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Two ideas of free speech duel at America’s Supreme Court

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BACK WHEN X was still Twitter, Ron DeSantis, Florida’s governor, was no fan of the social-media company. In May 2021 he heralded his signing of Senate Bill 7072 as a strike against censorship. Residents of Cuba and Venezuela may be victimised by “tyrannical behaviour”, he said, but Floridians will now be “guaranteed protection against the Silicon Valley elites”. By “taking back the virtual public square”, the state’s lieutenant-governor, Jeanette Nuñez, added, the law will rescue discourse from a “radical leftist narrative”.

In May 2023, with Twitter rebranded and in Elon Musk’s hands, Mr DeSantis opted to launch his ill-fated presidential campaign on the site, and X’s content moderation has been overhauled. But Senate Bill 7072 remains on the books, along with a similar law, House Bill 20, enacted in Texas in September 2021. Challenges to both laws—based on the free-speech guarantee of the First Amendment—come to the Supreme Court on February 26th.

The plaintiffs in NetChoice v Paxton and Moody v NetChoice contend that Texas and Florida are unconstitutionally intruding on private companies’ decision-making about speech they host on their sites. NetChoice represents giants like X, Facebook, Google (owner of YouTube) and TikTok, as well as smaller platforms like Etsy and Pinterest. It argues that “governmental efforts to interfere with the editorial discretion of private parties is forbidden censorship.”

The laws prohibit removing and “shadow-banning” users on large social-media platforms. (Florida’s applies to those with more than 100m active users; Texas sets the floor at 50m.) Texas bars sites from censoring posts based on “viewpoint”; Florida protects users from “inconsistent and unfair actions”. The Sunshine State takes particular aim at sites that ban candidates for state office, a move that can draw fines of up to $250,000 a day. Other violations could expose sites to lawsuits with damages up to $100,000 apiece. Both laws also impose detailed reporting on content moderation—requirements the sites say are “enormously burdensome” but the states insist are “quite modest”.

Two district courts sided with NetChoice’s First Amendment claim, but their respective appellate courts did not see eye to eye. Florida’s law remained blocked by the Eleventh Circuit Court of Appeals. Texas, meanwhile, prevailed at the Fifth Circuit but the Supreme Court granted NetChoice’s request to temporarily freeze HB 20. Now the justices will give the matter a full review.

The tricky question at the heart of these cases is how to conceptualise social-media companies. Are they akin to newspapers, which have total control over which stories appear in their pages? Or are they closer to phone companies or delivery services, which must (with few exceptions) transmit whatever messages or packages their customers wish to dispatch?

The Supreme Court decided in 1974 that Florida could not require newspapers to publish responses from political candidates who had been criticised in their editorial pages. Two decades later it ruled that organisers of a St Patrick’s Day parade did not have to let a gay-pride group march along the route. And last year it allowed a web designer to turn down clients seeking websites for same-sex weddings.

These and other rulings suggest that the First Amendment protects both individuals and businesses from being compelled to communicate ideas with which they disagree. But Florida and Texas say that the likes of Facebook and YouTube are neither publishers nor private citizens but “common carriers” and can be made subject to neutral rules of content moderation. By doing business with all comers, the platforms “can be required to open [their] doors on equal terms to all”—a duty that may be heightened by what the states characterise as “monopoly power in their respective markets”.

As “platform[s] for all ideas”, Texas argues, large social-media sites are easily distinguished from choosy publishers or even bookstores, which can decline to stock any title for any reason. Unlike a cable-television provider or cinema, which “carefully selects and compiles the materials it presents”, Facebook and TikTok (by and large) let their users post what they like. Given the “vastness and diversity” of that content, Florida argues, there is no chance anyone would mistake the views of those who post for those of the companies that host.

Sorting out whether YouTube is more like the Miami Herald, a cinema or AT&T is at the heart of the tangle before the Supreme Court. But differing claims to free speech are also in play, which helps explain why the politics of the NetChoice cases are interestingly scrambled. Although the Florida and Texas laws arrived in a swirl of anti-woke rhetoric, Scott Keller, a conservative former Texas solicitor-general, argued against the Lone Star State’s social-media crackdown at the Fifth Circuit. And odd bedfellows will be arguing alongside one another for NetChoice at the Supreme Court: Paul Clement, the foremost litigator of America’s conservative legal movement, and Elizabeth Prelogar, President Joe Biden’s solicitor-general.

Economics

Donald Trump has many ways to hurt Elon Musk

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THERE WAS a time, not long ago, when an important skill for journalists was translating the code in which powerful people spoke about each other. Carefully prepared speeches and other public remarks would be dissected for hints about the arguments happening in private. Among Donald Trump’s many achievements is upending this system. In his administration people seem to say exactly what they think at any given moment. Wild threats are made—to end habeas corpus; to take Greenland by force—without any follow-through. Journalists must now try to guess what is real and what is for show.

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Economics

Donald Trump has many ways to hurt Elon Musk

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THERE WAS a time, not long ago, when an important skill for journalists was translating the code in which powerful people spoke about each other. Carefully prepared speeches and other public remarks would be dissected for hints about the arguments happening in private. Among Donald Trump’s many achievements is upending this system. In his administration people seem to say exactly what they think at any given moment. Wild threats are made—to end habeas corpus; to take Greenland by force—without any follow-through. Journalists must now try to guess what is real and what is for show.

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Economics

Jobs report May 2025:

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U.S. payrolls increased 139,000 in May, more than expected; unemployment at 4.2%

Hiring decreased just slightly in May even as consumers and companies braced against tariffs and a potentially slowing economy, the Bureau of Labor Statistics reported Friday.

Nonfarm payrolls rose 139,000 for the month, above the muted Dow Jones estimate for 125,000 and a bit below the downwardly revised 147,000 that the U.S. economy added in April.

The unemployment rate held steady at 4.2%. A more encompassing measure that includes discouraged workers and the underemployed also was unchanged, holding at 7.8%.

Worker pay grew more than expected, with average hourly earnings up 0.4% during the month and 3.9% from a year ago, compared with respective forecasts for 0.3% and 3.7%.

“Stronger than expected jobs growth and stable unemployment underlines the resilience of the US labor market in the face of recent shocks,” said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management.

Nearly half the job growth came from health care, which added 62,000, even higher than its average gain of 44,000 over the past year. Leisure and hospitality contributed 48,000 while social assistance added 16,000.

On the downside, government lost 22,000 jobs as efforts to cull the federal workforce by President Donald Trump and the Elon Musk-led Department of Government Efficiency began to show an impact.

Stock market futures jumped higher after the release as did Treasury yields.

Though the May numbers were better than expected, there were some underlying trouble spots.

The April count was revised lower by 30,000, while March’s total came down by 65,000 to 120,000.

There also were disparities between the establishment survey, which is used to generate the headline payrolls gain, and the household survey, which is used for the unemployment rate. The latter count, generally more volatile than the establishment survey, showed a decrease of 696,000 workers. Full-time workers declined by 623,000, while part-timers rose by 33,000.

“The May jobs report still has everyone waiting for the other shoe to drop,” said Daniel Zhao, lead economist at job rating site Glassdoor. “This report shows the job market standing tall, but as economic headwinds stack up cumulatively, it’s only a matter of time before the job market starts straining against those headwinds.”

The report comes against a teetering economic background, complicated by Trump’s tariffs and an ever-changing variable of how far he will go to try to level the global playing field for American goods.

Most indicators show that the economy is still a good distance from recession. But sentiment surveys indicate high degrees of anxiety from both consumers and business leaders as they brace for the ultimate impact of how much tariffs will slow business activity and increase inflation.

For their part, Federal Reserve officials are viewing the current landscape with caution.

The central bank holds its next policy meeting in less than two weeks, with markets largely expecting the Fed to stay on hold regarding interest rates. In recent speeches, policymakers have indicated greater concern with the potential for tariff-induced inflation.

“With the Fed laser-focused on managing the risks to the inflation side of its mandate, today’s stronger than expected jobs report will do little to alter its patient approach,” said Rosner, the Goldman Sachs strategist.

Friday also marks the final day before Fed officials head into their quiet period before the meeting, when they do not issue policy remarks.

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