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Brownstone Institute

Musk Declines to Save Twitter from Itself

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12 minute read

From the Brownstone Institute

The question is finally settled: Elon Musk has declined to buy Twitter. His initial offer of $44 billion was contingent on truth and transparency of the company’s corporate filings.

It’s no different from the contract you put on a house: the inspections still remain. If the foundation is cracked – or, worse, if the owners block the inspectors from even looking into the question – the deal is off.

The letter from Musk’s attorney makes it absolutely and painfully clear that Twitter did not cooperate.

“Twitter has not provided information that Mr. Musk has requested for nearly two months notwithstanding his repeated, detailed clarifications intended to simplify Twitter’s identification, collection, and disclosure of the most relevant information sought in Mr. Musk’s original requests.”

There are many issues here but the central one concerns the mDAU or monetizable daily active users. They claim 217 million, nearly half of whom log on daily, and only 5% of whom are bots. To manage them, Twitter has 7,500 employees who earn an average salary of $121,000 per year.

Honestly, if you claim to have a magic machine that displays random thoughts from anyone that somehow converts people’s passing attention into profit – and employ that many people at such high salaries who make it all happen – you had better be sure that you can generate credible numbers to prove it.

Twitter never did.

Maybe the foundation is cracked or maybe it is not. But when the owners don’t let you verify, there is a reason to walk away.

It would be nice to know Musk’s real thoughts. I suspect that Elon looked more closely at this vaunted ruling-class time waster and found vast puffery, low profitability, wildly inflated numbers concerning usage, and a vicious and expensive staff that hates his guts, while opposing free speech and the values of most regular American people.

Why would he bother?

It’s all strange timing for the company suddenly to announce massive cuts in its payroll, starting with the team dedicated to job recruitment. That would appear to mean the HR staff, which is undoubtedly huge, but a net drain on any company seeking profitability. Maybe this move was made in response to Musk — let’s clean house before the new owner takes over — or maybe it was made necessary by poor financials.

In either case, Musk might have come to believe that the entire company is a dog he doesn’t want to adopt.

Meanwhile, Twitter seems to have settled a lawsuit with Alex Berenson, an early Covid-policy critic who was later banned for posting…facts. The terms of the settlement are secret but they did result in his reinstatement. The same day, however, Twitter went on an aggressive purge of other accounts that dared to post basic facts particularly about covid and vaccine effectiveness.

Again, why would Musk even bother? There are plenty of other projects out there that merit his attention that could actually make money. Plus, he will be spared the ultimate annoyance of dealing with thousands of entitled and overpaid staffers who have drunk deeply from the woke ideological wells of poststructuralist Ivy-League theorizing.

He might dream of firing 90 percent of them — I dream the same — but what does that achieve?

What is the future of this company and others like them that have lived off enthusiasm, cheap credit, and their influencer status, while obscuring the underlying data that matters most? We know that Facebook, YouTube, and many others have already been caught making wild exaggerations about their mDAUs. It makes sense that Twitter is guilty of the same.

What does this mean for the company? We are seeing the unfolding of a very strange inflationary recession that combines low unemployment, declining purchasing power, falling demand for goods and services, low investor confidence, plus a growing financial squeeze that is raising serious questions about whether the basic economic model of high-profile companies like Twitter is sustainable.

George Gilder has foreseen the end of Google, one company the name of which he deploys as a stand-in for a slew of high fliers that dominate Big Tech today. Precisely how they would bite the dust has always been a question. It would be the height of irony to see them all die the death from the very forces that gave them such high profitability in 2020 and 2021: the pandemic response that conscripted their user base from the real world into the laptop life.

And with that comes a more fundamental question: just how vulnerable is this overclass to being euthanized by economic fundamentals?

For example, with the managerial class trying to get everyone back at the office, the overclass of lazy and overpaid staffers is resisting with all the ferocity one would expect from such an entitled proletariat. They simply won’t come back. They prefer the pajama life. It’s more comfortable. It’s also safer because by not showing up to the office, one can more easily hide from managerial oversight.

Right now office occupancy in major cities is at a mere 45% of what it was before the pandemic response. To be sure, many of these people have tried coming back. They fight the traffic. They ride the dangerous subways. They pay a high price for gas. Then they pay to park. Then eat bad food for lunch. And what do they do at the office? The same exact thing they would otherwise be doing at home. They Slack back and forth to other employees.

Doesn’t matter if the interlocutor is 5 feet away or 500 miles away. It’s all the same anyway.

The main reason for coming back to the office is to socialize with fellow employees. But that’s not actually doing work, is it? So that’s a problem. The great myth that having everyone hang out together in fishbowl rooms is going to lead to some kind of synergistic brainstorming has been exposed as another lie promoted by bogus management books one picks up in the airport.

Therefore, employees are coming up with any excuse to stay away. The best one — “I’ve been exposed to Covid so I’m in quarantine” — is getting stale. The high price of gasoline might be next on the list. Regardless, getting people back to the office seems ill-fated, which raises serious questions about what happens to these skyscrapers designed for a pre-2020 world?

We talk these days a lot about the labor shortage and the low unemployment rate. Can we get a bit of honesty here? The shortages are for jobs that many people don’t want. They are in the service industries, hospitality, the physical world, the work that actually requires work and real skills. When you are waving a fancy degree and believe that six figures is your birthright, you won’t take these jobs. That’s why there’s a shortage of workers.

In other words, we need people to fix cars, deliver goods from ports to stores, flip the rooms in hotels, make the omelets, and put up drywall in new houses. Those require skills and actually moving one’s body, which is anathema to the under-40 demographic that studied anthropology and the history of social oppression of everyone during the four-year, debt-financed vacation we call college.

Where there is a surplus is in the puffed-up sector of bullcorn jobs that require about 20 total minutes of engaged time per day. Those are the jobs that everyone wants, but how sustainable are they really during an inflationary recession?

Elon seems to get this. His companies do real things, not fake things. He probably intuits that most of these companies need massive restructuring, both in personnel and in world outlook.

A prediction: there are hard times ahead for the corporate laptoppers as these companies are forced either to become profitable or go bankrupt. And this will lead to a massive crisis and demoralization of an entire generation that has been taught that anyone with the right credentials and connections can get rich forever without doing a lick of real work.

Decades of debt financing have created a spoiled overclass in America that has been taught to hate capitalism and also believe they and their friends can forever earn a high-income stream off the fruits of that system. There could be a rude awakening and it could come sooner rather than later. They wanted a great reset and they are going to get it good and hard.

Now Twitter faces a serious problem. Who is the next buyer and why would this party be any less scrupulous? Also maybe investors should also be a bit more critically minded too.

Author

  • Jeffrey A. Tucker is Founder and President of the Brownstone Institute and the author of many thousands of articles in the scholarly and popular press and ten books in 5 languages, most recently Liberty or Lockdown. He is also the editor of The Best of Mises. He writes a daily column on economics at The Epoch Times, and speaks widely on topics of economics, technology, social philosophy, and culture.

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Brownstone Institute

The Media Refuses to Accept Covid Reality

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From the Brownstone Institute

By IAN MILLER

By late 2020, the media and public health establishment had two obsessions. One of their obsessions involved forcing the public to wear masks, even though the mountains of data and several studies had already confirmed that they don’t stop the transmission of respiratory viruses. The second obsession was forcing everyone to take Covid vaccines, regardless of their actual efficacy, risk of side effects, age or underlying health, or the vaccines’ rapidly waning efficacy.

Neither of those obsessions has abated, though even the most extreme, hardened Covid extremists have acknowledged that the vaccines were flawed, mandates were a mistake, and side effects should be acknowledged.

The media, unwilling to give up on the increased power, influence, and moral judgment it gained during the pandemic, has refused to accept that it effectively ended years ago.

So it’s no surprise that media outlets have noticed that, as we’ve seen every single summer since 2020, cases have increased, predominantly across the Western and Southern United States. Thankfully though, Los Angeles media, of course it had to be Los Angeles, has determined the culprit.

The Media Refuses to Accept Covid Reality

Turns out it’s not seasonality causing the increase, it’s outdated Covid vaccines and a lack of public masking, of course!

NBC Los Angeles “reported” that Covid cases in California and Los Angeles have “doubled” in the last month. This sounds horrifying and scary, doesn’t it? Yet it again, as is so often the case with Covid coverage, is misleading.

Let’s take a look at the current daily average of new cases in Los Angeles County:

Cases are so low they’re functionally indistinguishable from zero.

You can see why the media is scared, given how dramatic this surge appears to be compared to those in the previous four years. And thanks to NBC’s crack reporting and expert analysis, we know why this terrifying increase is happening. Spoiler alert: it’s all your fault that you haven’t controlled an uncontrollable respiratory virus with individual behavior that has no impact whatsoever on the spread of the coronavirus.

“People aren’t necessarily wearing masks; they’re not required to in certain places,” nurse practitioner Alice Benjamin, referenced as an expert by NBA LA said. “We’re traveling, we’re getting out for the summer. We also do have some reduced immunity. The vaccines will wane over time.”

Nowhere in the story is it mentioned that the massive jump in Covid cases in late 2021 and early 2022 happened immediately after LA County Public Health issued a press release celebrating the county for achieving 95+ percent masking rates at indoor businesses. No one seems willing or able to ask this nurse practitioner why she believes wearing masks would reduce this “surge,” if it failed so spectacularly in previous surges.

Endless Misinformation from ‘Experts’

She wasn’t done with the misinformation though. Benjamin warned that not enough Angelenos are getting the “updated” vaccine, which explains the summer increase.

“If you got it in October and later, that’s generally the updated vaccine,” Benjamin said. “If you got it prior to October, double check because if you did get the bivalent which has not been phased out, we recommend you do get an updated vaccine.”

And according to her, everyone should get it. Because the CDC said so.

“Per CDC recommendations, anyone 6 months or older should have at least one of the updated Covid vaccines,” Benjamin said.

Though, of course, no one on the crack NBC Los Angeles team thought to ask Benjamin why the “updated” October vaccine would help against the now common FLiRT variant when it emerged six months after the “updated” vaccine was released. Especially when the “study” process for booster doses is effectively nonexistent anyway. Pfizer and Moderna churn out a “targeted” dose that is supposed to protect against a variant that’s no longer circulating, never has to show any real-world benefit, and the regulatory agencies sign off on it, while the CDC recommends everyone get it.

Rinse, repeat.

Nor did anyone ask her what possible rationale there could be for forcing six-month-old babies to get vaccinated with a booster that has no studied efficacy against the currently circulating variant.

Her comments and the media reaction exemplify the problems with Covid discourse that started in 2020 and will apparently continue forever. A complete and purposeful ignorance of the facts, the data, and the evidence base. A willingness to advocate for the same sort of restrictions and interventions that have already failed. Ignorance of the booster process and endless appeals to public health authorities. Even though those authorities have made countless mistakes and refused to update their findings after being proven wrong.

The obvious question is: How does this type of absurdist discourse ever end? The answer, as we continue to see, is it doesn’t.

Republished from the author’s Substack

Author

Ian Miller is the author of “Unmasked: The Global Failure of COVID Mask Mandates.” His work has been featured on national television broadcasts, national and international news publications and referenced in multiple best selling books covering the pandemic. He writes a Substack newsletter, also titled “Unmasked.”

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Brownstone Institute

Censorship and the Corruption of Advertising

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From the Brownstone Institute

The most powerful companies in the world have united against free speech, and they’ve deployed your tax dollars to fund their mission.

Last week, the House Judiciary Committee released a report on the little-known Global Alliance for Responsible Media (GARM) and its pernicious promotion of censorship. GARM is a branch of the World Federation of Advertisers (WFA), a global association representing over 150 of the world’s biggest brands, including Adidas, British Petroleum, Nike, Mastercard, McDonald’s, Walmart, and Visa.

The WFA represents 90% of global advertising spending, accounting for almost $1 trillion per year. But instead of helping its clients reach the broadest market share possible, the WFA has appointed itself a supranational force for censorship.

Rob Rakowitz and the Mission to Supplant the First Amendment

Rob Rakowitz, the leader of the WFA, holds a particular disdain for free speech. He has derided the First Amendment and the “extreme global interpretation of the US Constitution,” which he dismissed as “literal law from 230 years ago (made by white men exclusively).”

Rakowitz led GARM’s effort to boycott advertising on Twitter in response to Elon Musk’s acquisition of the company. GARM bragged that it was “taking on Elon Musk” and driving the company’s advertising income “80% below revenue forecasts.”

Rakowitz also championed the unsuccessful effort to have Spotify deplatform Joe Rogan after he expressed skepticism for young, healthy men taking the Covid vaccine. Rakowitz attempted to intimidate Spotify executives by demanding to hold a meeting with them and a team that he said represented “P&G [Proctor and Gamble], Unilever, Mars,” and five advertising conglomerates. When a Spotify employee said he would meet with Rakowitz but not his censorsial consortium, Rakowitz forwarded the message to his partner, writing “this man needs a smack” for denying his demands.

The WFA extended its efforts to direct manipulation of the news market. Through a partnership with the taxpayer-funded Global Disinformation Index, GARM launched “exclusion lists,” which created de facto boycotts from advertising on “risky” sites, which it described as those that showed the “greatest level of disinformation risk.” These lists included the New York Post, RealClearPolitics, the Daily Wire, TheBlaze, Reason Magazine, and The Federalist. Left-wing outlets, such as the Huffington Post and Buzzfeed News, were placed on the list of “Least risky sites,” which facilitated increased advertising revenue.

GARM, the WFA, and Rakowitz is the latest scandal demonstrating the destruction of our liberties at the hands of consolidated power. Like the Trusted News Initiative or the Biden White House’s censorship efforts, the aim is to remove all sources of dissent to pave the way for the further corporatization of the oligarchy that increasingly replaces our republic.

The WFA’s Attack on Democracy

Just as Rakowitz could not hide his contempt for the First Amendment, WFA CEO Stephan Loerke demanded that his conglomerate overtake the democratic process.

In preparation for the Cannes Lions Festival (a gathering of billionaires and multinational corporations in the South of France every June), Loerke released a statement demanding companies “stay the course on DEI and sustainability.” According to Loerke, these policies must include responses to “climate change” and the promotion of “net zero” policies,” which have already wreaked havoc on Europeans’ quality of life.

Loerke wrote: “If we step back, who will push for progress on these vital areas?” Though he suggests the answer must be nobody, traditionally self-governing countries would charter their own courses in those “vital areas.” And in that paradigm, the corporation would be subordinate to the state.

But instead, the WFA has inverted that system. Through its clients, the trillion-dollar behemoth extracts money from governments and then deploys those funds to demand that we accept their reshaping of our culture. The parasite becomes the arbiter of “progress,” eroding the society responsible for its very existence.

As the WFA sought to punish any groups that criticized the Covid response, its client Abbott Laboratories received billions of dollars in federal funding to promote Covid tests in the US Army. As Loerke demands “net zero” policies that will unravel the Western way of life, WFA patrons like DellGEIBM, and Microsoft receive billions in revenue  from the US Security State.

The organization is fundamentally detached from traditional advertising, which aims to connect businesses with consumers to sell products or services; instead, it is a force for geopolitical and cultural manipulation.

Perhaps no WFA client better represents this phenomenon than AB InBev, the parent company to Bud Light, which destroyed billions of dollars in market value last year after selecting Dylan Mulvaney as the icon for its advertising campaign.

On its surface, the selection of Mulvaney as a spokesman appeared to be the result of an executive class detached from their clientele. But Rakowitz and the WFA reveal a deeper truth; they don’t misunderstand the public, they loathe them.

The organization is a force designed to punish them for their unfavorable, unapproved belief systems. It is an attack on the freedoms written into our Constitution as “literal law from 230 years ago,” as Rakowitz scoffed. The mission is to eviscerate “the right to receive information and ideas,” as our Supreme Court recognized in Stanley v. Georgia, and to make our republic subservient to its corporate oligarchy.

The stakes here are very high. The economic revolution of the 15th century and following was about a dramatic shift in decision-making, away from elites and toward the common people. With that came a wider distribution of property and rising wealth over many centuries, culminating in the late 19th century. Along with that came a shift in the focus of marketing, away from elites and toward everyone else.

The consolidation of advertising and its control by states strikes at the very heart of what free economies are supposed to be about. And yet, states that desire maximum control over the public mind must go there. They must gain full hegemony and that includes advertising. It should be stopped before it is too late to restore freedom over corporatism.

Author

Brownstone Institute is a nonprofit organization conceived of in May 2021 in support of a society that minimizes the role of violence in public life.

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