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Content moderation comes to every content platform eventually, and platforms are starting to realize this faster than ever.

Nothing symbolizes this shift as neatly as Facebook’s decision in October (and Twitter’s shortly after) to start banning Holocaust denial. Almost exactly a year earlier, Zuckerberg had proudly tied himself to the First Amendment in a widely publicized “stand for free expression” at Georgetown University.

The evolution continues. Facebook announced earlier this month that it will join platforms such as YouTube and TikTok in removing, not merely labeling or down-ranking, false claims about COVID-19 vaccines.

the pandemic also showed that complete neutrality is impossible. Even though it’s not clear that removing content outright is the best way to correct misperceptions, Facebook and other platforms plainly want to signal that, at least in the current crisis, they don’t want to be seen as feeding people information that might kill them.

When internet platforms announce new policies, assessing whether they can and will enforce them consistently has always been difficult. In essence, the companies are grading their own work. But too often what can be gleaned from the outside suggests that they’re failing.

It tweaked its algorithm to boost authoritative sources in the news feed and turned off recommendations to join groups based around political or social issues. Facebook is reversing some of these steps now, but it cannot make people forget this toolbox exists in the future

As platforms grow more comfortable with their power, they are recognizing that they have options beyond taking posts down or leaving them up. In addition to warning labels, Facebook implemented other “break glass” measures to stem misinformation as the election approached.

Platforms don’t deserve praise for belatedly noticing dumpster fires that they helped create and affixing unobtrusive labels to them

Warning labels for misinformation might make some commentators feel a little better, but whether labels actually do much to contain the spread of false information is still unknown.

News reporting suggests that insiders at Facebook knew they could and should do more about misinformation, but higher-ups vetoed their ideas. YouTube barely acted to stem the flood of misinformation about election results on its platform.

Even before the pandemic, YouTube had begun adjusting its recommendation algorithm to reduce the spread of borderline and harmful content, and is introducing pop-up nudges to encourage user

And if 2020 finally made clear to platforms the need for greater content moderation, it also exposed the inevitable limits of content moderation.

Down-ranking, labeling, or deleting content on an internet platform does not address the social or political circumstances that caused it to be posted in the first place

even the most powerful platform will never be able to fully compensate for the failures of other governing institutions or be able to stop the leader of the free world from constructing an alternative reality when a whole media ecosystem is ready and willing to enable him. As Renée DiResta wrote in The Atlantic last month, “reducing the supply of misinformation doesn’t eliminate the demand.”

Even so, this year’s events showed that nothing is innate, inevitable, or immutable about platforms as they currently exist. The possibilities for what they might become—and what role they will play in society—are limited more by imagination than any fixed technological constraint, and the companies appear more willing to experiment than ever.

What happened in 2012, when the oldest Gen-Z babies were in their middle teens? That was the year Facebook acquired Instagram and young people flocked to the latter site. It was also “the beginning of the selfie era.”

Mr. Haidt’s research, confirmed by that of others, shows that depression rates started to rise “all of a sudden” around 2013, “especially for teen girls,” but “it’s only Gen Z, not the older generations.” If you’d stopped collecting data in 2011, he says, you’d see little change from previous years. “By 2015 it’s an epidemic.” (His data are available in an open-source document.)

Mr. Haidt imagines “literally launching our children into outer space” and letting their bodies grow there: “They would come out deformed and broken. Their limbs wouldn’t be right. You can’t physically grow up in outer space. Human bodies can’t do that.” Yet “we basically do that to them socially. We launched them into outer space around the year 2012,” he says, “and then we expect that they will grow up normally without having normal human experiences.”

He calls this phenomenon “compare and despair” and says: “It seems social because you’re communicating with people. But it’s performative. You don’t actually get social relationships. You get weak, fake social links.”

That meant the first social-media generation was one of “weakened kids” who “hadn’t practiced the skills of adulthood in a low-stakes environment” with other children. They were deprived of “the normal toughening, the normal strengthening, the normal anti-fragility.

Now, their childhood “is largely just through the phone. They no longer even hang out together.” Teenagers even drive less than earlier generations did.

Mr. Haidt especially worries about girls. By 2020 more than 25% of female teenagers had “a major depression.” The comparable number for boys was just under 9%.

The comparable numbers for millennials at the same age registered at half the Gen-Z rate: about 13% for girls and 5% for boys. “Kids are on their devices all the time,”

Most girls, by contrast, are drawn to “visual platforms,” Instagram and TikTok in particular. “Those are about display and performance. You post your perfect life, and then you flip through the photos of other girls who have a more perfect life, and you feel depressed.

Mr. Haidt says he has no antipathy toward the young, and he calls millennials “amazing.”

“Social media is incompatible with liberal democracy because it has moved conversation, and interaction, into the center of the Colosseum. We’re not there to talk to each other. We’re there to perform” before spectators who “want blood.”

To illustrate his point about Gen Z, Mr. Haidt challenges people to name young people today who are “really changing the world, who are doing big things that have an impact beyond their closed ecosystem.”

He can think of only two, neither of them American: Greta Thunberg, 19, the Swedish climate militant, and Malala Yousafzai, 25, the Pakistani advocate for female education

I’m predicting that they will be less effective, less impactful, than previous generations.” Why? “You should always keep your eye on whether people are in ‘discover mode’ or ‘defend mode.’ ” In the former mode, you seize opportunities to be creative. In the latter, “you’re not creative, you’re not future-thinking, you’re focused on threats in the present.”

University students who matriculated starting in 2014 or so have arrived on campus in defend mode: “Here they are in the safest, most welcoming, most inclusive, most antiracist places on the planet, but many of them were acting like they were entering some sort of dystopian, threatening, immoral world.”

56% of liberal women 18 to 29 responded affirmatively to the question: Has a doctor or other healthcare provider ever told you that you have a mental health condition? “Some of that,” Mr. Haidt says, “has to be just self-presentational,” meaning imagined.

This new ideology . . . valorizes victimhood. And if your sub-community motivates you to say you have an anxiety disorder, how is this going to affect you for the rest of your life?” He answers his own question: “You’re not going to take chances, you’re going to ask for accommodations, you’re going to play it safe, you’re not going to swing for the fences, you’re not going to start your own company.”

Whereas millennial women are doing well, “Gen-Z women, because they’re so anxious, are going to be less successful than Gen-Z men—and that’s saying a lot, because Gen-Z men are messed up, too.”

The problem, he says, is distinct to the U.S. and other English-speaking developed countries: “You don’t find it as much in Europe, and hardly at all in Asia.” Ideas that are “nurtured around American issues of race and gender spread instantly to the U.K. and Canada. But they don’t necessarily spread to France and Germany, China and Japan.”

something I hear from a lot of managers, that it’s very difficult to supervise their Gen-Z employees, that it’s very difficult to give them feedback.” That makes it hard for them to advance professionally by learning to do their jobs better.

“this could severely damage American capitalism.” When managers are “afraid to speak up honestly because they’ll be shamed on Twitter or Slack, then that organization becomes stupid.” Mr. Haidt says he’s “seen a lot of this, beginning in American universities in 2015. They all got stupid in the same way. They all implemented policies that backfire.”

Mr. Haidt, who describes himself as “a classical liberal like John Stuart Mill,” also laments the impact of social media on political discourse

Social media and selfies hit a generation that had led an overprotected childhood, in which the age at which children were allowed outside on their own by parents had risen from the norm of previous generations, 7 or 8, to between 10 and 12.

Is there a solution? “I’d raise the age of Internet adulthood to 16,” he says—“and enforce it.”

By contrast, “life went onto phone-based apps 10 years ago, and the protections we have for children are zero, absolutely zero.” The damage to Generation Z from social media “so vastly exceeds the damage from Covid that we’re going to have to act.”

Gen Z, he says, “is not in denial. They recognize that this app-based life is really bad for them.” He reports that they wish they had childhoods more like those of their parents, in which they could play outside and have adventur

The internet stripped institutions of their gatekeeping powers, thus making it possible for anyone to publish—and making it inevitable that many writers would create audiences independent of media institutions.

The internet destroyed the apprenticeship system that had dominated American journalism for generations. Under the old system, an aspiring writer took a low-level job at a media institution and worked her way up the ladder until she was trusted enough to write.

Under the new system, people started their careers writing outside of institutions—on personal blogs—and then were hired by institutions on the strength of their work.

In practice, these outsiders were primarily hired not on the merits of their work, but because of the size of their audience.

what it really did was transform the nature of audiences. Once the internet existed it became inevitable that institutions would see their power to hold audiences wane while individual writers would have their power to build personal audiences explode.

this meant that institutions would begin to hire based on the size of a writer’s audience. Which meant that writers’ overriding professional imperative was to build an audience, since that was the key to advancement.

Twitter killed the blog and lowered the barrier to entry for new writers from “Must have a laptop, the ability to navigate WordPress, and the capacity to write paragraphs” to “Do you have an iPhone and the ability to string 20 words together? With or without punctuation?”

If you were able to build a big enough audience on Twitter, then media institutions fell all over themselves trying to hire you—because they believed that you would then bring your audience to them.2

If you were a writer for the Washington Post, or Wired, or the Saginaw Express, you had to build your own audience not to advance, but to avoid being replaced.

For journalists, audience wasn’t just status—it was professional capital. In fact, it was the most valuable professional capital.

Everything we just talked about was driven by the advertising model of media, which prized pageviews and unique users above all else. About a decade ago, that model started to fray around the edges,3 which caused a shift to the subscription model.

Today, if you’re a subscription publication, what Twitter gives you is growth opportunity. Twitter’s not the only channel for growth—there are lots of others, from TikTok to LinkedIn to YouTube to podcasts to search. But it’s an important one.

Twitter’s attack on Substack was an attack on the subscription model of journalism itself.

since media has already seen the ad-based model fall apart, it’s not clear what the alternative will be if the subscription model dies, too.

All of which is why having a major social media platform run by a capricious bad actor is suboptimal.

And why I think anyone else who’s concerned about the future of media ought to start hedging against Twitter. None of the direct hedges—Post, Mastodon, etc.—are viable yet. But tech history shows that these shifts can happen fairly quickly.

That’s because real people — and yes, even professional economists — tend to process the parallel rise of prices and wages in quite different ways.

In brief, researchers have found that we tend to internalize the gains due to inflation and externalize the losses. These different processes yield different emotional responses.

Let’s start with higher prices. Sticker shock hurts. Even as someone who closely studies the inflation statistics, I’m still often surprised by higher prices. They feel unfair. They undermine my spending power, and my sense of control and order.

in reality, higher prices are only the first act of the inflationary play. It’s a play that economists have seen before. In episode after episode, surges in prices have led to — or been preceded by — a proportional surge in wages.

Even though wages tend to rise hand-in-hand with prices, we tell ourselves a different story, in which the wage rises we get have nothing to do with price rises that cause them.

But then my economist brain took over, and slowly it sunk in that my raise wasn’t a reward for hard work, but rather a cost-of-living adjustment

Internalizing the gain and externalizing the cost of inflation protects you from this deflating realization. But it also distorts your sense of reality.

The reason so many Americans feel that inflation is stealing their purchasing power is that they give themselves unearned credit for the offsetting wage rises that actually restore it.

younger folks — anyone under 60 — had never experienced sustained inflation rates greater than 5 percent in their adult lives. And I think this explains why they’re so angry about today’s inflation.

While older Americans understood that the pain of inflation is transitory, younger folks aren’t so sure. Inflation is a lot scarier when you fear that today’s price rises will permanently undermine your ability to make ends meet.

Perhaps this explains why the recent moderate burst of inflation has created seemingly more anxiety than previous inflationary episodes.

More generally, being an economist makes me an optimist. Social media is awash with (false) claims that we’re in a “silent depression,” and those who want to make American great again are certain it was once so much better.

in reality, our economy this year is larger, more productive and will yield higher average incomes than in any prior year on record in American history

And because the United States is the world’s richest major economy, we can now say that we are almost certainly part of the richest large society in its richest year in the history of humanity.

The income of the average American will double approximately every 39 years. And so when my kids are my age, average income will be roughly double what it is today. Far from being fearful for my kids, I’m envious of the extraordinary riches their generation will enjoy.

Psychologists describe anxiety disorders as occurring when the panic you feel is out of proportion to the danger you face. By this definition, we’re in the midst of a macroeconomic anxiety attack.