Monday, December 19, 2022

How New York Times Fear-Mongering Helped Republicans Win the House

The paper told America that rising crime and worsening inflation were driven by Democrats. None of it was true.


New York Times newspaper office building is seen in Manhattan, New York, on October 26, 2022.

In the immediate aftermath of the 2016 election, there was a lot of attention focused on the role of “fake news,” but a year later, a study published in the Columbia Journalism Review told a very different story, with the blunt title, “Don’t blame the election on fake news. Blame it on the media.” Instead of fake news — which was a real but relatively small problem in 2016 (all fake Russian ads amounted to 0.1 percent of Facebook’s daily advertising revenue) — it centered on an analysis of the New York Times‘ agenda-setting campaign coverage: America’s paper of record ran as many front-page stories about Hillary Clinton’s emails (10) in the last six days before the election as it did about all policy details combined in the two months before the election.

“If Clinton had a hard time getting her message out, she certainly didn’t get much help from the newspaper of record,” I wrote here at the time. “Even though Trump got slightly more front-page scandal coverage than Clinton did, he faced nothing remotely like the six-day avalanche she endured.”

So I heard a sharp echo of the 2016 election on Nov 27, when the New York Times tweeted out a story this way:

 

New York and its suburbs are among the safest large communities in the U.S. But amid a torrent of doomsday-style ads and headlines about rising crime, suburban swing voters helped drive a Republican rout that played a decisive role in capturing the House.

Once again, the Times was seeking to make sense of an unexpected election result — the GOP’s flipping of four suburban New York House districts — with zero apparent awareness of the crucial role its coverage had played.

Sure, Fox News played a role in driving national hysteria on crime, as Philip Bump showed shortly before the election. But in these particular districts, with majorities of Joe Biden 2020 voters, Fox could not have done it alone. The Times was implicated as well, and civil rights attorney Scott Hechinger, who heads Zealous, a criminal justice reform initiative, called it out in a withering Twitter thread. He called it “mindblowing” to see the Times, “one of the chief purveyors of false/misleading ‘doomsday headlines’ about crime in NY & around country — now reporting on the electoral impact of their own deeply harmful journalism practices. And yet mentioning only other papers & ‘media.'”

Hechinger reiterated these concerns to Salon by email: “I get far more concerned with outlets like NYT and NPR than Fox or NY Post because they are far more influential with the ‘gettable middle and moderates.'”

I wasn’t alone in hearing an echo of 2016, confirmed by Hechinger’s thread. One of the CJR study’s co-authors, Duncan Watts, confirmed the conclusion that the Times was willfully blind to the role it played. He wrote by email:

I continue to be amazed at the apparent inability or unwillingness of journalists (especially but not exclusively at the NYT) to acknowledge their own influence on the world. They write as if they are disinterested observers merely reporting on events over which they have had no influence, and over whose coverage they had no choice; yet neither of these assumptions seems remotely plausible to me.

Editors and journalists obviously have considerable discretion over what to cover (selection) — just look at the relative attention paid to Hillary Clinton’s email security and that of Jared and Ivanka not even a year later. I would argue, in fact, that almost any issue can be elevated to one of importance if the media chooses to focus on it, and almost any issue can relegated to insignificance if the media chooses to ignore it.

Hechinger was not alone in calling out the Times for misleading reporting about crime. Six months earlier, Alec Karakatsanis, founder and executive director of Civil Rights Corps, made a similar case after the California primary, specifically criticizing the Times’ later-retitled story, “California Sends Democrats and the Nation a Message on Crime.” That article — based on two highly atypical, billionairefunded campaigns, and ignoring multiple others — was typical of the Times‘ apparent impulse to shift the national narrative on crime rightward, regardless of evidence to the contrary.

It wasn’t just the Times‘ crime coverage that was deeply skewed to favor Republicans. Its obsessively inflation-focused coverage of the economy (again, certainly not alone) was similarly perverse, and also highly consequential.

“Why did we spend the past year or so reading daily stories about record high inflation but only occasional mention of record low unemployment?” Watts asked. “Both stories were true, but only one got consistent traction.” These two “Democrats in charge, situation out of control” narratives may have been custom-built in the Fox News ecosystem, but the Times eagerly gobbled them up and amplified them across the political spectrum, crowding out contrasting narratives in the process.

Kevin McCarthy’s county in Southern California had more than twice the 2021 murder rate of San Francisco, which Nancy Pelosi represents. Of course, neither of them was responsible for those startling statistics.

In the real world, murder rates rose in the wake of the pandemic, while broader measures of crime were more mixed, and neither had any intelligible relationship to congressional politics. According to California’s 2021 report, the murder rate in Kern County, home to likely incoming House Speaker Kevin McCarthy, was 13.7 per 100,000 in 2021, more than twice the rate of San Francisco, home to current Speaker Nancy Pelosi. But neither of those House members was responsible for those statistics. How could they be? Yet our political discourse was grounded in the fantasy that there was some relationship. The entire 2022 discussion about crime needs to be understood as a dangerous and damaging fantasy.

Nevertheless, Hechinger’s Twitter thread makes a compelling case for the Times culpabilityhighlighting key examples, such as how the paper’s unrelenting support for New York Mayor Eric Adams’ “tough on crime” approach and Republican gubernatorial candidate Lee Zeldin’s bad-faith attacks on Democrats, along with examples of a baseline “both sides” bias, if not a straightforward stenography of power

First, Hechinger commented on the July 22 Times story, the day after a minor attempted assault on Zeldin during a campaign appearance on Long Island. The headline echoed campaign messaging — “G.O.P. Assails N.Y. Bail Laws After Suspect in Zeldin Attack Is Released” — and its first three paragraphs read like a GOP press release, concluding with a quote from the state party chairman:

“Only in Kathy Hochul’s New York could a maniac violently attack a candidate for Governor and then be released without bail,” Nick Langworthy, the New York Republican Party chairman, wrote on Twitter. “This is what happens when you destroy the criminal justice system.”

That accusation was patently false. As the ACLU of New York explained, “New York’s bail law currently eliminates money bail for most misdemeanors and nonviolent felonies,” so the assailant’s release was dependent on a charging decision. And what wild-eyed fanatical reformer was that? As Hechinger noted, “It took @nytimes *23 paragraphs* to expose the fact that the local DA — co-Chair of Zeldin’s campaign — could’ve sought bail. But declined to.”

Hechinger also commented on a follow-up story that was headlined, “How Did a Man Accused of Attacking Lee Zeldin Go Free Without Bail?“:

The power & consequences of a headline. In the midst of a cynical assault on truth about bail reform by GOP extremist Lee Zeldin, NYT still only mustered a not-terrible, but disappointing “both-sides” story. But look at the headline. Few read beyond it. What message did it send?

Then there was the Times‘ fawning coverage of Adams, a Democrat (and former police captain) who’s generally been closer to Republicans on crime. Hechinger screen-capped a Maureen Dowd column, “The Mayor Who Never Sleeps,” commenting:

The NYT lionized the hyper-carceral, chief crime propagandist. It began: “On a breezy June night in the Bronx, I was on the balcony at the restaurant Zona De Cuba, sipping a mojito, vibing to a salsa band & peeking at a special menu for the plant-based mayor of NY Eric Adams.”

He later linked to another story, “Adams Blames Bail Law After Release of Teen Charged in Officer Shooting,” commenting:

Look at this @nytimes headline. Made it seem like Mayor’s LIE was legitimate. It took 8 full paragraphs & 332 words before reporters stated the truth:

Bail reform had nothing to do with this. Also the teen was ultimately absolved & case dismissed.

Hechinger then linked to another story, “The Mayor’s Crime Plan Is Loathed by Liberals. But It Might Work,” with the comment:

What was really strange about this headline from @nytimes is that the article actually *thoroughly debunked* the Mayor’s “plan” as lacking in any evidence, facts, or reason. No connection between reform & crime. No data to support policing plan. So… Why?

By email, Hechinger explained:

The NYT all too often at best presents a “both sides” picture when one of the sides is brazenly lying and the other is firmly backed by data and reason. And for a population conditioned by popular culture and sensational news media practices to thinking very simply and reactively about health and safety, they’re also going to be more comfortable believing the status quo.

A prime example cited in his thread was a screen-cap of the story headlined, “They Wanted to Roll Back Tough-on-Crime Policies. Then Violent Crime Surged,” with this comment:

Doesn’t matter what nuance this @nytimes article might’ve brought. Most people don’t read beyond headlines. So most people thought “progressive prosecutors” led to a “surge” in “violent crime.”

Fact: Any increases & far more decreases occurred *everywhere.* 2 lies in 1 headline.

California’s Counter-Narrative

California, where we’ll turn our attention next, achieved its lowest crime rate in 50 years of recorded history in 2019 after years of criminal justice reforms, as explained by Mike Males, head of the Center on Juvenile and Criminal Justice:

  • Statewide crime rates fell by 12 percent from 2010 through 2019, including a one-year decline of 3 percent from 2018 to 2019.…
  • Crime declines accompany a period of transformational criminal justice reform, including the passage of Public Safety Realignment, Prop 47, Prop 57, and Prop 64. Despite initial concerns that these law changes would boost crime, most communities were safer in 2019 than at the start of the decade.

Ah, but how have things changed since 2019? Well, crime has risen in not-really-post-pandemic California, as in most of the country — but not evenly, as the Los Angeles Times reported in August, following release of statewide homicide data for 2021. In a column titled, “Violent crime is spiking in Trump’s California. These counties blame everyone but themselves,” Anita Chabria wrote: “The biggest risks for homicides came in conservative counties with iron-fist sheriffs and district attorneys, places where progressives in power are nearly as common as monkeys riding unicorns.”

Kern County in inland Southern California — home to presumptive Speaker Kevin McCarthy, where Donald Trump got 54 percent of the vote in 2020 — was the most dangerous in the state, “with a homicide rate of nearly 14 people per 100,000, compared with about 6 per 100,000 for the state as a whole and 8.5 per 100,000 in Los Angeles County.”

Merced County, another inland county and “a political mixed bag,” was second-highest at 9.5 per 100,000 residents, and Tulare County (part of which McCarthy also represents, and where Trump also won) was No. 3 at 8.8 homicides per 100,000. “At the other end of the spectrum,” Chabria wrote, was Contra Costa County in the San Francisco Bay Area, “which has been successful at beating state averages on crime and has one of the state’s only (along with L.A.’s George Gascón) openly progressive district attorneys, Diana Becton.” The murder rate there “remains around 4 per 100,000 residents,” less than one-third of McCarthy’s home county.

A few months earlier, five days before the California primary, Males drew another comparison: “San Francisco’s crime rates fall while Sacramento’s ‘tough-on-crime’ DA presides over rising violence,” comparing the records of Sacramento DA Anne Marie Schubert, a candidate for state attorney general at the time, and San Francisco’s progressive prosecutors (Gascón, before moving to L.A., and the since-recalled Chesa Boudin) from 2014 to 2021. He reported that “Violent crime rates have risen an average of 9% in Sacramento while falling an average of 29% in San Francisco from 2014-2021,” the exact opposite of what the “tough on crime” crowd would have you believe.

But facts only partly mattered in the election that followed. Schubert got nowhere in the statewide race, but Boudin was recalled in San Francisco, buried in an avalanche of billionaire-fueled propaganda, as Jon Skolnik covered for Salon. As mentioned above, the Times ran a story on the Boudin recall which Pacifica Radio journalist Brian EdwardsTiekert picked apart in a Twitter thread focused on the actual details of how it happened, which concluded by suggesting: “Better headline: ‘Bucking regional trend, Bay Area’s fourth-largest county trades progressive DA for vague assurances of continued reforms under unknown successor.'”

The Times portrayed DA Chesa Boudin’s recall in San Francisco as illustrating a national trend. A better suggested headline: “Bay Area’s fourth-largest county trades progressive DA for vague assurances of continued reforms.”

In his Copaganda newsletter, Karakatsanis laid out a broader argument under the headline, “How to Spin an Election.” One aspect stood out, he wrote: There were “huge progressive criminal justice victories in California on election night, and the NYT just ignores them. I honestly could not believe what I was reading.” He linked to a thread by Chloe Cockburn, founder and CEO of Just Impact Advisors, highlighting a number of those victories, and added:

In fact, all over California and the country, continuing a multi-year trend, many progressive Democrats did very well (and a few didn’t) in elections about “criminal justice” issues. It’s astonishing that the New York Times doesn’t mention any of them.

So, what does NYT choose to focus on? 1) The recall of the DA in San Francisco in which Republican billionaire money flooded the race and created an overwhelming spending mismatch; and 2) The Los Angeles mayoral race, in which a former Republican billionaire spent $41 million on the primary. And although he outspent his nearest opponent by 10:1 ratio, he still only received 40% of the vote! 60% of the voters rejected his message.

It should be noted that the Los Angeles mayoral race predictably shifted against the Times narrative as Democratic mail-in votes came in, putting vastly-outspent progressive candidate Karen Bass seven points ahead. Bass went on to win the general election, despite another five months of right-wing-funded attack ads.

What’s more, Karakatsanis noted, the Times “neglected to tell readers that the ‘criminal justice reform’ policies of the San Francisco DA were actually enormously popular. Each of his major issues (not prosecuting kids, cash bail, wrongful convictions, worker protection, going after corrupt cops, and more) consistently polled with overwhelming support for nearly his entire tenure,” including the last pre-election poll from mid-May, which showed 55% support for a workers’ rights protection unit, 65% support for an innocence commission and narrower pluralities in favor of not prosecuting children as adults and ending cash bail.

What drove the Boudin recall — beyond the vast sums spent to demonize him — was wildly inaccurate reporting across multiple issues, none more than the Times‘ own role in promoting the narrative that an out-of-control shoplifting epidemic had led Walgreens to close five San Francisco stores, a story debunked almost immediately by the San Francisco Chronicle: “Data released by the San Francisco Police Department does not support the explanation announced by Walgreens that it is closing five stores because of organized, rampant retail theft.”

Karakatsanis wrote:

Using only these two local election-night results and ignoring all of the contrary evidence, NYT concocted a national story published at 5:00am the next morning about a reckoning for progressives and “shifting winds” on “criminal justice. According to Meltwater, this article had a potential “reach” of 170 million people after it was given prominent placement on the NYT website. The message to them? Democrats have to move right on crime.

As always with the New York Times, when you see articles like this, ask yourself: Why is this particular angle news? How did it get to the reporter and who pitched it? What is the goal of the article? How did they choose which voices to quote and which to ignore? Who benefits from framing the issue this way?

The sources cited, he argued, “overwhelmingly have political and business interests in promoting centrist, pro-police narratives,” even as the article “almost surgically excludes any other perspective, including the perspective of the many progressive strategists and candidates who have won on exactly the opposite message.”

That story was hardly unique; Karakatsanis takes a more extensive look at Times sourcing here, concluding, “Instead of quoting or listening to other voices, the New York Times mocks them…. Because it doesn’t talk to anyone with different views, let alone explain them, NYT misleads the public with ludicrous strawperson arguments.”

Times sources cited in crime stories “overwhelmingly have political and business interests in promoting centrist, pro-police narratives,” Karakatsanis argues.

In the first installment of his Copaganda newsletter, “What Is News?” Karakatsanis pointed out that he was “inspired by the gap in what mainstream media treats as urgent and what are the greatest threats to human safety, well-being, and survival,” noting as an example that air pollution kills 10 million people each year, but rarely makes the news. Instead the news is dominated by “crime” stories, but only about certain kinds of crime. He contrasts the recent media obsession with “retail shoplifting” from big corporate stores, to “the $137 million in corporate wage theft *every day,* including by the same companies whose press releases about shoplifting they now quote as victims.”

It’s worth noting that wage theft was Project Censored’s No. 2 story of the year, as I recently reported for Random Lengths News, specifically focusing on reporting by the Center on Public Integrity about how infrequently the offenders suffer any consequences. Drawing on 15 years of data from the Department of Labor, the report found that “The agency fined only about one in four repeat offenders during that period. And it ordered those companies to pay workers cash damages — penalty money in addition to back wages — in just 14 percent of those cases.” Talk about soft on crime! But that never hits the New York Times front page, and is never the subject of continuing political narratives, despite the fact that, at around $50 billion a year, it dwarfs all other kinds of property crimes.

Well, almost all of them. Another massive crime wave that’s not news is tax evasion by the wealthy, which “could approach and possibly exceed $1 trillion per year,” according to IRS Commissioner Chuck Rettig’s Senate testimony earlier this year. This has been enabled by years of IRS budget cuts, thanks to Republicans. Which is why IRS agents are being hired with funding in the Inflation Reduction Act, leading Republicans to scream bloody murder over Democrats getting too tough on crime.

Inflating Inflation

Republicans’ soft-on-crime approach — at least when the wealthy and powerful are involved — leads us to the next aspect of how the Times helped them flip the House: Misleading coverage of the economy and inflation. Recall that Watts asked, “Why did we spend the past year or so reading daily stories about record high inflation but only occasional mention of record low unemployment?” noting, “Both stories were true, but only one got consistent traction.”

A Proquest search of Times headlines for the entire year through Election Day bears this out. There were 709 hits for “inflation” and 141 for “recession,” but just 14 for “unemployment,” and 77 for “recovery” — of which only 13 were stories about economic recovery in the U.S.

I turned to Dean Baker, co-founder of the Center for Economic and Policy Research, whose “Beat the Press” blog began in the 1990s as commentary on faulty economic coverage in the Washington Post and the New York Times. Myopia, oversimplification and lack of historical perspective are the persistent problems he has pointed out, which he says continue to this day. He wrote by email:

I would say that the WaPo and NYT, along with most of the rest of the media, decided that the story of the economy was that inflation was hurting people, especially lower income people. They pushed this line endlessly, ignoring large amounts of evidence to the contrary. For example, wage growth was most rapid at the lower end of the wage distribution and outpaced inflation for the bottom 40 percent or so of the workforce.

Other perspectives on the current economic picture were also missing, he continued.

The freedom to quit a job you don’t like, knowing that you can likely get a better one, has to be a really big deal for workers who often feel stuck in jobs that pay poorly or where the boss is a jerk. … In some pieces they practically lied. For example, the NYT had a piece just before the election saying that young people were unable to buy homes. In fact, the homeownership rate for young people had risen substantially since before the pandemic, and that was true for Blacks and Hispanics as well, also for lower income households.

Other facts were almost never mentioned, such as the “20 million people who refinanced their homes in the years 2020-22, saving themselves thousands in interest costs each year,” along with “an increase of roughly 10 million people working from home” who both had more personal time with no commute and “saved thousand of dollars a year in commuting costs and other expenses associated with going to an office.”

“In short,” Baker concluded, “the media decided that we had a terrible economy, and they were not going to let the data get in the way.”

Dean Baker offers a straightforward conclusion: “In short, the media decided that we had a terrible economy, and they were not going to let the data get in the way.”

In fact, inflation has been a worldwide problem, with the U.S. rate below the average among developed nations, so, as with crime, the dominant narrative has no grounding in plausible causal relationships. Did Democratic spending have an inflationary impact? Maybe the stimulus checks did — but they didn’t cause Germany to have higher inflation than the U.S. As for the Child Tax Credit, which cut child poverty by 30%, its effect was minimal, according to this analysis by macroeconomist Claudia Sahm. “Unlike stimulus checks that came out in a burst, accounting for 16% of disposable personal income in March 2021, the new Child Tax Credit was monthly to families and was 0.5% of income from July through December,” she writes.

American child poverty is way out of line with the rest of developed world, and has been for generations. Changing that would vastly improve the life outcomes of tens of millions of children — an enormous long-term benefit not just for those individuals and their families, but for our nation as a whole. To abandon that over an illogical fear of short-term inflation is foolish at best, criminally malicious at worst. But American politics didn’t allow any serious discussion about that, with Joe Manchin’s anecdotal fears derailing the entire issue.

The New York Times — here we go again — did nothing to counter that. Its role in helping Republicans win control of the House needs to be viewed through the lens of child poverty. By deciding which stories matter and which don’t, the Times decides which people matter and which don’t.

Of course the Times should not favor the Democrats, or privilege liberal or progressive arguments above others by default. But it should favor the truth on criminal justice and the economy, as on all other issues. In the election just concluded, greater doses of truth might well have benefited Democrats. But in the larger picture, if the media privileges factual arguments and evidence, that sets a bar both parties have an equal opportunity to meet. That kind of political competition is the hallmark of a healthy democracy.

Hechinger wrote in the Nation last year about the profound disconnect between known truths and journalistic practice:

Today, we know, both from experience and overwhelming research, that releasing people from jail prior to trial reduces crime for years in the future — and saves tens of millions of dollars in each major city. We also know, again based on experience and also the most robust criminogenic analysis in history — a meta-analysis of 116 studies just released this month — that long sentences have zero effect on crime.

Yet journalism today continues to ignore these “criminological fact[s]” while instead following the familiar and dangerous patterns from the 1980s and ’90s that helped drive mass criminalization itself: overly simplistic stories with alarmist headlines and dehumanizing language that rely predominantly on police as sources, neglect nuance, provoke fear in the public, speculate about short term crime data — and posit police, prosecution, and prison as the solutions to crime.

Yet he remains doggedly determined and borderline optimistic, as he told me by email. The best thing “advocates for truth can do” is continue to criticize and engage, he wrote. Some mainstream journalists “have been open to conversations and have listened constructively”:

My concern is that the same patterns I wrote about in the Nation and keep plugging away at on Twitter keep persisting, & with some reporters getting worse. As someone who follows the truth and data closely, works with amazing folks around the country who are successfully achieving public health and safety without relying on mass police and jailing, and who represented thousands of people directly targeted, harmed and marginalized by the very policies the New York Times intentionally or otherwise reinforces, I care deeply about the Times getting it right.


PAUL ROSENBERG is a California-based writer/activist, senior editor for Random Lengths News, and a columnist for Al Jazeera English.
SELLING STOLEN DATA ON THE DARKNET IS A MILLION-DOLLAR INDUSTRY, STUDY FINDS

Leaked personal info travels through a profitable underground economy.


CHRISTIAN JORDAN HOWELL AND DAVID MAIMON
DEC. 11, 2022

IT IS COMMON to hear news reports about significant data breaches, but what happens once your data is stolen?

Our research shows that, like most legal commodities, stolen data products flow through a supply chain consisting of producers, wholesalers, and consumers. But this supply chain involves the interconnection of multiple criminal organizations operating in illicit underground marketplaces.

The stolen data supply chain begins with producers — hackers who exploit vulnerable systems and steal sensitive information such as credit card numbers, bank account information, and Social Security numbers.

Next, the stolen data is advertised by wholesalers and distributors who sell the data. Finally, the data is purchased by consumers who use it to commit various forms of fraud, including fraudulent credit card transactions, identity theft, and phishing attacks.

This trafficking of stolen data between producers, wholesalers, and consumers is enabled by darknet markets, which are websites that resemble ordinary e-commerce websites but are accessible only using unique browsers or authorization codes.

We found several thousand vendors selling tens of thousands of stolen data products on 30 darknet markets. These vendors had more than $140 million in revenue over an eight-month period.


The stolen data supply chain, from data theft to fraud.
Christian Jordan Howell


DARKNET MARKETS

Like traditional e-commerce sites, darknet markets provide a platform for vendors to connect with potential buyers to facilitate transactions. Darknet markets, though, are notorious for the sale of illicit products. Another key distinction is that access to darknet markets requires the use of special software such as the Onion Router or TOR, which provides security and anonymity.

Silk Road, which emerged in 2011, combined TOR and bitcoin to become the first known darknet market. The market was eventually seized in 2013, and the founder, Ross Ulbricht, was sentenced to two life sentences plus 40 years without the possibility of parole. Ulbricht’s hefty prison sentence did not appear to have the intended deterrent effect. Multiple markets emerged to fill the void and, in doing so, created a thriving ecosystem profiting from stolen personal data.


Example of a stolen data ‘product’ sold on a darknet market.Screenshot by Christian Jordan Howell


STOLEN DATA ECOSYSTEM

Recognizing the role of darknet markets in trafficking stolen data, we conducted the most significant systematic examination of stolen data markets that we are aware of to better understand the size and scope of this illicit online ecosystem. To do this, we first identified 30 darknet markets advertising stolen data products.

Next, we extracted information about stolen data products from the markets on a weekly basis for eight months, from September 1, 2020, through April 30, 2021. We then used this information to determine the number of vendors selling stolen data products, the number of stolen data products advertised, the number of products sold and the amount of revenue generated.


In total, there were 2,158 vendors who advertised at least one of the 96,672 product listings across the 30 marketplaces. Vendors and product listings were not distributed equally across markets. On average, marketplaces had 109 unique vendor aliases and 3,222 product listings related to stolen data products. Marketplaces recorded 632,207 sales across these markets, which generated $140,337,999 in total revenue. Again, there is high variation across the markets. On average, marketplaces had 26,342 sales and generated $5,847,417 in revenue.


The size and scope of the stolen data ecosystem over an eight-month period.Christian Jordan Howell

After assessing the aggregate characteristics of the ecosystem, we analyzed each of the markets individually. In doing so, we found that a handful of markets were responsible for trafficking most of the stolen data products.

The three largest markets — Apollon, WhiteHouse, and Agartha — contained 58 percent of all vendors. The number of listings ranged from 38 to 16,296, and the total number of sales ranged from 0 to 237,512. The total revenue of markets also varied substantially during the 35-week period: It ranged from $0 to $91,582,216 for the most successful market, Agartha.

For comparison, most midsize companies operating in the U.S. earn between $10 million and $1 billion annually. Both Agartha and Cartel earned enough revenue within the 35-week period we tracked them to be characterized as midsize companies, earning $91.6 million and $32.3 million, respectively. Other markets like Aurora, DeepMart, and WhiteHouse were also on track to reach the revenue of a midsize company if given a full year to earn.

DARKNET STOLEN DATA MARKETPLACES

Key statistics for individual darknet stolen data marketplaces:


* Not to be confused with the original now-defunct Silk Road.
Table: The Conversation, Source: Christian Jordan Howell, Created with Datawrapper

Our research details a thriving underground economy and illicit supply chain enabled by darknet markets. As long as data is routinely stolen, there are likely to be marketplaces for the stolen information.

These darknet markets are difficult to disrupt directly, but efforts to thwart customers of stolen data from using it offer some hope. We believe that advances in artificial intelligence can provide law enforcement agencies, financial institutions, and others with the information needed to prevent stolen data from being used to commit fraud. This could stop the flow of stolen data through the supply chain and disrupt the underground economy that profits from your personal data.

This article was originally published on The Conversation by Christian Jordan Howell at the University of South Florida and David Maimon at Georgia State University. Read the original article here.
Bernie Sanders’s Yemen War Powers Resolution Could Help End the Monstrous War

Bernie Sanders has introduced a new resolution to cut off US support for the horrific Saudi-led war in Yemen. The measure is a crucial step toward peace — but it will have to be backed up with serious pressure on Joe Biden, so he doesn’t flout the resolution.


Bernie Sanders walks through the Senate subway on November 28, 2022 in Washington, DC. (Drew Angerer / Getty Images)

BYKENDRICK LU
12.10.2022
 Jacobin 

In the two months since a United Nations–brokered ceasefire expired in Yemen, a tenuous peace has held. Yet with every passing day, that peace looks more and more precarious. The Saudi-backed Yemeni government has sanctioned companies that import fuel to areas held by the Houthis, a fundamentalist movement fighting the government, and the Houthis are targeting terminals in southern Yemen with drone strikes to deter tankers from loading crude oil. Both worsen a humanitarian crisis that has long been called the worst in the world. Nor is there anything preventing the Saudis from resuming their own airstrikes, grounding all flights, or retightening the blockade.

Senator Bernie Sanders’s new Yemen war powers resolution aims to strengthen that tenuous peace by blocking US backing for the Saudi-led war. Earlier this week Sanders announced he has the requisite support to pass a resolution, and that he could bring it to the Senate floor for a vote as early as next week. If approved and signed into law, the resolution would require President Joe Biden to withdraw several forms of military support for the Saudi-led coalition in Yemen.

Sanders’s resolution is certainly a positive development. It would force the Saudi-led coalition to think twice before resuming the war and, at least in theory, withdraw US collaboration in an immoral war that has killed hundreds of thousands of civilians and pushed millions more into near-starvation.

Unfortunately, based on previous presidents’ record of skirting war powers resolutions, the Biden administration may not heed a congressional entreaty to drop military support for Saudi Arabia. Foreign policy progressives will have to keep up the pressure even if Sanders’s resolution passes — and then initiate a broader fight against the executive branch’s unchecked war-making powers.
The United States, Yemen, and the War Powers Resolution

Sanders’s Yemen war powers resolution draws its lineage to the 1973 War Powers Resolution (WPR), a Vietnam-era statute designed to dial back Richard Nixon’s bombing of Southeast Asia. While the US Constitution grants Congress the exclusive power to declare war — and most constitutional scholars interpret that prerogative as including the ability to initiate war through the deployment of military force — US presidents quickly developed a habit of forgoing congressional declarations of war before sending troops into combat.

The 1973 WPR was an effort to wrest the war-making power away from the president and restore it to Congress. In a nutshell, the act requires the president — if using military forces to engage “in hostilities or situations where hostilities are imminent,” among other circumstances — to inform Congress within forty-eight hours. The president then has sixty to ninety days to recall the engaged troops unless Congress authorizes the use of military force.

Sanders’s resolution builds on this restraining mechanism. It rehearses the president’s unmet obligations under the 1973 WPR, noting that the president has introduced military forces into the Yemen conflict; that the conflict meets the definition of “hostilities” under the 1973 law; that Congress has not permitted the president to continue engaging in hostilities; and therefore, that the president must remove US armed forces from hostilities no later than thirty days after the adoption of the measure.

If approved, the resolution would bolster the fragile peace that has survived in Yemen for the past few months. A strong vote in the Senate would signal to Riyadh that continued US military support is on the ropes; that reigniting the war would mean going it alone; and that returning to the UN bargaining table is the most sensible path forward.

What is less clear is how much the resolution would limit US military support for the Saudis. The current language is encouraging, mandating Biden to pull US armed forces from “hostilities” in Yemen. Concise yet capacious, the measure provides two definitions of “hostilities”:“Sharing intelligence for the purpose of enabling offensive coalition strikes; and providing logistical support for such strikes, including by providing maintenance or transferring spare parts to coalition warplanes engaged in anti-Houthi bombings in Yemen,” and
“The assignment of United States Armed Forces to command, coordinate, participate in the movement of, or accompany the regular or irregular military forces of the Saudi-led coalition forces in hostilities against the Houthis in Yemen.”

This language casts a wider net than Sanders’s previous Yemen resolution, which defined “hostilities” only as “including in-flight refueling of non-United States aircraft conducting missions as part of the ongoing civil war in Yemen.” The current resolution also provides the starker limitations that were missing when Biden announced in February 2021 that he would be ceasing all “offensive” support for Saudi Arabia’s coalition.

But another question looms as the Senate prepares to vote on the resolution: If it passes the Senate and avoids the president’s veto, will Joe Biden actually to observe its requirements? The executive branch has played fast and loose with the War Powers Act since its 1973 passage, and as a result, the act hasn’t had the restraining effect on the “imperial presidency” that Congress intended.

Presidents from both parties have instead twisted themselves into legalistic pretzels proving their compliance with the WPR. One move has been to exploit the definition of “hostilities,” which the 1973 act failed to define. In defending its drone missile strikes in Libya in 2011, the Obama administration claimed that the attacks didn’t amount to “hostilities” because US troops suffered no danger of return fire or casualties, and because no ground troops were involved. Donald Trump’s Department of Defense lawyers justified US involvement in Yemen on similar grounds in 2018, insisting that “hostilities” only meant “a situation in which units of US armed forces are actively engaged in exchanges of fire with opposing units of hostile forces” — insulating from scrutiny the deadly support US forces were providing. (This recent history is a large part of why the Yemen resolution’s explicit definition of “hostilities” is key.)

Other arguments have bordered on the absurd. When bombing Kosovo, Bill Clinton’s Office of Legal Counsel argued that Congress had authorized him to continue hostilities beyond sixty days because it had passed an appropriations bill for military funding — even though the 1973 WPR explicitly prohibits using an appropriations bill for inferring congressional authorization.

If the Biden administration truly wants to continue its military support for the Saudi-led coalition, it will probably concoct an equally absurd legal argument resolution to do so.

Attacking the Imperial Presidency

Whether Biden chooses to abide by the resolution’s terms or flout them will probably depend on the broader US-Saudi relationship — which has shifted in the Saudis’ favor lately.

Biden has hardly made Riyadh the “pariah” that he promised on the campaign trail; just this week, a federal judge dismissed a lawsuit against Crown Prince Mohammed bin Salman for his role in the murder of Jamal Khashoggi, following a recommendation from Biden’s Department of Justice that he receive head-of-state immunity. The anger in the fall over OPEC+’s oil cuts has now subsided. And Xi Jinping’s visit this week to Saudi Arabia likely reminds the Biden administration that the Saudis can pick and choose powerful allies in an increasingly multipolar world. Against that backdrop, Biden might be reluctant to drop military support for Riyadh.

Nevertheless, passing Sanders’s resolution — and pressuring Biden not to weasel out — is a vital step toward peace in Yemen. If Biden concedes, it would be a tremendous victory for ordinary Yemenis. And then perhaps progressives could turn to bludgeoning a key pillar of the US empire-making project: the president’s near-unilateral ability to make war.


CONTRIBUTOR
Kendrick Lu is a contributing writer at Foreign Exchanges.



SEE 

Yemen: End American Complicity

Recall your attention to the response from the US establishment after Russia was found to be using Iranian drones in the war in Ukraine. The extent of the outrage was so intense that the issue was brought to the UN Security Council, and the spokesman for the State Department briefed the press on the American position conveyed during the proceeding. He said, “we expressed our grave concerns about Russia’s acquisition of these UAVs from Iran,” and “we now have abundant evidence that these UAVs are being used to strike Ukrainian civilians and critical civilian infrastructure.” He added, “we will not hesitate to use our sanctions and other appropriate tools on all involved in these transfers.”

American intelligence officials later told the New York Times that Iran had sent members of the Islamic Revolutionary Guard Corps to the Crimean Peninsula; they had been sent, the allegation goes, to train the Russian military how to use the drones they had acquired. Mick Mulroy, a former Pentagon official and retired CIA officer, commented on this, saying, “sending drones and trainers to Ukraine has enmeshed Iran deeply into the war on the Russian side and involved Tehran directly in operations that have killed and injured civilians,” and “even if they’re just trainers and tactical advisers in Ukraine, I think that’s substantial.”

The Biden Administration and members of the intelligence community have endorsed an important principle: a state is responsible for the crimes it enables others to commit. Applying this standard to those designated as enemies is quite common, but powerful states always reserve a different set of standards for themselves. Any morally serious person will endorse the precept of universality, and insist upon applying the same criteria to ourselves that we do to others.

If one were to establish the goal of reducing the amount of violence in the world, the simplest way to begin would be to eliminate one’s own contribution to it; the withdrawal of American involvement in criminal acts would mitigate much of the savagery. The Biden administration is responsible for directly facilitating crimes in Yemen that greatly exceed anything Iran is accused of. The Administration has the opportunity to enact the principles they’ve enunciated, and it doesn’t require sanctions or other coercive measures, they merely need to stop participating in the Yemeni war.

The consequences of the war are not controversial. The United Nations estimated that 377,000 people had died at the end of 2021, and that doesn’t account for the destruction that occurred the following year. Yemen is the scene of perhaps the world’s largest humanitarian crisis, with almost three-quarters of the population, 23.4 million people, requiring humanitarian assistance. The Yemeni population is subjected to a blockade that can reasonably be classified as torture, the World Organization Against Torture has reported. The legal director for the organization said, “the tens of thousands of civilians who die due to malnutrition, waterborne diseases, and the lack of access to healthcare are no collateral damage of the conflict.”

The American contribution to the war is not opaque. While the Obama administration was in office, some officials warned that the support they were providing could make them criminally liable for the war crimes being committed. During his campaign for the presidency, Joe Biden said he intended to treat Saudi Arabia like “the pariah that they are,” and he made clear his intention to stop selling weapons to them; his determination in this matter didn’t survive his election. Arms sales continued, diplomatic cover for the continuation of the blockade is still provided, and Saudi Arabia still relies on American contractors to service its Air Force. The dependency on American contractors to maintain and service Saudi warplanes cannot be overstated: if the US canceled these contacts the Saudi planes would be restricted to their hangers.

On December 6, The Intercept reported that Bernie Sanders was advancing a war powers resolution aimed at halting American support for the war Saudi Arabia was leading in Yemen. The Biden administration was asked to avoid incriminating themselves as transparent hypocrites, and allow for their policy to approach the standard they condemn Iran for failing to reach. This task was too strenuous for the administration. They lobbied intensely against the resolution and Sanders was forced to withdraw it.

It should never be shocking when a president behaves in a manner contrary to how he presented himself during his campaign; or when an administration condemns enemies for their crimes while they are committing worse acts. Hypocrisy of this sort is a prominent feature of the American political establishment. But this is a particularly egregious example of this. The Biden administration is reserving the right to aid Saudi Arabia as they annihilate Yemeni society and slaughter its inhabitants, and they expect to be greeted with something other than contempt when they accuse their enemies of criminal conduct. This isn’t a privilege that should be afforded to them.FacebookTwittReddit

Brendan O’Soro is an independent writer from western Massachusetts. Read other articles by Brendan.
A Catholic University With a Radical History Faces a Union Drive of Its Own

Catholic radical Louis J. Twomey’s labor institute at Loyola University New Orleans trained a generation of workers for class struggle. A new union drive among the university’s food service workers draws on that legacy of the best of Catholic trade unionism.


Loyola University in New Orleans. (Arnoldius / Wikimedia Commons)


BYCODY R. MELCHER
12.11.2022
 Jacobin 



“[It is an] immoral principle that human labor is a commodity.” 
-Father Louis J. Twomey, SJ, Address before the Industrial Relations Committee of the Louisiana State Senate, 1954

The American Catholic Church was once an incubator of working-class activism. As Catholic institutions face unionization drives of their own, will they forsake this legacy or embrace it?

Food service workers at Loyola University New Orleans, a Jesuit university, have recently gone public with their intent to unionize. While the workers are technically employed by a third-party contractor, the university can greatly influence the result of the drive. It has yet to be determined how the university will respond.

UNITE HERE’s Challenge to Third-Party Exploitation

An important component of the recent upsurge in labor militancy in the United States has been UNITE HERE’s concerted effort to unionize food service workers employed through private contracting companies like ISS Guckenheimer, Compass Group, Aramark, and Sodexo. As a cost-saving measure, public institutions (prisons, schools, universities, hospitals, airports, etc.) and private corporations (particularly tech companies that provide employees’ meals so they don’t feel compelled to live anywhere but the workplace) often contract out back-of-house food preparation and front-of-house food service labor. To avoid having a direct employer-employee relationship with its workforce — and most importantly, to avoid the regulations and demands inherent to that relationship, such as the provision of benefits and adequate wages — these “employers” instead farm out their labor needs to companies that specialize in providing neither benefits nor adequate wages.

Just one of those companies, Sodexo, generated a net profit of roughly $363 million in 2021 alone, while a full-time employee, at some locations, can expect to make less than $25,000 a year, with little to no health or retirement benefits. Full-time Sodexo employees at Loyola, some of which have held their jobs for more than twenty years, make just $13.75 an hour and need to work additional jobs to pay for medical insurance. Fittingly, Sodexo, which is headquartered in France, is an abbreviation that stands for Société d’Exploitation Hotelière.

Given these conditions, unions like UNITE HERE have made great strides organizing these workers. To take just one instance, since 2018, UNITE HERE has organized food service workers at twenty-three Google offices, representing roughly 90 percent of all food service workers at Google. Overall, UNITE HERE organized sixty-two thousand workers from 2014 to 2019. Importantly, the union has focused specifically on the South, a longtime bastion of “business friendly” nonunion labor.

In its nationwide campaign to organize Sodexo workers, UNITE HERE has recently initiated organization campaigns at several Southern universities that contract their food services through the company. Loyola University New Orleans, a private Jesuit university with a long history of fostering social justice causes (and where I happen to teach in the Department of Sociology), is one of those universities.

On a strictly moral level, it might sound strange, even hypocritical, that a social justice–oriented university affiliated with the left-wing of the Catholic Church would employ nonunion labor in the first place, let alone contract a demonstrably exploitative company with a litany of unfair labor practice accusations. Ignoring, momentarily, that the thrust of the Gospels is, in essence, “rich people are going to hell,” and the fact that the Pope, a Jesuit himself, has consistently advocated for the right to organize unions, Loyola has an institutional history of promoting organized labor.

That institutional history began with Father Louis J. Twomey, SJ.
The Radicalized “Labor Priest”


Father Twomey was one of many “labor priests” that the American Catholic Church produced during the early to mid-twentieth century. Twomey is unique, however, in that he began his activist career at precisely the same time that the labor priests’ activism, in general, began to wane. As Steve Rosswurm has shown, the heyday of American Catholic labor radicalism peaked in the 1930s as the Church attempted to “carry the message of trade unionism into every working-class Catholic home.” The Church, with the Jesuits as the vanguard, established dozens of labor schools across the country, like the Xavier Labor School in Manhattan and the Kansas City School of Christian Workmen. These labor schools sought to undermine “materialistic capitalism” by training workers how to organize their own unions. Perhaps more consequentially, the Association of Catholic Trade Unionists (ACTU), founded in 1937, served as an organizational base for both the initiation of union drives and partisan control of existing unions.

The Association’s activism, however, changed dramatically in the mid-1940s. Anti-communist from the beginning, ACTU’s strategy shifted over time from a positive program of attracting workers to the Church through its support of working-class causes — that is to say, away from the clutches of the secular Communist Party, which, contrary to Red Scare myths, experienced widespread popularity during the period — to a negative policy of actively attacking and red-baiting left-wing unionists. Rather than organizing workers, the Church’s labor policy began to focus almost exclusively on purging existing unions of left-wingers and establishing competing anti-communist unions to siphon members from Communist-controlled ones. The purge of the left-wing of the labor movement, aided in no small measure by the American Catholic Church, ultimately led to the long-term decline of the American labor movement.

Enter Father Twomey.

Louis Twomey was born in Tampa, Florida, in 1905. Besides turning down a contract to play professional baseball with the Washington Senators to enter the priesthood, he lived a relatively unremarkable life until his ordination in 1939. After his ordination, Twomey earned multiple master’s degrees, served as a high school principal, and, in 1947, was assigned by the Jesuit leadership of the South to Loyola University New Orleans. Formally, Twomey was the regent of the university’s law school and a lecturer of jurisprudence. However, immediately upon arriving at the university, Twomey established the Institute of Industrial Relations.

The institute’s initial philosophy — that is, Twomey’s initial philosophy — was one of labor-management accommodation. Twomey assumed that the relationship between labor and capital need not be inherently antagonistic, and, through good-faith negotiation, the wants of both could be achieved. They could, in Twomey’s words, “quit their class struggle . . . in the spirit of Christian and democratic loyalty to American ideals.” The issue, however, was that American business, especially in the South, was not particularly interested in quitting the class struggle.

Almost from the beginning, businesses refused to send representatives to institute courses or meetings, considering even the concept of negotiating with workers as a group as too prolabor. So Twomey and his institute, eventually renamed the Institute of Human Relations, shifted sharply to the left and became what capital feared it already was: a center that prepared workers for the class struggle. It is worth emphasizing that the behavior of capital is responsible for Twomey’s ideological shift. Since the bosses refused to acknowledge workers as anything but exploitable labor, Twomey eventually recognized the inherent antagonism between capital and labor, and, more broadly, between capital and the teachings of Jesus Christ.

Twomey began to regularly offer courses on how to organize and proficiently participate in labor unions (courses like “Principles and Practices of Collective Bargaining” and “Public Speaking and Parliamentary Procedure”), as well as more general courses on the labor movement as a whole (“Current Industrial Problems”). Importantly, Twomey, unlike much of the Church at the time, was a dedicated integrationist and anti-racist. Courses at the institute were open to workers regardless of race, even as the university itself remained white-only (an issue Twomey was actively attempting to remedy). While the courses it sponsored did not provide college credit, Twomey’s institute was one of the first, if not the first, instances of integrated education on a college campus in the Deep South since Reconstruction.

Twomey did not stop at integrating the institute. He, along with the chair of Loyola’s sociology department, Fr Joseph H. Fichter, SJ, worked tirelessly to integrate the entire university, eventually succeeding in 1952, when the law school accepted its first black applicants. Twomey had first attempted to integrate the university in 1949, but failed after the administration yielded to student demands to keep the school segregated. That first cohort of black students included Norman Francis, who went on to become the first black president of Xavier University, the only Catholic Church–affiliated historically black college or university, and who also led the Louisiana Recovery Authority after Hurricane Katrina, receiving the Presidential Medal of Freedom in 2006.

For Twomey, the elimination of racial oppression and working-class exploitation went hand in hand. He would commonly describe the cause of labor organizing and the fight against white supremacy as “two sides of the same coin.”

Twomey was deeply involved in a series of strikes conducted by disproportionately black sugarcane workers throughout the 1950s. The sugarcane workers, often sharecroppers whose homes were on planter-owned property, lived in a state of “semi-feudalism,” as Twomey put it. The workers, with Twomey’s assistance, established the Agricultural Workers Union, which represented more than two thousand sharecroppers and laborers. Twomey solicited larger labor movement support, especially through the Teamsters, who provided financial assistance during the strike.

The strike ultimately failed — not due to the lack of resolve or militancy of the workers but because of a backroom deal brokered between the state’s labor apparatus (the Louisiana Labor Council) and the sugar planters. Louisiana became a right-to-work state in 1954, but the law was repealed in 1956 because the Labor Council agreed to abandon the cause of the cane workers if the sugar planters agreed to support the elimination of right-to-work in the state. This event led Twomey to deeply distrust the bureaucratization of the labor movement, compelling him to double down on the promotion of union democracy and rank-and-file militancy through the institute.

Twomey spent the rest of his life as a committed advocate for labor and civil rights. He served, in an advisory capacity, in the Johnson administration’s Department of Labor, demanding that the national government take seriously the plight of the rural working class, black and white. As a result, he was often accused, by those in and out of the Church, of being a communist.

Twomey died in 1969, and his institute, after various name changes and a definite shift away from labor issues (the final name of the institute was the Twomey Center for Peace Through Justice), followed him in death in 2017.

Today’s Sugarcane Workers

Sodexo food service employees in the South are disproportionately black, unconscionably exploited, and subject to the ever-present oppressive structures of white supremacy. Comparisons to the sugarcane workers that Twomey championed are, I think, fairly accurate. Twomey, I’m sure, would be horrified if he knew this was occurring at the university he used as an institutional base to support the cause of civil and workers’ rights.

I’m also sure that he’d support UNITE HERE in its mission to organize these workers.

CONTRIBUTOR
Cody R. Melcher is an assistant professor of sociology at Loyola University New Orleans.
Canadian Businesses Took Pandemic Benefits to the Bank and Left Workers Holding the Bag


Employers took billions from the Canadian government in wage support funds, and many of them continued to pay CEOs millions and issue dividends. Yet the government is now looking for payback from workers, not bosses.


Canadian corporations took government money and ran — all the way to share buybacks, executive compensation and bonuses, and dividend payouts, even while workers struggled.
 (Gabriel Vergani / EyeEm / Getty Images)

BYDAVID MOSCROP
Jacobin 

We know the neoliberal state valorizes the business sector. Political speeches about business often sound like benedictions, though we do get the odd, fleeting song of praise for the worker who makes all industry possible in the first place. Occasionally, in an effort to make our elected officials seem relatable, we hear a shot taken at the corporate class. But the fix is in. We all know who has the power — it’s clear as day in the plaudits paid to business by our political classes. And in the parlance of neoliberal speech, “business” is a synecdoche for “businessperson” — and a “businessperson” is an owner, not a worker.

Because the working public is fraught with class dis- or misalignment, pundits and politicians constantly attack a “lazy” and “entitled” workforce without adequate pushback. In the absence of a prominent voice from labor to correct this narrative, the media depicts working people as loafers waiting for their chance to take advantage of state largesse or corporate noblesse oblige. So, when in March 2020 the government of Canada introduced two pandemic support measures — one for employers and one for workers — it was a safe bet for anyone paying attention that when it came time for settling accounts, there would be a marked difference in whose benefits would be scrutinized and whose would be greenlit.

Last week, Canada’s auditor general, Karen Hogan, released a report on pandemic benefits. In her study of the Canada Emergency Response Benefit (CERB) — disbursed to individuals — and the Canada Emergency Wage Subsidy (CEWS) — disbursed to businesses — Hogan concludes “the federal government quickly delivered COVID-19 benefits to Canadians” but found “post-payment verification work is falling short.” It’s not hard to guess who will be in the most need of this post-payment “verification.”

Ask Not What CEWS Can Do for You, Ask What CEWS Can Do for Your Boss

Canada paid pandemic benefits between 2020 and 2022 amounting to CAD $210 billion. Of that, $100 billion went to CEWS, which ended in October 2021. Roughly 36 percent of Canadian businesses received subsidy support, with the top three industries posting much higher rates. A full two-thirds of the accommodation and food services industry received CEWS, with arts, entertainment, and recreation next at 56 percent, and manufacturing at 55 percent.

In her report, Hogan identifies $4.6 billion in payments to ineligible recipients through individual pandemic supports. This number includes CERB payments but excludes CEWS. For the wage subsidy, the numbers were much higher.

“Our analysis identified 51,049 employers that received $9.87 billion in Canada Emergency Wage Subsidy payments whose monthly GST/HST filings did not demonstrate a sufficient revenue drop to be eligible for the subsidy,” states the report. And that total could be much higher — the report suggest it could be up to $15.5 billion.


So far, the government’s repayment focus has been on individuals and not employers — as low-income people struggle to repay the cash. Shocker. Labor journalist Jeremy Appel has a sharp take on that predictable outcome.

On the business side, while ineligibility (due, for instance, to applicants not meeting the revenue decline threshold) is grounds for repayment, one can imagine small businesses making good faith errors as they tried to support their workers. That doesn’t absolve the state for leaning into heavily supporting employers over workers, but it does ask us to distinguish cases that are warranted from those that are unjustified.

A primary consideration in determining justification is scale. It would be absurd to lump your local café or record shop in with telecommunications oligopolists, energy conglomerates, or retail chains. Still, we need to ask why it is that the $2,000 a month CERB benefit paid as well or better than pre-pandemic wages for so many workers. This problem — the fundamental problem of wages — reminds us that small businesses, in spite of the aesthetic preference of locavores, are often no better than their corporate counterparts.
One Rule for Bosses and Another for Workers

Of the 447,149 businesses who received CEWS, over 250,000 of them had between zero and five employees. In the interest of full transparency, this writer, who is incorporated and pays himself a monthly wage, is one of them. I like to borrow a phrase and remind people I’m not a businessman; I’m a business, man — to the tune of tens of thousands of dollars a year! Perhaps I should have been a grocery store or oil company CEO. But that’s fodder for another column.

A mere 0.34 percent of businesses with five employees or fewer (868) are under audit compared to 32.69 percent (85) of those with 1,000 to 4,999 employees and 41.67 percent (ten) of those with more than five thousand workers. All told, a mere 0.8 percent of recipients — representing 12 percent of the total subsidy payouts — are or were under audit. In contrast, as many as 1.7 million Canadians may have to pay back CERB funds out of 8.5 million total recipients — or 20 percent. And that’s before any further investigations that may emerge after the auditor general’s report, which is recommending further investigation of over four million recipients alongside another 259,000 more for the Canada Recovery Benefit, which replaced CERB.

In May 2021, the New Democratic Party called on the government to claw back CEWS payments from companies who used the program for purposes other than paying wages. In his letter to the Trudeau government, NDP MP Peter Julian wrote, “The wage subsidy was clearly supposed to go to workers and toward protecting Canadians’ jobs — not bonuses for top corporate brass.”

As critics pointed out at the time, the Liberal government failed to place restrictions on businesses who took CEWS funds. That meant big corporations could take the money and run — all the way to share buybacks, grotesque executive compensation and bonuses, and dividend payouts. And run they did. What was the government going to do? Audit them years later, at great expense, after that money had done its job? Corporate giants are nothing if not good at employing accountants and lawyers whose expertise is jamming up the feds.
Pandemic Benefits for Shareholders

In December, 2020, the Financial Post found nearly six dozen companies that had received at least $1.03 billion in wage subsidies while collectively paying out more than $5 billion in dividends. The Post also reported that seventeen of these companies bought back shares or introduced buyback programs.

Businesses who bothered to mount a defense tended to take the line that dividends and buybacks were financed with other money. Not this pile, you see. That pile. Corporate PR’s attempts at misdirection sometimes beggar belief. Companies tried to sell the idea that they were too poor to pay employees without taxpayer cash while being rich enough to make it rain dividends, buybacks, and bonuses.

Imperial Oil was the most egregious of the lot, taking $120 million in wage subsidy cash while paying out a whopping $324 million in dividends. Others on the list include Corus Entertainment, Leon’s Furniture, and Extendicare. In the case of Leon’s, the Financial Post investigation noted “the injection of CEWS it received inflated the company’s net income to historic levels that may look out of the norm after seeing how hard most retailers were hit during the lockdowns in the early months of the pandemic.” Keep in mind, all this wage subsidy money was presumably eligible funding that businesses could, by way of a shell game, accept while carrying on as usual. Because the government didn’t bother to make the rules of disbursement stringent enough to forestall abuse, businesses took advantage in exactly the way one would expect.

While big companies were receiving wage subsidy money in the upward of tens of millions of dollars, their top executives were making a killing. In January,2022, the Canadian Centre for Policy Alternatives released a report that found average annual compensation for the top one hundred chief executives in Canada was $10.9 million. Air Canada stood out as a particularly egregious offender. While senior executives eventually gave back their bonuses after public outcry, the company initially paid out $10 million in bonuses after taking billions in public support, including a liquidity program and the wage subsidy.

As the dust settles on the pandemic support programs in Canada, we ought to pay particular attention to who bears the brunt of the hunt for so-called overpayments. We ought to also resist attempts to construct individual CERB recipients as lazy, entitled fraudsters while big companies made off like bandits while taking public wage subsidy funds. As always, our primary question of analysis should be, who has the power?, and we should adjust our critiques and priorities accordingly. In this case, it’s not hard to do. Sure, workers received $2,000 here and there — just enough not to be able to afford both rent and food. But it was businesses that made record profits, offered generous dividends, bought back stock as a market flex, and paid their executives millions upon millions in compensation.

David Moscrop is a writer and political commentator. He hosts the podcast Open to Debate and is the author of Too Dumb For Democracy? Why We Make Bad Political Decisions and How We Can Make Better Ones.
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Young, Scrappy and Hungry: Gen Z in the Midterm Elections


ByOlivia Ma
December 11, 2022



“Gen Z and millennials make up a third of our country, but we are nowhere near a third of government, and I think we need a government that looks like the people,” Maxwell Alejandro Frost commented following his election to Congress on Nov. 8. After defeating 72-year-old Republican Calvin Wimbish by 19 percentage points, Frost, a 25-year-old activist and Democrat, became the newly elected representative for Florida’s 10th Congressional District. More notably, he became the first member of Gen Z to join the Congress. “History was made tonight,” Frost tweeted following his victory.

The U.S. Constitution states that only citizens above the age of 25 are eligible to serve in the House of Representatives, meaning that the midterm elections of 2022 were the first year where members of Generation Z — those born between 1997 and 2012 — were eligible to run for any of the 435 seats in the House of Representatives.



According to the Pew Research Center, Gen Z is the “most diverse” and “best-educated” generation in American history. Compared to generations before them, more belong to racial and ethnic minorities, have grown up using electronics, and have decided to pursue higher education. But how would the environment they grew up in impact their political ideologies? How are they planning to lead?

During the 2022 midterm elections, a few passionate Gen Z candidates campaigned against those who were much older and more experienced. With younger age, higher aspirations, agendas more extreme than their contenders’, and the aim to represent younger voices, they became the focus of the media, drawing support and attention while also eliciting skepticism regarding how far they could go.

How does this younger and more diverse generation view American politics? These Gen Z candidates searched for an answer by pushing from the opposing party. “Are we remaining stagnant by trying the same things or are we going to move forward and try to build a better coalition and actually put up a fight against Republicans in the district?” Ray Reed commented on the work of Trish Gunby, his Democratic primary opponent. Only 25 years old, Reed, a St. Louis native, ran to represent the 2nd Congressional District of Missouri.

“How do we break through that mold? It’s by electing young people to office that can resonate with these voters, have a platform at the national stage, that can show them ideas, policies, values that they’re not hearing elsewhere at all,” said 25-year-old Karoline Leavitt, Republican candidate for the 1st Congressional District of New Hampshire, a toss-up district that the Republicans were hoping to gain.

Reed and Leavitt are among the few Gen Zers who ran for seats in the House of Representatives, yet they represented the opposite of the political spectrum. Reed advocated for restricting firearms, codifying Roe v. Wade into federal law, and curbing student debt. On the other hand, Leavitt — who once worked as assistant press secretary during the Trump administration — called for “less government and more freedom” and believed that the 2020 election was stolen.

“No one is really a moderate,” commented Elena Moore in the National Public Radio podcast. Her colleague Kristen Soltis Anderson later added, “The frame has shifted from, I’m going to bring about that change by being someone who looks for opportunities to work across the aisle, and more, I’m going to disrupt the institutions and systems that are allowing the other side to continue to prevail.”

Yet it seems that at least 59% of the voters in Florida’s 10th Congressional District agreed with Frost, his activism, and support for gun control, affordable housing, and universal health care. “I come from a generation that has gone through more mass-shooting drills than fire drills,” Frost said in an interview with the New York Times in August. “This is something that my generation has had to face head-on: being scared to go to school, being scared to go to church, being scared to be in your community. That gives me a sense of urgency.” It is arguably his passion for activism and social issues as such that helped him defeat nine other Democrats in his primary election in August and his Republican opponent in November.

History has indeed been made as this 25-year-old prepares to enter Congress. As of 2021, the median age of members of the Congress was roughly 65, while that of the House was just under 59. The 117th Congress is dominated by those born between 1946 and 1980. Even the millennials — born between 1981 and 1996 — took up only 7% of Congress. Frost, on the other hand, was born in 1997 and is not even half of the average age of the chamber he joins. He not only represents Florida’s 10th Congressional District but also serves as a voice for over 68 million Gen Z Americans, approximately 21% of the U.S. population. Frost pushes forward the tide of the younger generation entering politics, as he mentioned in his victory speech, “I’m the first. But I definitely won’t be the last.”

Among Reed, Frost, and Leavitt, only Frost made it to Congress. On Aug. 2, Ray Reed lost his campaign in the Democratic match-up of his district. His opponent Trish Gunby, roughly 40 years his senior, secured the district’s Democratic primary with 85.2% of the votes. Karoline Leavitt, on the other hand, won the Republican primary of New Hampshire’s 1st Congressional District on Sept. 13 with 33.4% of the votes. Yet facing incumbent Democrat Chris Pappas, Leavitt lost by eight percentage points.

After his loss in August, Reed stated on Twitter that he would take a break but did not want to “stay away for long.” A temporary defeat does not seem to dim his ambition, yet the future remains uncertain: Will time wear off their ambition and smoothen their relatively extreme agendas?

Perhaps history may be a guide. Immediately following President Richard Nixon’s Watergate scandal, a series of young and ambitious Democrats were sworn into office in 1975 hoping to reform a Congress centered on seniority and conservatism. Joe Biden, then 30 years old, was sworn into office just two years before as a senator from Delaware — the youngest age possible for the Senate. He shared similar visions as those “Watergate babies,” advocating for the environment, civil rights, and a withdrawal from the Vietnam war. Yet 50 years later, he is now considered moderate by his party and often accused of not addressing pressing issues nationwide.

Will the same happen to the Gen Z candidates in the future? Perhaps they will remain adamant about changing the world or even grow more radical. Or perhaps, as older generations have suggested, their ambitions will wear off in the decades to come, while a future generation will push for more changes. As the 2022 midterm elections have mostly settled down, the focus is currently on how Frost and other young activists can represent the voices of young America. Yet in the future to come, it may shift to how well they can hold onto their youthful ambitions.

Image by Sushil Nash is licensed under the Unsplash License.