More stories

  • in

    For First Time Since 1946, New Yorkers Have Just 2 Choices for Governor

    ALBANY, N.Y. — New York voters who dislike the Democrat or Republican candidates for governor have traditionally been able to cast their ballots for a long-shot candidate from any number of so-called third parties.There are the perennials, like the Green and Libertarian Parties, and the occasional, like the Sapient Party in 2014 or the Serve America Movement four years later. And 2010 was a banner year that featured candidates from the Freedom Party, the Anti-Prohibition Party and, memorably, the Rent Is Too Damn High Party.But this year, for the first time in over 75 years, the state ballot appears destined to offer only two choices: Gov. Kathy Hochul, a Democrat, and Representative Lee Zeldin, a Republican.The paucity of options is largely due to former Gov. Andrew M. Cuomo, who championed changes in election law two years ago that made it far more difficult for third parties to get on the ballot. The changes to ballot access law tripled the number of voter signatures required for groups to get on the November ballot and forced political parties to qualify every two years instead of four.The steep climb to get on the ballot has prompted legal challenges, including one being heard this week in State Supreme Court in Albany, in a lawsuit filed by the Libertarian Party. The party’s nominee for governor, Larry Sharpe, argued that the rules are so tough that only the entrenched and connected can earn the right to appear on a ballot in New York.But even mainstream candidates have had their problems.Mr. Zeldin and Ms. Hochul will each appear on two party lines: The governor will also run on the Working Families Party line, and Mr. Zeldin will run for the Conservative Party.But Mr. Zeldin, an underdog in the race, wanted his name under a third party and gathered petitions for the Independence Party line. It did not end well.The State Board of Elections invalidated Zeldin’s Independence Party application on July 12, after a challenge from the Libertarians and others. An investigation revealed such a high volume of flawed petitions — with duplicates carefully ensconced amid hundreds of otherwise valid pages — that critics say it’s hard to imagine it was an accident.“The way the pages were distributed throughout the petition, it seems to me that it’s an obvious attempt to put together enough signatures to qualify and to obfuscate the fraud,” said Henry Berger, an election law expert and former New York City councilman. “This one is not complicated. This is simple, blatant fraud.”The Zeldin campaign attributed the flawed petitions to mistakes made by “an entirely grass-roots effort.” New York’s 2022 ElectionsAs prominent Democratic officials seek to defend their records, Republicans see opportunities to make inroads in general election races.N.Y. Governor’s Race: Following the overturning of Roe v. Wade, the issue of abortion rights has the potential to be a potent one in the battle between Gov. Kathy Hochul and Representative Lee Zeldin.10th Congressional District: Half a century after she became one of the youngest women ever to serve in Congress, Elizabeth Holtzman is running once again for a seat in the House of Representatives.12th Congressional District: As Representatives Jerrold Nadler and Carolyn Maloney, two titans of New York politics, battle it out, Suraj Patel is trying to eke out his own path to victory.Yet Eric Amidon, who describes himself on Twitter as Zeldin’s campaign manager, signed off on all 47 volumes of the petition submitted to the state, affirming in the official paperwork that the submission contained enough signatures to qualify and listing himself as the “contact person to correct deficiencies.”Mr. Amidon, who gave a Zeldin campaign email address on the petitions, told The New York Times in an email that he was “shocked to hear there were copies placed in the petitions” and said he was “positive no one working for the campaign made any copies.”“We run a virtually paper-free campaign and don’t even own a copier,” he said. But Mr. Amidon and the Zeldin campaign ignored follow-up questions and wouldn’t say who assembled the petitions, or whether paid vendors helped out. As the deadline for turning in the signatures drew near in late May, a post on the Facebook page of the far right group Long Island Loud Majority practically begged for help to get the signatures to boost Zeldin’s political fortunes.“Anyone looking to make some extra money this weekend (30 an hour) and help out OUR NEXT GOVERNOR OF NEW YORK LEE ZELDIN. We need people to get Petitions signed to get Lee on the Independent Line,” the post said. It urged those interested to “contact Jordana at the Zeldin team” and listed an email address affiliated with Zeldin’s campaign website.Jordana McMahon, a paid Zeldin campaign staffer, was listed as a witness to some of the signature pages, including at least one page that was used twice and got thrown out.Emails to the Zeldin campaign website went unanswered, and Mr. Zeldin’s campaign did not respond to questions about the Facebook post or the role of paid workers or vendors in the signature drive.Other witnesses of signature pages used at least twice in the Zeldin petition included the Republican county clerk in Chautauqua County, Larry Barmore, and Assemblyman David DiPietro, a Republican from western New York. Mr. DiPietro’s office declined to comment.Mr. Barmore said he understood that county-level Republican leaders helped collect signatures so Mr. Zeldin could get on the ballot as an Independence Party candidate. He gave his signatures to Nacole Ellis, the Republican Party chairwoman in Chautauqua County, and Ms. Ellis said she gave them to the Zeldin campaign.It hasn’t been lost on critics that Mr. Zeldin, as a member of Congress on Jan. 6, voted against the certification of Arizona and Pennsylvania, states that President Biden won. Jerrel Harvey, a spokesman for Ms. Hochul, said that Mr. Zeldin and his advisers were “focused on deceiving voters and undermining elections, whether it’s for governor of New York or president of the United States.”“It’s no surprise that someone who attempted to overturn the 2020 presidential election is now attempting to lie and defraud his way onto the Independence Party ballot line,” Mr. Harvey said.Andrew Kolstee, the Libertarian Party secretary who objected to the Zeldin submission and laid out all his findings on a website called Zeldincopies.com, called for state authorities to find out what happened and punish anyone who broke the law.“This was a deliberate attempt to defraud the voter, and those involved should be held responsible,” he said.The Board of Elections declined to comment about whether its enforcement division would be taking any action against the Zeldin campaign. A spokesman for the Albany County district attorney, P. David Soares, said it had gotten no referrals but would defer to Attorney General Letitia James. Her office declined to comment.In court this week, Mr. Sharpe, the Libertarian candidate for governor, tried to convince a skeptical-sounding Judge David Weinstein that his constitutional rights were violated in late June when the State Board of Elections invoked the Cuomo-era law and rejected his application for a spot on the ballot.Mr. Sharpe said that getting the required 45,000 signatures, up from 15,000, requires a huge and expensive effort — with dozens of people on the payroll at cost of $8,000 a day or more.Howie Hawkins was the Green Party candidate for governor in the last three statewide elections. His party lost its ballot spot.Nathaniel Brooks for The New York Times“We have a situation now where the only people who would ever want to run for office are those who are already in office,” Mr. Sharpe said. While acknowledging nearly all third-party candidates lose, he said voters showing up to the polls to say “not you two” are engaging in a high form of political protest — one that will be lost not only in races for governor but in future presidential contests, too.The judge, who pointed to a prior federal ruling upholding the new state ballot access law, said on Monday he would issue a written decision shortly.The Libertarian Party was one of at least seven small political parties that failed to get on the ballot this year after the onerous new ballot access law went into effect.Not since 1946, when Republican Thomas E. Dewey defeated Democrat James M. Mead in a landslide, have New York voters been reduced to just two choices for governor. That year, according to a report in The Times, three minor parties — the Socialist, Industrial Government and Socialist Workers parties — got knocked off the ballot because of “defective nominating petitions.”Howie Hawkins, the Green Party candidate for governor in the last three statewide elections, said voters are surprised when he tells them his party lost its spot on the ballot this year. He is hoping the Legislature will step in and make it easier next time.“I don’t think it’s a lost cause — although it’s a tough fight,” he said. More

  • in

    Big Tech and the Fed

    Some tech companies’ earnings are flagging, in what could be a positive sign for the Federal Reserve.Still big.Noah Berger/Agence France-Presse — Getty ImagesWhat tech earnings say about the economy The long-booming bottom lines of major tech companies are all of a sudden smaller than expected. That might be a good thing. Big Tech sailed through the pandemic with its profits mostly intact. The fact that some firms’ results are now flagging could be a positive sign for the Federal Reserve, which is trying to engineer a slowdown as it fights the nation’s worst bout of inflation in four decades.The big question for investors, and perhaps the Fed, is whether the profits of Apple, Alphabet, Amazon and the other tech giants, along with corporate America in general, have fallen enough.Microsoft and Alphabet, Google’s parent company, kicked off what appears to be a disappointing round of quarterly reports for the U.S.’s largest tech companies yesterday. Meta will release its results this afternoon, with Apple and Amazon rounding out Big Tech’s earnings announcements tomorrow.Microsoft’s profits, while below expectations, were still up. Sales of its signature software products, like Office, rose 13 percent. Its cloud services were up 40 percent. And LinkedIn, the professional social network Microsoft bought in 2016, grew 26 percent from a year ago, continuing to benefit from the tightest job market in decades.Alphabet’s sales rose 13 percent. In another good sign for the economy, the jump was driven by better-than-expected sales in its core Google search engine business, while results were mixed elsewhere. A jump in expenses and an exit from its Russian-related businesses caused profits to slump 14 percent.The results were positive enough for investors. Alphabet’s shares rose nearly 5 percent on the earnings news to $110. Microsoft’s shares jumped $10, or nearly 4 percent, to $262. Executives at both companies said they saw evidence of a weaker economy. “We are not immune to what is happening in the macro broadly,” Satya Nadella, Microsoft’s chief executive, said on a call with analysts. Alphabet’s chief financial officer, Ruth Porat, told analysts that a pullback in spending by some advertisers reflected “uncertainty about a number of factors.”Few are betting that the earnings reports will change the Fed’s approach. Its policymakers are meeting this week, and they are widely expected to continue raising benchmark interest rates. While central bankers “will likely acknowledge a recent weakening in economic momentum, the Fed will likely feel the need to appear resolute in battling inflation until there are clear signs that it is abating,” wrote David Kelly, the chief global strategist of J.P. Morgan Asset Management, in a note to clients earlier this week.HERE’S WHAT’S HAPPENING Kraken, the crypto exchange, is under investigation for possible sanctions violations. The Treasury Department is looking into whether Kraken illegally allowed users in Iran and elsewhere to buy and sell digital tokens. Shares of Coinbase, a larger crypto exchange, plunged yesterday after reports that the S.E.C. was investigating whether it allowed trading in unregistered securities. Cathie Wood’s Ark funds reportedly dumped Coinbase shares yesterday for the first time this year.Antitrust legislation aimed at Big Tech may be off the table for now. Chuck Schumer, the Senate majority leader, told donors at a Capitol Hill fund-raiser yesterday that the American Innovation and Choice Online Act, which he had promised to bring to a vote this summer, lacks the support needed to get it to the Senate floor, Bloomberg reported. The bill’s bipartisan backers have been pressuring Schumer to act fast, before midterm elections that could change the balance of power in Congress.One America News, once a dependable Trump promoter, is struggling to survive. The network is being dropped by major carriers and faces a wave of defamation lawsuits for its outlandish stories about the 2020 election. OAN’s most recent blow is from Verizon, which will stop carrying the network on its Fios television service this week. It is now available to only a few thousand people who subscribe to regional cable providers.Teva Pharmaceuticals reaches a tentative $4.25 billion settlement over opioids. The proposed settlement, which is with some 2,500 local governments, states and tribes, would end thousands of lawsuits against one of the largest producers of the painkillers during the height of the opioid epidemic.Florida’s largest utility secretly funded a website that attacked its critics. Florida Power & Light bankrolled and controlled The Capitolist, a news site aimed at Florida lawmakers, through intermediaries from an Alabama consulting firm, an investigation by The Miami Herald found. The site claimed to be independent, but it advocated rate hikes and legislative favors in efforts that were directed by top executives at the utility.BlackRock downshifts on E.S.G. BlackRock, the world’s largest asset manager, slashed its support for shareholder proposals on environmental and social issues this year, backing only 24 percent of such resolutions in the proxy season that ended in June, down from 43 percent in the previous period. The firm, which has long led the conscious investing movement, said this year’s proposals were “less supportable” and cited new regulatory guidance that opened the door to a broader range of policy-related proposals.The firm has criticized overly “prescriptive” resolutions. In a May memo, BlackRock signaled that Russia’s war in Ukraine was straining global energy supplies and shifting its calculations. “Many climate-related shareholder proposals sought to dictate the pace of companies’ energy transition plans despite continued consumer demand,” wrote the firm’s global head of investment stewardship, Sandy Boss. She noted that shareholders generally supported fewer environmental and social proposals this year as well, voting for 27 percent of resolutions, down from 36 percent in the previous proxy period.Opposition to E.S.G. is mounting. The environmental, social and governance investment push has been labeled “woke capitalism” by critics and is under fire from executives like Tesla’s Elon Musk, major investors like Bill Ackman and Republican politicians. In a speech yesterday, former Vice President Mike Pence, a possible 2024 hopeful, said that big government and big business were together advancing a “pernicious woke agenda.”E.S.G. supporters say critics may have a point. Andrew Behar, C.E.O. of the shareholder advocacy group As You Sow, agrees that many supposed E.S.G. investments don’t reflect true sustainability — with ever more capital directed toward the idea and many funds failing to live up to their promises. Behar argued that more corporate disclosures — which anti-E.S.G. groups oppose — would help to ensure that green investing actually works. He argues that critics also ignore a key financial incentive driving investor interest: knowing and lowering the costs of environmental issues throughout company operations, including risks from changing weather and the transition to more sustainable models. “We don’t have an E.S.G. problem,” Behar told DealBook. “We have a naming problem.”“I quit Starbucks. I had to. I just didn’t feel like that was justifiable. It’s like a small car payment.” — Fontaine Weyman, a 43-year-old songwriter from Charleston, S.C., on changing her coffee habits. Many Americans are dealing with the fastest inflation of their adult lives across a broad range of goods and services.Instagram tries to explain itself Instagram responded yesterday to criticism from some of its most popular users, including Kylie Jenner, about new features that made it more like its top rival, TikTok, the fast-growing video app owned by the Chinese company ByteDance.Adam Mosseri, Instagram’s head, said that it was experimenting with several changes, and that he knew users were unhappy. “It’s not yet good,” he said of some of the tweaks in a video post. He stressed Instagram’s commitment to photos, the app’s original focus, but said, “I’m going to be honest, I do believe that more and more of Instagram is going to become video over time.”Reels, a short-video product, is one of the six main investment priorities at Meta, which owns Facebook and Instagram, according to an internal memo last month from Chris Cox, the company’s chief product officer. Cox said that users had doubled the amount of time they spent on Reels year over year, and that Meta would prioritize boosting ads in Reels “as quickly as possible.” Last week, Instagram announced that almost all videos in the app would be posted as Reels.The changes come as Meta heads into a new phase. Mark Zuckerberg, its founder and chief executive, has cut costs, reshuffled his leadership team and made clear that low-performing employees will be let go, writes The Times’s Mike Isaac. “Realistically, there are probably a bunch of people at the company who shouldn’t be here,” Zuckerberg said on a call late last month. In recent months, profit at Meta has fallen and revenue has slowed as the company has spent lavishly on augmented and virtual reality projects, and as the economic slowdown has hurt its advertising business.The high-profile complaints about Instagram’s revamp started in recent days, when Kylie Jenner, the beauty mogul with 361 million Instagram followers, shared an image on the site that read: “Make Instagram Instagram again. (stop trying to be tiktok i just want to see cute photos of my friends.) Sincerely, everyone.”“PRETTY PLEASE,” Kim Kardashian, Jenner’s half sister and the seventh-most-followed Instagram user, echoed in a later post. Yesterday, Chrissy Teigen, a model and author with 39 million followers, responded to Mosseri in a tweet, saying, “we don’t wanna make videos Adam lol.”Companies have reason to listen when social media stars speak up, writes The Times’s Kalley Huang. In 2018, after Snapchat overhauled its interface, Jenner tweeted: “sooo does anyone else not open Snapchat anymore? Or is it just me….” Within a week, Snap, the app’s parent company, had lost $1.3 billion in market value.THE SPEED READ DealsThe activist investor Elliott Management reportedly has a stake in Paypal and is pushing it to cut costs faster. (WSJ, Bloomberg)Twitter shareholders will be asked to vote on Elon Musk’s potential acquisition in September. (Bloomberg)PolicyThe Senate advanced an industrial policy bill that includes more than $52 billion in subsidies for chip makers building U.S. plants. (NYT)The short seller Carson Block is being sued over a $14 million award from the S.E.C. that raised questions about the agency’s whistle-blower program. (Bloomberg)After Apple launched a “buy now, pay later” service, the top U.S. consumer finance regulator warned Big Tech about undermining competition in the sector. (FT)A federal judge ruled that Uber doesn’t have to offer wheelchair-accessible cars in every city. (The Verge)Best of the restCredit Suisse, which reported larger second-quarter losses than expected, replaced its C.E.O. (FT)Customers are paying billions of dollars in fees for “free” checking. (Bloomberg)The default settings in Apple, Google, Amazon and Microsoft products that you should turn off right away. (NYT)This man sells mud to Major League Baseball. (NYT)“The Case of the $5,000 Springsteen Tickets” (NYT)R.I.P., Choco Taco. (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

  • in

    Bipartisan Senate Group Strikes Deal to Rewrite Electoral Count Act

    The changes outlined by the senators are intended to prevent a repeat of the effort on Jan. 6, 2021, to overturn the presidential election in Congress.WASHINGTON — A bipartisan group of senators proposed new legislation on Wednesday to modernize the 135-year-old Electoral Count Act, working to overhaul a law that President Donald J. Trump tried to abuse on Jan. 6, 2021, to interfere with Congress’s certification of his election defeat.The legislation aims to guarantee a peaceful transition from one president to the next, after the Jan. 6 attack on the Capitol exposed how the current law could be manipulated to disrupt the process. One measure would make it more difficult for lawmakers to challenge a state’s electoral votes when Congress meets to count them. It would also clarify that the vice president has no discretion over the results, and it would set out the steps to begin a presidential transition.A second bill would increase penalties for threats and intimidation of election officials, seek to improve the Postal Service’s handling of mail-in ballots and renew for five years an independent federal agency that helps states administer and secure federal elections.While passage of the legislation cannot guarantee that a repeat of Jan. 6 will not occur in the future, its authors believe that a rewrite of the antiquated law, particularly the provisions related to the vice president’s role, could discourage such efforts and make it more difficult to disrupt the vote count.Alarmed at the events of Jan. 6 that showed longstanding flaws in the law governing the electoral count process, a bipartisan group of lawmakers led by Senators Susan Collins, Republican of Maine, and Joe Manchin III, Democrat of West Virginia, had been meeting for months to try to agree on the rewrite.“In four of the past six presidential elections, this process has been abused, with members of both parties raising frivolous objections to electoral votes,” Ms. Collins said on Wednesday. “But it took the violent breach of the Capitol on Jan. 6 of 2021 to really shine a spotlight on the urgent need for reform.”In a joint statement, the 16 senators involved in the talks said they had set out to “fix the flaws” of the Electoral Count Act, which they called “archaic and ambiguous.” The statement said the group believed that, in consultation with election law experts, it had “developed legislation that establishes clear guidelines for our system of certifying and counting electoral votes for president and vice president.”Though the authors are one short of the 10 Republican senators needed to guarantee that the electoral count bill could make it past a filibuster and to final passage if all Democrats support it, they said they hoped to round up sufficient backing for a vote later this year.Ms. Collins said she expected the Senate Rules Committee to convene a hearing on the measures before the August recess. Senator Amy Klobuchar, Democrat of Minnesota and the chairwoman of the panel, was consulted in the drafting of the legislation.The bills were announced on the eve of a prime-time hearing by the House committee investigating the events surrounding the Jan. 6 attack, including Mr. Trump’s multilayered effort to invalidate his defeat. They also came as an investigation intensified into efforts by Mr. Trump and his allies to have Georgia’s presidential election results reversed. A Georgia judge has ordered Rudolph W. Giuliani, who spearheaded a push to overturn election results on behalf of Mr. Trump, to appear before a special grand jury in Atlanta next month.Key Revelations From the Jan. 6 HearingsCard 1 of 8Making a case against Trump. More

  • in

    Twitter Takes Round 1

    Judge Kathaleen McCormick granted the social media giant’s request for an expedited hearing. Now, the two sides are gearing up for a trial in October.Twitter: 1, Musk: 0.Jim Wilson/The New York TimesTwitter suit takes the fast laneTwitter won its effort to expedite its trial with Elon Musk yesterday, in its lawsuit to force Musk to close his $44 billion acquisition of the company. So many people tried to listen to the proceedings that the dial-in hit capacity — and we hear advisers across Wall Street were huddled around speakerphones.It’s a big win for Twitter. In granting an expedited hearing, Judge Kathaleen McCormick effectively repudiated the notion that the court needed to allow time for a deep dive into whether Twitter had accurately counted the number of bots on its platform. She cited the “cloud of uncertainty” that was hanging over the company the longer the case went undecided as the reason for her decision to fast-track the trial. And in what may be another good sign for Twitter, Judge McCormick said she was unsure that damages would be a sufficient remedy for the social media company, which wants Musk to buy it, not pay damages to walk away.Please see Page 5. A centerpiece of Musk’s claims is that Twitter’s disclosures about the percentage of active users on its platform that are bots are misleading, which would have a “material adverse effect” on the company’s value. But Musk has yet to tell the court what, exactly, in Twitter’s disclosures might be false. This became an issue when Musk’s lawyer at Quinn Emanuel, Andy Rossman, took aim at Page 5 of Twitter’s annual report, which explains its bot count. But Twitter’s lawyer at Wachtell, Bill Savitt, in his rebuttal, noted that Twitter fills that page with hedges and warnings that numbers might be off. (It reads, in part: “Our estimation of false or spam accounts may not accurately represent the actual number of such accounts, and the actual number of false or spam accounts could be higher than we have estimated.”) Of Twitter’s disclosure, Savitt said: “This does not require a recreation of all things known to humanity.” Judge McCormick seemingly agreed.The two sides are gearing up for a trial in October. Over the next weeks, they have to agree on schedules for depositions and discovery. And Musk will have time to prepare for another hearing before Judge McCormick that month: a defense of his whopping Tesla pay package — money that could come in handy if she forces him to buy Twitter.HERE’S WHAT’S HAPPENING Netflix loses fewer subscribers than expected. The streaming service reported yesterday that it lost nearly 1 million subscribers in the second quarter, far fewer than it had forecast. What’s more, Netflix said some of its strategies to stem losses, like an ad-supported option for consumers and a crackdown on password sharing, would boost revenue as soon as next year.A heroic act in an Indiana mall shooting renews the debate over gun access. In the days since a 22-year-old armed bystander killed a gunman two minutes into a shooting spree, the U.S. is again debating the wisdom of easier access to guns. But an analysis of 433 active shooter attacks in the U.S. between 2000 and 2021 found just 22 had ended with a bystander shooting the attacker, according to the Advanced Law Enforcement Rapid Response Training Center at Texas State University.The CHIPS Act passes a procedural hurdle in the Senate with more than 60 votes. The legislation, stalled for more than a year, gives chip manufacturers what they say is help they need to build factories in the U.S. The Senate is expected today to officially vote to pass the bill, which has been slimmed down and still needs to return to the House before it can go to the president.Intelligence agencies say Russia remains a threat in elections. Top F.B.I. and National Security Agency officials warned yesterday that Russia could still seek to meddle or promote disinformation during the 2022 midterm races, even as it wages war in Ukraine. Iran and China also remained potent threats, the officials said.The House moves to protect same-sex marriage from Supreme Court reversal. New legislation, which garnered some Republican support, would recognize same-sex marriages at the federal level, but it faces an uncertain path in the Senate. The move was a direct answer to Justice Clarence Thomas’s concurring opinion in the ruling last month that overturned federal abortion rights.The loans that may haunt Silicon ValleyTech workers have taken out loans in recent years based on the value of their start-up stock. But as the start-up economy has deflated, that may come back to haunt them, writes The Times’s Erin Griffith.Start-up loans stem from the way workers are typically paid. As part of their compensation, most employees at privately held tech companies receive stock options. That’s where loans and other financing options come in. Start-up stock is used as a form of collateral for cash advances. The loans vary in structure, but most providers charge interest and take a percentage of the worker’s stock when the company sells or goes public. Some are structured as contracts or investments.This lending industry has boomed in recent years. Many of the providers were created in the mid-2010s as hot start-ups like Uber and Airbnb put off initial public offerings of stock as long as they could, hitting private market valuations in the tens of billions of dollars.Debate has ignited in Silicon Valley over the proliferation of loans backed by stakes in still-private start-ups. Proponents say the loans are necessary for employees to participate in tech’s wealth-creation engine. But critics say the loans create needless risk in an already-risky industry and are reminiscent of the dot-com era in the early 2000s, when many tech workers were badly burned by similar loans.As the start-up economy deflates, these loans can be risky. While most are structured to be forgiven if a start-up fails, employees could still face a tax bill because the loan forgiveness is treated as taxable income.“No one’s been thinking about what happens when things go down,” said Rick Heitzmann, an investor at FirstMark Capital. “Everyone’s only thinking about the upside.”“The thing I’ve always been taught by my parents is to be the first one in and last one out. But there’s no one else there.”— Alex Hyman, who pictured his internship at a Los Angeles entertainment agency this summer as being one part “Entourage” and one part “The Office,” but found it more like “Home Alone.” It’s a common experience in an age of remote-working bosses.Mooch’s crypto problemAnthony Scaramucci, who is famous for his 11-day stint as former President Donald Trump’s communications director, is facing a mass exodus of investors from his funds.Earlier this week, Bloomberg reported that Scaramucci’s firm SkyBridge Capital had halted withdrawals from one of its smaller funds, Legion Strategies, which contains just over $200 million. But Scaramucci is also struggling to hold onto investors in SkyBridge’s flagship fund, the SkyBridge Multi-Adviser Hedge Fund Portfolios, which managed as much as $2 billion at the end of March. Its investments lost nearly a quarter of their value in the second quarter.Investors in SkyBridge’s flagship fund are seeking to withdraw as much as $890 million, or about half of the money that it held as of the end of last month, Scaramucci told DealBook. But many of those investors will be stuck in the fund for a while. Under its rules, investors in the Multi-Adviser fund are only allowed to withdraw money during certain windows. Those used to occur four times a year, but SkyBridge cut them to twice a year in 2020, after big losses at the beginning of the pandemic. Earlier this month, SkyBridge told investors they would only collectively receive about 16 percent of the money they requested. The letter said it was issuing investors’ notes that would be paid no later than October.Scaramucci’s losses come just over a year after SkyBridge’s pivot into crypto. SkyBridge’s flagship fund, which Scaramucci bought from Citigroup, has long specialized in buying and selling stakes of other hedge funds. For a time, that, along with strong performance in the years after the 2008 financial crisis, made Scaramucci one of the most powerful players in the hedge fund industry.Scaramucci says he is still a long-term believer in crypto. The fund manager says that about 22 percent of his flagship fund remained in crypto and related investments as of the end of last month. “I am not smart enough to time the market,” he told DealBook. “But we’ve done a tremendous amount of research and we think anyone who has will see that blockchain technology is good and is the future.”THE SPEED READ DealsPimco bought $1 billion worth of debt backing Apollo’s acquisition of a payments company at a steep discount. (Bloomberg)Start-ups are racing for share of the market for home chargers of electric vehicles, and several have already been acquired. (Reuters)“Sam Bankman-Fried Turns $2 Trillion Crypto Rout Into Buying Opportunity” (Bloomberg Businessweek)PolicyDan Cox, a Trump loyalist, won the primary to be the Republican candidate for governor of Maryland. (NYT)Novavax’s Covid vaccine was cleared for use in the U.S. (NYT)The Secret Service said texts requested by the Jan. 6 commission were probably lost for good. (NYT)U.K. inflation has exceeded economists’ forecasts, hitting 9.4 percent (FT)President Vladimir Putin signaled that Russia would resume gas deliveries through a key pipeline but at a reduced level. (NYT)Best of the restLeaked salary data at Twitter showed a pay gap of as much as 225 percent for the same role in different countries. (Input)Soaring overdose rates in the pandemic reflect widening racial disparities. (NYT)How the pain of past economic crises is haunting Italy. (NYT)“Fighting a Brutal Regime With the Help of a Video Game” (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

  • in

    Mail Ballots Are at Issue as States Consider New Rules and Legal Action

    As the nation prepares for yet another pandemic election, the rules for voting by mail remain a flash point in many states, a conflict that is being waged in courtrooms and state houses over Republican-backed restrictions.Here’s what happened this week:In North Carolina, the State Board of Elections rejected a signature-matching requirement for absentee ballots that was proposed by the state Republican Party. The measure, denied by a party-line vote on Thursday, would have let counties compare signatures on applications and return envelopes for absentee ballots with those on voter registration cards.The board’s three Democrats said that the verification method would conflict with state law and would contribute to voters being treated differently, which they cautioned would be unconstitutional. The panel’s two G.O.P. members contended that checking signatures “simply builds trust in the system.”North Carolina is not the only battleground state where Republicans and Democrats are clashing over mail-in ballots.Pennsylvania’s top election official, Leigh M. Chapman, a Democrat who is the acting secretary of the commonwealth, sued three counties on Tuesday over their refusal to include undated mail-in ballots in their official tallies from the May 7 primaries.A state court had directed counties in June to report two sets of tallies to Ms. Chapman’s office, one that included ballots without dates handwritten on their return envelopes as required by law and one that did not.The three counties — Berks, Fayette and Lancaster, which are controlled by Republicans — have prevented the state from completing its final certification of the primary results, state elections officials said.The lack of dates on ballot envelopes was a point of contention in the Republican Senate primary that was narrowly won by Dr. Mehmet Oz over David McCormick. Disputes over such ballots have resulted in legal action in state and federal courts, including the U.S. Supreme Court.The conflict over mail-in voting is not limited to purple or red states.In deep-blue Massachusetts, the Supreme Judicial Court on Monday denied a lawsuit filed by the state Republican Party that had sought to block no-excuse mail-in voting from becoming permanent.The party had argued that voting by mail, made popular during the pandemic and codified as part of a law signed last month by Gov. Charlie Baker, a Republican, is unconstitutional.The court’s order in Massachusetts was not the only setback this week for Republicans.In Texas, a lawsuit challenging voting restrictions that were enacted in 2021 was for the most part allowed on Tuesday to move forward by a federal court judge in San Antonio.The secretary of state and state attorney general, offices held by Republicans, had sought to dismiss the legal action by several voting rights groups.The restrictions forbade balloting methods introduced in 2020 to make voting easier during the pandemic, including drive-through polling places and 24-hour voting. They also barred election officials from sending voters unsolicited absentee-ballot applications and from promoting the use of vote by mail.Voters must now provide their driver’s license number or the last four digits of their Social Security number on applications for mail-in ballots and on return envelopes. More

  • in

    Gerrymandered Redistricting Maps Have Become the Norm

    The downtown of Denton, Texas, a city of about 150,000 people and two large universities just north of Dallas, exudes the energy of a fast-growing place with a sizable student population: There’s a vibrant independent music scene, museums and public art exhibits, beer gardens, a surfeit of upscale dining options, a weekly queer variety show. The city is also racially and ethnically diverse: More than 45 percent of residents identify as Latino, Black, Asian or multiracial. There aren’t too many places in Texas where you can encounter Muslim students praying on a busy downtown sidewalk, but Denton is one of them.Lindsey Wilkes, left, and Kimberlyn Spain with friends from the Muslim Student Association near the University of North Texas.Drive about seven hours northwest of Denton’s city center and you hit Texline, a flat, treeless square of a town tucked in the corner of the state on the New Mexico border. Cow pastures and wind turbines seem to stretch to the horizon. Texline’s downtown has a couple diners, a gas station, a hardware store and not much else; its largely white population is roughly 460 people and shrinking.It would be hard to pick two places more different from one another than Denton and Texline — and yet thanks to the latest round of gerrymandering by Texas’ Republican-dominated Legislature, both are now part of the same congressional district: the 13th, represented by one man, Ronny Jackson. Mr. Jackson, the former White House physician, ran for his seat in 2020 as a hard-right Republican. It turned out to be a good fit for Texas-13, where he won with almost 80 percent of the vote.Denton’s bustling downtown square is a gathering point for the city’s diverse population.The city’s soccer facilities provide meeting grounds for families from all walks of life.Enjoying live music is a multigenerational undertaking, as the Rojas family did one afternoon at a performance of Latin funk at Harvest House.This was before the 2020 census was completed and Congress reapportioned, which gave the Texas delegation two more seats for its growing population, for a total of 38. State Republicans, who control the governor’s office and both houses of the Legislature, were free to redraw their district lines pretty much however they pleased. They used that power primarily to tighten their grip on existing Republican seats rather than create new ones, as they had in the 2010 cycle. In the process, they managed to squelch the political voice of many nonwhite Texans, who accounted for 95 percent of the state’s growth over the last decade yet got not a single new district that would give them the opportunity to elect a representative of their choice.Marsha Keffer, a volunteer and precinct chair, looking over district maps at the the Denton County Democratic Party headquarters.A development of multistory homes under construction in Denton.Denton offers a good example of how this played out. Under the old maps, downtown Denton, where the universities lie, was part of the 26th District — a Republican-majority district, but considerably more competitive than the 13th. If Texas politics continue to move left as they have in recent years, the 26th District could have become a tossup. The liberal residents of Denton could have had the chance to elect to Congress a representative of their choosing.Now that the downtown has been absorbed into the 13th District and yoked to the conservative Texas panhandle, however, they might as well be invisible. Even with the addition of all those younger and more liberal voters, the 13th remains a right-wing fortress, with a 45-point Republican lean, according to an analysis by the website FiveThirtyEight. (The redrawn 26th District, meanwhile, will likely become a few points more Republican in the absence of Denton’s downtown.)Families enjoyed a custom ride after attending a Spanish-language church service in Krum, a town in Denton County in the newly redrawn 13th Congressional District.Recycled Books, a used book, record, CD and video game store, fills several floors of an old opera house in the middle of Denton Square.This is the harm of partisan gerrymanders: Partisan politicians draw lines in order to distribute their voters more efficiently, ensuring they can win the most seats with the fewest votes. They shore up their strongholds and help eliminate any meaningful electoral competition. It’s the opposite of how representative democracy is supposed to work.A music and film festival drew Chelsey Danielle, left, and Stefanie Lazcano to the dance floor.Kinsey Davenport getting inked at Smilin’ Rick’s tattoo shop in Denton.The kitchen staff at Boca 31, an upscale Latin street-food restaurant, during a Saturday afternoon rush.Ross Sylvester, right, and Chuck Swartwood joined a crew of volunteers at a food distribution site run by First Refuge in Denton.How is it supposed to work? Politicians are elected freely by voters, and they serve at the pleasure of those voters, who can throw them out if they believe they aren’t doing a good job. Partisan gerrymanders upend that process. Politicians redraw lines to win their seats regardless of whether most voters want them to; in closely fought states like Wisconsin and North Carolina, Republicans drew themselves into control of the legislatures even when Democrats won a majority of votes statewide.When these gerrymanders become the norm, as they have in the absence of meaningful checks, they silence the voices of millions of Americans, leading people to believe they have little or no power to choose their representatives. This helps increase the influence of the political extremes. It makes bipartisan compromise all but impossible and creates a vicious circle in which the most moderate candidates are the least likely to run or be elected.A music class for infants and toddlers at the Explorium, a children’s museum and play and education center in Denton.Texas Republicans have been especially ruthless at playing this game, but they’re far from alone. Their counterparts in Wisconsin, North Carolina, Florida, Ohio, Pennsylvania and Kansas have taken similar approaches to stack the deck against Democrats. Democrats have likewise gone on offense in states where they control mapmaking, such as in Illinois and Oregon, where lawmakers drew maps for 2022 that effectively erased swathes of Republicans.After a virtual home wedding for family members in Moldova and Mexico, Matt Lisovoy and Diana Lisovaya celebrated with ice cream on the square.Diya Craft and her punk-fusion band, Mutha Falcon, playing at a nonprofit social club featuring local bands and craft beers.Iglesia Sobre la Roca serves a varied population from Mexico and Central America with Spanish-language services.The Austin-based rock band Holy Death Trio at Andy’s Bar on the square.The Supreme Court had an opportunity in 2019 to outlaw the worst of this behavior, but it refused to, claiming it had neither the authority nor any clear standards to stop gerrymanders that “reasonably seem unjust.” This was nonsense; lower federal courts and state courts have had no problem coming up with workable standards for years. Court intervention is essential, because voters essentially have no other way of unrigging the system. But the Supreme Court’s conservative majority stuck its head in the sand, giving free rein to the worst impulses of a hyperpolarized society.As Justice Elena Kagan wrote in dissent: “Of all times to abandon the court’s duty to declare the law, this was not the one. The practices challenged in these cases imperil our system of government. Part of the court’s role in that system is to defend its foundations. None is more important than free and fair elections.”The view in Texline, Texas, on the far western edge of the 13th Congressional District.The Supreme Court isn’t the only institution to shirk its responsibility to make maps fairer. Congress has the constitutional authority to set standards for federal elections, but Republicans have repeatedly blocked efforts by Democrats to require independent redistricting commissions. It doesn’t help matters that most Americans still don’t understand what redistricting is or how it works.The Amarillo office of Representative Ronny Jackson is on the far west side of the district.Visitors to Amarillo can find an astonishing selection of cowboy boots and other western wear at Cavender’s.They can also take in a film at the American Quarter Horse Foundation Hall of Fame and Museum.Left to their own devices, states are doing what they can. More than a dozen have created some type of redistricting commission, but the details matter greatly. Some commissions, like California’s and Michigan’s, are genuinely independent — composed of voters rather than lawmakers, and as a result these states have fairer maps.Isaiah Reed mastering his trampoline basketball skills in his backyard in Texline.Commissions in some other states are more vulnerable to partisan influence because they have no binding authority. In New York, the commission plays only an advisory role, so it was no surprise when Democrats in power quickly took over the process and redrew district lines to ensure that 22 of the state’s 26 seats would be won by their party. The state’s top court struck the Democratic maps down for violating a 2014 amendment to the State Constitution barring partisan gerrymanders — a good decision in a vacuum, perhaps, but the result is more chaos and infighting, because the final maps are forcing several top Democratic lawmakers to face off against one another. Meanwhile in Ohio, where the State Constitution has a similar provision barring partisan gerrymanders, the State Supreme Court repeatedly invalidated Republican-drawn gerrymanders for being unfairly biased, but Republicans have managed to ignore those rulings, and so will end up with the maps they want, at least for this cycle.A truck driver making a pit stop in Conway, Texas, which is in the 13th District.Palo Duro Canyon State Park, home to the second-largest canyon in the United States, is part of the arid landscape of northwestern Texas.Bushland, a suburb of Amarillo.Drew Merritt’s “The Chase” in downtown Amarillo.The patchwork of litigation and different outcomes around the country only strengthens the case for a national standard, which is nowhere in sight. It’s a maddening situation with no apparent solution — until you widen the lens and look at the larger structure of American government. When you do, it becomes clear that extreme partisan gerrymandering is more a symptom than a cause of democratic breakdown. The bigger problem is that the way we designed our system of political representation incentivizes the worst and most extreme elements of our politics.On the federal level, at least, there are clear solutions that Congress could adopt tomorrow if it had the will to do so.The 190-foot-tall cross in Groom, Texas, is among the largest in the country.First, expand the House of Representatives. As The Times’s editorial board explained in 2018, the House’s membership, 435, is far too small for America in the 21st century. It reached its current size in 1911, when the country had fewer than one-third as many people as it does today, and the national budget was a tiny fraction of its current size. In 1911, each representative had an average of 211,000 constituents — already far more than the founders had envisioned. Today that number is more than 750,000. It is virtually impossible for one person, Ronny Jackson or anyone else, to accurately represent the range of political interests in a district of that size.In the Texas Panhandle, which lies almost entirely in the 13th District, wind turbines dot the landscape, and cattle outnumber voters.The region is littered with desolate downtowns like Shamrock, where a stray cat was among the few signs of life.On the far northwestern edge of the district, in Texline, Carlos Mendoza tossed a few pitches to his neighbor Sebastian Reed. They live about 450 miles from the opposite corner of the district.Why are we still stuck with a House of Representatives from the turn of the last century? The founders certainly didn’t want it that way; the original First Amendment to the Constitution, which Congress proposed in 1789, would have permanently tied the size of the House to the nation’s population; the amendment fell one state short of ratification.Still, as the country grew Congress kept adding seats after every decennial census, almost without fail. After 1911, that process was obstructed by rural and Southern lawmakers intent on stopping the shift in political power to the Northern cities, where populations were exploding. In 1929, Congress passed a law that locked the House size at 435 seats and created an algorithm for reapportioning them in the future.A bigger House is necessary to more accurately reflect American politics and to bring the United States back in line with other advanced democracies. But on its own it wouldn’t solve our failure of representation. The larger culprit is our winner-take-all elections: From the presidency down, American electoral politics gives 100 percent of the spoils to one side and zero to the other — a bad formula for compromise at any time, and especially dangerous when the country is as polarized as it is today. But at least some of that polarization can be attributed to the manner in which we choose our representatives.Texline is at one end of the 13th District.Tattoos of a musician in Denton.In Congress, districts are represented by a single person, which is harmful in two ways: First, it’s hard to see how one person can adequately represent three-quarters of a million people. Second, even though representatives are supposed to look out for all their constituents, the reality of our politics means most people who didn’t vote for the winner will feel unrepresented entirely.The solution: proportional multimember districts. When districts are larger and contain three or even five members, they can more accurately capture the true shape of the electorate and let everyone’s voice be heard. And if the candidates are chosen through ranked-choice voting, then Republicans, Democrats and even third parties can win representation in Congress in rough proportion to their vote share. It’s no longer a zero-sum game that leaves out millions of Americans.A farm in Texline at the New Mexico border. The founders were comfortable with multimember districts, just as they were with a House of Representatives that kept expanding. In fact, such districts were common in the early years of the Republic, but Congress outlawed them at the federal level, most recently in 1967, partly out of a concern that Southern lawmakers were using them to entrench white political power — a problem that ranked-choice voting would solve.These reforms may sound technical, but they are central to saving representative democracy in America.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

  • in

    The Fight Over Truth Also Has a Red State-Blue State Divide

    Several states run by Democrats are pushing for stiffer rules on the spread of false information, while Republican-run states are pushing for fewer rules.To fight disinformation, California lawmakers are advancing a bill that would force social media companies to divulge their process for removing false, hateful or extremist material from their platforms. Texas lawmakers, by contrast, want to ban the largest of the companies — Facebook, Twitter and YouTube — from removing posts because of political points of view.In Washington, the state attorney general persuaded a court to fine a nonprofit and its lawyer $28,000 for filing a baseless legal challenge to the 2020 governor’s race. In Alabama, lawmakers want to allow people to seek financial damages from social media platforms that shut down their accounts for having posted false content.In the absence of significant action on disinformation at the federal level, officials in state after state are taking aim at the sources of disinformation and the platforms that propagate them — only they are doing so from starkly divergent ideological positions. In this deeply polarized era, even the fight for truth breaks along partisan lines.The result has been a cacophony of state bills and legal maneuvers that could reinforce information bubbles in a nation increasingly divided over a variety of issues — including abortion, guns, the environment — and along geographic lines.The midterm elections in November are driving much of the activity on the state level. In red states, the focus has been on protecting conservative voices on social media, including those spreading baseless claims of widespread electoral fraud.In blue states, lawmakers have tried to force the same companies to do more to stop the spread of conspiracy theories and other harmful information about a broad range of topics, including voting rights and Covid-19.“We should not stand by and just throw up our hands and say that this is an impossible beast that is just going to take over our democracy,” Washington’s governor, Jay Inslee, a Democrat, said in an interview.Calling disinformation a “nuclear weapon” threatening the country’s democratic foundations, he supports legislation that would make it a crime to spread lies about elections. He praised the $28,000 fine levied against the advocacy group that challenged the integrity of the state’s vote in 2020.“We ought to be creatively looking for potential ways to reduce its impact,” he said, referring to disinformation.The biggest hurdle to new regulations — regardless of the party pushing them — is the First Amendment. Lobbyists for the social media companies say that, while they seek to moderate content, the government should not be in the business of dictating how that’s done.Concerns over free speech defeated a bill in deeply blue Washington that would have made it a misdemeanor, punishable by up to a year in jail, for candidates or elected officials “to spread lies about free and fair elections when it has the likelihood to stoke violence.”Governor Inslee, who faced baseless claims of election fraud after he won a third term in 2020, supported the legislation, citing the Supreme Court’s 1969 ruling in Brandenburg v. Ohio. That ruling allowed states to punish speech calling for violence or criminal acts when “such advocacy is directed to inciting or producing imminent lawless action and is likely to incite or produce such action.”The legislation stalled in the state’s Senate in February, but Mr. Inslee said the scale of the problem required urgent action.Gov. Jay Inslee, a Democrat from Washington State, faced baseless claims of election fraud after he won a third term in 2020.Jovelle Tamayo for The New York TimesThe scope of the problem of disinformation, and of the power of the tech companies, has begun to chip away at the notion that free speech is politically untouchable.The new law in Texas has already reached the Supreme Court, which blocked the law from taking effect in May, though it sent the case back to a federal appeals court for further consideration. Gov. Greg Abbott, a Republican, signed the legislation last year, prompted in part by the decisions by Facebook and Twitter to shut down the accounts of former President Donald J. Trump after the Jan. 6, 2021, violence on Capitol Hill.The court’s ruling signaled that it could revisit one core issue: whether social media platforms, like newspapers, retain a high degree of editorial freedom.“It is not at all obvious how our existing precedents, which predate the age of the internet, should apply to large social media companies,” Justice Samuel A. Alito Jr. wrote in a dissent to the court’s emergency ruling suspending the law’s enforcement.A federal judge last month blocked a similar law in Florida that would have fined social media companies as much as $250,000 a day if they blocked political candidates from their platforms, which have become essential tools of modern campaigning. Other states with Republican-controlled legislatures have proposed similar measures, including Alabama, Mississippi, South Carolina, West Virginia, Ohio, Indiana, Iowa and Alaska.Alabama’s attorney general, Steve Marshall, has created an online portal through which residents can complain that their access to social media has been restricted: alabamaag.gov/Censored. In a written response to questions, he said that social media platforms stepped up efforts to restrict content during the pandemic and the presidential election of 2020.“During this period (and continuing to present day), social media platforms abandoned all pretense of promoting free speech — a principle on which they sold themselves to users — and openly and arrogantly proclaimed themselves the Ministry of Truth,” he wrote. “Suddenly, any viewpoint that deviated in the slightest from the prevailing orthodoxy was censored.”Much of the activity on the state level today has been animated by the fraudulent assertion that Mr. Trump, and not President Biden, won the 2020 presidential election. Although disproved repeatedly, the claim has been cited by Republicans to introduce dozens of bills that would clamp down on absentee or mail-in voting in the states they control.Democrats have moved in the opposite direction. Sixteen states have expanded the abilities of people to vote, which has intensified pre-emptive accusations among conservative lawmakers and commentators that the Democrats are bent on cheating.“There is a direct line from conspiracy theories to lawsuits to legislation in states,” said Sean Morales-Doyle, the acting director of voting rights at the Brennan Center for Justice, a nonpartisan election advocacy organization at the New York University School of Law. “Now, more than ever, your voting rights depend on where you live. What we’ve seen this year is half the country going in one direction and the other half going the other direction.”TechNet, the internet company lobbying group, has fought local proposals in dozens of states. The industry’s executives argue that variations in state legislation create a confusing patchwork of rules for companies and consumers. Instead, companies have highlighted their own enforcement of disinformation and other harmful content.“These decisions are made as consistently as possible,” said David Edmonson, the group’s vice president for state policy and government relations.For many politicians the issue has become a powerful cudgel against opponents, with each side accusing the other of spreading lies, and both groups criticizing the social media giants. Florida’s governor, Ron DeSantis, a Republican, has raised campaign funds off his vow to press ahead with his fight against what he has called the “authoritarian companies” that have sought to mute conservative voices. In Ohio, J.D. Vance, the memoirist and Republican nominee for Senate, railed against social media giants, saying they stifled news about the foreign business dealings of Hunter Biden, the president’s son.In Missouri, Vicky Hartzler, a former congresswoman running for the Republican nomination for Senate, released a television ad criticizing Twitter for suspending her personal account after she posted remarks about transgender athletes. “They want to cancel you,” she said in the ad, defending her remarks as “what God intended.”OnMessage, a polling firm that counts the National Republican Senatorial Committee as a client, reported that 80 percent of primary voters surveyed in 2021 said they believed that technology companies were too powerful and needed to be held accountable. Six years earlier, only 20 percent said so. “Voters have a palpable fear of cancel culture and how tech is censoring political views.” said Chris Hartline, a spokesman for the National Republican Senatorial Committee.Gov. Ron DeSantis, a Florida Republican, has raised campaign funds off his vow to press ahead with his fight against what he has called “authoritarian companies.”Scott McIntyre for The New York TimesIn blue states, Democrats have focused more directly on the harm disinformation inflicts on society, including through false claims about elections or Covid and through racist or antisemitic material that has motivated violent attacks like the massacre at a supermarket in Buffalo in May.Connecticut plans to spend nearly $2 million on marketing to share factual information about voting and to create a position for an expert to root out misinformation narratives about voting before they go viral. A similar effort to create a disinformation board at the Department of Homeland Security provoked a political fury before its work was suspended in May pending an internal review.In California, the State Senate is moving forward with legislation that would require social media companies to disclose their policies regarding hate speech, disinformation, extremism, harassment and foreign political interference. (The legislation would not compel them to restrict content.) Another bill would allow civil lawsuits against large social media platforms like TikTok and Meta’s Facebook and Instagram if their products were proven to have addicted children.“All of these different challenges that we’re facing have a common thread, and the common thread is the power of social media to amplify really problematic content,” said Assemblyman Jesse Gabriel of California, a Democrat, who sponsored the legislation to require greater transparency from social media platforms. “That has significant consequences both online and in physical spaces.”It seems unlikely that the flurry of legislative activity will have a significant impact before this fall’s elections; social media companies will have no single response acceptable to both sides when accusations of disinformation inevitably arise.“Any election cycle brings intense new content challenges for platforms, but the November midterms seem likely to be particularly explosive,” said Matt Perault, a director of the Center on Technology Policy at the University of North Carolina. “With abortion, guns, democratic participation at the forefront of voters’ minds, platforms will face intense challenges in moderating speech. It’s likely that neither side will be satisfied by the decisions platforms make.” More

  • in

    Next Time Trump Tries to Steal an Election, He Won’t Need a Mob

    Last week, the Supreme Court announced it would hear arguments in Moore v. Harper, a challenge to North Carolina’s new congressional map.The long and short of the case is that North Carolina Republicans proposed a gerrymander so egregious that the state Supreme Court ruled that it violated the state’s Constitution. Republicans sought to restore the legislative map, citing the “independent state legislature doctrine,” which asserts that state legislatures have almost absolute power to set their own rules for federal elections. Once passed into law, then, those rules cannot be overturned — or even reviewed — by state courts.A Republican victory at the Supreme Court would, according to the election law expert Rick Hasen, “radically alter the power of state courts to rein in state legislatures that violate voting rights in federal elections. It could essentially neuter the ability of state courts to protect voters under provisions of state constitutions against infringement of their rights.”This radical interpretation of the Elections Clause of the Constitution also extends to the Presidential Electors Clause, such that during a presidential election year, state legislatures could allocate Electoral College votes in any way they see fit, at any point in the process. As I argued earlier this year, we could see Republican-led states pass laws that would allow them to send alternative slates of electors, overruling the will of the voters and doing legally what Donald Trump and his conspirators pressured Republicans in Arizona and Georgia to do illegally. Under the independent state legislature doctrine, the next time Trump tries to overturn the results of an election he lost, he won’t need a mob.There are many problems with this doctrine beyond the outcomes it was engineered to produce. Some are logical — the theory seems to suggest that state legislatures are somehow separate and apart from state constitutions — and some are historical. And among the historical problems is the fact that Americans have never really wanted to entrust their state legislatures with the kind of sweeping electoral powers that this theory would confer.For most of the first 50 years of presidential elections, there was no uniform method for the allocation of electors. In the first truly competitive race for president, the election of 1800, two states used a winner-take-all system where voters cast ballots to pick their electors directly, three states used a system where electors were chosen on a district-by-district basis, 10 states used a system where the legislature simply chose the electors, and one state, Tennessee, used a combination of methods.Methods changed from election to election depending on partisan advantage. Virginia moved from the district system in 1796 to the winner-take-all “general ticket” in 1800 to ensure total support for Thomas Jefferson in his contest against John Adams. In retaliation, Adams’s home state of Massachusetts abandoned district elections for legislative selection, to ensure that he would get all of its electors.This kind of manipulation continued until the mid-1830s, when every state save South Carolina adopted the “general ticket.” (South Carolina would not allow voters to directly choose electors until after the Civil War.)Beginning in 1812, however, you can start to see the public and its elected officials turn against this use of state legislative power.Jefferson’s Democratic-Republican Party was still in power. James Madison, his longtime friend and political ally, was president. But he, and the war he was now fighting, were unpopular.Most members of Congress had backed Madison’s call for war with Great Britain. But it was a partisan vote with most Republicans in favor and every Federalist opposed.The reasons for war were straightforward. The “conduct of her government,” said Madison in his message to Congress requesting a declaration of war, “presents a series of acts hostile to the United States as an independent and neutral nation.” Among those acts were impressment of American seaman (“thousands of American citizens, under the safeguard of public law and of their national flag, have been torn from their country”) and attacks on American commerce (“British cruisers have been in the practice also of violating the rights and the peace of our coasts.”).In fighting Britain, the administration and its allies hoped to pressure the crown into a more favorable settlement on these maritime issues. They also hoped to conquer Canada and shatter British influence in the parts of North America where it allied with Native tribes to harass American settlers and stymie American expansion.Those hopes crashed into reality, however, as an untrained and inexperienced American militia flailed against British regulars. And as the summer wore on, bringing him closer and closer to the next presidential election, Madison faced defeat abroad and division at home. In New England especially, his Federalist opponents used their hold on local and state offices to obstruct the war effort.“In Hartford,” writes the historian Donald Hickey in “The War of 1812: A Forgotten Conflict,” “Federalists sought to end loud demonstrations by army recruiters by adopting a pair of city ordinances that restricted public music and parades.” In Boston, “the Massachusetts legislature threatened to sequester federal tax money if militia arms due to the state under an 1808 law were not delivered.”Fearing defeat in the presidential race as a result of this anger and discontent over the war, Republicans did everything they could to secure Madison’s victory. The historian Alexander Keyssar details these shenanigans in the book “Why Do We Still Have the Electoral College?” He notes that,In North Carolina, which had utilized a district system since 1796, the legislature announced that it would choose electors by itself: its majority feared that Madison might lose the state to DeWitt Clinton, who ran with the support of both Federalists and dissident Republicans.On the other side, “the Federalist legislature in New Jersey announced, just days before the election, that it was canceling the scheduled balloting and appointing electors of its own.” And in Massachusetts, the Republican-led senate and Federalist-led lower house could not agree on a method for choosing electors. “In the end,” notes Keyssar, “an extra legislative session had to be convened to save the state from losing its electoral votes altogether.”Madison was re-elected, but according to Keyssar, the attempt on both sides to manipulate the outcome “ignited firestorms of protest and recrimination.” A number of lawmakers would try, in the immediate aftermath and the years that followed, to amend the Constitution to end legislative selection of electors and mandate district-based elections for the Electoral College.District elections, according to one supportive congressman, were best because they fit the “maxim that all legitimate power is derived from the people” and because they would reduce the chance that “a man may be elected to the first office of the nation by a minority of votes of the people.”This concern for democracy (or “popular government”) was a big part of the case for reform. For Senator Mahlon Dickerson of New Jersey, allowing legislators to choose electors without giving voters a say was “the worst possible system” as it “usurped” power from the people and departed from “the spirit if not from the letter of the Constitution.”Even at this early juncture in our nation’s history, many Americans believed in democratic participation and sought to make the institutions of the Republic more receptive to the voice of the people. One supporter of district elections, Representative James Strudwick Smith of North Carolina, put it simply: “You will bring the election near to the people, and, consequently you will make them place more value on the elective franchise, which is all-important in a republican form of Government.”There is a somewhat common view that the counter-majoritarianism of the American system is acceptable because the United States is a “Republic, not a democracy.” That notion lurks behind the idea of the “independent state legislature,” which would empower partisans to limit the right of the people to choose their leaders in a direct and democratic manner.But from the start, Americans have rejected the idea that their system is somehow opposed to more and greater democracy. When institutions seemed to subvert democratic practice, the voters and their representatives pushed back, demanding a government more responsive to their interests, desires and republican aspirations. It is not for nothing that the men who claimed Jefferson as their political and ideological forefather labeled their party “The Democracy.”As Americans recognized then, and as they should recognize now, the Constitution is not a charter for states or state legislatures, it is a charter for people, for our rights and for our right to self-government.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More