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The Federal Election Commission Is Bad Enough

Chris Hughes, a founder of Facebook, has proposed Congress create a new agency to “create guidelines for acceptable speech on social media.”

As Hughes notes, this proposal “may seem un-American.” That’s because it is. At the very least, Hughes’ plan contravenes the past fifty years of American constitutional jurisprudence, and the deeply held values that undergird it. Let’s examine his case for such a momentous change.

Roger McNamee’s Facebook Critique

In a recent Time magazine article, Roger McNamee offers an agitated criticism of Facebook, adapted from his book Zucked: Waking Up to the Facebook Catastrophe.  Facebook “has a huge impact on politics and social welfare,” he claims, and “has done things that are truly horrible.”  Facebook, he says, is “terrible for America.”

McNamee suggests his “history with the company made me a credible voice.” From 2005 to 2015, McNamee was one of a half dozen managing directors of Elevation Partners, an $1.9 billion private equity firm that bought and sold  shares in eight companies, including such oldies as Forbes and Palm.  U2 singer Bono was a co-founder. Other partners included two former executives from Apple and one from Yahoo.  Another is married to the sister of Facebook’s COO.  Such investors are not necessarily disinterested observers, much less policy experts.

Between November 2009 and June 2010 Elevation Partners invested $210 million for 1% of Facebook.  That was early, but two years after Microsoft made a larger investment.  Back then, McNamee and other investors had facetime with Zuckerberg. 

McNamee supposedly became alarmed while perusing “Bay Area for Bernie” on Facebook and finding suspicious memes critical of Hillary.  Later, he imagined the Brexit vote must be due to misleading Facebook posts (as if British tabloids and TV were silent).  “Brexit happens in June,” he says, “and then I think, Oh my god, what if it’s possible that in a campaign setting, the candidate that has the more inflammatory message gets a structural advantage from Facebook? And then in August, we hear about Manafort, so we need to introduce the Russians into the equation.” 

He suggests goofy Facebook ads by Russian trolls stole the U.S. election from Clinton. Actually, the Mueller indictment said the Internet Research Agency “allegedly used social media and other internet platforms to address a wide variety of topicsto inflame political debates, frequently taking both sides of divisive issues.  Such political trolling for fun and profit (clicks generate advertising money) is commonplace in Russia, and also at home in the USA.

Keep Government Away From Twitter

Twitter recently re-activated Jesse Kelly’s account after telling him that he was permanently banned from the platform. The social media giant informed Kelly, a conservative commentator, that his account was permanently suspended “due to multiple or repeat violations of the Twitter rules.” Conservative pundits, journalists, and politicians criticized Twitter’s decision to ban Kelly, with some alleging that Kelly’s ban was the latest example of perceived anti-conservative bias in Silicon Valley.

The Foot in the Door on Internet Speech Regulation

Campaign finance has captured Congress’s attention once again, which rarely bodes well for democracy. Senators Amy Klobuchar, Mark Warner, and (of course) John McCain have introduced the Honest Ads Act. The bill requires “those who purchase and publish [online political advertisements]to disclose information about the advertisements to the public…”

Specifically, the bill requires those who paid for an online ad to disclose their name and additional information in the ad itself or in another fashion that can be easily accessed. The bill takes several pages to specify exactly how these disclosures should look or sound. The bill also requires those who purchase $500 or more of ads to disclose substantial information about themselves; what must be disclosed takes up a page and a half of the bill.

The Federal Election Commission makes disclosed campaign contributions public. With this bill, large Internet companies (that is, platforms with 50 million unique visitors from the United States monthly) are given that task. They are supposed to maintain records about ads that concern “any political matter of national importance.” This category goes well beyond speech seeking to elect or defeat a candidate for office.

Why does the nation need this new law? The bill discusses Russian efforts to affect the 2016 election. It mentions the $100,000 spent by “Russian entities” to purchase 3,000 ads. The bill does not mention that Mark Penn, a former campaign advisor to Bill and Hillary Clinton, has estimated that only $6,500 of the $100,000 actually sought to elect or defeat a candidate for office. It also omits Penn’s sense of perspective:

Hillary Clinton’s total campaign budget, including associated committees, was $1.4 billion. Mr. Trump and his allies had about $1 billion. Even a full $100,000 of Russian ads would have erased just 0.025% of Hillary’s financial advantage. In the last week of the campaign alone, Mrs. Clinton’s super PAC dumped $6 million in ads into Florida, Pennsylvania and Wisconsin.

Yes, Nationalizing Facebook Is a Nonstarter

The other day, I was asked to review a draft slate of pro-innovation proposals that might be put before the next presidential administration (regardless of who heads it). I went down the list, typing again and again, “Education policy is not a federal role.”

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