audit transactions independently.

Efficiency and Speed: DeFi eliminates the need for intermediaries, reducing costs and increasing the speed of transactions. Smart contracts automate processes that would typically require manual intervention, enhancing efficiency.

Innovation and Flexibility: The open-source nature of DeFi allows developers to innovate and build new financial products and services. This continuous innovation leads to the creation of diverse and flexible financial instruments.

Challenges Facing DeFi

Security Risks: DeFi platforms are susceptible to hacks, bugs, and vulnerabilities in smart contracts. High-profile incidents, such as the DAO hack and the recent exploits on various DeFi platforms, highlight the need for robust security measures.

Regulatory Uncertainty: The regulatory environment for DeFi is still evolving, with governments and regulators grappling with how to address the unique challenges posed by decentralized financial systems. This uncertainty can impact the growth and adoption of DeFi.

Scalability: DeFi platforms often face scalability issues, particularly on congested blockchain networks like Ethereum. High gas fees and slow transaction times can hinder the user experience and limit the scalability of DeFi applications.

Complexity and Usability: DeFi platforms can be complex and challenging for newcomers to navigate. Improving user interfaces and providing educational resources are crucial for broader adoption.

Notable DeFi Projects

Uniswap (UNI): Uniswap is a leading decentralized exchange that allows users to trade ERC-20 tokens directly from their wallets. Its automated market maker (AMM) model has revolutionized the way liquidity is provided and traded in the DeFi space.

Aave (AAVE): Aave is a decentralized lending and borrowing platform that offers unique features such as flash loans and rate switching. It has become one of the largest and most innovative DeFi protocols.

MakerDAO (MKR): MakerDAO is the protocol behind the Dai stablecoin, a decentralized stablecoin pegged to the US dollar. MakerDAO allows users to create Dai by collateralizing their assets, providing stability and liquidity to the DeFi ecosystem.

Compound (COMP): Compound is another leading DeFi lending platform that enables users to earn interest on their cryptocurrencies or borrow assets against collateral. Its governance token, COMP, allows users to participate in protocol governance.

Sexy Meme Coin (SXYM): While primarily known as a meme coin, Sexy Meme Coin has integrated DeFi features, including a decentralized marketplace for buying, selling, and trading memes as NFTs. This unique blend of humor and finance adds a distinct flavor to the DeFi landscape. Learn more about Sexy Meme Coin at Sexy Meme Coin.

The Future of DeFi

The future of DeFi looks promising, with continuous innovation and growing adoption. As blockchain technology advances and scalability solutions are implemented, DeFi has the potential to disrupt traditional financial systems further. Regulatory clarity and improved security measures will be crucial for the sustainable growth of the DeFi ecosystem.

DeFi is likely to continue attracting attention from both retail and institutional investors, driving further development and integration of decentralized financial services. The flexibility and inclusivity offered by DeFi make it a compelling alternative to traditional finance, paving the way for a more open and accessible financial future.

Conclusion

Decentralized Finance (DeFi) represents a significant shift in the financial landscape, leveraging blockchain technology to create a more inclusive, transparent, and efficient financial system. Despite the challenges, the benefits of DeFi and its continuous innovation make it a transformative force in the world of finance. Notable projects like Uniswap, Aave, and MakerDAO, along with unique contributions from meme coins like Sexy Meme Coin, demonstrate the diverse and dynamic nature of the DeFi ecosystem.

For those interested in exploring the playful and innovative side of DeFi, Sexy Meme Coin offers a unique and entertaining platform. Visit Sexy Meme Coin to learn more and join the community.

[lobstersinmyhouse]

Ohio

The simple truth is that this was easily preventable. This is what happens when maintenance is deferred, repeatedly, for decades. Norfolk Southern already had two major derailments in the last six months. The writing was very clearly on the wall. NS refused to follow basic maintenance schedules. The NTSB and FRA refused, failed, or were unable to enforce existing standards. This is a massive failure all thanks to the race to maximize short-term profit that governs the big national railroads. NS was the butt of jokes in the industry for decades due to the shoddy state of both its trackage and rolling stock, but the reality of it was no joke. One of the largest environmental disasters in US history, unfolding before us, is a result of unbridled capitalism and toothless regulatory agencies.

This was preventable. The people who caused this have names and addresses. People will suffer for decades because of this.

[mitchipedia]

… instead of passing a privacy law or regulating data brokers, Americans get a sort of regulatory simulacrum designed to distract you. Most recently that popped up in the form of hysteria about TikTok privacy, as if TikTok’s privacy abuses aren’t a broader symptom of our corrupt failure to protect consumers from a vast and unaccountable network of ethics-optional surveillance and monetization.

— Karl Bode at Techdirt

[thefugitivesaint]

'The Stuff', ''Starburst Magazine'', #83, 1985 Source When I was 10 at the time this B-movie emerged from the ground, I had no idea that it was intended as a criticism of Reagan era American consumerism and, more specifically, the failure of federal regulatory organizations like the US Food and Drug Administration due to regulatory capture by the very industries the FDA was charged to oversee (also due to the hostility towards such agencies held by the Reagan administration*) it's a cheap amalgamation of films like Invasion of the Body Snatchers and The Blob and various 50s scifi films. Sure, the acting is both undercooked and, paradoxically, overly exaggerated and the script is less than robust but it's still worth a watch as a satire. The ads for 'The Stuff' within the film are presented straight and are hardly different from advertisements for actual products. In a way, 'The Stuff' is a prime example of iconoclastic, low-budget filmmaking with a message. It would be a great pairing with John Carpenter's 'They Live' given their shared anti-capitalist sentiment (although, to be fair, Carpenter has been open about being perfectly happy to make money). I was recently reading about the director of 'The Stuff', Larry Cohen and came across the following in 'Larry Cohen : the radical allegories of an independent filmmaker', from 1997: "Robin Wood hails Cohen’s work for suggesting potentials for an alternative society devoid of all the oppressive social and gender boundaries affecting human beings today. Larry Cohen’s film and television works are critical of the oppressive nature of human relationships....The Stuff represents an ironic elaboration of the old saying “You are what you eat.” However, the film’s absurd premises really reveal the dangers of American consumerism. Business interests and the Food and Drug Administration collaborate in merchandising a dangerous substance on the market to make a profit. The killer yogurt from outer space destroys people from within. Its victims become mere shells housing a killer substance. Cohen’s message can be read literally as well as metaphorically. The Stuff is an attack upon a corrupt society that often deliberately disseminates food or drugs without even testing them properly." (pgs 29-30)

In summary, the execution of the premise is lacking but still fun. I must rather enjoy 'The Stuff' given how I periodically post about it. *fuck Ronald Reagan. Forever.

[mostlysignssomeportents]

Why they're smearing Lina Khan

My god, they sure hate Lina Khan. This once-in-a-generation, groundbreaking, brilliant legal scholar and fighter for the public interest, the slayer of Reaganomics, has attracted more vitriol, mockery, and dismissal than any of her predecessors in living memory.

She sure must be doing something right, huh?

A quick refresher. In 2017, Khan — then a law student — published Amazon’s Antitrust Paradox in the Yale Law Journal. It was a brilliant, blistering analysis showing how the Reagan-era theory of antitrust (which celebrates monopolies as “efficient”) had failed on its own terms, using Amazon as Exhibit A of the ways in which post-Reagan antitrust had left Americans vulnerable to corporate abuse:

https://www.yalelawjournal.org/note/amazons-antitrust-paradox

The paper sent seismic shocks through both legal and economic circles, and goosed the neo-Brandeisian movement (sneeringly dismissed as “hipster antitrust”). This movement is a rebuke to Reaganomics, with its celebration of monopolies, trickle-down, offshoring, corporate dark money, revolving-door regulatory capture, and companies that are simultaneously too big to fail and too big to jail.

This movement has many proponents, of course — not just Khan — but Khan’s careful scholarship, combined with her encyclopedic knowledge of the long-dormant statutory powers that federal agencies had to make change, and a strategy for reviving those powers to protect Americans from corporate predators made her a powerful, inspirational figure.

When Joe Biden won the 2020 presidential election, he surprised everyone by appointing Khan to the FTC. It wasn’t just that she had such a radical vision — it was also that she lacked the usual corporate law experience that such an appointee would normally require (experience that would ensure that the FTC was helmed by people whose default view of the world is that it should be structured and regulated by powerful, wealthy people in corporate boardrooms).

Even more surprising was that Khan was made chair of the FTC, something that was only possible because a few Republican Senators broke with their party to support her candidacy:

https://www.senate.gov/legislative/LIS/roll_call_votes/vote1171/vote_117_1_00233.htm

These Republicans saw in Khan an ally in their fight against “woke” Big Tech. For these senators, the problem wasn’t that tech had got too big and powerful — it was that there were a few limited instances in which tech leaders failed to wield that power in the ways they preferred.

The Republican project is a matter of getting turkeys to vote for Christmas by doing a lot of culture war bullshit, cruelly abusing disfavored sexual and racial minorities. This wins support from low-information voters who’ll vote against their class interests and support more monopolies, more tax cuts for the rich, and more cuts to the services they rely on.

But while tech leaders are 100% committed to the project of permanent oligarchic takeover of every sphere of American life, they are less full-throated in their support for hateful, cruel discrimination against disfavored minorities (in this regard, tech leaders resemble the corporate wing of the Democrats, which is where we get the “Silicon Valley is a Democratic Party stronghold” narrative).

This failure to unquestioningly and unstintingly back culture war bullshit put tech leaders in the GOP’s crosshairs. Some GOP politicians actually believe in the culture war bullshit, and are grossly offended that tech is “woke.” Others are smart enough not to get high on their own supply, but worry that any tech obstruction in the bullshit culture wars will make it harder to get sufficient turkey votes for a big fat Christmas surprise.

Biden’s ceding of antitrust policy to the left wing of the party, combined with disaffected GOP senators viewing Khan as their enemy’s enemy, led to Khan’s historic appointment as FTC Chair. In that position, she was joined by a slate of Biden trustbusters, including Jonathan Kanter at the DoJ Antitrust Division, Tim Wu at the White House, and other important, skilled and principled fighters like Alvaro Bedoya (FTC), Rebecca Slaughter (FTC), Rohit Chopra (CFPB), and many others.

Crucially, these new appointees weren’t just principled, they were good at their jobs. In 2021, Tim Wu wrote an executive order for Biden that laid out 72 concrete ways in which the administration could act — with no further Congressional authorization — to blunt corporate power and insulate the American people from oligarchs’ abusive and extractive practices:

https://pluralistic.net/2021/08/13/post-bork-era/#manne-down

Since then, the antitrust arm of the Biden administration have been fuckin’ ninjas, Getting Shit Done in ways large and small, working — for the first time since Reagan — to protect Americans from predatory businesses:

https://pluralistic.net/2022/10/18/administrative-competence/#i-know-stuff

This is in marked contrast to the corporate Dems’ champions in the administration. People like Pete Buttigieg are heralded as competent technocrats, “realists” who are too principled to peddle hopium to the base, writing checks they can’t cash. All this is cover for a King Log performance, in which Buttigieg’s far-reaching regulatory authority sits unused on a shelf while a million Americans are stranded over Christmas and whole towns are endangered by greedy, reckless rail barons straight out of the Gilded Age:

https://pluralistic.net/2023/01/10/the-courage-to-govern/#whos-in-charge

The contrast between the Biden trustbusters and their counterparts from the corporate wing is stark. While the corporate wing insists that every pitch is outside of the zone, Khan and her allies are swinging for the stands. They’re trying to make life better for you and me, by declaring commercial surveillance to be an unfair business practice and thus illegal:

https://pluralistic.net/2022/08/12/regulatory-uncapture/#conscious-uncoupling

And by declaring noncompete “agreements” that shackle good workers to shitty jobs to be illegal:

https://pluralistic.net/2022/02/02/its-the-economy-stupid/#neofeudal

And naturally, this has really pissed off all the right people: America’s billionaires and their cheerleaders in the press, government, and the hive of scum and villainy that is the Big Law/thinktank industrial-complex.

Take the WSJ: since Khan took office, they have published 67 vicious editorials attacking her and her policies. Khan is living rent-free in Rupert Murdoch’s head. Not only that, he’s given her the presidential suite! You love to see it.

These attacks are worth reading, if only to see how flimsy and frivolous they are. One major subgenre is that Khan shouldn’t be bringing any action against Amazon, because her groundbreaking scholarship about the company means she has a conflict of interest. Holy moly is this a stupid thing to say. The idea that the chair of an expert agency should recuse herself because she is an expert is what the physicists call not even wrong.

But these attacks are even more laughable due to who they’re coming from: people who have the most outrageous conflicts of interest imaginable, and who were conspicuously silent for years as the FTC’s revolving door admitted the a bestiary of swamp-creatures so conflicted it’s a wonder they managed to dress themselves in the morning.

Writing in The American Prospect, David Dayen runs the numbers:

Since the late 1990s, 31 out of 41 top FTC officials worked directly for a company that has business before the agency, with 26 of them related to the technology industry.

https://prospect.org/economy/2023-06-23-attacks-lina-khans-ethics-reveal-projection/

Take Christine Wilson, a GOP-appointed FTC Commissioner who quit the agency in a huff because Khan wanted to do things for the American people, and not their self-appointed oligarchic princelings. Wilson wrote an angry break-up letter to Khan that the WSJ published, presaging their concierge service for Samuel Alito:

https://www.wsj.com/articles/why-im-resigning-from-the-ftc-commissioner-ftc-lina-khan-regulation-rule-violation-antitrust-339f115d

For Wilson to question Khan’s ethics took galactic-scale chutzpah. Wilson, after all, is a commissioner who took cash money from Bristol-Myers Squibb, then voted to approve their merger with Celgene:

https://www.documentcloud.org/documents/4365601-Wilson-Christine-Smith-final278.html

Or take Wilson’s GOP FTC predecessor Josh Wright, whose incestuous relationship with the companies he oversaw at the Commission are so intimate he’s practically got a Habsburg jaw. Wright went from Google to the US government and back again four times. He also lobbied the FTC on behalf of Qualcomm (a major donor to Wright’s employer, George Mason’s Antonin Scalia Law School) after working “personally and substantially” while serving at the FTC.

George Mason’s Scalia center practically owns the revolving door, counting fourteen FTC officials among its affliates:

https://campaignforaccountability.org/ttp-investigation-big-techs-backdoor-to-the-ftc/

Since the 1990s, 31 out of 41 top FTC officials — both GOP appointed and appointees backed by corporate Dems — “worked directly for a company that has business before the agency”:

https://www.citizen.org/article/ftc-big-tech-revolving-door-problem-report/

The majority of FTC and DoJ antitrust lawyers who served between 2014–21 left government service and went straight to work for a Big Law firm, serving the companies they’d regulated just a few months before:

https://therevolvingdoorproject.org/wp-content/uploads/2022/06/The-Revolving-Door-In-Federal-Antitrust-Enforcement.pdf

Take Deborah Feinstein, formerly the head of the FTC’s Bureau of Competition, now a partner at Arnold & Porter, where she’s represented General Electric, NBCUniversal, Unilever, and Pepsi and a whole medicine chest’s worth of pharma giants before her former subordinates at the FTC. Michael Moiseyev who was assistant manager of FTC Competition is now in charge of mergers at Weil Gotshal & Manges, working for Microsoft, Meta, and Eli Lilly.

There’s a whole bunch more, but Dayen reserves special notice for Andrew Smith, Trump’s FTC Consumer Protection boss. Before he was put on the public payroll, Smith represented 120 clients that had business before the Commission, including “nearly every major bank in America, drug industry lobbyist PhRMA, Uber, Equifax, Amazon, Facebook, Verizon, and a variety of payday lenders”:

https://www.citizen.org/sites/default/files/andrew_smith_foia_appeal_response_11_30.pdf

Before Khan, in other words, the FTC was a “conflict-of-interest assembly line, moving through corporate lawyers and industry hangers-on without resistance for decades.”

Khan is the first FTC head with no conflicts. This leaves her opponents in the sweaty, desperate position of inventing conflicts out of thin air.

For these corporate lickspittles, Khan’s “conflict” is that she has a point of view. Specifically, she thinks that the FTC should do its job.

This makes grifters like Jim Jordan furious. Yesterday, Jordan grilled Khan in a hearing where he accused her of violating an ethics official’s advice that she should recuse herself from Big Tech cases. This is a talking point that was created and promoted by Bloomberg:

https://www.bloomberg.com/news/articles/2023-06-16/ftc-rejected-ethics-advice-for-khan-recusal-on-meta-case

That ethics official, Lorielle Pankey, did not, in fact, make this recommendation. It’s simply untrue (she did say that Khan presiding over cases that she has made public statements about could be used as ammo against her, but did not say that it violated any ethical standard).

But there’s more to this story. Pankey herself has a gigantic conflict of interest in this case, including a stock portfolio with $15,001 and $50,000 in Meta stock (Meta is another company that has whined in print and in its briefs that it is a poor defenseless lamb being picked on by big, mean ole Lina Khan):

https://www.wsj.com/articles/ethics-official-owned-meta-stock-while-recommending-ftc-chair-recuse-herself-from-meta-case-8582a83b

Jordan called his hearing on the back of this fake scandal, and then proceeded to show his whole damned ass, even as his GOP colleagues got into a substantive and even informative dialog with Khan:

https://prospect.org/power/2023-07-14-jim-jordan-misfires-attacks-lina-khan/

Mostly what came out of that hearing was news about how Khan is doing her job, working on behalf of the American people. For example, she confirmed that she’s investigating OpenAI for nonconsensually harvesting a mountain of Americans’ personal information:

https://www.ft.com/content/8ce04d67-069b-4c9d-91bf-11649f5adc74

Other Republicans, including confirmed swamp creatures like Matt Gaetz, ended up agreeing with Khan that Amazon Ring is a privacy dumpster-fire. Nobodies like Rep TomM assie gave Khan an opening to discuss how her agency is protecting mom-and-pop grocers from giant, price-gouging, greedflation-drunk national chains. Jeff Van Drew gave her a chance to talk about the FTC’s war on robocalls. Lance Gooden let her talk about her fight against horse doping.

But Khan’s opponents did manage to repeat a lot of the smears against her, and not just the bogus conflict-of-interest story. They also accused her of being 0–4 in her actions to block mergers, ignoring the huge number of mergers that have been called off or not initiated because M&A professionals now understand they can no longer expect these mergers to be waved through. Indeed, just last night I spoke with a friend who owns a medium-sized tech company that Meta tried to buy out, only to withdraw from the deal because their lawyers told them it would get challenged at the FTC, with an uncertain outcome.

These talking points got picked up by people commenting on Judge Jacqueline Scott Corley’s ruling against the FTC in the Microsoft-Activision merger. The FTC was seeking an injunction against the merger, and Corley turned them down flat. The ruling was objectively very bad. Start with the fact that Corley’s son is a Microsoft employee who stands reap massive gains in his stock options if the merger goes through.

But beyond this (real, non-imaginary, not manufactured conflict of interest), Corley’s judgment and her remarks in court were inexcusably bad, as Matt Stoller writes:

https://www.thebignewsletter.com/p/judge-rules-for-microsoft-mergers

In her ruling, Corley explained that she didn’t think Microsoft would abuse the market dominance they’d gain by merging their giant videogame platform and studio with one of its largest competitors. Why not? Because Microsoft’s execs pinky-swore that they wouldn’t abuse that power.

Corely’s deference to Microsoft’s corporate priorities goes deeper than trusting its execs, though. In denying the FTC’s motion, she stated that it would be unfair to put the merger on hold in order to have a full investigation into its competition implications because Microsoft and Activision had set a deadline of July 18 to conclude things, and Microsoft would have to pay a penalty if that deadline passed.

This is surreal: a judge ruled that a corporation’s radical, massive merger shouldn’t be subject to full investigation because that corporation itself set an arbitrary deadline to conclude the deal before such an investigation could be concluded. That’s pretty convenient for future mega-mergers — just set a short deadline and Judge Corely will tell regulators that the merger can’t be investigated because the deadline is looming.

And this is all about the future. As Stoller writes, Microsoft isn’t exactly subtle about why it wants this merger. Its own execs said that the reason they were spending “dump trucks” of money buying games studios was to “spend Sony out of business.”

Now, maybe you hate Sony. Maybe you hate Activision. There’s plenty of good reason to hate both — they’re run by creeps who do shitty things to gamers and to their employees. But if you think that Microsoft will be better once it eliminates its competition, then you have the attention span of a goldfish on Adderall.

Microsoft made exactly the same promises it made on Activision when it bought out another games studio, Zenimax — and it broke every one of those promises.

Microsoft has a long, long, long history of being a brutal, abusive monopolist. It is a convicted monopolist. And its bad conduct didn’t end with the browser wars. You remember how the lockdown turned all our homes into rent-free branch offices for our employers? Microsoft seized on that moment to offer our bosses keystroke-and-click level surveillance of our use of our own computers in our own homes, via its Office365 bossware product:

https://pluralistic.net/2020/11/25/the-peoples-amazon/#clippys-revenge

If you think a company that gave your boss a tool to spy on their employees and rank them by “productivity” as a prelude to firing them or cutting their pay is going to treat gamers or game makers well once they have “spent the competition out of business,” you’re a credulous sucker and you are gonna be so disappointed.

The enshittification play is obvious: use investor cash to make things temporarily nice for customers and suppliers, lock both of them in — in this case, it’s with a subscription-based service similar to Netflix’s — and then claw all that value back until all that’s left is a big pile of shit.

The Microsoft case is about the future. Judge Corely doesn’t take the future seriously: as she said during the trial, “All of this is for a shooter videogame.” The reason Corely greenlit this merger isn’t because it won’t be harmful — it’s because she doesn’t think those harms matter.

But it does, and not just because games are an art form that generate billions of dollars, employ a vast workforce, and bring pleasure to millions. It also matters because this is yet another one of the Reaganomic precedents that tacitly endorses monopolies as efficient forces for good. As Stoller writes, Corley’s ruling means that “deal bankers are sharpening pencils and saying ‘Great, the government lost! We can get mergers through everywhere else.’ Basically, if you like your high medical prices, you should be cheering on Microsoft’s win today.”

Ronald Reagan’s antitrust has colonized our brains so thoroughly that commentators were surprised when, immediately after the ruling, the FTC filed an appeal. Don’t they know they’ve lost? the commentators said:

https://gizmodo.com/ftc-files-appeal-of-microsoft-activision-deal-ruling-1850640159

They echoed the smug words of insufferable Activision boss Mike Ybarra: “Your tax dollars at work.”

https://twitter.com/Qwik/status/1679277251337277440

But of course Khan is appealing. The only reason that’s surprising is that Khan is working for us, the American people, not the giant corporations the FTC is supposed to be defending us from. Sure, I get that this is a major change! But she needs our backing, not our cheap cynicism.

The business lobby and their pathetic Renfields have hoarded all the nice things and they don’t want us to have any. Khan and her trustbuster colleagues want the opposite. There is no measure so small that the corporate world won’t have a conniption over it. Take click to cancel, the FTC’s perfectly reasonable proposal that if you sign up for a recurring payment subscription with a single click, you should be able to cancel it with a single click.

The tooth-gnashing and garment-rending and scenery-chewing over this is wild. America’s biggest companies have wheeled out their biggest guns, claiming that if they make it too easy to unsubscribe, they will lose money. In other words, they are currently making money not because people want their products, but because it’s too hard to stop paying for them!

https://www.theregister.com/2023/07/12/ftc_cancel_subscriptions/

We shouldn’t have to tolerate this sleaze. And if we back Khan and her team, they’ll protect us from these scams. Don’t let them convince you to give up hope. This is the start of the fight, not the end. We’re trying to reverse 40 years’ worth of Reagonmics here. It won’t happen overnight. There will be setbacks. But keep your eyes on the prize — this is the most exciting moment for countering corporate power and giving it back to the people in my lifetime. We owe it to ourselves, our kids and our planet to fight one.

If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/07/14/making-good-trouble/#the-peoples-champion

[Image ID: A line drawing of pilgrims ducking a witch tied to a ducking stool. The pilgrims' clothes have been emblazoned with the logos for the WSJ, Microsoft, Activision and Blizzard. The witch's face has been replaced with that of FTC chair Lina M Khan.]

[touchaheartnews]

Electricity: An In-Depth Look at Why System Collapses Persist

The reliability and stability of electricity systems have become increasingly important as societies rely more on consistent power for everything from household appliances to critical infrastructure. However, despite advancements in technology and infrastructure, electricity systems continue to experience collapses that disrupt daily life and economic activities. This investigation delves into…

[science-bastard]

Mad Science Wrapped 2023

Top Experiments

Helping the mice blaze it 420 (extreme success)

Efficacy of laser beams in accelerating bacteria cultures (mixed results)

Using all the spare limbs, organs, torsos, etc you had left over from last year (some success)

Unhornyinator (catastrophic failure)

Weed 2 (nice)

Top Specimens

Mold that flips you off

Borderline incomprehensible mess of various limbs and mouths and eyes and other strange protrusions

Sicknasty penguin-elephant hybrid

Semiorganic robot that loves you

Typical but nevertheless extremely suspicious mouse

Top Areas of Research

Radioactive goo

Unconventional gender affirming surgery (eg fangs)

Laser beams

Having fun with lab rats and mice

Recycling lab waste into newer, sexier experiments

Extras

OSHA regulatory violations: 316

Test subjects tested: 571

Total time in lab: 49,381 minutes

Lab personnel kissed: 1

[justinspoliticalcorner]

Vittoria Elliott at Wired:

Ahead of the US elections, Elon Musk, the billionaire owner of X, has used the platform as his own personal political bullhorn. On July 26, Musk posted a video of vice president and Democratic presidential candidate Kamala Harris in which a deepfake of her voice appears to make her say that she is the “ultimate DEI hire” and a “deep-state puppet.” The post now bears a community note indicating that it is a parody. But many alleged that, shared without appropriate context, the video could have violated X’s policies on synthetic, or AI-altered, media. This was the culmination of Musk’s recent political rhetoric. Over the past month, Musk, after officially endorsing former president Donald Trump, has also boosted baseless conspiracies of a “coup” following Biden’s withdrawal from the presidential race, and insinuated that the Trump assassination attempt might have been the result of an intentional failure on the part of the Secret Service. After endorsing Trump, Musk announced that he was starting a pro-Trump political action committee (PAC), and initially committed to donate $45 million a month, before backtracking.

Former Twitter trust and safety employees say that Musk’s increasingly partisan behavior around the US elections and other major events is a sign that he is doing exactly what he accused the company’s former leadership of doing: playing politics. “It’s staggering hypocrisy,” says one former Twitter employee. “Musk is smart enough to know social media is media, and it’s a way to control the narrative.”

Three former employees, who spoke to WIRED on condition of anonymity due to fear of retaliation, expressed concern that Musk presents a new kind of actor—someone who seeks to actively use a platform to reshape politics in both the US and abroad, and is willing to endure regulatory fines and declining advertising revenue to do so. “He is consolidating power and has systematically dismantled all markers of credibility at the company,” the former employee says. “However, I think it takes on additional significance when the person he is targeting is a presidential candidate.” Authorities appear to agree. Earlier this week, secretaries of state from Minnesota, Washington, Pennsylvania, Michigan, and New Mexico sent a letter to X demanding changes to Grok, the platform’s generative AI search tool, after it returned false information claiming Harris had missed the deadline to be on the presidential ballot in nine states.

Musk and X did not respond to a request for comment. Musk has been ramping up to this moment for years. When he purchased Twitter in 2022, he promised free-speech absolutism. After taking over, Musk immediately fired the majority of the company’s policy and trust and safety staff, who were responsible for keeping hateful and misinformative content off the platform. This included those responsible for guiding the platform through contentious elections. As the former employees noted, there is now no one at the company to deal with a flood of election-related misinformation, let alone what Musk himself might spread. “There’s almost no one left,” the former employee says. Disinformation and hate speech on X have ballooned on the site, and a recent Pew Research study found that X has taken on a partisan tilt. Since Musk’s takeover, it’s become more popular with Republican users and less popular with Democrats, who are less likely than Republicans to say their views are welcomed at the site.

Ever since Elon Musk gotten ahold of X (formerly Twitter), he has turned it into a playground for far-right extremism.

[mariacallous]

Ahead of the US elections, Elon Musk, the billionaire owner of X, has used the platform as his own personal political bullhorn.

On July 26, Musk posted a video of vice president and Democratic presidential candidate Kamala Harris in which a deepfake of her voice appears to make her say that she is the “ultimate DEI hire” and a “deep-state puppet.” The post now bears a community note indicating that it is a parody. But many alleged that, shared without appropriate context, the video could have violated X’s policies on synthetic, or AI-altered, media.

This was the culmination of Musk’s recent political rhetoric. Over the past month, Musk, after officially endorsing former president Donald Trump, has also boosted baseless conspiracies of a “coup” following Biden’s withdrawal from the presidential race, and insinuated that the Trump assassination attempt might have been the result of an intentional failure on the part of the Secret Service. After endorsing Trump, Musk announced that he was starting a pro-Trump political action committee (PAC), and initially committed to donate $45 million a month, before backtracking.

Former Twitter trust and safety employees say that Musk’s increasingly partisan behavior around the US elections and other major events is a sign that he is doing exactly what he accused the company’s former leadership of doing: playing politics.

“It’s staggering hypocrisy,” says one former Twitter employee. “Musk is smart enough to know social media is media, and it’s a way to control the narrative.”

Three former employees, who spoke to WIRED on condition of anonymity due to fear of retaliation, expressed concern that Musk presents a new kind of actor—someone who seeks to actively use a platform to reshape politics in both the US and abroad, and is willing to endure regulatory fines and declining advertising revenue to do so.

“He is consolidating power and has systematically dismantled all markers of credibility at the company,” the former employee says. “However, I think it takes on additional significance when the person he is targeting is a presidential candidate.”

Authorities appear to agree. Earlier this week, secretaries of state from Minnesota, Washington, Pennsylvania, Michigan, and New Mexico sent a letter to X demanding changes to Grok, the platform’s generative AI search tool, after it returned false information claiming Harris had missed the deadline to be on the presidential ballot in nine states.

Musk and X did not respond to a request for comment.

Musk has been ramping up to this moment for years. When he purchased Twitter in 2022, he promised free-speech absolutism. After taking over, Musk immediately fired the majority of the company’s policy and trust and safety staff, who were responsible for keeping hateful and misinformative content off the platform. This included those responsible for guiding the platform through contentious elections. As the former employees noted, there is now no one at the company to deal with a flood of election-related misinformation, let alone what Musk himself might spread.

“There’s almost no one left,” the former employee says.

Disinformation and hate speech on X have ballooned on the site, and a recent Pew Research study found that X has taken on a partisan tilt. Since Musk’s takeover, it’s become more popular with Republican users and less popular with Democrats, who are less likely than Republicans to say their views are welcomed at the site.

The actual composition of the site’s user base has changed, with people who had been kicked off the platform for violating Twitter’s community standards being let back on under Musk. Trump himself was famously unbanned, but a wide array of avowed white supremacists, conspiracists, and neo-Nazis also flooded back onto the platform, including far-right pundit Nick Fuentes, QAnon proponent Liz Crokin, conspiracy theorist Alex Jones, and election denier Mike Lindell.

The platform’s new blue check system, which allows anyone willing to purchase a subscription to get a marker that previously confirmed they were who they claimed to be next to their name, has also contributed to the growing misinformation problem. While the system used to be free and reserved for verified public figures, politicians, and journalists, anonymous accounts like @Sprinter99800 and @ShadowofEzra are now able to use the algorithmic boost offered by the subscription model to spread misinformation about the wars in Gaza and Ukraine, respectively. Blue check accounts are, further, incentivized to spread outrageous claims because they can be paid based on how much engagement their posts get.

“He has a very obvious political agenda,” says one former member of Twitter’s policy team. Looking back at the last few years, they referred to Musk’s release of what he dubbed the “Twitter Files,” a cache of internal documents. The documents, according to Musk, revealed the political biases of the platform’s previous leaders—according to others, they showed mundane interactions with researchers and government employees—but also led to the doxing and harassment of former trust and safety employees and misinformation researchers.

Musk has also used the platform to put his thumb on the scale of politics outside the United States.

Last year, after Brazil’s far-right president Jair Bolsonaro lost his bid for reelection, his supporters stormed the country’s legislature, in an echo of January 6, 2021. In April, Musk defied an order from Brazil’s Superior Electoral Court to remove the accounts of far-right actors who, the court said, violated the country’s laws by undermining confidence in the country’s electoral processes. X then released the court’s confidential orders to the Congressional Subcommittee on the Weaponization of the Federal Government, which then made them public. Experts and government officials at the time said the move was a deliberate attempt by a foreign billionaire to undermine the country’s democratic institutions.

While Musk has repeatedly asserted that he took over Twitter to preserve its commitment to free speech, the company has complied with censorship from right-leaning governments. Last year, the company complied with an order from Turkey’s authoritarian government to censor content ahead of the country’s elections and blocked a BBC documentary about India’s right-wing Hindu nationalist prime minister Narendra Modi.

Instances like this, the first former employee tells WIRED, show that Musk is an entirely different actor than other tech CEOs, unbothered by the kinds of laws or norms that could be used to reign in another company. Musk doesn’t appear to be cowed by penalties like fines for spreading misinformation that are meant to keep billionaires and companies in check to protect the public interest.

“Regulation is not written for overtly malicious actors,” says the first former employee. “We don't have good regulation anywhere in the world that thinks about corporate entities like that … and it’s certainly not how we are used to treating a man who owns multiple companies.”

Because Musk’s own politics and priorities appear so clear, even decisions made seemingly without a political agenda can be interpreted as part of one. Last week, the X account for White Dudes for Harris was booted from the platform, causing many supporters of the vice president to wonder if this was Musk’s own political preferences playing out on X in real time. But a third former Twitter trust and safety employee who spoke with WIRED says it appears to be a pretty standard suspension that can happen when someone who has been banned from the platform in the past makes a new account. “Whoever set up the account most likely had an email address, IP address, or phone number that matched an account that had previously been banned on the platform. That would automatically be a penalty.”

The former employee says that the fact that people could not be sure if it was the result of Musk’s politics, or just a good old-fashioned moderation snafu is the real problem: “The fact that we have to ask those questions just shows the trust is gone. The misinformation has won.”

In an interview with the Atlantic, Musk said he would accept the results of the election should Harris win. But whether that will hold true in November is still cause for concern. Last week, after the Venezuelan elections wrapped in what experts said appeared to be a stolen victory for the country’s current president Nicolás Maduro, Musk railed against Maduro on X, even challenging him to a physical fight.

“What does it look like if this same sort of advocacy happens come November or December, in which he really believes that the election has been stolen or the vote counts aren't there?” the former employee says. It’s the same type of question that the former trust and safety teams were asking themselves about Trump during the 2020 presidential election. “It's very eerily kind of the same situation, except it’s the CEO and owner of the platform making those decisions, who also has the final say in content moderation decisions.”