Business
From X to SpaceX: EU Regulators Could Fine Musk Companies For Free Speech Push
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From Reclaim The Net
The EU and Brazil are sharpening their regulatory knives, and who better to test their shiny new powers on than Elon Musk, the guy who seems to have made annoying pro-censorship bureaucrats his full-time hobby? Musk’s social media platform, X has become the latest target for both the European Union and Brazil — but they’re not just going after X anymore. The powers-that-be have decided that since X isn’t worth much these days, maybe they should slap fines on Musk’s other companies—SpaceX, Neuralink, xAI, and even the Boring Company—just because they can.
It’s the ultimate power move by regulators who seem to be more interested in flexing their muscles than addressing real issues. Why settle for a measly 6% fine on a struggling social media platform when you can drag in rockets, to pad the bill? The EU’s Latest Power Trip: Digital Services Act as a Blank Check Enter the Digital Services Act (DSA), the EU’s newest favorite tool for cracking down on “disinformation” and “hate speech” on major digital platforms. It’s got all the right buzzwords—”transparency,” “safety,” and “accountability”—but underneath the noble-sounding veneer, it’s starting to look more like a blank check for the EU to assert control over Big Tech. The law allows for fines of up to 6% of annual revenue for platforms that don’t comply. But when it comes to X, with its plummeting value—now at a measly $9.4 billion, according to Fidelity—the EU seems to be thinking, “Why stop at X when we can go after Musk’s entire empire?” Think about it: SpaceX, Neuralink, the Boring Company—what do they have to do with social media disinformation? Nothing, really. But the EU’s got a grudge, and they’re not about to let a little thing like fairness or logic get in their way. Musk’s decision to pull X out of the EU’s voluntary Code of Practice against disinformation in 2023 certainly didn’t help matters. Sure, he had initially played nice back in 2022, but when Musk realized that the EU’s idea of “voluntary” meant “you’ll comply, or else,” he bailed. Now, Brussels is retaliating by threatening to fine Musk’s companies that have nothing to do with social media, all while pretending this is about “protecting democracy.” If it sounds more like a personal vendetta than a reasoned policy decision, that’s because it probably is. Brazil Freezes Musk’s Assets: Free Speech or Free for All? Not to be outdone by their European counterparts, Brazil has decided to take its regulatory saber-rattling to new heights. The country’s highest court recently froze the assets of Starlink, Musk’s satellite internet venture, in an effort to squeeze a $3 million fine out of X for failing to censor content. That’s right—Brazil couldn’t get X to bend to their will, so they decided to take Musk’s satellites hostage. All in the name of combating “misinformation,” of course. What’s particularly galling about Brazil’s move is how blatantly it ignores the principles of free speech and open communication. The accusation that X “facilitated the spread of misinformation and hate speech” sounds noble on paper, but the way Brazil went about enforcing their demands—by freezing assets of an entirely separate company—looks more like strong-arm tactics than legitimate regulation. At this point, it’s hard to escape the conclusion that these governments are less concerned with disinformation and more interested in exerting control over tech companies that refuse to play by their increasingly arbitrary rules. Musk, who’s spent years promoting free speech as one of X’s core principles, is now facing a global game of whack-a-mole, with each country seemingly more eager than the last to punish him for refusing to fall in line. Personal Accountability or Public Power Play? One of the more interesting twists in the EU’s regulatory circus is the suggestion that they might hold Musk personally accountable under the DSA. Why? Because, according to the EU’s interpretation, “the entity exercising decisive influence” over a platform—whether that’s a company or an individual—can be on the hook for any wrongdoing. In other words, if Musk’s platform doesn’t comply, they’re coming for him directly. This is about using Musk as a punching bag to show the world that the EU is still in charge. Thomas Regnier, a spokesperson for the European Commission, helpfully clarified to Bloomberg, that the DSA’s rules apply “irrespective of whether the entity… is a natural or legal person,” which is bureaucrat-speak for, “We’re gunning for Elon.” |
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Business
Worst kept secret—red tape strangling Canada’s economy
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From the Fraser Institute
By Matthew Lau
In the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S.
According to a new Statistics Canada report, government regulation has grown over the years and it’s hurting Canada’s economy. The report, which uses a regulatory burden measure devised by KPMG and Transport Canada, shows government regulatory requirements increased 2.1 per cent annually from 2006 to 2021, with the effect of reducing the business sector’s GDP, employment, labour productivity and investment.
Specifically, the growth in regulation over these years cut business-sector investment by an estimated nine per cent and “reduced business start-ups and business dynamism,” cut GDP in the business sector by 1.7 percentage points, cut employment growth by 1.3 percentage points, and labour productivity by 0.4 percentage points.
While the report only covered regulatory growth through 2021, in the past four years an avalanche of new regulations has made the already existing problem of overregulation worse.
The Trudeau government in particular has intensified its regulatory assault on the extraction sector with a greenhouse gas emissions cap, new fuel regulations and new methane emissions regulations. In the last few years, federal diktats and expansions of bureaucratic control have swept the auto industry, child care, supermarkets and many other sectors.
Again, the negative results are evident. Over the past nine years, Canada’s cumulative real growth in per-person GDP (an indicator of incomes and living standards) has been a paltry 1.7 per cent and trending downward, compared to 18.6 per cent and trending upward in the United States. Put differently, if the Canadian economy had tracked with the U.S. economy over the past nine years, average incomes in Canada would be much higher today.
Also in the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S., and only about two-thirds as much new capital (on average) as workers in other developed countries.
Consequently, Canada is mired in an economic growth crisis—a fact that even the Trudeau government does not deny. “We have more work to do,” said Anita Anand, then-president of the Treasury Board, last August, “to examine the causes of low productivity levels.” The Statistics Canada report, if nothing else, confirms what economists and the business community already knew—the regulatory burden is much of the problem.
Of course, regulation is not the only factor hurting Canada’s economy. Higher federal carbon taxes, higher payroll taxes and higher top marginal income tax rates are also weakening Canada’s productivity, GDP, business investment and entrepreneurship.
Finally, while the Statistics Canada report shows significant economic costs of regulation, the authors note that their estimate of the effect of regulatory accumulation on GDP is “much smaller” than the effect estimated in an American study published several years ago in the Review of Economic Dynamics. In other words, the negative effects of regulation in Canada may be even higher than StatsCan suggests.
Whether Statistics Canada has underestimated the economic costs of regulation or not, one thing is clear: reducing regulation and reversing the policy course of recent years would help get Canada out of its current economic rut. The country is effectively in a recession even if, as a result of rapid population growth fuelled by record levels of immigration, the GDP statistics do not meet the technical definition of a recession.
With dismal GDP and business investment numbers, a turnaround—both in policy and outcomes—can’t come quickly enough for Canadians.
Business
‘Out and out fraud’: DOGE questions $2 billion Biden grant to left-wing ‘green energy’ nonprofit`
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From LifeSiteNews
The EPA under the Biden administration awarded $2 billion to a ‘green energy’ group that appears to have been little more than a means to enrich left-wing activists.
The U.S. Environmental Protection Agency (EPA) under the Biden administration awarded $2 billion to a “green energy” nonprofit that appears to have been little more than a means to enrich left-wing activists such as former Democratic candidate Stacey Abrams.
Founded in 2023 as a coalition of nonprofits, corporations, unions, municipalities, and other groups, Power Forward Communities (PFC) bills itself as “the first national program to finance home energy efficiency upgrades at scale, saving Americans thousands of dollars on their utility bills every year.” It says it “will help homeowners, developers, and renters swap outdated, inefficient appliances with more efficient and modernized options, saving money for years ahead and ensuring our kids can grow up with cleaner, pollutant-free air.”
The organization’s website boasts more than 300 member organizations across 46 states but does not detail actual activities. It does have job postings for three open positions and a form for people to sign up for more information.
The Washington Free Beacon reported that the Trump administration’s Department of Government Efficiency (DOGE) project, along with new EPA administrator Lee Zeldin, are raising questions about the $2 billion grant PFC received from the Biden EPA’s National Clean Investment Fund (NCIF), ostensibly for the “affordable decarbonization of homes and apartments throughout the country, with a particular focus on low-income and disadvantaged communities.”
PFC’s announcement of the grant is the organization’s only press release to date and is alarming given that the organization had somehow reported only $100 in revenue at the end of 2023.
“I made a commitment to members of Congress and to the American people to be a good steward of tax dollars and I’ve wasted no time in keeping my word,” Zeldin said. “When we learned about the Biden administration’s scheme to quickly park $20 billion outside the agency, we suspected that some organizations were created out of thin air just to take advantage of this.” Zeldin previously announced the Biden EPA had deposited the $20 billion in a Citibank account, apparently to make it harder for the next administration to retrieve and review it.
“As we continue to learn more about where some of this money went, it is even more apparent how far-reaching and widely accepted this waste and abuse has been,” he added. “It’s extremely concerning that an organization that reported just $100 in revenue in 2023 was chosen to receive $2 billion. That’s 20 million times the organization’s reported revenue.”
Daniel Turner, executive director of energy advocacy group Power the Future, told the Beacon that in his opinion “for an organization that has no experience in this, that was literally just established, and had $100 in the bank to receive a $2 billion grant — it doesn’t just fly in the face of common sense, it’s out and out fraud.”
Prominent among PFC’s insiders is Abrams, the former Georgia House minority leader best known for persistent false claims about having the state’s gubernatorial election stolen from her in 2018. Abrams founded two of PFC’s partner organizations (Southern Economic Advancement Project and Fair Count) and serves as lead counsel for a third group (Rewiring America) in the coalition. A longtime advocate of left-wing environmental policies, Abrams is also a member of the national advisory board for advocacy group Climate Power.
DOGE is currently conducting a thorough review of federal executive-branch spending for the Trump administration, efforts that left-wing activists are challenging in court. The official DOGE website currently claims credit for a total estimated savings of $55 billion.
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