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Monthly Archives: June 2022
US financial regulators threaten to delist Chinese companies but will Beijing compromise to save their American dream? – ABC News
Posted: June 9, 2022 at 4:52 am
It still feels like yesterday that Jack Ma announced the debut of China's e-commerce giant Alibaba Group at the New York stock exchangein 2014.
The Chinese billionaire invited eight Alibaba customers and employees to ring the bell that has traditionally marked the open and close of trade each day, as a symbol of gratitude to his company's frontline workers and customers.
Those bell-ringers wore matching T-shirts with a quote from Mr Ma printed on the front: "Keep your dream, in case it comes true".
Jack Ma's American dream of being listed on the US stock market has been widely shared by Chinese entrepreneurs over recentdecades.
Currently, there are 261 Chinese companies listed on the New York stock exchange, with a combinedcapital worth approximately $1.9trillion.
But some of them may be about to lose this dream.
In May, the US Securities and Exchange Commission (SEC) announced that more than 80 companies including Chinese e-commerce giant JD.com and video platform Bilibili faced the risk of being delisted.
They joined a growing list of Chinese companies from tech front-runner Baidu to fast food chain Yum China that the SEC says will be expelled from the US capital market in 2024 unless theycomply with new auditing standards over the next two years.
"This is part of the larger context of US concerns about Chinese companies' operations in the United States," said Professor Andrew Walter, who specialises in international finance at the University of Melbourne.
While the SEC warnings are the Biden administration's latest action in the ongoing US-China financial war, the move can be traced back to a financial saga that began two decades ago.
In 2001, the financial world was rocked by a scandal that took down energy giant and Wall Street darling Enron Corp, then widely considered among the largest and most innovative companies in the US.
After it was revealed that Enron had used creative accounting to cover up corporate fraud and corruption, the company filed for bankruptcy, resulting in $US11 billion in shareholder losses.
In response, the US introduced the Sarbanes-Oxley Act in 2002, requiring all publicly listed companies, both domestic and international, to allow US regulators to inspect their audits.
However, for years, China and Hong Kong haverejected requests from the SEC on national security grounds, which has left regulations in a state of limbo for decades.
While the administration of Donald Trump and the ongoing US-China trade war have pushed US authorities to tackle the issue, the straw that broke the camel's back was the fraud perpetrated byLuckin Coffee.
Founded in 2017, the chain launched almost 2,400 coffeehouses across China within two years, and began trading on the Nasdaq in 2019, raising $US645 million through its initial public offering.
It was one of the biggest listings by a mainland Chinese company in the US that year.A rising star, it looked set tocompete with the likes of Starbucks and Costa.
But soon Luckin Coffee was accused of inflating revenue. In 2020, an internal investigation revealed its leadership faked $US310 million in sales for the previous year.
The company has now been delisted by the Nasdaq, and it emerged from bankruptcy proceedings last month. However,its fall has alerted US regulators who had already begun scrutinising Chinese companies.
At the end of 2020, US Congress passed a bill that prevents Chinese companies from listing on the New York stock exchange if they refuse to comply with US auditing processes.
The Biden administration also appointed Gary Gensler as the chair of the SEC, which Professor Walter described as "probably one of the most important Biden administration appointments".
Widely known for his pledge toincrease reporting transparency, Mr Gensler has proposed a mandatory climate risk disclosure for public companies.
"Gensler would probably say, 'Look, what we're doing is really just trying to increase reporting transparency for US investors'," Professor Walter said.
"[And the measures will] reduce concerns that Chinese companies might, in some cases, be hiding information from investors that might create market volatility and bad outcomes for US investors."
Many Chinese corporations may actually be willing to comply with the US standards, according to Jeremy Mark, a non-resident fellow at the Atlantic Council and a former Wall Street Journal reporter.
"Most Chinese companies are quite open to having their books audited," he said."They want to be a listed company in good standing in the United States, largely for the access to capital."
Mr Mark said Chinese entrepreneurs' hunt for US capital could be traced back to the 1990s, when economic reforms and privatisation of state enterprises opened the floodgates for Chinese investors looking for somewhere to grow their money.
Beijing even encouraged corporations to reach out for foreign investments, becausethere was a lack of capital flow in the domestic market.
Today, despite China's rapid economic growth, Chinese entrepreneurs still see Wall Street as their dream land for global reputations and more flexible access to capital.
"[Many Chinese corporations] don't want to just be large Chinese enterprises, they want to be large global enterprises," said James Fok, veteran financial analyst and author of Financial Cold War.
Mr Fok said some Chinese entrepreneurs were also concerned about their private property rights and protections offered by the domestic market, which pushed them to choose listing overseas rather than in China.
However, Beijing has begun tocrack downon billionaires and tech giants for "common prosperity", with the government targeting overseas-listed companies whose wealth it is unable to trace.
China is also worried that allowing the US to audit materials of Chinese companies could be used against Beijing in the next stage of the US-China trade war.
In July 2021, after a meeting with Beijing officials, Tiktok owner ByteDance scrapped its plan to list in the US.Regulators had asked the company to "focus on data security risks".
"So, for all these sorts of reasons, the Chinese [authorities] would prefer to see those companies listed in the domestic market," Mr Fok said.
"It's not necessarily the choice of a private businessman, but it is the desire of the state."
One could expect Beijing totakea firm stance against the US on this issue but that's not happening, yet.
Over the past few weeks, China's financial watchdog said it was willing to change the secrecy laws that prevent US regulators from inspecting Chinese companies listed in New York.
It announced that foreign regulators mightrequest to "investigate" or "inspect" overseas-listed Chinese companies and their auditors.
However, the Atlantic Council's Jeremy Mark said there were still questions about the level of access that China would give to US regulators, as it also signalled it would prefer some Chinese companies to be delisted rather than opening the audit book.
Beijing also encouraged Chinese companies to turn to Hong Kong rather than the US to access foreign capital.
Last week, Didi, known as China's Uber, announced it would delist from the US and relist in Hong Kong, just a year after it made its New York debut.
Mr Fok who served as a senior executive at Hong Kong Exchanges and Clearing for nine years said Hong Kong could give Chinese companies the same access to foreign capital as New York, while insulatingthem from the geopolitical risks they would face in the US.
However, Hong Kong's National Security Law may raise doubts from international investors over the city's future as a global financial hub, according to Professor Walter.
"I think non-Chinese global companies probably see Hong Kong as far less attractive today than they would have five years ago," he said.
"But Chinese companies don't have a lot of choices here."
In a speech at the International Council of Securities Association in May, YJ Fisher, the director of the SEC's Office of International Affairs, stressed that the SEC's inspection of Chineseand Hong Kong companies' audit papers did "not raise national security issues".
Ms Fisher also emphasised the necessity of resolving auditissues with China and Hong Kong to protect US investors with a growing interest in the Chinese market.
She also said time was "running out" to resolve the issues.
"Even if the [US regulators] and Chinese authorities reach an agreement on proceeding with inspections and investigations, we still have a long way to go," she added.
While the Australian SecuritiesExchange(ASX) is also a popular choice for Chinese companies seekingforeign investment, over the years there has been a huge drop from 55 ASX-listed Chinese companies in 2017 to just 15 this year.
A spokesperson said the ASX had tightened its admission rules over the past eight years, and the number of companies being delisted or rejected was "indicative of the steps ASX is taking to ensure standards are kept high".
"Every company listed on ASX, from whichever country they come [from] including from emerging markets, which includes but is not exclusively China must satisfy ASX admission requirements and then meet ongoing compliance obligations," they said in a statement.
Tim Murray co-founder of J Capital described the US-China audit dispute as the new reality that foreign investors, including Australia's, should be aware of.
"In the heyday of the China growth story, everybody was willing to look the other way in terms of compliance to normal standards of reporting and transparency, because everything was growing," he said.
"It's not like that anymore. "
Posted9h ago9 hours agoWed 8 Jun 2022 at 11:43pm, updated6h ago6 hours agoThu 9 Jun 2022 at 1:52am
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What 19 Big Technology Companies Pay Their Employees – Dice Insights
Posted: at 4:52 am
How much do some of the nations largest and most prominent tech companies pay their employees? The data might surprise youthanks to their respective employee mixes and business lines, some of these tech giants might not pay as much as you think.
This data comes from a new Wall Street Journal analysis of median salaries for companies in the S&P 500 (for some inexplicable reason, it excludes Microsoft). Weve isolated tech companies from that overall list; as you can see from the chart below, many pay their employees handsomely:
Hold on, you might say: How can Apple, Amazon, Tesla, and IBM pay their employees so little compared to Facebook/Meta, Twitter, Netflix, and others? In the cases of Apple, Amazon, and Tesla, the answer is a simple one: warehouse, retail, and factory workers. These employees make less than highly compensated technologists, pulling down the companies median salaries in the process.
IBM is a bit harder to explain, since it doesnt have massive retail or manufacturing footprint of these other companies. One possible conclusion is that IBMs consulting and business-services divisions dont pay employees nearly as much as they might earn at other firms (other consulting firms such as Accenture pay similar amounts as IBM, backing up this idea).
By contrast, companies largely filled with technologists and executivessuch as Alphabet/Google, Salesforce and Facebook/Metaoffer extraordinarily high median salaries. Even at companies with lower median pay, its important to remember that technologists with the right mix of skills and experience can earn quite a bit; earlier this year, for example, Amazon raised the maximum base pay for its technologists and other corporate employees to $350,000.
With tech unemployment notably low, and demand for many tech roles so high, technologists everywhere have more leverage to negotiate for the pay and benefits they want. Even if a company cant pay you a Google-level salary, chances are good theyd be willing to talk about other kinds of compensation, including stock options, money for training, and flexible schedules.
Membership has its benefits. Sign up for a free Dice profile, add your resume, discover great career insights and set your tech career in motion. Register now
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Vodafone Mobile Phones Were the Future Once. Now What Happens? – HT Tech
Posted: at 4:52 am
Vodafoneplaced the UKs first cellular phone call. Its CEOwants to keep taking risks even as the companynears its 40th birthday.
At Vodafone Group Plc headquarters in west London, a sign hangs near the office of Chief Executive Officer Nick Read,telling passers-by: Its OK to make mistakes.
Three-and-a-half years into his tenure as CEO, with activist investors and hedge funds on alert, 57-year-old Read deflects media reports of pressure and doesnt actually admit to making any big mistakes himself.My view is every FTSE CEO has pressure, Read said in an interview with Bloomberg.It just comes with the job.
Read has worked at Vodafone for 21 of the companys 38-year existence.Nevertheless, the middle-aged CEO of a middle-aged company says he wants to embrace tech-style risk, eschewing traditional telecoms cautionin a bid to boostreturns on capital.
Vodafones challenges are different, though, from thosefacedby Silicon Valley tech giants. Instead of pivoting to the metaverse, Read has been busy cutting costs,standardizinginternal information technology systems and sellingoff units inNew Zealand and Malta. Hehas also carved out and listed the groups mobile masts operation, aiming to tap into high valuations for infrastructure and to pay down debt.
Vodafone was founded in 1984 and sees itself as a pioneer. Yet as it approaches its fifth decade,many of its stellar achievements are now reminders of a distant past. Its network carried the first cellular telephone call in the UK, on Jan. 1, 1985. The company thenled the rollout of out text-message technology, and was quick to expand globally.
Its sharespeaked during the dotcom boom, giving it amarket capitalization of214 billion in March 2000.Today theylanguishnear 20-year lows, down 20% even since Read started as CEO in Oct.2018.
Vodafonespent the last decade retrenching andis now squeezed between former state monopolies like Deutsche Telekom AG, newer, price-cutting entrants such as Iliad SA, Big Tech and regulators. In the UK, key rival EE, owned by BT Group Plc, ismaking a return on capital, while Vodafone may not be, according to regulator Ofcom.
Against that backdrop activist investorsand hedge funds are now stirring, with some implying that the company could find better leadership.
The only regret Read will admit to is that he did not move faster to standardize technology.He doesnt regret speeches sinceNovemberin whichhe outlined ambitions to strikedeals in the UK, Italy, Spain and Portugal. That surprised even company insiders, who worried their CEO might be weakening Vodafones negotiating position, according to a person familiar with the discussions.
Reads speech increased expectations foroperational mergerswith rivals that could boost returns in Europes saturated and heavily regulated mobile telecoms industry.Sevenmonths on, no deals have materialized andthe background noise is getting louder.
P. Schoenfeld Asset Management LP, a New York hedge fund, was quoted in the Financial Times in Aprilcriticizing managements missed opportunities. Jupiter Corporate Bond Fund also called for faster deals. Cevian Capital AB, Europes biggest activist fund, has built an undisclosedstake in Vodafone and is keen to see deals and less centralization at the company, according to people familiar with the discussions. All three investors declined to comment.
Read remains unapologetic. My view is a lot more about: Do you feel you have a clear vision of where youre going? he said.Sometimes with media, you get a couple of hedge funds with very small positions being very noisy, because theyre event-driven, he added. So its in their interest to stoke up media.
He clarified he wasnt talking about Cevian: To be fair to them, I have yet to see them quoted on anything.
Investors hope that regulators caution which saw deals like Threes bid for O2 blockedin the UK in 2016 is now a thing of the past. The question is why Vodafone hasnt already struck some deals.
In February, it negotiated an agreement betweenVodafone Espana with private-equity owned carrier Masmovil, according to two people familiar with the matter only to see Masmovil and Orange SA announce a merger of their own days later, leaving Read on the sidelines. Vodafone and Masmovil declined to comment, and a representativefor Orange didnt respond to requests for comment.
Read also turned down an 11.3-billion euro Februaryoffer for Vodafone Italia from Iliadand Apax Partners, saying it wasnt in shareholders interests. Talks with CK Hutchison Holdings Ltd about a deal withThree UK have yet to yield results. British landline provider TalkTalk Telecom Group Ltd is another option,but on a recent earnings call, Read implied that a UK mobile deal was a higher priority.
Read says top investors, such as Emirates Telecommunications Group Co. PJSC, now known ase&, are confident.Run byformer colleague Hatem Dowidar, e&bought9.8% of Vodafone shares in May and offered a full-throated endorsement.Abdrn plc, the companys 8th-largest holder with 1.7%, also stands by Read.We are supportive of Nick Reads strategy and in favor of giving him time to execute on it, said Andrew Millington, its head of UK equities.
Read is also working on other options. Buried in Vodafones full-year results presentation earlier this month was a new plan to spin out the companys fast-growing internet-of-things business, now pulling in 900 million euros in revenue. The company also owns Africas huge mobile money service, M-Pesa, and has made heavy investment in 5G networks,which could underpin smart cities and factories.
Read has other complaints to fend off.Centralization of decision-making and technology has left leaders outside of Vodafones UK headquarters less autonomous and accountable, three people familiar with the company said. That couldmakeit harder for outsiders to break up the group, one suggested.Three years after an 18.4 billion-euro deal,Vodafone Deutschlandwhich makes as much profit as the rest of Reads European units put together has neededtechnology upgrades.Once again, though, there are no regrets.
A very small minority of certain people have been trying to argue theres complexity in our model, Read said, saying that Vodafones model offers local autonomy with shared service centers.We never use the word centralize.
Read has occasionally shocked investors. In 2018, weeks into the CEO job, he pledged to keep the dividend, only to cut it six months later. A year agoshares plunged after Read announced unexpected network investments. The company also had to overhaul its board after Olaf Swantee, the former CEO of EE, lasted just two months.
A number of people familiar with Reads management style described him as nice, calling him a good listener anda good leader. However, three people pointed fingers at his top team. They wondered whether Read has surrounded himself with the strongest talent.
Read said his executive committee is excellent, though he did alsosay thatsome are asked to leave across the business. Were a performance culture. So I am nice to an extent.
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Opinion: A lot is riding on the success of the Apple Car, the tech giant’s electric vehicle – The Star Online
Posted: at 4:52 am
They stopped providing EarPods? And the charger? An Apple Pencil costs how much?
Its a running joke that every year, Apple charges more and more for less and less. And while its fun to scoff as the cost of a new iPhone inches up each year, many of us know that we will continue to buy Apple products.
There are myriad reasons why we do, such as Apples beautiful and simple design, top-of-the-line specifications or premium branding. But an undeniably critical component to Apples dominance and its ability to keep users has been its ecosystem.
Today, the tech powerhouses line-up of devices, services and unifying software serves as the most comprehensive and dominant ecosystem of the 21st century. Apple is very much aware of a consumers cost of leaving it, as well as how closely the brands products work together within it. It is why the company doesnt worry when you laugh at the new iPhone price, complain about a US$129 (RM419 locally) Apple Pencil or rant about its omission of chargers and earbuds; very few people will actually leave its walled garden.
However, as will become increasingly clear as the decade progresses, there is a new addition to the tech ecosystem the electric vehicle, or EV. Cars are becoming robots on wheels, differentiated increasingly by software instead of traditional car metrics. Eventually, most EVs will have great range and performance at affordable prices. As we approach autonomous driving, people will focus less on the driving experience and more on what they can do, entertainment-wise or productivity-wise, while being robotically chauffeured from point A to B. In 2030, consumers will care more about what apps are available in their cars than the cars zero-to-60 mph time.
It is in this sense that the need for the upcoming Apple Car to be successful is greater than it seems. A failure to offer a great EV would leave Apples once-complete product ecosystem with a dangerous hole one that top EV manufacturers could capitalise on by entering the smartphone industry and beyond. The Apple Car is not only a major growth prospect; it may also be critical to the survival of Apples entire business.
When software is a critical aspect of a product, as will be the case with EVs, sharing the same operating system with other products can greatly improve a users experience. This practicality is a major reason why people buy Apple products today, but if Apple cannot deliver a great EV, it loses this competitive advantage. The longer the tech giant takes to do so, the more consumers may be tempted to do the unthinkable and leave Apple for more complete ecosystems ones with great cars and phones that were designed for each other.
Crucially for Apples business, the iPhone is the gateway device into the Apple ecosystem. If a consumer chooses a competitors phone over an iPhone, Apple not only loses a phone sale but also potential MacBook, AirPods and Apple Watch sales, too.
To some extent, the threat of EV companies infiltrating Apples kingdom of smartphones is self-induced. Apples reputation for technological brilliance and its access to exorbitant amounts of capital and talent suggest the Apple Car will be a highly competitive EV. But most importantly for EV competitors, the Apple Car will integrate seamlessly into the Apple ecosystem. Apple will be sure to make the car highly appealing for users to unlock synergies between the Apple Car and other Apple products.
If by 2025 an (Apple Car) is released and 60% or more of NIOs users use Apple phones, NIO has no defence at all. If NIO doesnt do something today to prepare, its not going to be fun at that point, said William Li, CEO of NIO, one of Chinas premium EV brands.
Put simply, even if EV companies are able to match Apple or outperform it in an EV versus EV battle, consumers may still be highly incentivised to choose the Apple Car due to the convenience of having both a car and phone in the same ecosystem. An iPhone and Samsung Galaxy may have similar specs, but if you own a MacBook and AirPods along with the rest of your family, the choice becomes pretty easy.
Although this is an incredible competitive advantage that Apple should tap into, the danger for Apple is that EV companies have time.
The victors of the EV age will be companies that can provide world-class personal devices (smartphones, laptops, etc) and EVs at scale first. That is to say, in the same way that Apple has already mastered the first half of the pie with its product lineup today, soon there will be multiple EV companies selling millions of EVs, dominating the second half. Its a race to the top, and the race is closer than one might think.
Although the Apple Car is slated for release in 2025, from there, Apple will still need to scale rapidly and reach volume production. EV startups struggles in the first quarter of 2022 have highlighted the difficulties of transitioning from creating an amazing EV prototype to pumping out millions of them a year. Last quarter, Rivian and Lucid produced 2,553 and 700 cars, respectively. More mature manufacturers include XPeng, which has cumulatively delivered more than 100,000 cars in four years, and Polestar with nearly 40,000 in two years. In addition, some EV manufacturers are highly technology-focused, already designing their own chips, operating systems and software. They would not be starting from zero if they decided to enter the smartphone industry.
The EV will be the next integral piece of tech in our daily lives, and therefore Apple must make sure it offers a world-class model soon and at scale. If not, it risks weakening its overall ecosystem and loosening its grip on its loyal customers. Chicago Tribune/Tribune News Service
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Immigration | Libertarian Party
Posted: at 4:50 am
Libertarians believe that people should be able to travel freely as long as they are peaceful. We welcome immigrants who come seeking a better life. The vast majority of immigrants are very peaceful and highly productive.
Indeed, the United States is a country of immigrants, of all backgrounds and walks of lifesome families have just been here for more generations than others. Newcomers bring great vitality to our society.
A trulyfree market requires the free movement of people, not justproductsand ideas.
Whether theyare from India or Mexico, whether they have advanced degrees or very little education, immigrants have one great thing in common: they bravely left their familiar surroundings in search of a better life. Many are fleeing extreme poverty and violence and are searching for afree and safe place to try to build their lives.We respect and admire their courage and are proud that they see the United States as a placeof freedom, stability, and prosperity.
Of course, if someone has a record of violence, credible plans for violence, or acts violently, then Libertarianssupport blocking their entry, deporting, and/or prosecuting and imprisoning them, depending on the offense.
Libertarians do not support classifying undocumented immigrants as criminals. Our current immigration system is an embarrassment. People who would like to follow the legal procedures are unable to because these procedures are so complex and expensive and lengthy. If Americanswant immigrants to enter through legal channels, we need to make those channels fair, reasonable, and accessible.
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After poll workers turned her away, 82-year-old woman goes to court to get her vote counted – New Jersey Globe | New Jersey Politics
Posted: at 4:50 am
When an 82-year-old woman showed up to vote at her polling place in Manalapan today, poll workers turned her away. They said she could not vote as a Republican because shes on the rolls as Libertarian.
But Ann P. Ciaccio wasnt going to be disenfranchised without a fight, so she went to court and asked a judge to allow her to cast her vote.
Records show that Ciaccio registered as a member of the Libertarian Party in August 2020 while applying for identification at the Motor Vehicles Commission.
Ciaccio said she had no recollection of registering as a Libertarian and never intended to affiliate with that party. She testified that she was not seeking to perpetrate any fraud, but rather to protect her right to vote.
Superior Court Judge Mara Zazzali-Hogan allowed Ciaccio to vote by provisional ballot, and finding her testimony to be credible, ordered her provisional ballot to be counted and that her party affiliation revert to her prior registration as a Republican.
The right to vote would be empty indeed if it did not include the right of choice for whom to vote, Zazzali-Hogan said.
In July 2020, more than a month before Ciaccios issue occurred, the state acknowledged that a computer glitch at motor vehicles was responsible for some voters being assigned the wrong party identification.
Minor party registration had increased 2169% between 2016 and 2020.
New Jerseys 2018 Motor Voter law automatically registers any eligible voter conducting a transaction at a state motor vehicle agency, unless they specifically opt-out.
The prompt refers to a screen allows voter to select a party affiliation: Democratic, Republican, Unaffiliated or other. If the choice is other, the voter is taken to a new screen that offers a choice of seven third-party options: Green, Libertarian, N.J. Conservative, Natural Law, Reform, Socialist or U.S. Constitution.
The design flaw is that voters must pick one of those seven parties; there is no way to complete the motor vehicle transaction without doing so.
The now-defunct Natural Law Party, which hasnt run a candidate in New Jersey in 21 years, has seen their voter registration jump from 396 voters in June 2016 to 7,019 in 2020.
Among the voters registered with the Natural Law Party was a New Jersey woman who voted in 13 of 18 Democratic primaries but found that election officials changed her party affiliation in 2018 without her knowledge after a visit to a motor vehicle agency.
The Reform Party of New Jersey was founded in 1995 as a vehicle for Ross Perots independent presidential campaign, has grown from 146 members to 1,987 now, even though the organization disbanded more than 17 years ago.
Records show that a lopsided number of new minor political party registrants have come by way of the Motor Vehicle Commission customer service experience.
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Supreme Court Rejects Oakland Couple’s Case Opposing Tenant Payouts, In Win For Tenants’ Rights – SFist
Posted: at 4:50 am
The U.S. Supreme Court has denied review for a case brought by an Oakland couple regarding their owner move-in eviction, in a blow to all landlords who want to legally challenge city requirements regarding tenant buyouts in no-fault evictions.
The real estate lobby and landlords in Bay Area cities that have strict rules about tenant relocation payments were closely watching this case, which dates back to 2018. Landlords Lyndsey and Sharon Ballinger, who were both enlisted in the Air Force when they moved out of their Oakland home in order to be transferred to Washington, D.C. in 2015, came back in late 2018 to find that they could not just politely ask their tenants to leave. They were required under Oakland law to pay $6,582 in relocation expenses to the tenants, which they paid, but they then sued the city over what they considered illegal government seizure of property.
Libertarian activists nationwide, and real estate interests, saw this as a good case to run up the chain in the hopes of invalidating pro-tenant laws like this, the likes of which have been on the books in San Francisco, Berkeley, San Jose, and Los Angeles for years but Oakland's law only took effect in 2018. The libertarian-leaning Pacific Legal Foundation took on the case.
In 2019, a federal judge ruled against the Ballingers, saying that the "[Oakland] City Councils legislative purpose, to promote community stability and help tenants avoid displacement and high moving costs, was a legitimate one."
They appealed the case to the Ninth Circuit, which ruled against them in February. "The Ballingers voluntarily chose to lease their property and to evict under the ordinance conduct that required them to pay the relocation fee," wrote Trump-appointed Judge Ryan Nelson in the 3-0 ruling. Nelson further wrote that the Oakland ordinance was not an illegal government seizure of money or property, but was a standard "regulation of the landlord-tenant relationship," which the Supreme Court had consistently upheld. Cities are permitted to charge taxes and fees to property owners for various reasons, including for things like hazardous waste cleanup.
And as the Chronicle reports, the Supreme Court has essentially concurred, though without any written decision or evidence of dissent.
The Pacific Legals Foundation has tried to set this up as a conflict between two hard-working members of the military and their former tenants, who were apparently tech workers.
"The Ballingers are disappointed that the court failed to recognize that the Oakland law forcing them to pay their software industry tenants $6,500 before they could re-occupy their own home, in accordance with the terms of lease executed before the law was even enacted, is unconstitutional," the foundation said in a comment after the Ninth Circuit ruling four months ago.
But tenants' rights advocates argue that such laws are necessary especially in places like the Bay Area with extremely high rents.
Oakland City Attorney Barbara Parker said, in response to the Supreme Court's denial, that "the modest relocation assistance landlords must provide to tenants who are displaced, by no fault of their own, in an owner move-in eviction, provides critical support for those facing unanticipated moving expenses and other relocation costs," and can help tenants avoid homelessness. Parker previously has cited the fact that many displaced tenants lose the rent-control protection they may have had for years, and they face a rental market with exorbitantly higher rents than they were paying, leading to potential displacement out of their community altogether.
J. David Breemer of the Pacific Legal Foundation said in a statement, per the Chronicle, that the Ballingers are disappointed but they hope the Supreme Court, in a future case, "will ultimately agree that rental owners are entitled to real constitutional protection when government requires them to pay off tenants before moving back into their own home."
Previously: Oakland Landlords Lose Case Over Paying Tenants $6,500 To Leave
Photo: Ian Hutchinson
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What If America Had Six Political Parties? – In These Times
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In his 1963 book The Deadlock of Democracy, political historian James MacGregor Burns offered anovel suggestion. Then as now, most academics agreed that Americas party system was an unusually stable one. Ever since the Civil War era, when the election of Abraham Lincoln helped to consolidate the dominance of two major political parties, Republicans and Democrats had ruled with relatively little outside contestation. But Burns saw things differently. America did not have two political parties, he argued, butfour.
In Burnss formulation, each of the major parties was split into two branchesa congressional wing and a presidential wingand there could be significant tensions between the two. Today, the specific division that Burns highlighted has been largely forgotten by history. But his approach of surveying American politics by dividing it up into factions more nuanced than Democrat and Republican has been much more resilient. For example, in 2021, author and journalist George Packer published abook arguing that the nations politics are not driven by division between two groupsliberals and conservativesbut rather by conflict between four tribes: alibertarian Free America, anationalistic Real America, atechnocratic Smart America, and aprogressive-minded JustAmerica.
In creating such aclassification, Packer stands in acrowded field. Since Burnss time, aplethora of columnists and commentators have followed in the historians footsteps, dividing the electorate into rival blocs and asking the provocative question: What if America did not have two political parties, but three? Or four? Or six? What if this were not ahypothetical scenario, but rather areflection of our currentreality?
Whether we like it or not, Americas established two-party order shows little sign of being replaced in the near future. But it can still be valuable to examine how the voting blocs that exist in U.S. politics might align if we were in, say, Germany, Spain or New Zealand. Instead of simply classifying voters as Democrats or Republicans and treating the identity of these parties as static, we can examine the shifting factions that have contentiously vied for control within each party. This way of looking at political factions is more than an interesting thought experiment. For organizers, it can allow for better strategic decision-making, yielding new insights into influencing other groups, building coalitionsand winning realpower.
Breaking down multi-partyAmerica
Of the many efforts to divide the American body politic into groupings thatin another contextmight be cohesive enough to function as independent political parties, perhaps the most long-standing has been that of the Pew Research Center. Since 1987, Pew has gathered survey data and released areport approximately every five years that seeks to look at internal divisions within both the Republican and Democratic coalitions. The original report, written in the waning days of the Cold War, said that, In 1987, the conventional labels of liberal and conservative are about as relevant as the words Whig and Federalist. The report argued that these expressions have not only lost much of their traditional meaning, they do not even remotely come close to defining the nature of American publicopinion.
To more actively characterize the divisions among the U.S. public, Pews researchers identified nine basic values and orientations that served to motivate voters and divide people into groups. These were: religious faith, tolerance, social justice, militant anti-Communism, alienation (or the belief that the American system does not work for oneself), American exceptionalism, financial pressure, attitudes towards government, and attitudes towards corporations. Ask someone about these issues, the surveys logic went, and you could find their true politicaltribe.
Over the years, the cleavages highlighted in Pews political typologies have shifted somewhatfear of Soviet Communism, for example, has been supplanted by concerns about immigration as adriver of political behavior. But the overall approach of breaking the American public into subgroups based on their attitudes toward key issues has remained constant over eight reports spanning more than three decades. Others have also joined Pew in creating like-minded typologiesamong the more detailed of which are from the right-leaning Virginia-based think tank Echelon Insights and progressive political scientist Lee Drutman.
So how do Republicans and Democrats breakdown?
With regard to those on the right wing of the political spectrum, the very first Pew report contended that The Republican Party has two distinct groups: the Enterprisers, whose more traditional form of Republicanism is driven by free enterprise economic concerns, and the Moralists, an equally large, less affluent and more populist group driven by moral issues and Militant anti-communism. Thirty-five years later, such adivision may still be valid. At the same time, Drutman, alecturer at Johns Hopkins University and asenior fellow at New America, has offered some updates for the current political climate. He believes that, if operating in amulti-party system, Republicans would probably split into three: acenter-right Reform Conservative Party (think Marco Rubio), aconsistently conservative Christian Republican Party (think Cruz), and apopulist-nationalist America First Party (think Trump). He also allows that Maybe asmall Libertarian Party would win someseats.
Pews recent surveys further draw out some of the fault lines. The most business-minded Republicans, which in 2017 Pew called New Era Enterprisers, demand aggressive tax cuts and deregulation, but they may be open to immigration and tolerant when it comes to same-sex marriage. They are relatively cosmopolitan and largely internationalist, supportive of government efforts to advance corporate-led globalization. These well-off conservatives stand in contrast with another group, dubbed the Populist Right in the 2021 survey, which is most likely to find its ranks based in rural areas. Its members are rabidly anti-immigrant, show significant resentment toward banks and corporate elites, and rail against free trade treaties. Athird group, Faith and Flag Conservatives are older and overwhelmingly Christian. Diverging from the populists, they generally view the U.S. economic system as fair. Instead, they are driven by the culture war. Seeing themselves in an electoral battle against abortionists, homosexuals, and radical feminists, they have never met a Dont Say Gay bill they didntlike.
The fact that New Era Enterprisers, the Populist Right, and Faith and Flag Conservatives have been able to hold together within the Republican Party coalition is remarkableand sometimes tenuous. The Tea Partys challenges to incumbents they dubbed RINOs, or Republican in name only, illustrates that the coexistence has not always been peaceful. As for points of unity, Pew noted in 2021 that the factions are fairly aligned in beliefs about race: the groups consistently rebut the idea that white people benefit from advantages in society that Black people dont have and largely contend that increased public attention to the history of slavery and racism in America isnegative.
With regard to the political left, the Democratic coalition contains divisions of its own. When asked ahead of the 2020 presidential primaries about the prospect of former Vice President Joe Biden winning the Democratic Party nomination, Rep. Alexandria Ocasio-Cortez (DN.Y.) memorably groaned. Oh God, she remarked to New York magazine, In any other country, Joe Biden and Iwould not be in the same party, but in America, weare.
A variety of political analysts have backed Ocasio-Cortezs sentiment. In a2019 studyentitled What if the U.S. Were aMulti-Party Democracy?Echelon Insights imagined the Democrats splitting into three distinct groups in aEuropean-style party system, with its members divided between the Acela, Green, and Labor parties. The neoliberal Acela Party would be oriented toward business-aligned centrists. In the studys words, it would aim to Advance social progress including womens rights and LGBTQ rights, work with other countries through free trade and diplomacy, cut the deficit, and reform capitalism with sensibleregulation.
Progressives on the left end of the Democratic coalition would hardly find this to be an attractive platform. Instead, Echelon predicted that they would join a Green Party led by Ocasio-Cortez and other members of The Squad. This party would seek to pass aGreen New Deal to build acarbon-free economy with jobs for all, break up big corporations, end systemic inequality, and promote social and economicjustice.
Between these two poles would fall most traditional Democrats. Echelon envisioned that abloc of people possibly more than twice as large as each of the other groupings might join aEuropean-style Labor Party. This party would put the middle class first, pass universal health insurance, strengthen labor unions, and raise taxes on the wealthy to support programs for those less welloff.
Members of the hypothetical Acela, Labor, and Green parties might actually agree in their diagnosis of many problems, and yet disagree on the solutions. Pew argues that, within the Democratic coalition, intensity of belief is often more important than cleavages based around issueswith mainstream liberals being content with modest reforms and younger radicals believing that much more drastic change is needed. In amulti-party system, this dynamic might force these parties to work in coalition, even as they remain at odds about what specific actions the state shouldtake.
The value of understandingfactions
Not all attempts to think about the United States as having amulti-party system are driven by the same motives. While some political observers are merely launching what if? conversations, other advocates are pushing for America to fundamentally revise its election lawsan improbable goal given the strong incentive the two dominant parties have to maintain theirnear-monopolies.
So, if we accept that electoral structures are unlikely to significantly transform anytime soon, why is it useful to look at various efforts to think of America as amulti-party system?
First, it allows us to better understand what the Democratic and Republican parties actually are. Instead of seeing the two major parties as ideologically well-defined groups with stable sets of beliefs, we can view them as fractiouscoalitions.
Various legal structures, electoral rules and political norms have created asituation in the United States in which forming new parties is difficult. Those outsider parties that do form tend to have limited success. Therefore, competing groups often instead seek influence within the dominant parties, which end up being big-tent entities that try to keep many constituencies together under the same roof. Inside the tent, factions make uncomfortable truces in order to create majorities that can hand them ashare ofpower.
While political conflict in Europe often is expressed in arguments between different parties, in the United States, we are just as likely to see tensions playing out as arguments within the major parties. The Democrats and Republicans contain subgroups that rise and fall over time, and with their ascent or decline, these factions change the demographics and ideologies of the parties. Winning power requires thinking about how your faction can become dominant. As organizer Alexandra Flores-Quilty put it in arecent report for Momentum, Political parties are not monoliths. They are open terrains of conflict andstruggle.
At several key junctures in the past centuryincluding during the New Deal, and the emergence of the religious right in the 1970s and 80swhat it has meant to be aRepublican or Democrat has fundamentally altered. Attention to rising and falling factions allow for insight into how major realignments happen within mainstreampolitics.
Thinking about America in amulti-party context can be useful particularly for those on the political left. The landscape of political blocs illustrates how, even if the left had its own party that was more ideologically coherent than the Democrats, it would still have to deal with the problems of interacting with otherfactions.
Disgusted with both Democrats and Republicans, advocates of third parties often promote afresh party infrastructure as apanacea. But the creation of anew party does not solve every political problemit only introduces new sets of problems that then must be resolved. Because groups of people with different beliefs will not simply disappear, even those pursuing athird-party strategy must be attentive to fault lines within the electorate. They will need to consider which factions can be peeled off from the existing parties, and what narratives they might use to unite disparate groups. When the traditional parties try to win back their members by co-opting some of the third partys issues and exploiting divisions in their ranks, they will need to find ways torespond.
Questions of coalitions also remain. Athird party might have the advantage of amore disciplined and principled ideological identity, but purity only goes so far: European parties must constantly consider what groups they are willing to join in alliances with, and which they would never join. They must decide whether they might be willing to serve as apartner in agoverning coalition led by others, or whether they want to stay on the outside. If they do opt to go inside, they must consider what gains it allows them to secure, and what it costs them in terms of principles and their political appeal. As a2020 headline in the Irish Times observed, Serving in coalition government can be bad for junior partners health. On the other hand, being perpetually excluded from power altogether can lead aparty to lose followers and to grow ever more insular andirrelevant.
These considerations do not pertain only to hypothetical party coalitions. Many observers have contended that, within the current Democratic Party coalition, progressives can be seen as ajunior partner in just such agovernment. Those who would ultimately like to see this faction form its own party, as well as those seeking to make it adominant force within abigger Democratic tent, must deal with many of the same strategicquestions.
In 2019, Waleed Shahid, aspokesperson for Justice Democrats, agroup that backs progressive Democratic primary challenges, told Politico, There is going to be awar within the party. We are going to lean into it. Nearly adecade before, Tea Party advocates sought to reshape the Republican Party with RINO hunts that took down figures as prominent as former House Majority Leader Eric Cantor (RVa.). In each case, the insurgents in question might have more easily created new parties under adifferent political system. But in America, these factional battles have played out under the cover of what might look from the outside like aplacid and stable two-partyorder.
In this respect, the type of thinking encouraged by James MacGregor Burns nearly 60years ago has grown in importance not only for those who want to understand the rifts driving American politicsbut also those who seek to make the most of the opportunities theypresent.
Research assistance provided by CelestePepitone-Nahas.
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Wausau election roundup: 23rd and 29th state Senate seats up for grabs this fall – Wausau Daily Herald
Posted: at 4:50 am
WAUSAU Open state Senate seats will dominate local elections in the Marathon County area this fall.
Decisions by Republican state Senate incumbents Kathy Bernierand Jerry Petrowskito not seek reelection will set up primary elections on Aug. 9.
Three Republicans will compete to replace Bernier in the 23rd Senate District. The winner of the primary will also win the seat in November because no Democrat filed to run for the seat.
Meanwhile, the winner of a three-way Republican primary to replacePetrowski in the 29th Senate District will face Democrat Robert Look.
Here are the races for the Marathon County area.An (*) indicates a race that will require a primary; (i) denotes the incumbent.
Incumbent Kathy Bernier, R-Chippewa Falls, is not seeking reelection.
Republicans*: Brian Westrate, Fall Creek; Sandra Scholz, Chippewa Falls; Jesse James, Altoona
Challengers: None
Incumbent Jerry Petrowski, R-Stettin, is not seeking reelection.
Republicans*: Brent Jacobson, Mosinee; Jon Kaiser, Ladysmith; Cory Tomczyk, Mosinee
Democratic: Robert Look, Rothschild
Republican: Calvin Callahan (i), Tomahawk
Independent:Todd Frederick, Merrill
Republican: Donna M. Rozar (i), Marshfield
Democratic:Lisa Boero, Marshfield
Republican: Pat Snyder (i), Schofield
Democratic: Kristin Conway, Schofield
Republican: John Spiros (i), Marshfield
Challengers: None
Republicans: James W. Edming (i), Glen Flora; Michael Bub, Medford
Democratic:Elizabeth Riley, Hayward
Libertarian: Wade A. Mueller, Athens, still pending state approval
Independent, Libertarian: Tom Rasmussen, Medford, still pending state approval
Republicans*: Kelly Schremp (i), Benjamin Seidlerand Pam Van Ooyen.
Incumbent Sheriff Scott Parks is not seeking reelection. Parks endorsed his chief deputy, Chad Billeb, in announcing his decision last summer.
Republican: Chad Billeb
Challengers: None
MORE NEWS: New plans for the Wausau Center mall site include apartments, restaurants and small retail
MORE NEWS: Wausau Streetwise: A Taste of Manila sells West Side Tasty Treat building, Cobblestone Hotel breaks ground in Mosinee
Contact reporter Alan Hovorka at 715-345-2252 or ahovorka@gannett.com.Follow him on Twitter at @ajhovorka.
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Why Understanding This ’60s Sci-Fi Novel Is Key To Understanding Elon Musk The Wire Science – The Wire Science
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Elon Musk at the opening ceremony of a new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Photo: Patrick Pleul/Reuters
Elon Musk styles himself as a character out of science fiction, posing as an ingenious inventor who will send a crewed mission to Mars by 2029 or imagining himself as Isaac Asimovs Hari Seldon, a farseeing visionary planning ahead centuries to protect the human species from existential threats. Even his geeky humour seems inspired by his love for Douglas Adamss Hitchhikers Guide to the Galaxy.
But while he may take inspiration from science fiction, as Jill Lepore has observed, hes a bad reader of the genre. He idolises Kim Stanley Robinson and Iain M. Banks while ignoring their socialist politics, and he overlooks major speculative traditions such as feminist and Afrofuturist science fiction. Like many Silicon Valley CEOs, he primarily sees science fiction as a repository of cool inventions waiting to be created.
Musk engages with most science fiction in a superficial manner, but he is a careful reader of one author: Robert A. Heinlein. He named Heinleins The Moon Is a Harsh Mistress from 1966 as one of his favourite novels. The Moon Is a Harsh Mistress is a libertarian classic second only to Ayn Rands Atlas Shrugged in its propaganda value for neoliberal capitalism. It inspired the creation of the Heinlein Prize for Accomplishments in Commercial Space Activities, which Musk won in 2011. (Jeff Bezos is another recent winner.)
The Moon Is a Harsh Mistress popularised the motto Theres no such thing as a free lunch, often used by defenders of capitalism and opponents of progressive taxation and social programmes. Its about a lunar colony that frees itself, via advanced and cleverly applied technology, from the resource-sucking parasitism of Earth and its welfare dependents. In this instance, it appears that Musk correctly caught the authors drift.
No such thing as a free lunch
Heinlein filled his fiction with loudmouthed men who claim to be accomplished polymaths. They boss everyone around, make decisions on a whim and ignore advice regardless of the consequences. In other words, they act just like the CEO of Tesla, Inc. Likewise, Musk often attracts investors through publicity stunts rather than proven science and engineering, a self-marketing strategy that puts him, as Colby Cosh has pointed out, in the same dubious company as Heinleins space entrepreneur D.D. Harriman in his story The Man Who Sold The Moon.
But Heinlein wasnt in the business of criticising free-market capitalism far from it. The Moon Is a Harsh Mistress depicts a Moon colony forced by the centralised Lunar Authority to ship food to Earth where it goes to feed starving people in places like India. The lunar citizens, or Loonies, revolt against the state monopoly and establish a society characterised by free markets and minimal government. The Loonies welcome the Malthusian catastrophe that will follow their withdrawal of nutritional assistance from Earth because they believe population collapse will ultimately make the welfare dependents down there more efficient people and better fed in the long run.
In addition to basic libertarianism, the novel promotes what Evgeny Morozov would call technological solutionism, the belief that every social or political problem can be solved with the right technical fix. This ideologys roots go back to the 1930s technocracy movement, which, as Lepore points out, numbered Musks grandfather among its adherents. Musk has taken up this legacy, promoting the electric car as the solution to climate change. In Musks view, private innovation rather than state intervention or activist politics will save the world.
The Moon Is a Harsh Mistress follows the same mindset. Although the Loonies advocate libertarian principles we learn that the most basic human right is the right to bargain in a free marketplace these prove secondary to the practical problem that Earth is draining Lunas water and other resources at a rate they predict will result in mass starvation on the Moon.
Their solution to this problem touts itself as equally scientific. In the book we learn that an insurrectionary group is no different from an electric motor: it must be designed by experts with function in mind. The Loonies revolutionary conspiracy decides that revolutions are not won by enlisting the masses. Revolution is a science only a few are competent to practice. It depends on correct organisation and, above all, on communications.
Acting on this principle, one of the co-conspirators, Mannie the computer technician, designs their clandestine cell system like a computer diagram or neural network, mapping out how information will flow between revolutionists. They determine the best way of organising a cadre not through democratic deliberation or practical experience but through cybernetic principles.
Mannies disinterest in the messy business of political persuasion is a strength, not a weakness, because it allows him to see people as mere nodes in the network. Indeed, Mannys narration throughout the novel uses engineering terms to describe human beings and social interactions. He describes one woman as [s]elf-correcting, like a machine with proper negative feedback. Mannie, who boasts a cyborg arm, treats others as mechanisms in need of tinkering. Musks brain-machine interface company, Neuralink, attempts to operationalise this idea.
Also read: Elon Musk Thinks Neuralink Could Merge Humans With AI Neuroscience Says Wait
For Mannie and his co-conspirators, democratic input from the revolutions mass base is noise that can only interfere with the signals transmitted from the elite leadership outward to their interconnected web of subordinates. Even when it comes time to establish a constitution for the Luna Free State, the conspirators use clever procedural tricks to do an end run around everyone in the congress who is not a member of their clique. Smart individuals always win out over mass democracy in Heinleins fiction and thats a good thing.
The novel takes solutionism to the extreme when Mannie enlists the help of a sentient supercomputer named Mike to lead the overthrow of Earths colonial government on Luna. Anticipating the exuberance of the dot-com era, Heinlein suggests that a computer can foment change better than any movement or organisation. Mikes revolutionary tactics reflect the novels obsession with communications: much of the book is devoted to the conspiracys attempts to shift public opinion against the Lunar Authority and sow confusion among the governments ranks through hacking and media campaigns.
Like the keyboard warriors of our present moment the hyperonline Musk among them Heinleins revolutionary elite hope to change society by manipulating information.
When revolutionary war breaks out, Mikes technical superiority emerges as the deciding factor. Using electromagnetic catapults, the supercomputer hurls rocks at Earth that impact with the force of atomic explosions. The Federated Nations of Earth are forced to grant their lunar colonies independence after this calculated show of force. In the end, the Loonies achieve political emancipation thanks to a gadget.
Markets and machines
These ideas would later feed into what Richard Barbrook and Andy Cameron call the Californian ideology, a combination of techno-utopianism and economic libertarianism espoused by digital artisans such as software engineers working in Silicon Valley. As Barbrook and Cameron note, the Californian ideologys evangelists in the 1990s tended to be science-fiction fans who loved Heinlein and fancied themselves countercultural rebels bringing about a golden age of freedom by building the electronic marketplace. They believed that once unleashed from physical as well as governmental constraints, the free market would produce new technologies to address every possible problem or need.
Even more fundamentally, The Moon Is a Harsh Mistress reflects a prevailing dogma that promotes cybernetics as the key to understanding the universe. Under this belief system, everything from markets to ecosystems appear as information processors operating based on feedback mechanisms. Like a thermostat, they respond to changing circumstances without conscious human control. Because the economy is a self-regulating system too complex for anyone to understand let alone steer, the Californian ideologists suggest, it should be insulated from democratic interference by a global legal order developed by neoliberal experts.
Musk has immersed himself in this ideology since his involvement with PayPal in the 1990s, and so it makes sense that he would be drawn to The Moon Is a Harsh Mistress. Hes so mired in this way of thinking that he entertains the idea that all of reality is a computer simulation. In many ways, Musk models himself on Mannie the computer technician, the wisecracking rebel who only wants the government to get out of his way so he can make things work.
When Musk encounters traffic congestion, he doesnt see it as a failure of urban planning or a problem following from underinvestment in mass transit. Instead, he sees it as an opportunity to build a hyperloop. His solution to everything is an invention developed and marketed by rogue geniuses in the private sector. His faith in technofixes is so great that he imagines machines as potential overlords waiting to take over. There is more than a hint of Mike in his fear of an impending robot apocalypse.
Even his efforts to acquire Twitter and strip it of content restrictions seem to be motivated by the same ideology. Fred Turner argues that Musks opposition to content moderation stems from a belief that information wants to be free. When speech counts as data rather than dialogue, it becomes impossible to see why hate speech might be harmful.
Musks belief system rules out the idea that society is riven by antagonisms, least of all class struggle. He will always see problems like climate disaster as purely technical rather than derived from the profit-seeking behavior of the corporations ruining the planet. If science fiction reveals the contradictions of capitalism and encourages us to imagine alternatives, then Musks sci-fi persona is a cheap imitation. As a libertarian and a technocrat, the best he can do is fantasise about handing the revolution over to the machines.
Jordan S. Carroll is a visiting assistant professor of English at the University of Puget Sound. He is the author of Reading the Obscene: Transgressive Editors and the Class Politics of US Literature (Stanford 2021), and he is currently working on a book on race, science fiction and the alt-right.
This article was first published by Jacobin and has been republished here with permission.
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