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Snopes Attacks Satire In Ominous Self-Satirization

12 Monday Aug 2019

Posted by in Censorship, Free Speech

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Snopes.com began as an investigator of urban legends and rumors, exposing myths in an exercise that was useful and often fascinating. More recently, despite its founder’s weak argument to the contrary, Snopes has fully revealed its bias against certain political viewpoints, along with a tendency to avoid reporting some actual facts as facts when it suits itself. Lately this has reached a pathetic level, with the site drawing amused reaction to its confusion over the satiric nature of The Babylon Bee. The Bee is a truly funny site similar to The Onion, but it bills itself as “Christian Satire”. If you find that off-putting or think it means the humor must be cornpone, think again. Of course, there is no doubt that the Bee’s humor often pokes fun at the Left, which probably explains Snopes’ motives.

Snopes itself has not been above a bit of fibbing. Its “political fact-checker”, Kim Lacapria, is a former leftist blogger, known to have maligned the Tea Party as “Teahadists”, a funny mischaracterization of the unquestionably peaceful movement as violent. She’s not exactly a person you’d trust as an impartial arbiter of political “fact”. Linda Sue Grimes wrote an informative article with several prominent examples of bias by Snopes. There have also been reports of sordid personal and financial exploits  by one of Snopes’ founders, much of which stands up to scrutiny. 

In its latest misadventure in fact-weaving, Snopes’ has charged that the Bee published a story “intended to deceive” readers, and it claimed the Bee  had done so in the past. The story was entitled “Georgia Lawmaker Claims Chick-Fil-A Employee Told Her To Go Back To Her Country, Later Clarifies He Actually Said ‘My Pleasure“. It was inspired by an incident in which the same Georgia lawmaker apparently had too many items in the express checkout at a Publix grocery store. She claimed that an angry white man told her to “go back to where you came from”. However, the Publix clerk with whom she had the altercation, who happens to be Cuban, denies having said any such thing, though he did admit to calling her a bitch. The lawmaker’s allegation seems suspiciously coincidental, having come in the immediate wake of Donald Trump’s controversial tweet that the quartet of federal lawmakers known as “The Squad” should “go back to where they came from”.

Apparently, the humor in the Bee’s article was just a bit too subtle for Snopes, whose “woke” employees have particularly vivid imaginations. The Bee article was funny precisely because it ridiculed those who hear racial “dog whistles” everywhere. The idea that a Chinese employee working a drive-through at Chick-Fil-A would say such a thing is unlikely to say the least. Anyone who has ever visited a Chick-Fil-A knows it. Too many of those with whistles in their ears haven’t had the pleasure.

Has the Bee intended to deceive its readers in the past? Perhaps Snopes was referring to an article entitled “CNN Purchases Industrial-Sized Washing Machine to Spin News Before Publication“. Snopes went to the trouble of calling that story false and bringing it to Facebook’s attention. Facebook actually issued a warning to the Bee (for which FB later apologized). But here’s the thing, in Grimes’ words:

“Debunking a piece of satire renders the debunker as functionally illiterate, appearing too ignorant to understand that a piece of satire does not function to relay information as a news report would.”

It’s actually much worse than that. If Snopes wants to to assess the objective truth of claims, that’s one thing, but it has drifted into the assessment of literary and authorial intent. That’s ominous for the cause of free discourse, especially to the extent that social media sites rely on Snopes as a filter to deplatform certain voices or silence points of view. Snopes has no business attempting to draw distinctions between satire and “fake news” or any intent to deceive, because it’s bound to get it wrong and already has. They might as well fact-check stand-up comics whose routines might confuse a few dimwitted members of the public, and Snopes just might do so if the comic doesn’t support its preferred political narrative. Snopes’ role is not to protect the unsophisticated from satire, and apparently its fact-checkers feel no compulsion to debunk the satire produced by The Onion, for example. The Bee’s pointed satire often serves the purpose of exposing the Left for its congenital stupidity, but that is anything but an effort to deceive, as much as Snopes might wish it was so.

 

Behold Our Algorithmic Overlords

18 Thursday Jul 2019

Posted by in Automation, Censorship, Discrimination, Marketplace of Ideas

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A willingness to question authority is healthy, both in private matters and in the public sphere, but having the freedom to do so is even healthier. It facilitates free inquiry, the application of the scientific method, and it lies at the heart of our constitutional system. Voluntary acceptance of authority, and trust in its legitimacy, hinges on our ability to identify its source, the rationale for its actions, and its accountability. Unaccountable authority, on the other hand, cannot be tolerated. It’s the stuff of which tyranny is made.

That’s one linchpin of a great essay by Matthew D. Crawford in American Affairs entitled “Algorithmic Governance and Political Legitimacy“. It’s a lengthy piece that covers lots of ground, and very much worth reading. Or you can read my slightly shorter take on it!

Imagine a world in which all the information you see is selected by algorithm. In addition, your success in the labor market is determined by algorithm. Your college admission and financial aid decisions are determined by algorithm. Credit applications are decisioned by algorithm. The prioritization you are assigned for various health care treatments is determined by algorithm. The list could go on and on, but many of these “use-cases” are already happening to one extent or another.

Blurring Private and Public Governance

Much of what Crawford describes has to do with the way we conduct private transactions and/or private governance. Most governance in free societies, of the kind that touches us day-to-day, is private or self-government, as Crawford calls it. With the advent of giant on-line platforms, algorithms are increasingly an aspect of that governance. Crawford notes the rising concentration of private governmental power within these organizations. While the platforms lack complete monopoly power, they are performing functions that we’d ordinarily be reluctant to grant any public form of government: they curate the information we see, conduct surveillance, exercise control over speech, and even indulge in the “deplatforming” of individuals and organizations when it suits them. Crawford quotes Facebook CEO Mark Zuckerberg:

“In a lot of ways Facebook is more like a government than a traditional company. . . . We have this large community of people, and more than other technology companies we’re really setting policies.”

At the same time, the public sector is increasingly dominated by a large administrative apparatus that is outside of the normal reach of legislative, judicial and even executive checks. Crawford worries about “… the affinities between administrative governance and algorithmic governance“.  He emphasizes that neither algorithmic governance on technology platforms nor an algorithmic administrative state are what one could call representative democracy. But whether these powers have been seized or we’ve granted them voluntarily, there are already challenges to their legitimacy. And no wonder! As Crawford says, algorithms are faceless pathways of neural connections that are usually difficult to explain, and their decisions often strike those affected as arbitrary or even nonsensical.

Ministry of Wokeness

Political correctness plays a central part in this story. There is no question that the platforms are setting policies that discriminate against certain viewpoints. But Crawford goes further, asserting that algorithms have a certain bureaucratic logic to elites desiring “cutting edge enforcement of social norms“, i.e., political correctness, or “wokeness”, the term of current fashion.

“First, in the spirit of Václav Havel we might entertain the idea that the institutional workings of political correctness need to be shrouded in peremptory and opaque administrative mechanisms be­cause its power lies precisely in the gap between what people actu­ally think and what one is expected to say. It is in this gap that one has the experience of humiliation, of staying silent, and that is how power is exercised.

But if we put it this way, what we are really saying is not that PC needs administrative enforcement but rather the reverse: the expand­ing empire of bureaucrats needs PC. The conflicts created by identi­ty politics become occasions to extend administrative authority into previously autonomous domains of activity. …

The incentive to technologize the whole drama enters thus: managers are answerable (sometimes legally) for the conflict that they also feed on. In a corporate setting, especially, some kind of ass‑covering becomes necessary. Judgments made by an algorithm (ideally one supplied by a third-party vendor) are ones that nobody has to take responsibility for. The more contentious the social and political landscape, the bigger the institutional taste for automated decision-making is likely to be.

Political correctness is a regime of institutionalized insecurity, both moral and material. Seemingly solid careers are subject to sud­den reversal, along with one’s status as a decent person.”

The Tyranny of Deliberative Democracy

Crawford takes aim at several other trends in intellectual fashion that seem to complement algorithmic governance. One is “deliberative democracy”, an ironically-named theory which holds that with the proper framing conditions, people will ultimately support the “correct” set of policies. Joseph Goebbels couldn’t have put it better. As Crawford explains, the idea is to formalize those conditions so that action can be taken if people do not support the “correct” policies. And if that doesn’t sound like Gleichschaltung (enforcement of conformity), nothing does! This sort of enterprise would require:

 “… a cadre of subtle dia­lecticians working at a meta-level on the formal conditions of thought, nudging the populace through a cognitive framing operation to be conducted beneath the threshold of explicit argument. 

… the theory has proved immensely successful. By that I mean the basic assumptions and aspira­tions it expressed have been institutionalized in elite culture, perhaps nowhere more than at Google, in its capacity as directorate of information. The firm sees itself as ‘definer and defender of the public interest’ …“

Don’t Nudge Me

Another of Crawford’s targets is the growing field of work related to the irrationality of human behavior. This work resulted from the revolutionary development of  experimental or behavioral economics, in which various hypotheses are tested regarding choice, risk aversion, an related issues. Crawford offers the following interpretation, which rings true:

“… the more psychologically informed school of behavioral economics … teaches that we need all the help we can get in the form of external ‘nudges’ and cognitive scaffolding if we are to do the rational thing. But the glee and sheer repetition with which this (needed) revision to our under­standing of the human person has been trumpeted by journalists and popularizers indicates that it has some moral appeal, quite apart from its intellectual merits. Perhaps it is the old Enlightenment thrill at disabusing human beings of their pretensions to specialness, whether as made in the image of God or as ‘the rational animal.’ The effect of this anti-humanism is to make us more receptive to the work of the nudgers.”

While changes in the framing of certain decisions, such as opt-in versus opt-out rules, can often benefit individuals, most of us would rather not have nudgers cum central planners interfere with too many of our decisions, no matter how poorly they think those decisions approximate rationality. Nudge engineers cannot replicate your personal objectives or know your preference map. Indeed, externally applied nudges might well be intended to serve interests other than your own. If the political equilibrium involves widespread nudging, it is not even clear that the result will be desirable for society: the history of central planning is one of unintended consequences and abject failure. But it’s plausible that this is where the elitist technocrats in Silicon Vally and within the administrative state would like to go with algorithmic governance.

Crawford’s larger thesis is summarized fairly well by the following statements about Google’s plans for the future:

“The ideal being articulated in Mountain View is that we will inte­grate Google’s services into our lives so effortlessly, and the guiding presence of this beneficent entity in our lives will be so pervasive and unobtrusive, that the boundary between self and Google will blur. The firm will provide a kind of mental scaffold for us, guiding our intentions by shaping our informational context. This is to take the idea of trusteeship and install it in the infrastructure of thought.

Populism is the rejection of this.”

He closes with reflections on the attitudes of the technocratic elite toward those who reject their vision as untrustworthy. The dominance of algorithmic governance is unlikely to help them gain that trust.

What’s to be done?

Crawford seems resigned to the idea that the only way forward is an ongoing struggle for political dominance “to be won and held onto by whatever means necessary“. Like Bryan Caplan, I have always argued that we should eschew anti-trust action against the big tech platforms, largely because we still have a modicum of choice in all of the services they provide. Caplan rejects the populist arguments against the tech “monopolies” and insists that the data collection so widely feared represents a benign phenomenon. And after all, consumers continue to receive a huge surplus from the many free services offered on-line.

But the reality elucidated by Crawford is that the tech firms are much more than private companies. They are political and quasi-governmental entities. Their tentacles reach deeply into our lives and into our institutions, public and private. They are capable of great social influence, and putting their tools in the hands of government (with a monopoly on force), they are capable of exerting social control. They span international boundaries, bringing their technical skills to bear in service to foreign governments. This week Peter Theil stated that Google’s work with the Chinese military was “treasonous”. It was only a matter of time before someone prominent made that charge.

The are no real safeguards against abusive governance by the tech behemoths short of breaking them up or subjecting them to tight regulation, and neither of those is likely to turn out well for users. I would, however, support safeguards on the privacy of customer data from scrutiny by government security agencies for which the platforms might work. Firewalls between their consumer and commercial businesses and government military and intelligence interests would be perfectly fine by me. 

The best safeguard of viewpoint diversity and against manipulation is competition. Of course, the seriousness of threats these companies actually face from competitors is open to question. One paradox among many is that the effectiveness of the algorithms used by these companies in delivering services might enhance their appeal to some, even as those algorithms can undermine public trust.

There is an ostensible conflict in the perspective Crawford offers with respect to the social media giants: despite the increasing sophistication of their algorithms, the complaint is really about the motives of human beings who wish to control political debate through those algorithms, or end it once and for all. Jonah Goldberg puts it thusly:

“The recent effort by Google to deny the Claremont Institute the ability to advertise its gala was ridiculous. Facebook’s blocking of Prager University videos was absurd. And I’m glad Facebook apologized.

But the fact that they apologized points to the fact that while many of these platforms clearly have biases — often encoded in bad algorithms — points to the possibility that these behemoths aren’t actually conspiring to ‘silence’ all conservatives. They’re just making boneheaded mistakes based in groupthink, bias, and ignorance.”

David French notes that the best antidote for hypocrisy in the management of user content on social media is to expose it loud and clear, which sets the stage for a “market correction“. And after all, the best competition for any social media platform is real life. Indeed, many users are dropping out of various forms of on-line interaction. Social media companies might be able to retain users and appeal to a broader population if they could demonstrate complete impartiality. French proposes that these companies adopt free speech policies fashioned on the First Amendment itself:

“…rules and regulations restricting speech must be viewpoint-neutral. Harassment, incitement, invasion of privacy, and intentional infliction of emotional distress are speech limitations with viewpoint-neutral definitions…”

In other words, the companies must demonstrate that both moderators and algorithms governing user content and interaction are neutral. That is one way for them to regain broad trust. The other crucial ingredient is a government that is steadfast in defending free speech rights and the rights of the platforms to be neutral. Among other things, that means the platforms must retain protection under Section 230 of the Telecommunications Decency Act, which assures their immunity against lawsuits for user content. However, the platforms have had that immunity since quite early in internet history, yet they have developed an aggressive preference for promoting certain viewpoints and suppressing others. The platforms should be content to ensure that their policies and algorithms provide useful tools for users without compromising the free exchange of ideas. Good governance, political legitimacy, and ultimately freedom demand it. 

The EU Chokes the Free Flow of Information

14 Sunday Apr 2019

Posted by in Censorship, Free Speech

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The European Union wants to force me to pay “news sites” for links with “snippets” of content I might quote on this blog, and it wants the WordPress platform to flag and censor anything that might qualify as copyright infringement. The EU also wants search engines like Google and platforms like Facebook to pay for links and “snippets” or else censor them. Most members in the EU Parliament apparently think the best way to regulate information services is to choke off the flow of information. As Warren Meyer says, if you weren’t for Brexit, this single EU action might well convert you (though British statists have their own designs on censorship, Brexit or not). And if you think government involvement won’t ruin the internet, think again.

These restrictive demands are the essence of two controversial provisions of the so-called European Copyright Directive (ECD) passed by the EU Parliament on March 26th. My summary here leaves out lots of detail, but be assured that administering the Directive will require a massive regulatory apparatus:

The Link Tax: If you link to a source and quote a “snippet” of text from that source, you will have to obtain a license from the source, or else the link you use may be blocked. Keep in mind the rule applies despite full attribution to the original source! It remains to be seen how these licenses will be negotiated, but it will almost certainly impose costs on users.

Censorship Machines: Platforms will be required to monitor and assess everything posted for possible copyright infringement. That will require the development of automated “filters” to flag and remove material that might be in violation. That’s a stark change in the treatment of speech on platforms that, heretofore, have not been required to police their users. The responsibility was on those holding copyrights to go after unauthorized use with takedown notices.

Cory Doctorow of the Electronic Frontier Foundation (EFF) wrote an informative position paper on the ECD a week before the vote. He has been an active and articulate opponent of the legislation. Here are some of his comments (his emphasis):

“… text that contains more than a ‘snippet’ from an article are covered by a new form of copyright, and must be licensed and paid by whoever quotes the text …[the ECD] has a very vague definition of ‘news site’ and leaves the definition of ‘snippet’ up to each EU country’s legislature. … no exceptions to protect small and noncommercial services, including Wikipedia but also your personal blog. The draft doesn’t just give news companies the right to charge for links to their articles—it also gives them the right to ban linking to those articles altogether, (where such a link includes a quote from the article) so sites can threaten critics writing about their articles.”

The ECD seems intended as a gift to large news organizations, but it will discourage the free exposure now given to those news sites on the internet. It’s therefore not clear that the ECD will generate much incremental cash flow for news sites or other content providers. However, collecting the new license revenue will come at some expense, so it won’t be of much help to smaller “rights holders”. Therefore, the rule is likely to benefit large platforms and news outlets disproportionately, as they are in a better position to negotiate licenses for the use of material.

As for censorship machines, perhaps rights holders prefer a shift in the burden of policing the use of copyrighted material away from themselves and to the platforms. Some might suggest that it will achieve efficiencies, but that seems unlikely. These filters are costly and are likely to suffer from an excess of false positives. Moreover, the ECD creates risks that demand conservatism on the part of the platforms, so their censorship machines will systematically side against users. There is also a reasonable possibility that filters will be used to control political speech.

All of this is contrary to the doctrine of fair use, as codified and practiced in the U.S. This involves four conditions giving fairly broad latitude to users, described at the last link by Stan Adams:

“The relevant statutory provision (17 U.S.C. § 107) describes four factors to consider when determining whether a particular use of a work is “fair”: the purpose and character of the use; the nature of the copyrighted work; the amount and substantiality of the portion used in relation to the work as a whole; and the effect of the use on the potential market for, or value of, the original work.”

Copyright protection has never been absolute nor intended to guarantee perfect exclusivity. Ever lend a book to a friend? Ever heard a cover band perform pop hits? Ever offered a quote to forward a written argument? All of this falls broadly under fair use, and much of it serves to promote the economic interests of rights holders, as opposed to infringing on the market for their original work. The EU, however, has no provisions for fair use in its copyright laws (though EU countries may have limitations and exclusions to copyright protection).

It’s bad enough that Europeans will suffer the consequences of this ill-considered piece of legislation, but can the platforms be counted upon to apply their censorship machines only to select geographies? Adams encapsulates the difficulties the ECD presents to users elsewhere:

“… the rest of the world must rely on private companies to ensure that the EU’s misguided copyright policies do not restrict freedoms enjoyed elsewhere in the world.”

Internet regulations in Europe and the U.S. seem to be following different cronyist disease vectors. The ECD favors large news organizations at the expense of social media platforms, and ultimately consumers and the cause of free speech. The large tech platforms are of course equipped to survive, but perhaps not small ones. In the U.S., we have Mark Zuckerberg begging for regulation of Facebook, including the regulation of speech. That’s a spectacularly bad idea for public policy. It too would disadvantage smaller competitors in the social media space. Ultimately, in Europe and the U.S, these steps will come at the expense of consumers, possibly in higher monetary costs, but definitely in restrained trade in online services and in the marketplace of ideas. So goes the cause of free speech when government has the power to regulate the flow of information.

For further reading on the ECF, see Catarina Midoes: “Is this blog post legal (under new EU copyright law)?” She discusses how different factions view the ECD, gives additional perspective on the controversial provisions, and discusses some potential unintended consequences. Also see Scott Shackford’s “Hide Those Meme’s Folks…”

 

Social Media and the Antitrust Reflex

10 Tuesday Apr 2018

Posted by in Antitrust, Regulation, Social Media

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Falling Zuckerberg

Facebook is under fire for weak privacy protections, its exploitation of users’ data, and the dangers it is said to pose to Americans’ free speech rights. Last week, Mark Zuckerberg, who controls all of the voting stock in Facebook, attempted to address those issues before a joint hearing of the Senate Judiciary and Commerce Committees. It represented a major event in the history of the social media company, and it happened at a time when discussion of antitrust action against social media conglomerates like Facebook, Google, and Amazon is gaining support in some quarters. I hope this intervention does not come to pass.

The Threat

At the heart of the current uproar are Facebook’s data privacy policy and a significant data breach. The recent scandal involving Cambridge Analytica arose because Facebook, at one time, allowed application developers to access user data, and the practice continued for a few developers. Unfortunately, at least one didn’t keep the data to himself. There have been accusations that the company has violated privacy laws in the European Union (EU) and privacy laws in some states. Facebook has also raised ire among privacy advocates by lobbying against stronger privacy laws in some states, but it is within its legal rights to do so. Violations of privacy laws must be adjudicated, but antitrust laws were not intended to address such a threat. Rather, they were intended to prevent dominant producers from monopolizing or restraining trade in a market and harming consumers in the process.

Matt Stoller, in an interview with Russ Roberts on EconTalk, says antitrust action against social media companies may be necessary because they are so pervasive in our lives, have built such dominant market positions, and have made a practice of buying nascent competitors over the years. Steps must be taken to “oxygenate” the market, according to Stoller, promoting competition and protecting new entrants.

Tim Wu, the attorney who coined the misleading term “network neutrality”, is a critic of Facebook, though Wu is more skeptical of the promise of antitrust or regulatory action:

“In Facebook’s case, we are not speaking of a few missteps here and there, the misbehavior of a few aberrant employees. The problems are central and structural, the predicted consequences of its business model. From the day it first sought revenue, Facebook prioritized growth over any other possible goal, maximizing the harvest of data and human attention. Its promises to investors have demanded an ever-improving ability to spy on and manipulate large populations of people. Facebook, at its core, is a surveillance machine, and to expect that to change is misplaced optimism.”

Google has already been subject to antitrust action in the EU due to the alleged anti-competitive nature of its search algorithm, and Facebook’s data privacy policy is under fire there. But the prospect of traditional antitrust action against a social media company like Facebook seems rather odd, as acknowledged by the author at the first link above, Navneet Alang:

“… Facebook specifically doesn’t appear to be doing anything that actively violates traditional antitrust rules. Instead, it’s relying on network effects, that tendency of digital networks to have their own kind of inertia where the more people get on them the more incentive there is to stay. It’s also hard to suggest that Facebook has a monopoly on advertising dollars when Google is also raking in billions of dollars.“

Competition

The size of Facebook’s user base gives it a massive advantage over most of the other platforms in terms of network effects. I offer myself as an example of the inertia described by Alang: I’ve been on Facebook for a number of years. I use it to keep in touch with friends and as a vehicle for attracting readers to my blog. As I contemplated this post, I experimented by opening a MeWe account, where I joined a few user groups. It has a different “feel” than Facebook and is more oriented toward group chats. I like it and I have probably spent as much time on MeWe in the last week as Facebook. I sent MeWe invitations to about 20 of my friends, nearly all of whom have Facebook accounts, and a few days later I posted a link to MeWe on my Facebook wall. Thus far, however, only three of my friends have joined MeWe. Of course, none of us has deactivated our Facebook account, and I speculate that none of us will any time soon. This behavior is consistent with “platform inertia” described by Alang. Facebook users are largely a captive market.

But Facebook is not a monopoly and it is not a necessity. Neither is Google. Neither is Amazon. All of these firms have direct competitors for both users and advertising dollars. It’s been falsely claimed that Google and Facebook together control 90% of online ad revenue, but the correct figure for 2017 is estimated at less than 57%. That’s down a bit from 2016, and another decline is expected in 2018. There are many social media platforms. Zuckerberg claims that the average American already uses eight different platforms, which may include Facebook, Google+, Instagram, LinkedIn, MeWe, Reddit, Spotify, Tinder, Tumblr, Twitter, and many others (also see here). Some of these serve specialized interests such as professional networking, older adults, hook-ups, and shopping. Significant alternatives for users exist, some offering privacy protections that might have more appeal now than ever.

Antitrust vs. Popular, Low-Priced Service Providers

Facebook’s business model does not fit comfortably into the domain of traditional antitrust policy. The company’s users pay a price, but one that is not easily calculated or even perceived: the value of the personal data they give away on a daily basis. Facebook is monetizing that data by allowing advertisers to target individuals who meet specific criteria. Needless to say, many observers are uncomfortable with the arrangement. The company must maintain a position of trust among its users befitting such a sensitive role. No doubt many have given Facebook access to their data out of ignorance of the full consequences of their sacrifice. Many others have done so voluntarily and with full awareness. Perhaps they view participation in social media to be worth such a price. It is also plausible that users benefit from the kind of targeted advertising that Facebook facilitates.

Does Facebook’s business model allow it to engage in an ongoing practice of predatory pricing? It is far from clear that its pricing qualifies as “anti-competitive behavior”, and courts have been difficult to persuade that low prices run afoul of U.S. antitrust law:

“Predatory pricing occurs when companies price their products or services below cost with the purpose of removing competitors from the market. … the courts use a two part test to determine whether they have occurred: (1) the violating company’s production costs must be higher than the market price of the good or service and (2) there must be a ‘dangerous probability’ that the violating company will recover the loss …”

Applying this test to Facebook is troublesome because as we have seen, users exchange something of value for their use of the platform, which Facebook then exploits to cover costs quite easily. Fee-based competitors who might complain that Facebook’s pricing is “unfair” would be better-advised to preach the benefits of privacy and data control, and some of them do just that as part of their value proposition.

More Antitrust Skepticism

John O. McGinnis praises the judicial restraint that has characterized antitrust law over the past 30 years. This practice recognizes that it is not always a good thing for consumers when the government denies a merger, for example, or busts up a firm deemed by authorities to possess “too much power”. An innovative firm might well bring new value to its products by integrating them with features possessed by another firm’s products. Or a growing firm may be able to create economies of scale and scope that are passed along to consumers. Antitrust action, however, too often presumes that a larger market share, however defined, is unequivocally bad beyond some point. Intervention on those grounds can have a chilling effect on innovation and on the value such firms bring to the market and to society.

There are more fundamental reasons to view antitrust enforcement skeptically. For one thing, a product market can be defined in various ways. The more specific the definition, the greater the appearance of market dominance by larger firms. Or worse, the availability of real alternatives is ignored. For example, would an airline be a monopolist if it were the only carrier serving a particular airport or market? In a narrow sense, yes, but that airline would not hold a monopoly over intercity transportation, for which many alternatives exist. Is an internet service provider (ISP) a monopoly if it is the only ISP offering a 400+ Mbs download speed in a certain vicinity? In a very narrow sense, yes, but there may be other ISPs offering slower speeds that most consumers view as adequate. And in all cases, consumers always have one very basic alternative: not buying. Even so-called natural monopolies, such as certain public utilities, offer services for which there are broad alternatives. In those cases, however, a grant of a monopoly franchise is typically seen as a good solution if exchanged for public oversight and regulation, so antitrust is generally not at issue.

One other basic objection that can be made to antitrust is that it violates private property rights. A business that enjoys market dominance usually gets that way by pleasing customers. It’s rewards for excellent performance are the rightful property of its owners, or should be. Antitrust action then becomes a form of confiscation by punishing such a firm and its owners for success.

Political Bias

Another major complaint against Facebook is political bias. It is accused of selectively censoring users and their content and manipulating user news feeds to favor particular points of view. Promises to employ fact-check mechanisms are of little comfort, since the concern involves matters of opinion. Any person or organization held to be in possession of the unadulterated truth on issues of public debate should be regarded with suspicion.

Last Tuesday at the joint session, Zuckerberg acted as if such a bias was quite natural, given that Facebook’s employee base is concentrated in the San Francisco Bay area. But his nonchalance over the matter partly reflects the fact that Facebook is, after all, a private company. It is free to host whatever views it chooses, and that freedom is for the better. Facebook is not like a public square. Instead, the scope of a user’s speech is largely discretionary: users select their own network of friends; they can choose to limit access to their posts to that group or to a broader group of “friends of friends”; they can limit posts to subgroups of friends; or they can allow the entire population of users to see their posts, if interested. No matter how many users it has, Facebook is still a private community. If its “community standards” or their enforcement are objectionable, then users can and should find alternative outlets. And again, as a private company, Facebook can choose to feature particular news sources and censor others without running afoul of the First Amendment.

Revisiting Facebook’s Business Model

The greatest immediate challenge for Facebook is data privacy. Trust among users has been eroded by the improprieties in Facebook’s exploitation of data. It’s as if everyone in the U.S. has suddenly awoken to the simple facts of its business model and the leveraging of user data it requires. But it is not of great concern to some users, who will be happy to continue to use the platform as they have in the past. Zuckerberg did not indicate a willingness to yield on the question of Facebook’s business model in his congressional testimony, but there is a threat that regulation will require steps to protect data that might be inconsistent with the business model. If users opt-out of data sharing in droves, then Facebook’s ability to collect revenue from advertisers will be diminished.

As Jonathan Zittrain points out, Facebook might find new opportunity as an information fiduciary for users. That would require a choice between paying a monthly fee or allowing Facebook to continue targeted advertising on one’s news feed. Geoffrey A. Fowler writes that the idea of paying for Facebook is not an outrageous proposition:

“Facebook collected $82 in advertising for each member in North America last year. Across the world, it’s about $20 per member. … Netflix costs $11 and Amazon Prime is $13 per month. Facebook would need $7 per month from everyone in North America to maintain its current revenue from targeted advertising.”

Given a choice, not everyone would choose to pay, and I doubt that a fee of $7 per month would cost Facebook much in terms of membership anyway. It could probably charge slightly more for regular memberships and price discriminate to attract students and seniors. Fowler contends that a user-paid Facebook would be a better product. It might sharpen the focus on user-provided and user-linked content, rather than content provided by advertisers. As Tim Wu says, “… payment better aligns the incentives of the platform with those of its users.” Fowler also asserts that regulatory headaches would be less likely for the social network because it would not be reliant on exploiting user data.

A noteworthy aspect of Zuckerberg’s testimony at the congressional hearing was his stated willingness to consider regulatory solutions: the “right regulations“, as he put it. That might cover any number of issues, including privacy and political advertising. But as Brendan Kirby warns, regulating Facebook might not be a great idea. Established incumbents are often capable of bending regulatory bodies to their will, ultimately using them to gain a stronger market position. A partnership between the data-rich Facebook and an agency of the government is not one that I’d particularly like to see. Tim Wu believes that what we really need are competitive alternatives to Facebook: he floats a few ideas about how a Facebook competitor might be structured, most prominently the fee-based alternative.

Let It Evolve 

Like many others, I’m possessed by an anxiety about the security of my data on social media, an irritation with the political bias that pervades social media firms, and a suspicion that certain points of view are favored over others on their platforms. But I do not favor government intervention against these firms. Neither antitrust action nor regulation is likely to improve the available platforms or their services, and instead might do quite a bit of damage. “Trust-busting” of social media platforms would present technological challenges, but even worse, it would disrupt millions of complex relationships between firms and users and attempt to replace them with even more numerous and complex relationships, all dictated by central authorities rather than market forces. Significant mergers and acquisitions will continue to be reviewed by the DOJ and the FTC, preferably tempered by judicial restraint. I also oppose the regulatory option. Compliance is costly, of course, but even worse, the social media giants can afford it and will manipulate it. Those costs would inevitably present barriers to market entry by upstart competitors. The best regulation is imposed by customers, who should assert their sovereignty and exercise caution in the relationships they establish with social media platforms … and remember that nothing comes for free.

Mr. Musk Often Goes To Washington

31 Monday Jul 2017

Posted by in Automation, Labor Markets, Technology

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Elon Musk says we should be very scared of artificial intelligence (AI). He believes it poses an “existential risk” to humanity and  calls for “proactive regulation” of AI to limit its destructive potential. His argument encompasses “killer robots”: “A.I. & The Art of Machine War” is a good read and is consistent with Musk’s message. Military applications already involve autonomous machine decisions to terminate human life, but the Pentagon is weighing whether decisions to kill should be made only by humans. Musk also focuses on more subtle threats from machine intelligence: It could be used to disrupt power and communication systems, to manipulate human opinion in dangerous ways, and even to sow panic via cascades of “fake robot news”, leading to a breakdown in civil order. Musk has also expressed a fear that AI could have disastrous consequences in commercial applications with runaway competition for resources. He sounds like a businessmen who really dislikes competition! After all, market competition is self-regulating and self-limiting. The most “destructive” effects occur only when competitors come crying to the state for relief!

Several prominent tech leaders and AI experts have disputed Musk’s pessimistic view of AI, including Mark Zuckerberg of Facebook and Eric Schmidt, chairman of Google’s parent company, Alphabet, Inc. Schmidt says:

“My question to you is: don’t you think the humans would notice this, and start turning off the computers? We’d have a race between humans turning off computers, and the AI relocating itself to other computers, in this mad race to the last computer, and we can’t turn it off, and that’s a movie. It’s a movie. The state of the earth currently does not support any of these scenarios.“

Along those lines, Google’s AI lab known as “DeepMind” has developed an AI off-switch, otherwise known as the “big red button“. Obviously, this is based on human supervision of AI processes and on ensuring the interruptibility of AI processes.

Another obvious point is that AI, ideally, would operate under an explicit objective function(s). This is the machine’s “reward system”, as it were. Could that reward system always be linked to human intent? To a highly likely non-negative human assessment of outcomes? Improved well-being? That’s not straightforward in a world of uncertainty, but it is at least clear that a relatively high probability of harm to humans should impose a large negative effect on any intelligent machine’s objective function.

Those kinds of steps can be regarded as regulatory recommendations, which is what Musk has advocated. Musk has outlined a role for regulators as gatekeepers who would review and ensure the safety of any new AI application. Ronald Bailey reveals the big problem with this approach:

“This may sound reasonable. But Musk is, perhaps unknowingly, recommending that AI researchers be saddled with the precautionary principle. According to one definition, that’s ‘the precept that an action should not be taken if the consequences are uncertain and potentially dangerous.’ Or as I have summarized it: ‘Never do anything for the first time.’“

Regulation is the enemy of innovation, and there are many ways in which current and future AI applications can improve human welfare. Musk knows this. He is the consummate innovator and big thinker, but he is also skilled at leveraging the power of government to bring his ideas to fruition. All of his major initiatives, from Tesla to SpaceX, to Hyperloop, battery technology and solar roofing material, have gained viability via subsidies.

But another hallmark of crony capitalists is a willingness to use regulation to their advantage. Could proposed regulation be part of a hidden agenda for Musk? For example, what does Musk mean when he says, “There’s only one AI company that worries me” in the context of dangerous AI? His own company(ies)? Or another? One he does not own?

Musk’s startup OpenAI is a non-profit engaged in developing open-source AI technology. Musk and his partners in this venture argue that widespread, free availability of AI code and applications would prevent malicious use of AI. Musk knows that his companies can use AI to good effect as well as anyone. And he also knows that open-source AI can neutralize potential advantages for competitors like Google and Facebook. Perhaps he hopes that his first-mover advantage in many new industries will lead to entrenched market positions just in time for the AI regulatory agenda to stifle competitive innovation within his business space, providing him with ongoing rents. Well played, cronyman!

Any threat that AI will have catastrophic consequences for humanity is way down the road, if ever. In the meantime, there are multiple efforts underway within the machine learning community (which is not large) to prevent or at least mitigate potential dangers from AI. This is taking place independent of any government action, and so it should remain. That will help to maximize the potential for beneficial innovation.

Musk also asserts that robots will someday be able to do “everything better than us”, thus threatening the ability of the private sector to provide income to individuals across a broad range of society. This is not at all realistic. There are many detailed and nuanced tasks to which robots will not be able to attend without human collaboration. Creativity and the “human touch” will always have value and will always compete in input markets. Even if robots can do everything better than humans someday, an absolute advantage is not determinative. Those who use robot-intensive production process will still find it advantageous to use labor, or to trade with those utilizing more labor-intensive production processes. Such are the proven outcomes of the law of comparative advantage.

Fake News and Fake Virtue

28 Monday Nov 2016

Posted by in Free Speech, Propaganda

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hillary-clinton-tells-the-truth

Suddenly, since the election, “fake news” has become all the rage. Not that it’s a new phenomenon. All of us have come across it on social media. Most of us think we know it when we see it, and the recent election probably sensitized a great many of us to its cheap seduction. Some of it is satire, some is sincerely-held conspiracy theory, some is cooked-up, milli-penny click bait, and some of it is intended to drive an agenda.

Those forms of “fake news” are only the most obvious. I believe, for example, that the dangers of positively fake news are no greater than those posed by omission or demotion of news. It was rather obvious during the recent election campaign that news networks often ignored important stories that did not favor their own points of view. And since the death of the tyrant Fidel Castro, we’ve heard pronouncements that he was a “great leader” from a variety of sources who should know better; we’ve heard very little from them about his oppressive and murderous regime.

News as reported, and not reported, is often manipulated or mischaracterized to suit particular agendas. Reporters have their sources, and sources usually have agendas and stratagems in mind, which include rewarding reporters to get the coverage they desire. The manipulation even extends to news about science: grant-hungry and media-savvy members of the scientific community, and the pop-science community, know how to leverage it to their advantage.

Given the universal human capacity for bias, Roger Simon asks, only half in jest, whether all news is fake news. You can rely on so-called fact-checkers in an attempt to verify stories you find suspicious, but choose your fact checkers wisely because they are no better than the biases they bring to their duties. Let’s face it: facts are not always as clear-cut as we’d like. Simon makes his advisory on bias in reporting in the context of Mark Zuckerberg’s new-found passion to identify “fake news” and purveyors of “fake news”, and potentially to ban them from Facebook. No doubt his concern stems from accusations from angry Hillary Clinton supporters that Facebook failed to control the flow of “fake news” during the presidential campaign. He wants users to “flag” fake stories, but he knows that won’t always yield definitive conclusions. Simon quotes the Wall Street Journal:

“Facebook is turning to outside groups for help in fact-checking… It is also exploring a product that would label stories as false if they have been flagged as such by third-parties or users, and then show warnings to users who read or share the articles.

‘The problems here are complex, both technically and philosophically,’ [Zuckerberg] wrote. ‘We believe in giving people a voice, which means erring on the side of letting people share what they want whenever possible.’“

Well, that’s a relief! But what kind of chilling effect might be inflicted when the fact priests assign their marks? And what kind of fact-check/flagging escalation might be engendered among users? In the end, users and third-party “authorities” have biases. You can’t take any proscriptive action that will please them all. Better for hosts to keep their fingers off the scale, avoid censorship, and let users please themselves!

Zuckerberg should know better than to think that “facts” are always easily discerned, that “fake” news is solely the province of crank blogs and flakey “new media” organizations, or that “fake news” has any political affiliation. Consider the following examples offered by A. Barton Hinkle at Reason.com:

“The [New York] Times’ record for disseminating agitprop dates back at least to the early 1930s, when Walter Duranty won a Pulitzer for his reporting that denied the existence of famines in Soviet Russia—during a period when millions were dying of starvation.

More recently, The Times has given the nation the Jayson Blair fabrications—which it followed up with the infamous 2004 story, ‘Memos on Bush Are Fake But Accurate, Typist Says.’ It followed that up four years later with a story implying that GOP presidential candidate John McCain had had an affair with a lobbyist. (The lobbyist sued, and reached a settlement with the paper.)

Over the years other pillars of the media also have fallen on their faces. NBC News had to confess that it rigged GM trucks with incendiary devices for an explosive Dateline segment. The Washington Post gave up a Pulitzer after learning that Janet Cooke’s reporting about an 8-year-old heroin addict was false. In 1998 the Cincinnati Enquirer renounced its own series alleging dark doings by the Chiquita banana company. That same year, CNN retracted its story alleging ‘that the U.S. military used nerve gas in a mission to kill American defectors in Laos during the Vietnam War.’ The San Jose Mercury News had to denounce its own series alleging that the CIA was to blame for the crack cocaine epidemic. Rolling Stone just got hit with a big libel judgment for its now-retracted story about a rape at U.Va. And so on.“

Retractions are good, of course, but they aren’t always forthcoming, and they often receive little notice after the big splash of an initial report. The damage cannot be fully undone. Yet no one proposes to censor “the paper of record” or, with the exception of Fox News, the major television networks.

Edward Morrissey, writing at The Week, notes that the Trump election represented such a total breakdown in the accepted political wisdom that the identification of scapegoats was inevitable:

“Over the past week, the consensus Unified Theory from the media is this: Blame fake news. This explanation started with BuzzFeed’s analysis of Facebook over the past three months, which claimed that the top 20 best-performing ‘fake news’ articles got more engagement than the top 20 ‘mainstream news’ stories. …

There are also serious problems with the evidence BuzzFeed presents. As Timothy Carney points out at the Washington Examiner, the “real news” that Silverman uses for comparison are, in many cases, opinion pieces from liberal columnists. The top ‘real’ stories — which BuzzFeed presented in a graphic to compare against the top ‘fake’ stories — consist of four anti-Trump opinion pieces and a racy exposé of Melania Trump’s nude modeling from two decades ago.“

In Reason, Scott Shackford considers a proposed list of “fake news” sources compiled by a communications professor. Shackford says:

“… [Professor] Zimdars’ list is awful. It includes not just fake or parody sites; it includes sites with heavily ideological slants like Breitbart, LewRockwell.com, Liberty Unyielding, and Red State. These are not “fake news” sites. They are blogs that—much like Reason—have a mix of opinion and news content designed to advance a particular point of view. Red State has linked to pieces from Reason on multiple occasions, and years ago I wrote a guest commentary for Breitbart attempting to make a conservative case to support gay marriage recognition.“

Warren Meyer rightfully identifies the “fake news” outrage as an exercise in idealogical speech suppression, much like the left’s cavalier use of the term “hate speech”:

“The reason it is such a dangerous term for free speech is that there is no useful definition of hate speech, meaning that in practice it often comes to mean, ‘confrontational speech that I disagree with.’“

Worries about “fake” news are one thing, but perhaps we should be just as concerned about the “scourge of dumb news“, and the way it often supplants emphasis on more serious developments. Did the fracas over the Hamilton cast’s treatment of Mike Pence distract the media, and the public, from stories about Donald Trump’s potential conflicts of interest around the globe, which broke at about the same time? Here are some other examples of “dumb” news offered by Noah Rothman, the author of the last link:

“Colin Kaepernick, the Black Lives Matter movement, college-age adults devolving into their childlike selves, or pretentious celebrities politicizing otherwise apolitical events; for the right, these and other similar stories masquerade as and suffice for intellectual stimulation and political engagement. The left is similarly plagued by mock controversies. The faces printed on American currency notes, minority representation in film adaptations of comic books, and astrophysicists insensitive enough to announce feats of human engineering while wearing shirts with cartoon depictions of scantily clad women on them. This isn’t politics but, for many, it’s close enough.“

Okay, so what? We all choose news sources we prefer or discern to be reliable, interesting, or entertaining, and that’s wonderful. No one should presume to question the degree to which news and entertainment ought to intersect. I do not want protection from “fake news”, “dumb news”, or any news source that I prefer, least of all from the government. After all, if there is any entity that might wish to “control the narrative” it’s the government, or anyone who stands to gain from it’s power to coerce.

The Gains From Traits: GMOs Bring Welfare Gains

08 Friday Jan 2016

Posted by in Biotechnology

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GMO-Right Genes
For about 30 years I have injected analog human insulin, produced by GMO E. coli bacteria, directly into my tissue. And I feel great, as do many other Type I diabetics who benefit from the advance this offers over earlier insulins made with pork and beef insulin crystals. Quite simply, I have the wrong genes. Those bad genes enabled my immune system to destroy the insulin-producing cells I needed to stay alive. At first, that necessitated the use of a faulty substitute, but later, an organism was created in a lab with the right gene to produce the powerful analog insulin I use now.

There are many other genetically-engineered pharmaceutical products on the market today, and more are coming. Julie Kelly discusses some of these developments in “The March of Genetic Food Progress” (if gated, Google “wsj Julie Kelly Genetic”). One in particular is an egg laid by a GM chicken that treats:

“… a rare and potentially fatal disorder called lysosomal acid lipase deficiency. The chicken… produces eggs with an enzyme that replaces a faulty human enzyme, addressing the underlying cause of the disease.“

She also writes of GM piglets that resist a viral respiratory disease. Her article mentions a few promising new GMOs foods in the pipeline. In a Sacred Cow Chips post in July 2015, “Nice Splice: New & Old GMO Varieties Blossom“, I quoted William Saletan on a large number of new GMOs, which I repeat here:

“… drought-tolerant corn, virus-resistant plums, non-browning apples, potatoes with fewer natural toxins [and fewer carcinogens when fried], and soybeans that produce less saturated fat. … virus-resistant beans, heat-tolerant sugarcane, salt-tolerant wheat, disease-resistant cassava, high-iron rice, and cotton that requires less nitrogen fertilizer. … high-calcium carrots, antioxidant tomatoes, nonallergenic nuts, bacteria-resistant oranges, water-conserving wheat, corn and cassava loaded with extra nutrients, and a flaxlike plant that produces the healthy oil formerly available only in fish.“

GMO foods enhance farm productivity, reduce waste, conserve land, improve the environment and provide better nutrition. They offer solutions to a variety of human problems that are otherwise out-of-reach.

Anti-GMO activists have smeared all of these GMO crops and even GM insulin as unsafe, but they base their claims on shoddy “research” or willful misinterpretation of research. To scare-monger people with diseases like diabetes is repugnant. Decades of experience have proven the safety of modern insulin products. Those negative claims about insulin arose from a paper reviewed here, which had a different research purpose and did not even mention GMO-produced insulin.

GMOs have been in the food supply to some extent for over 25 years. There is no shortage of high-quality, independent, peer-reviewed research proving the safety of GMOs in various contexts, including multi-generational studies for GMO animal feeds. Here is a review of GMO safety and environmental research funded by the EU. Another review of 10 years of safety research found that:

“The scientific research conducted so far has not detected any significant hazards directly connected with the use of genetically engineered crops.”

An excellent post by Marc Brazeau on the Biology Fortified blog, “About Those Industry Funded GMO Studies“, covers a variety of research demonstrating GMO safety for humans, livestock, honey bees, and invertebrates. As the title suggests, Brazeau also probes the question of financial or professional conflict of interest, industry funding and their alleged impact on GMO research. Favorable GMO research is often condemned by activists on this basis. The “industry shill” argument is often invoked by activists to dismiss positive results regardless of the experimental rigor involved. Brazeau reviews some research on these questions, and notes the following:

“… where compositional studies are concerned … the company has already performed in-house studies. They are contracting independent scientists to confirm their findings. This is going to skew the results of the sample towards industry favorable study outcomes. This doesn’t mean the studies were suspect. They were just more likely to result in a favorable outcome to begin with. If the in-house study had an unfavorable outcome in compositional assessment or other tests, then that project would be stopped and it’s back to the drawing board for a new project. There is no need for follow up testing by outside independent researchers. That’s a big reason why so many studies … will produce favorable results.“

I highly recommend the GMO Skepti-Forum on Facebook as a site on which informed (and usually civil) debate takes place on GMOs. Many of the discussants are scientists actively involved in GMO research. It’s a go-to location for me when investigating on-line memes that reference GMO research.

Finally, Robert Wenzel posts some thoughts regarding “Libertarianism and GMOs“. His position on GMOs mirrors my own. He asserts that individuals have a choice about whether to consume GMOs; they are capable of finding alternatives without imposing restrictions the behavior of others who wish to avail themselves of the benefits or are unconcerned about alleged risks. In fact, the benefits often include affordability and safety. Wenzel argues that this position is consistent with the non-aggression principle, the philosophical anchor of Libertarianism.

Some libertarians object to Wenzel’s defense of biotechnology based on the crony capitalism that undoubtedly benefits the biotech industry, as well as his opposition to GMO labelling. There are certainly ties between the large biotech firms and regulators, but that is no reason to condemn the technology. Labelling proponents start from the faulty premise that there is something inherently harmful about consuming GMOs. Their solution is to impose costs on others, while they are already free to purchase their food from purveyors who offer non-GMO assurances. Hence, the argument that forced labelling represents a form of aggression.