Tag Archives: Elon Musk

The Shutdown

One of my favorite economists, Paul Krugman, has abandoned his New York Times column after 20 plus years. He has, however, continued his daily subscriber letter, which I receive, and in a recent one, he addressed the  embarrassing pre-Christmas clown show that threatened to shut down the government. He titled the essay–quite appropriately–“The Chaos Monkeys Have Already Taken Over the Zoo.” 

In an earlier Times piece, written before passage of the last-ditch, last-minute deal to keep government over, Krugman had written

Speaker Mike Johnson (soon to be ex-speaker?) is scrambling to put a budget deal together to avoid a government shutdown tomorrow. What a Holiday Gift from President Musk and First Laddy Trump. More at The NY Times here.

They couldn’t even wait till January to unleash the chaos. Classic hubris — too bad the country and the world are within the blast radius.

One more thing. Assuming Johnson is unable to remain Speaker in the next Congress, the days and weeks it might take the GOP to select a new ‘leader’ might take them past the deadline to certify the election.

(I hadn’t considered that possibility, and quite probably, neither did the congressional monkeys, aka “the usual suspects.” An inability to certify Trump’s election, brought on by the most MAGA members of the House, would have been..interesting…)

Krugman was far from the only observer who pointed out that the reasons “President Musk” gave for torpedoing the initial bipartisan measure were mostly bogus. His enumeration of the items in the measure he found unacceptable included a number that weren’t actually included in the measure. (I’m sure everyone reading this is shocked by the revelation that Musk is happy to depart from the truth when it serves his purposes…) A number of reports have zeroed in on what was apparently the real reason he wanted to kill the measure.

As the Hill explained,

In a Friday letter to congressional leaders, Rep. Rosa DeLauro (D-Conn.) claimed Musk derailed the deal that would have avoided a government shutdown “in order to protect his wallet and the Chinese Communist Party at the expense of American workers, innovators and businesses.”

The spending agreement released Tuesday included a bipartisan provision to limit and screen U.S. investments in China, among dozens of other proposals attached to the 1,500-page bill.

As the CEO and largest stockholder in Tesla, Musk has extensive business connections to China. The company operates a major manufacturing plant in Shanghai and has sought to build deeper connections with Chinese companies.

Interestingly, although the final bill did not include Trump’s demand to scrap the debt ceiling, it did omit the provision that would have curtailed Musk’s business with China. Musk evidently had more clout with lawmakers than Trump–quite possibly because he has ample resources to fund his threat to primary any legislators who failed to knuckle under.

What is most stunning about this particular “Chaos monkeys” episode is that the entire fiasco was triggered by a man with no official government authority–a man who has never submitted himself to the electorate, who has never received a single vote– yet clearly considers himself a co-President, and just as clearly, intends to use the considerable power of his purse to protect his personal financial interests, if need be, at the expense of the American public’s interests.

Musk is by far the richest of Trump’s proposed governing cabal, but he’s not the only billionaire, nor is he the only one who will bring multiple conflicts of interest to a designated role. The grifter-in-chief proposes to surround himself with other rich men (almost all of his designees are White “Christian” males) who are equally ignorant of government operations and constitutional constraints. They are clearly unconcerned about what policies might be in the national interest. Their first impulses will be to protect their own sources of wealth (or, in the case of RFK, Jr. and Tulsi Gabbard, to impose their loony-tunes worldviews on the country.)

The dictionary defines Kakistocracy as “government by the least suitable or competent citizens of a state,” and Corporatism as economic control by powerful corporate interests.

I think we’re there.

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The Know-Nothing Administration

Data tells us that education levels predict the major divisions among American voters. Educational differences are also playing out in Washington, as Trump assembles a know-nothing cabinet composed of cranks, toadies, various conspiracy theorists and general ignoramuses.

Primary among those ignoramuses is Elon Musk. Musk’s reputation as a “genius” rests almost entirely on Americans’ quixotic tendency to ascribe intelligence to the accumulation of wealth. Musk inherited a fortune, purchased rather than invented the Tesla, and pretty much tanked Twitter. We taxpayers provide much of his income through lucrative contracts with the federal government.

I may be underwhelmed by Musk’s purported brilliance (actually, he isn’t stupid, he’s ignorant, and that’s different) but–like Trump–he himself is anything but modest. He’s proclaimed an intent to use his promised new (illegitimate) “department” to produce savings and government “efficiency.”

Musk and fellow billionaire Vivek Ramaswamy have promised to cut two trillion dollars out of the federal budget–a promise that displays incredible ignorance of what is in that budget, what is and isn’t discretionary, and what would be required to reduce it.

Vox recently explained that, even if Musk and Ramaswamy took an axe to the relatively small portion of the budget that is discretionary, that would save “only” $1.1 trillion. But those cuts would be incredibly painful–and would never make it through Congress:

Let’s suppose that Musk and Ramaswamy decide to really go for it. They’re going to cut non-defense discretionary spending in half, maybe by shutting down all scientific and health research and K–12 school aid. They’re slashing Medicare and Medicaid by a quarter, and they’re eliminating food stamps, ACA credits, and unemployment insurance entirely.

These, to be clear, are all cuts that would require congressional approval and that Musk, Ramaswamy, and Trump could not achieve through executive action alone. Furthermore, they’re cuts that seem politically impossible to push through. For the sake of argument, let’s suppose this is the package.

Doing the math, even this unbelievably ambitious package would amount to a little over $1.1 trillion annually. It’s barely halfway to Musk’s stated goal.

Robert Hubbell, among others, has noted that it isn’t mathematically possible (not to mention politically feasible) to achieve $2 trillion in cuts. A one trillion dollar cut would require “massive cuts to Medicare, Medicaid, unemployment insurance, and subsidies for the Affordable Health Care premiums.” The majority of people hurt by those cuts would be the MAGA folks in Trump’s base, and they’d take effect right before the midterms.

What about Musk’s proposal to save money by firing thousands of federal workers? Again, he displays his ignorance. The federal workforce has remained essentially flat for decades; increases in the number of government workers have occured at the state and local level.

As Hubbell writes, 

The US economy is the largest in the world—by a large margin. Although Musk and Ramaswamy may not like it, the size of the US economy is due in part to the federal government, which creates stable marketplaces and economic conditions for growth.

If you demolish the federal regulatory framework by firing millions of federal employees, we devolve into a kleptocracy—like Russia, which has an economy smaller than that of Brazil. Indeed, Russia’s current GDP is smaller than that of the US before WWII. See World Bank Ranking of GDP 2023….

The myth that the US has a bloated federal bureaucracy is demonstrably false when compared to other developed economies. If Musk and Ramaswamy recommend cutting the US federal workforce by a million jobs, we will have a federal regulatory environment on the same scale as Haiti and El Salvador. That state of affairs might benefit robber barons and tech bros, but it won’t help working-class Americans.

Here’s the takeaway: We will hear an incredible amount of insufferable mansplaining and chest-thumping from Musk and Ramaswamy. But they will soon face the reality that government spending helps the American people (which is the point of having a government) and creates the conditions for a prosperous economy.

Musk and his ilk are just prominent examples of the uninformed population that thinks running a government is no different than running a business. As I explained yesterday, that belief rests on a profound misconception of what government is, and what it is for.

It isn’t just Musk and Ramaswamy. Trump’s entire cabinet is a collection of dunces and conspiracy theorists–from Soviet apologist Tulsi Gabbard to RFK, Jr. and his brain worm. His pick for Treasury Secretary is evidently pro-tariff, but as the New York Times has noted, will have a very uphill battle selling tariffs to a business community that actually understands how they work.

Some of these Trump-world clowns probably believe the earth is flat…..

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Technology And Speech: A Conundrum

Americans have always engaged in disinformation. Political foes have historically disparaged each other; activists of the Left and Right have used pamphlets and newspapers, then radio and television, to spread bile and bigotry. Those of us committed to the principles of free speech have argued that–whatever the damage done by propaganda and lies (Big and small), allowing government to censor the marketplace of ideas would be a greater danger. 

I recently posted a relatively lengthy defense of that belief, which I continue to firmly hold.

Nevertheless, It’s impossible to ignore the fact that today, technology–especially the Internet–has vastly increased the ability to disseminate lies, misinformation, disinformation and propaganda, and I suspect I am not the only free speech purist who worries about the growth of widely-used sources that enable–indeed, invite and encourage– inaccurate, malicious and hateful communication. 

Elon Musk’s takeover of Twitter (now “X”) is a prominent example. Musk dispensed with the site’s previous content moderation policies, invited Trump to return, and recently welcomed back the far-right Austrian who received donations from and communicated with the Christchurch terrorist before the 2019 attack. Since Musk purchased the social media site, such far right users have proliferated.

The founder of the so-called Identitarian Movement, Martin Sellner, who preaches the superiority of European ethnic groups, was banned from Twitter in 2020 under the former management along with dozens of other accounts linked to the movement amid criticism over the platform’s handling of extremist content.

He’s back.

As Max Boot recently wrote in the Washington Post, “X (formerly Twitter) has become a cesspool of hate speech and conspiracy-mongering.” 

The problem became especially acute following Hamas’s Oct. 7 attack on Israel when the platform was flooded with antisemitic and anti-Muslim misinformation. It’s like watching a once-nice neighborhood go to seed, with well-maintained houses turning into ramshackle drug dens.

That deterioration of the neighborhood has been confirmed by organizations tracking digital bias:

The Center for Countering Digital Hate reported a surge of extremist content on X since Musk took over in 2022 and fired most of the platform’s content moderators. The center found tweets decrying “race mixing,” denying the Holocaust and praising Adolf Hitler. The thin-skinned tech mogul responded by filing suit; early indications are that the federal judge hearing the case is skeptical of X’s claims.

The focus of Boot’s article wasn’t on the Free Speech implications of bigotry spewed by widely-used social media platforms, but on the fact that taxpayers are essentially subsidizing this particular cesspool.

What galls me is that, as a taxpayer, I wind up subsidizing X’s megalomaniacal and capricious owner, Elon Musk. His privately held company SpaceX is a major contractor — to the tune of many billions of dollars — for the Defense Department, NASA and the U.S. intelligence community. He is also chief executive of Tesla, which benefits from generous government subsidies and tax credits to the electric-vehicle industry.

Musk needs to decide whether he wants to be the next Donald Trump Jr. (i.e., a major MAGA influencer) or the next James D. Taiclet (the little-known CEO of Lockheed Martin, the country’s largest defense contractor). Currently, Musk is trying to do both, and that’s not sustainable. He is presiding over a fire hose of falsehoods on X about familiar right-wing targets, from undocumented immigrants to “the woke mind virus” to President Biden … while reaping billions from Biden’s administration!

 

Musk is a “front and center” example of the conundrum posed by “Big Tech.” His obvious emotional/mental problems make it tempting to consider him a singular case, but his misuse of X in furtherance of his narcissism is simply a more vivid example of the problem, which is the ability of those who control massive platforms to distort the marketplace of ideas to an extent that has previously been impossible.

 

I have absolutely no idea what can or should be done to counter the threat to democracy, civic peace and reality that is posed by social media platforms and propaganda sites masquerading as “news.” Wiser heads than mine need to fashion regulations that require responsible moderation without infringing upon the genuine exchanges of opinion–even vile opinion– protected by the First Amendment. Figuring out how to walk that line is clearly beyond my pay grade.

 

One thing that government can do, however, is refrain from financing people who, like Elon Musk, are using our tax dollars to create division and foster bigotry. The First Amendment may protect his cesspool from sanctions, but it certainly doesn’t require financial support. As Boot concludes, Musk

 

 can espouse views that many Americans find abhorrent, or he can benefit from public largesse. He can’t do both — at least not indefinitely.

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Someone To Blame

One of the most memorable scenes from any movie I’ve seen was one that occurred toward the conclusion of the 1995 film An American President. During a press conference, the current President (played by Michael Douglas) calls out his opponent–an eerily pre-MAGA character named Bob Rumson–by saying

We have serious problems to solve, and we need serious people to solve them. And whatever your particular problem is, I promise you Bob Rumson is not the least bit interested in solving it. He is interested in two things, and two things only: making you afraid of it, and telling you who’s to blame for it. That, ladies and gentlemen, is how you win elections. You gather a group of middle age, middle class, middle income voters who remember with longing an easier time, and you talk to them about family, and American values and character…

That scene is a vivid example of the way in which art–in this case, film–can illuminate life. Nearly 30 years later, the scene seems eerily prescient. 

In the movie, it was Bob Rumson. Today, it’s Elon Musk.

After Musk purchased Twitter– now renamed X– expressions of bigotry and anti-Semitism on the site increased significantly. Thanks to Musk’s chaotic administration, the number of advertisers and users had already been steadily dwindling, but advertiser departures exploded last week, after Musk endorsed a post blaming “Jewish communities” for pushing “dialectical hatred against whites” and promoting the white supremacist conspiracy theory that “western Jewish populations” are behind the “flooding” of countries with “hordes of minorities.”

Musk tweeted “You have said the actual truth.” 

As a result, a stream of prominent brands halted their advertising. The departures included Disney, Paramount, NBCUniversal, Comcast, Lionsgate and Warner Bros. Discovery, the parent of CNN. Rather than responding to the exodus by apologizing, or by vowing to improve content mediation, Musk doubled down, blaming the Anti-Defamation League–and the Jews–for the platform’s problems and its greatly diminished value.

In true Trump fashion, Musk has sued Media Matters for reporting that company ads often appeared next to anti-Semitic content, asserting that the organization had somehow falsified the data. And Musk is threatening to sue the Anti-Defamation League, for daring to publish research documenting a striking increase in hate on the platform since Musk took it over.

Elon Musk issued a series of statements in which he has blamed secret manipulation by a Jewish organization for the destruction of the X platform, which was once called Twitter. Saying the Anti-Defamation League was the “primary” reason for falling ad revenue at X, Musk first threatened, then later seemed to promise to sue for damages.

That’s right. After months in which Musk has supported racist rants; encouraged hate speech; elevated literal Nazi propaganda; fired every Twitter employee in Brazil on suspicion of being too liberal; fired the entire company press office and the entire company communications department; decimated the team responsible for content moderation; terrified advertisers with chaos, irresponsibility, and perpetuating racism; and thrown away global brand recognition by renaming the whole platform to indulge a personal whim, Musk has put his finger on the real issue.

It’s the Jews.

Shades of Bob Rumson…

Permit me to suggest that the “real issue” with Twitter/X is a man-child with way too much money and an ego that won’t permit him to admit his own inadequacies and mistakes. 

Mmm…sounds familiar.

When you think about it, that clip from An American President applies far more widely than to Musk. It perfectly describes not just Trump, but most contemporary Republican candidates and officeholders. Today’s GOP policy-free “platform” can be entirely summed up by those same two strategies: playing on voters’ fears, and telling those voters who they should blame for whatever troubles them–immigrants, Jews, Blacks. It’s what MAGA is all about.

In Indiana, it’s the modus operandi of posturing incompetents like Todd Rokita, Mike Braun and Jim Banks. 

I guess next year we’ll see if that’s really the way to win elections…..it sure doesn’t seem to be the way to manage a successful social media platform…

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Elon Musk And The Public/Private Dilemma

Alexandra Petri recently had a gloriously snarky opinion piece in the Washington Post,comparing Elon Musk to her toddler. Titled “Things both my toddler and Elon Musk do that are signs of genius, apparently” it included things like “Constantly yelling at people to change things that cannot be changed” and “When presented with slow, patient explanations of why things are not possible, just screams louder;” and “Likes to seize nice things and ruin them because of a fundamental misunderstanding of what they are for.”

And of course, “Wants to be center of attention at all times.”

It’s disturbing enough when a man-child (“man-toddler?”) has enough money to buy and control what had been a significant mode of communication, but its terrifying to discover that this petulant child has the power to interfere in matters of global war and peace. As multiple media outlets have reported, Musk’s SpaceX refused to allow Ukraine to use its Starlink internet services to launch an attack on Russia last September–a decision that undoubtedly prolonged the conflict and benefitted Russia.

Musk has defended his decision as an effort to prevent possible nuclear war. Whatever your opinion of that excuse, or his action, the episode raises a profound question: should a single private citizen–even one less mercurial and self-aggrandizing than Musk– have the power to decide such questions? 

We live in a very weird time. Government evidently gets to decide what I do with my uterus, but not how the U.S. will assist in the defense of its allies….

I know this will come as a shock to several self-satisfied “captains of industry,” but having a lot of money does not necessarily translate into superior knowledge or nuanced understanding. Musk is actually a poster boy for that disconnect–as David French (who spent years as a First Amendment lawyer) recently wrote in the New York Times,

Despite his loud and frequent protestations, Elon Musk may be the worst ambassador for free speech in America. To understand why, it’s necessary to look at X, the website formerly known as Twitter, which he owns and rules over like the generalissimo of a banana republic….

Instead of creating a platform for free speech, Musk created a platform for Musk’s speech — or, more precisely, Musk’s power. First, he has demonstrated that he’s perfectly willing to take action against people or entities that challenge him or challenge X. As my friends at the Foundation for Individual Rights and Expression (where I used to serve as president) have detailed, he has used his authority to suspend accounts, to throttle (or limit the traffic of) competitors and reportedly to boost his own voice.

As French quite accurately notes, rather than making Twitter (now X) into a free speech paradise, Musk has turned it into the generalissimo’s playpen, where the generalissimo’s values shape everything about the place.

X is Musk’s company, and he can set whatever speech rules he wishes. But do not be fooled. When Musk defends his decisions by shouting “free speech,” I’m reminded of the immortal words of Inigo Montoya in the movie “The Princess Bride”: “You keep using that word. I do not think it means what you think it means.” Musk isn’t promoting liberty; he’s using his power to privilege many of the worst voices in American life.

Power and privilege. Those two words are–or should be– at the heart of the public/private distinction. Once again, we come back to that fundamental question: what is government for? What functions are properly left to the private sector–to the individual, to the marketplace, or to the wide variety of nonprofit and voluntary organizations–and which must be exercised by a democratically-elected government? 

Right now, that essential inquiry is mired in a host of very serious concerns about the declining health of democratic decision-making, and the increasingly obvious effort of MAGA Republicans to turn America into an autocratic, White Christian Nationalist state. If they are successful, American government will no longer be legitimate under any definition of that term, and the allocation of power between those privileged by the regime and the rest of us will be moot.

If we do manage to salvage democratic governance–if voters come out in 2024 and deal a sufficiently robust defeat to the MAGA Confederates still fighting the Civil War–we will need to turn our attention to the necessary divisions between public and private power.

Governments can and do make grievous mistakes, but that is no reason to allow individuals–even individuals considerably more mature and informed than Elon Musk–to usurp decision-making in realms that must be subject to public accountability.

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