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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.

Accounting

Business Transaction Recording For Financial Success

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Business Transaction Recording For Financial Success

In the world of financial management, accurate transaction recording is much more than a routine task—it is the foundation of fiscal integrity, operational transparency, and informed decision-making. By maintaining meticulous records, businesses ensure their financial ecosystem remains robust and reliable. This article explores the essential practices for precise transaction recording and its critical role in driving business success.

The Importance of Detailed Transaction Recording
At the heart of accurate financial management is detailed transaction recording. Each transaction must include not only the monetary amount but also its nature, the parties involved, and the exact date and time. This level of detail creates a comprehensive audit trail that supports financial analysis, regulatory compliance, and future decision-making. Proper documentation also ensures that stakeholders have a clear and trustworthy view of an organization’s financial health.

Establishing a Robust Chart of Accounts
A well-organized chart of accounts is fundamental to accurate transaction recording. This structured framework categorizes financial activities into meaningful groups, enabling businesses to track income, expenses, assets, and liabilities consistently. Regularly reviewing and updating the chart of accounts ensures it stays relevant as the business evolves, allowing for meaningful comparisons and trend analysis over time.

Leveraging Modern Accounting Software
Advanced accounting software has revolutionized how businesses handle transaction recording. These tools automate repetitive tasks like data entry, synchronize transactions in real-time with bank feeds, and perform validation checks to minimize errors. Features such as cloud integration and customizable reports make these platforms invaluable for maintaining accurate, accessible, and up-to-date financial records.

The Power of Double-Entry Bookkeeping
Double-entry bookkeeping remains a cornerstone of precise transaction management. By ensuring every transaction affects at least two accounts, this system inherently checks for errors and maintains balance within the financial records. For example, recording both a debit and a credit ensures that discrepancies are caught early, providing a reliable framework for accurate reporting.

The Role of Timely Documentation
Prompt transaction recording is another critical factor in financial accuracy. Delays in documentation can lead to missing or incorrect entries, which may skew financial reports and complicate decision-making. A culture that prioritizes timely and accurate record-keeping ensures that a company always has real-time insights into its financial position, helping it adapt to changing conditions quickly.

Regular Reconciliation for Financial Integrity
Periodic reconciliations act as a vital checkpoint in transaction recording. Whether conducted daily, weekly, or monthly, these reviews compare recorded transactions with external records, such as bank statements, to identify discrepancies. Early detection of errors ensures that records remain accurate and that the company’s financial statements are trustworthy.

Conclusion
Mastering the art of accurate transaction recording is far more than a compliance requirement—it is a strategic necessity. By implementing detailed recording practices, leveraging advanced technology, and adhering to time-tested principles like double-entry bookkeeping, businesses can ensure financial transparency and operational efficiency. For finance professionals and business leaders, precise transaction recording is the bedrock of informed decision-making, stakeholder confidence, and long-term success.

With these strategies, businesses can build a reliable financial foundation that supports growth, resilience, and the ability to navigate an ever-changing economic landscape.

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Economics

A protest against America’s TikTok ban is mired in contradiction

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AS A SHUTDOWN looms, TikTok in America has the air of the last day of school. The Brits are saying goodbye to the Americans. Australians are waiting in the wings to replace banished American influencers. And American users are bidding farewell to their fictional Chinese spies—a joke referencing the American government’s accusation that China is using the app (which is owned by ByteDance, a Chinese tech giant) to surveil American citizens.

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Economics

Home insurance costs soar as climate events surge, Treasury Dept. says

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Firefighters battle flames during the Eaton Fire in Pasadena, California, U.S., Jan. 7, 2025.

Mario Anzuoni | Reuters

Climate-related natural disasters are driving up insurance costs for homeowners in the most-affected regions, according to a Treasury Department report released Thursday.

In a voluminous study covering 2018-22 and including some data beyond that, the department found that there were 84 disasters costing $1 billion or more, excluding floods, and that they caused a combined $609 billion in damages. Floods are not covered under homeowner policies.

During the period, costs for policies across all categories rose 8.7% faster than the rate of inflation. However, the burden went largely to those living in areas most hit by climate-related events.

For consumers living in the 20% of zip codes with the highest expected annual losses, premiums averaged $2,321, or 82% more than those living in the 20% of lowest-risk zip codes.

“Homeowners insurance is becoming more costly and less accessible for consumers as the costs of climate-related events pose growing challenges to both homeowners and insurers alike,” said Nellie Liang, undersecretary of the Treasury for domestic finance.

The report comes as rescue workers continue to battle raging wildfires in the Los Angeles area. At least 25 people have been killed and 180,000 homeowners have been displaced.

Treasury Secretary Janet Yellen said the costs from the fires are still unknown, but noted that the report reflected an ongoing serious problem. During the period studied, there was nearly double the annual total of disasters declared for climate-related events as in the period of 1960-2010 combined.

“Moreover, this [wildfire disaster] does not stand alone as evidence of this impact, with other climate-related events leading to challenges for Americans in finding affordable insurance coverage – from severe storms in the Great Plans to hurricanes in the Southeast,” Yellen said in a statement. “This report identifies alarming trends of rising costs of insurance, all of which threaten the long-term prosperity of American families.”

Both homeowners and insurers in the most-affected areas were paying in other ways as well.

Nonrenewal rates in the highest-risk areas were about 80% higher than those in less-risky areas, while insurers paid average claims of $24,000 in higher-risk areas compared to $19,000 in lowest-risk regions.

In the Southeast, which includes states such as Florida and Louisiana that frequently are slammed by hurricanes, the claim frequency was 20% higher than the national average.

In the Southwest, which includes California, wildfires tore through 3.3 million acres during the time period, with five events causing more than $100 million in damages. The average loss claim was nearly $27,000, or nearly 50% higher than the national average. Nonrenewal rates for insurance were 23.5% higher than the national average.

The Treasury Department released its findings with just three days left in the current administration. Treasury officials said they hope the administration under President-elect Donald Trump uses the report as a springboard for action.

“We certainly are hopeful that our successors stay focused on this issue and continue to produce important research on this issue and think about important and creative ways to address it,” an official said.

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