A lot of thinkfluencers will describe technology as an “ecosystem” without grappling with the full implications of that term. Most often when they say it they’re referring to a cluster of consumer-facing businesses that rent space or other capabilities from a “platform” provider, like apps on an App Store. But that isn’t an ecosystem, that’s a shopping mall. Real ecosystems have energy and nutrient flow both up and down the food chain, as well as laterally; they have vast swarms of bottom feeders, fungi, and other detritivores that recycle matter through decomposition and make its constituents bioavailable once more; they also have a constant source of energy input (usually the sun) to make up for the constant entropic drag that would otherwise grind things to a halt. One of the great discoveries of modern ecology is that apex predators, macrofauna, the plants and animals we notice and admire are perched precariously atop a vast network of invisible supports. A tiger is the temporary result of too many worms gathering in one place.
Technology is also an ecosystem, not the way bluechecks talk about it, but in this more profound sense. A Boeing or a Google is like a tiger: the highly-visible culmination of a vast subterranean drama. Turn over a spade and you’ll find them — the suppliers and subcontractors, investor networks, tooling manufacturers, feeder universities, advisors, researchers, shipping and packaging experts, friendly bankers and government officials, producers of upstream technological inputs, and a vast collection of lower-tier companies in related markets that act like an economic flywheel, absorbing and releasing excess labor as the economy shudders through its fits and starts.
In nature, it’s energy and nutrients that move through the food webs. Here their analogues are capital and knowledge. It’s hard to miss the money sloshing back and forth — world-changing companies are nurtured through their awkward adolescence by sophisticated and patient pools of capital, and the high-flying champions of those companies become the next generation’s venture investors after cashing out. Harder to see but even more influential is the vast economic dark matter made up of professionals who struck it rich enough to live comfortably but not rich enough to fly private. These unobtrusive capitalists are the first to hear through professional whispernets that so-and-so has quit his job to work on such-and-such. Since they’re still in the rat-race, they can have an informed opinion on the caliber both of the idea and of the team around it, and are usually the early champions of the most unusual and speculative ventures. And finally, money sloshes around between the companies themselves through a complicated network of deals, joint ventures, and strategic investments.
The money is more visible, but the way knowledge moves is more important. Part of it is academic, propositional knowledge or technical data whose discovery is accelerated when a dozen different teams are on its scent, sometimes racing each other to the prize, sometimes egging each other on and celebrating each others’ victories. But the bulk of what makes this ecosystem hum, the true currency that drives nearly every barter or exchange, is practical, process knowledge of the sort that 莊子 first described and Michael Oakeshott later re-popularized for our benighted and ignorant age. What makes process knowledge unusual is that by its very nature it cannot be separated from people, cannot be digitized or divorced or attached to an email. It is at once the nous of a technological ecosystem and the thing that makes it fundamentally illegible — an immaterial, intangible essence that inheres only in individuals, like a mind or a soul.
John Psmith, “REVIEW: Flying Blind by Peter Robison”, Mr. and Mrs. Psmith’s Bookshelf, 2023-02-06.
July 28, 2025
QotD: The technology ecosystem
July 22, 2025
The internet keeps getting worse. Let’s talk about why.
Jared Henderson
Published 16 Jul 2025Why do major online platforms keep getting worse? Cory Doctorow’s work helps us understand the pattern of growth, decline, and eventual demise.
→ Timestamps
00:00 Beginning
00:51 How Platforms Die
08:29 The Death of a Platform (From the Inside)
12:14 Ads, Everywhere
14:47 Yes, I Make Money from Ads
16:32 Bots
22:04 The Internet We Need
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July 21, 2025
AI slop seems to have finally triggered significant pushback
Ted Gioia says that he’s seeing strong indicators that the AI slop superabundance has helped create a widespread rejection of it and all its works:
2025 has been the year of garbage culture.
Creators watch in horror as dismal AI slop threatens their livelihoods — and the integrity of their fields. It’s everywhere, spreading faster than a pharaoh’s plague.
In recent months, we’ve been bombarded with millions of lousy AI songs, idiotic AI videos, and clumsy AI images. Error-filled AI texts are everywhere — from your workplace memos to the books sold on Amazon.com.
Even my lowly vocation, music journalism, gets turned into a joke when it’s accompanied by slop images of fake events.
But something has changed in the last few days.
The garbage hasn’t disappeared. It’s still everywhere, stinking up the joint.
But people are disgusted, and finally pushing back. And they are doing so with such fervor that even the biggest AI companies are now getting nervous and pulling back.
Just consider this surprising headline:
This was stunning news. YouTube is part of the biggest AI slop promoter of them all — namely the Google/Alphabet empire. How can they possibly abandon AI garbage? Their bosses are the biggest slopmasters of them all.
After this shocking news reverberated through the creative economy, YouTube started to backtrack. They said that they would not punish every AI video — some can still be monetized.
But even the revised guidelines are still a major blow to AI slop purveyors. YouTube made clear that “creators are required to disclose when their realistic content is altered or synthetic”. That’s a huge win—we finally have a requirement for disclosure, and it came straight from the dark planet Alphabet.
YouTube also stressed that it opposes “content that is mass-produced or repetitive, which is content viewers often consider spam”. This is just a step away from blocking slop.
Update, 22 July: Ted posted a follow-up with a bit more evidence that the pushback is working:
In my latest article I criticized Spotify for allowing uploads of unauthorized AI tracks to the profiles of dead musicians.
But the company may finally be listening to criticisms of its AI policies. In this case, Spotify has now taken steps to stop the abuses, and a spokesperson reached out to me today with an update and expressing a clear and proper policy on AI fraud.
I share it below (and have also updated my article):
We’ve flagged the issue to SoundOn, the distributor of the content in question, and it has been removed. This violates Spotify’s deceptive content policies, which prohibit impersonation intended to mislead, such as replicating another creator’s name, image, or description, or posing as a person, brand, or organization in a deceptive manner. This is not allowed. We take action against licensors and distributors who fail to police for this kind of fraud and those who commit repeated or egregious violations can and have been permanently removed from Spotify.
They acted quickly, and I give them credit for that.
Update the second, 23 July: Ah, Spotify giveth and Spotify taketh away:
“Spotify is publishing new, AI-generated songs on the official pages of artists who died years ago without the permission of their estates or record labels,” reports 404 Media.
This scandal came to light because of an AI song attributed to Blaze Foley, who died in 1989. The bogus track is accompanied by an AI-generated image of a man who bears no resemblance to the singer.
What’s going on here? Is this just ignorance or carelessness at Spotify? Or does it represent something more sinister — another example of the company’s willingness to deceive users in the pursuit of profits?
These scams must stop. If Spotify doesn’t fix this mess immediately, courts should intervene.
But the dead musician scandal is just a start — because other bizarre things are happening at Spotify.
The whole situation is positively surreal.
July 20, 2025
Generational differences about … ugh … talking on the telephone
As a late boomer — and unlike most of my cohort — I’ve always hated talking on the telephone to someone. I’m sure part of it is my innate shyness and social awkwardness: if I can’t see how the other person reacts to my verbal blundering, how can I correct myself in time to salvage something from the call? As a result, I’m rather more sympathetic to younger Millennials and Gen Z’ers who have a common generational aversion to telephone calls:

“Candle-stick phone with courtesy pay box” by CodeName47km is licensed under CC BY-SA 4.0 .
I’ve been working to wean myself off the phone. I try to use it only when it feels necessary: we require an answer now, things are too complex to lay out in an email, or I want to be sure what I’m saying is received as I intend it. Sometimes these calls are spontaneous. Increasingly, I schedule them, or ask permission first.
I’ve done this because it’s how business communications work today, and I don’t like to remind people that I’m getting on. I also do it in deference to my colleagues, all of whom are much younger than me. They prefer email, texts, or the group chat.
The landline decision was forced by our acquisition of Fitzhenry & Whiteside, which has had the same telephone number for decades. F&W has many more authors than does Sutherland House, and a good number of them are over sixty. We’re trying to make the transition to new ownership seamless. We didn’t want people calling up to hear “this number is no longer in service”. So the newly installed phone sits on a stand beside the desk I share with Shalomi. I call it Shalomi’s phone and make her answer it when she’s around. Mostly it goes to voicemail and tells people how to contact us by email.
Accustomed as I’ve become to phone-free work, I was taken aback this week when I asked one of our interns to call a printer — we needed a quick quote — and she responded, “I don’t do telephones”. She looked at me bewildered. I responded in kind.
My mind was racing to figure out if I’d mishandled the matter. I’d just read that story in the New York Times about the “Gen Z stare”, the blank look given by a young person (usually in a service job) where a verbal response would be common. It is often interpreted as a freeze on the part of the starer, an inability or reluctance to engage, perhaps rooted in anxiety, perhaps a remnant of the pandemic’s social dislocations, although some insist the starer is telling their interlocutor “you’re in my space and you ought to back off”.
I heard from a number of people about that article this week, and while the Times had not mentioned phone usage and etiquette, my conversations did. Apparently there are a lot of young people who don’t know how to answer their phones. They see a call pop up on their screen and they stare at it, waiting for it to go away. Or they press answer and listen without saying anything. Some, I’m told, answer even scheduled calls from people they know with silence.
I’ve heard parents say they didn’t expect they’d have to teach their children to answer a phone. A university lecturer explained that journalism professors now demonstrate use of a telephone before instructing students on how to conduct an interview over it. Apparently, the same goes for rookie salespeople.
Poking around online, I found a BBC article reporting that a quarter of people aged eighteen to thirty-four never answer their phones, more than half of them interpret any unexpected call as bad news. CBS reports 90 per cent of Gen-Z are anxious about phone calls.
In fairness, a lot of adults are similarly leery of their phones. They don’t want to engage with spam dialers or scammers — they answer and listen for the brief pause that betrays a call centre. Some let every unrecognized call go to voicemail. The savvier ones have figured out that your iPhone, properly configured, will send calls from people not in your contacts directly to voicemail.
Back to our intern. Eventually, I recovered myself. This wasn’t an instance of Gen-Z awkwardness or anxiety around real-time conversations. She is bright, confident, and as socially adept as anyone in the office. I asked if she had a phone. She did. I asked if she used it for calls. She said only to speak to her mom, who pays for her phone. Perfectly reasonable. And it was her personal phone, not a company phone, so she was under no obligation to use it at work. So we suggested she make the call on the company phone, which she cheerfully did.
We spoke later about generational differences with regard to communications technology. She likes the control one has over email communication as compared to the unpredictable nature of phone calls. I told her about life when no one had phones, yet we could all somehow manage to show up at the same place and the same hour. I can hardly believe I lived in such times. Hearing this must have hit her like I was once hit by the reporter Ray Stannard Baker’s account of how he used to walk up to the White House, knock on the front door, and ask to speak with the president.
July 15, 2025
QotD: Music on YouTube
High on my list of esoteric forgotten things that I still love is ’70s and ’80s electric jazz fusion and the more esoteric reaches of prog rock adjacent to it. Return To Forever, Brand X, Billy Cobham, Mahavishnu Orchestra, Weather Report, that sort of thing. Also its modern descendants like Planet X and Protocol.
I’ve spent years trying to encourage the YouTube algorithm to find me more stuff like this. Fairly successfully, until recently it seems all I can get is repeats of stuff I’ve already heard.
Could be the algorithm is stuck in a rut and underweighting novelty. Or it could be that YouTube’s coverage is inadequate. But this morning the truly horrifying possibility occurred to me. That YouTube’s coverage is complete, and …
Maybe … maybe I’ve heard it all.
ESR, Twitter, 2025-04-14.
July 14, 2025
July 12, 2025
QotD: Ancient empires
The earliest “empires” were Security oriented. A band of hunter-gatherers — who had no concept of individual property, and just took whatever they needed from the environment — finally settled, and became farmers. Fencing and cultivating and irrigating, and building surpluses which could be traded for items that would improve living standards. (Farmers in areas that CAN’T store surplus — mainly tropical areas with year round crops — never made it further than village level agriculture, whereas farmers in areas with storable annual crops like grain — which can be stored and TAXED — went on to found empires …)
Unfortunately the initial problem with being farmers surrounded by hunter-gatherers who don’t understand property, is that such hunter-gatherers look at those nicely fenced grains and enclosed cows and sheep and goats as wonderfully convenient places to hunter-gather … (There is a reason the boundaries between hunter-gatherers and farmers are violent places, and all the crap written about “frontier wars” and extermination and the rest is just a shorthand for — these two cultures cannot co-exist peacefully … Nomads are different … they trade, therefore they understand property, therefore they can co-exist with farmers — though they will still raid where they can, be they Mongol or Viking!)
So farmers immediately face a law and order issue, which can only be solved if there is enough surplus available to provide a tax base that will allow an authority figure (chief, king, emperor, etc.) to employ people to provide protection. At village level that is usually a warrior caste who can keep the competition at bay, but once surplus gets to a level that allows higher tech, that will mean states or empires.
To put that in perspective, if your local community collects a surplus, and can afford a local chief/lord/king to provide protection, the resulting tax system is almost always (in recorded human cultures) based on a percentage of production. (In fact the earliest versions of written communication are almost always record keeping for crops and taxation.) This means that the local lord immediately has both the majority of excess funds locally, and a strong incentive to increase local production so his take will increase.
When I ask the average class of secondary school students what sorts of things the local lord could invest in to improve productivity, they get the idea pretty quickly. Irrigation for fields; animals for farm work; blacksmiths for tools and axles; wheelwrights; roads; bridges; mills; markets; guards; etc. This list is common to most parts of Europe, Africa, Asia, Central and South America and Australasia. The only places it never develops are the very early farming communities in places like New Guinea that have no storable or taxable food items to allow such a development.
So all early farming societies that can tax — without exception — become tax based hierarchical cultures. Some are even referred to as kingdoms or empires. And they are based on the idea of keeping the farmers safe, so they can be taxed.
These early empires are all Security empires. In the Middle East they are often shown as large sprawls across the map, but such sprawls are fairly fanciful. In practice they usually refer to rich farm based river valleys, with an extended hinterland based on nomadic tribes that are trading with/employed by/or paid tribute to by the “imperial authority” simply to keep other outsiders at bay.
Traditionally they fall when their hinterland nomadic allies are not strong enough to keep outsiders at bay, or become strong enough themselves to try a bit of conquest. At which point of course the conquerors find that they have to adopt the systems of the despised lowlanders they have just conquered if they are to keep the loot coming in and the system going. (One of my favourite historical analogies is the nomadic conquerors crucifying the old king on the walls of his palace and sneering that he could watch his city burn, only for him to point out that it isn’t his city anymore, it’s their city that’s burning …)
Nigel Davies, “Types of Empires: Security, Conquest, and Trade”, rethinking history, 2020-05-02.
July 10, 2025
Mandatory online age verification
Michael Geist discusses the rush of the Canadian and other governments in the west to try to impose one-size-fits-all age verification schemes on the internet:

The Day I Knew I Was Old 😉 by artistmac CC BY-SA 2.0
When the intersection of law and technology presents seemingly intractable new challenges, policy makers often bet on technology itself to solve the problem. Whether countering copyright infringement with digital locks, limiting access to unregulated services with website blocking, or deploying artificial intelligence to facilitate content moderation, there is a recurring hope the answer to the policy dilemma lies in better technology. While technology frequently does play a role, experience suggests that the reality is far more complicated as new technologies also create new risks and bring unforeseen consequences. So too with the emphasis on age verification technologies as a magical solution to limiting under-age access to adult content online. These technologies offer some promise, but the significant privacy and accuracy risks that could inhibit freedom of expression are too great to ignore.
The Hub runs a debate today on the mandated use of age verification technologies. I argue against it in a slightly shorter version of this post. Daniel Zekveld of the Association for Reformed Political Action (ARPA) Canada makes the case for it in this post.
The Canadian debate over age verification technologies – which has now expanded to include both age verification and age estimation systems – requires an assessment of both the proposed legislative frameworks and the technologies themselves. The last Parliament featured debate over several contentious Internet-related bills, notably streaming and news laws (Bills C-11 and C-18), online harms (Bill C-63) and Internet age verification and website blocking (Bill S-210). Bill S-210 fell below the radar screen for many months as it started in the Senate and received only cursory review in the House of Commons. The bill faced only a final vote in the House but it died with the election call. Once Parliament resumed, the bill’s sponsor, Senator Julie Miville-Dechêne, wasted no time in bringing it back as Bill S-209.
The bill would create an offence for any organization making available pornographic material to anyone under the age of 18 for commercial purposes. The penalty for doing so is $250,000 for the first offence and up to $500,000 for any subsequent offences. Organizations can rely on three potential defences:
- The organization instituted a government-approved “prescribed age-verification or age estimation method” to limit access. There is a major global business of vendors that sell these technologies and who are vocal proponents of this kind of legislation.
- The organization can make the case that there is “legitimate purpose related to science, medicine, education or the arts”.
- The organization took steps required to limit access after having received a notification from the enforcement agency (likely the CRTC).
Note that Bill S-209 has expanded the scope of available technologies for implementation: while S-210 only included age verification, S-209 adds age estimation technologies. Age estimation may benefit from limiting the amount of data that needs to be collected from an individual, but it also suffers from inaccuracies. For example, using estimation to distinguish between a 17 and 18 year old is difficult for both humans and computers, yet the law depends upon it. Given the standard for highly effective technologies, age estimation technologies may not receive government approvals, leaving only age verification in place.
July 7, 2025
Consumers don’t want AI in everything, but you’ll be forced to take your AI, peasants!
Ted Gioia — like about 92% of consumers at last count — doesn’t want to have artificial intelligence “enhancing” the software he uses every day, but software companies don’t want him — or you — to have that choice:
A few months ago, I needed to send an email. But when I opened Microsoft Outlook, something had changed.
Microsoft asked me to use Copilot to write my email. Copilot is my AI companion. (That’s the cute word they use.)
Hey I don’t want a companion — especially not a fake AI buddy. I never asked for this.
And what about the people receiving my emails? They don’t want this either. They want to hear from me, not a bot.
How do I turn my companion off?
After some trial-and-error, I found a way to disable Copilot. Phew!
But a few days later, Microsoft surprised me again. It wouldn’t let me save an Excel file until I had agreed to new terms for my software account.
Guess what? AI is now bundled into all of my Microsoft software.
Even worse, Microsoft recently raised the price of its subscriptions by $3 per month to cover the additional AI benefits. I get to use my AI companion 60 times per month as part of the deal.
But I don’t want to use it. I want to kill it.
As you can see, I’ve never used this service. I still have all 60 credits unused. But I’m paying for it — because it’s now embedded into Microsoft Word, Excel, etc.
This is how AI gets introduced to the marketplace — by force-feeding the public. And they’re doing this for a very good reason.
Most people won’t pay for AI voluntarily — just 8% according to a recent survey. So they need to bundle it with some other essential product.
You never get to decide.
Before proceeding let me ask a simple question: Has there ever been a major innovation that helped society, but only 8% of the public would pay for it?
That’s never happened before in human history. Everybody wanted electricity in their homes. Everybody wanted a radio. Everybody wanted a phone. Everybody wanted a refrigerator. Everybody wanted a TV set. Everybody wanted the Internet.
They wanted it. They paid for it. They enjoyed it.
AI isn’t like that. People distrust it or even hate it — and more so with each passing month. So the purveyors must bundle it into current offerings, and force usage that way.
Why the Cold War Gave Us LEGO, Credit Cards, and Video Games – W2W 35
TimeGhost History
Published 6 Jul 2025Think the 1950s were all poodle skirts and jukeboxes? Think again! From the first credit cards and modems to LEGO bricks, video games, and even skateboards, discover the surprisingly futuristic side of the Cold War era.
In this episode of War to War by TimeGhost, Sparty dives into the forgotten innovations of the 1950s that still shape our daily lives in 2025.
Topics covered:
• The first commercial credit card (Diners Club)
• The birth of the computer modem
• The first microchip and the rise of computing
• “Tennis for Two” – the 1950s’ video game
• LEGO and the System of Play
• Skateboards before Marty McFlyThe 50s were WAY more high-tech than you think!
#1950s #coldwar #inventions #historyyoudidntknow #SkateboardHistory #lego #timeghost #techhistory #Modem #microchips #creditcard #videogames
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The federal government’s EV mandate cannot stand
Following its established pattern, the Canadian government will seek any possible path other than economic reality, especially when it comes to things like mandating that all vehicles sold in Canada must be EVs by 2035:
It’s not always the unexpected that gets governments in trouble — often enough it’s their own bad judgement, poor timing or general clumsiness that gets in the way. But the unanticipated does happen a lot.
Parties and politicians put time and effort into concocting a set of policies aimed at winning votes by proposing remedies to problems identified as occupying top rungs of current voter concern. If they’re lucky they get elected, presumably intending to put those policies into effect at the earliest opportunity. Then the world shifts and pulls the rug from under them.
Former prime minister Justin Trudeau was a big fan of the attention-getting promise. Especially if it was a pledge timed well into the future when he was unlikely to still be around to be held responsible. Carbon reductions too ambitious to be realistic. Budget targets too unlikely to be believed. Statist planning projects that tended increasingly to the surreal.
Mark Carney is left with the detritus and the problem of what to do about it. As prime minister he’s already acted on a few of the problematic leftovers, ditching the carbon tax even though he’d previously supported it as a good idea; scrapping an increased tax on capital gains although the Treasury could certainly use the money; “caving,” as the Trump administration so tastefully put it, on a digital services tax that was a bad idea to begin with but pushed through by the Trudeau government anyway.
There’s an argument to be made, and not a bad one, that each retreat was the right move for the moment. And if there are mistakes that need abandoning, the early days of a new government is proverbially the best time to do it.
But righting wrongs has confronted Carney with a new predicament, in that there are so many Trudeau-era wrongs that need righting. Washington was still in the midst of its victory dance over its digital tax triumph when Canada’s auto industry came along to plead for similar treatment from Ottawa, insisting automakers couldn’t possibly meet previously-set electric vehicle targets and urging the new Liberal government to backtrack post haste.
Carney hosted the session with Canada’s chief executives for Ford, Stellantis and General Motors. Brian Kingston, chief executive of the Canadian Vehicle Manufacturers Association, was blunt in identifying the targets set for electric vehicle (EV) production as the main topic.
“The EV mandate itself is not sustainable. The targets that have been established cannot be met,” he said on arriving for the meeting. Afterwards he told Politico‘s online news site, “At a time when the industry is under immense pressure, the damaging and redundant ZEV mandate must be urgently removed”.
July 4, 2025
Everyone’s Mad About AI; Here’s What We Think
World War Two
Published 3 Jul 2025Is AI rewriting history? Indy, Anna, Sebastian, Sparty, and Iryna tackle some tricky questions about the future of history, our channels, and the world in general. We discuss our recent use of AI in the Rise of Hitler series, animating portraits, and the use of large language models in research. What risks and opportunities are there for TimeGhost in the future?
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July 3, 2025
QotD: Why Marxists turned away from space exploration and colonization
Devon Eriksen recently pointed out that today’s Marxists are hostile to space flight and off-world colonization. But in Cold War times, Marxists who ran countries were aggressively futuristic about space, treating it as the empire of their dreams.
What caused this turnaround?
To understand this, it’s helpful that to notice that spaceflight is not the only technology about which Marxist attitudes have done a 180. Nuclear power is another. More generally, where Marxists used to be pro-growth and celebrate industrialization and material progress, they’re now loudly for degrowth and renunciation.
But the history of western Marxism is more interesting than that. Western Marxists flipped to strident anti-futurism in the late 1960s and early 1970s while futurist propaganda in the Communist bloc did not end until its post-1989 collapse.
That 20-year-long disjunct was particularly strong about nuclear power, with the Soviets providing ideological support and funding to the foundation of European Green parties and the US’s anti-nuclear-power movement at the same time as they were pouring resources into nuclearizing their own power grid.
And that’s your clue. Domestic Marxism favored making power cheap and abundant, while their Western proxies pushed to keep it expensive and scarce and preached degrowth rather than expansion. Futurism vs. anti-futurism: why?
We don’t need to theorize about this. Yuri Bezmenov, a former gear in the Soviet propaganda machine, told us the answer starting in the early 1980s. Fewer people listened than should have.
Bezmenov explained that unlike Marxism in the Sino-Soviet bloc, Western Marxism was a mind virus, a memetic weapon designed to weaken and degrade its host societies from within, softening them up for totalitarianism and an eventual Soviet takeover. The West was to be denied power, both in a literal and figurative sense.
Ever wonder why today’s Marxists are so quick to make alliances with radical religious Islamists? This shouldn’t happen. According to Marxist theory, Islamism is a regression to an earlier stage of the dialectic than capitalism, and today’s Marxists ought to fear and hate it as a counter-ideology more than capitalism. But they don’t, because to them Islam is a tool to be used for nihilistic ends.
That nihilism is the actual purpose of Western Marxism and all its offshoots, including “woke”. One sign of this is how fervently it embraces the sexual mutilation of children.
The Soviets are gone but their program is still running autonomously in the brains of people who were infected by their Cold-War-era proxies and the successors of those proxies. And that program is nihilism all the way down.
Yuri Bezmenov should have been heeded. There is no simpler theory that fits the observed facts.
Eric S. Raymond, Twitter, 2024-05-14.
June 29, 2025
Carney’s insane determination to keep the Digital Services Tax
One of the most noted features of Prime Minister Mark Carney’s attitude toward, well, everything is his unwillingness to take the concerns of his opponents into account. He seems to feel that he always knows best and therefore any opposition is therefore, by his definition, wrong. The government had been warned by pretty much every observer that the attempt to impose a protectionist digital service levy had incredibly high chances of triggering blowback … and it has:
In other words, you can have many reactions to the current DST battle, but surprise should not be one of them. Canada pushed ahead despite efforts at an international agreement on the issue and later dismissed the increasing friction over the issue with the U.S., which has been signalling its opposition to the DST for many years. Donald Trump has taken action, but his views are not dissimilar from Joe Biden’s on the issue nor Members of Congress from both parties. Further, the companies directly affected by the rules have been similarly responsive. For example, Google began levying a 2.5% DST fee on Canadian advertisers last year in anticipation of the DST taking effect in 2025, thereby passing along much of the DST cost to Canadian businesses and consumers.
To be clear, Canada is free to adopt whatever tax policies it wants and tech companies should pay their fair share of taxes. Ensuring tech companies collect and remit sales taxes on digital sales and services is now well established in Canada. But the government’s policy of “making web giants pay” by going above taxes all companies pay with a percentage of revenues to support Canadian film and television, millions for the news sector, and now the DST was always going to spark a reaction.
Further, the Canadian DST is exceptionally complex, covering a wide range of digital revenues that occur in Canada. The baseline applicability is for companies that generate 750 million euros (about C$1.1 billion) in global revenue of which at least $20 million is digital services revenue in Canada. Digital services revenue can arise from (1) online marketplace services revenue (which would cover an Ebay, Airbnb or Uber), (2) online advertising services revenue (Google or Microsoft), (3) social media services revenue (Facebook or TikTok), and (4) user data revenue (any company that collects and sells user data). Targeting these services means there is a lot stake, estimated by the Parliamentary Budget Officer at $7.2 billion over five years.
Other countries have DSTs, but Canada was the only one to introduce one despite an agreement to institute a moratorium on new DSTs years ago at the OECD. And then it was one of the only countries to reject an extension of that moratorium. The government insisted it would move ahead without delays and indicated it was confident it could avoid retaliation.
Given the trade tensions with the U.S. since the election of Donald Trump, unilaterally dropping the DST in the midst of a trade battle did not make much sense as we needed policy certainty under a broader deal. In other words, the DST was a card we had to play as part of a negotiation. But once we played that card by announcing the tax would take effect next week, it virtually guaranteed the U.S. would respond as it did. The priority should have been a broader deal. The government could have adopted a Trump-style delay for a month to give more time for negotiations. It could have have followed the UK model of weaving it into a broader agreement and committing to a larger digital trade deal. Instead, the government continued years of dismissing the trade risks associated with the DST, potentially creating bigger economic problems in the process.
Dan Knight on how Ottawa deliberately baited Trump, despite all the warnings that this was an incredibly stupid idea:
Donald Trump has officially walked away from the negotiating table. The trigger? Canada’s ill-conceived Digital Services Tax (DST) — a reckless, retroactive grab for revenue targeting U.S. tech firms. Trump isn’t mincing words: he’s calling it a “blatant, discriminatory attack” on American innovation, and now he’s moving to punish Canada economically for it.
So what exactly is this tax?
The Digital Services Tax, passed by the Liberal government and implemented under Mark Carney’s leadership, applies a 3% levy on revenue — not profits — earned by large digital firms operating in Canada. And it’s retroactive. That means it’s being applied to earnings from as far back as January 1, 2022, with companies forced to make lump-sum payments by June 30, 2025.
This tax specifically targets companies with global revenue of at least 750 million and Canadian digital revenue of at least CAD 20 million. Translation: It’s a direct hit on American giants like Google, Amazon, Meta, Airbnb, and Uber, and it spares Canadian firms and EU-based entities from equivalent exposure. It’s not tax fairness — it’s protectionism with a smiley-face sticker.
Trump has responded in kind. As of June 27, all trade negotiations with Canada are suspended. Retaliatory tariffs — already mounting since February — are set to escalate. Trump is drawing a red line, and he’s daring Canada to cross it.
What’s at stake?
Everything. Canada sends over 75% of its exports to the United States. We’re talking about nearly a trillion dollars in annual trade. With Trump now actively leveraging tariffs and ending negotiations, entire sectors — from automotive to agriculture, energy to manufacturing — are in the crosshairs.
Already this year, Trump has slapped 25% tariffs on Canadian imports, with specific hits to steel, aluminum, vehicles, and auto parts, and 10% tariffs on Canadian oil, gas, and potash. These moves have already disrupted markets. Ending trade negotiations is a body blow to an already wobbly Canadian economy — still reeling from Trudeau-era mismanagement and Carney’s corporate globalist agenda.
So who could have seen this coming?
Almost everyone.













