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X and Meta Scramble to Settle With Trump

The Atlantic

www.theatlantic.com › politics › archive › 2025 › 01 › trump-meta-x-settlements › 681503

Donald Trump spent decades in business gleefully suing and angrily being sued by his adversaries in civil court. But since winning reelection, he has suddenly posted a remarkable string of legal victories, as litigants rush to settle their cases.

On November 20, 2024, lawyers for Trump and Elon Musk’s company X, filed a joint letter to the Ninth Circuit Court of Appeals in San Francisco without press release or fanfare. That court was expected to rule on the legal merits of a set of 2021 lawsuits that Trump had filed against X, Facebook, and YouTube, alleging that the companies had unlawfully removed his social media accounts under government pressure weeks after the January 6, 2021, attack on the U.S. Capitol.

Oral arguments in 2023 had gone poorly for Trump, and many legal observers saw little hope for him. As recently as August 2024, nearly two years after Musk took over the company formerly known as Twitter, X had filed a brief with the Ninth Circuit arguing that Trump’s case lacked merit and that it had been properly dismissed by a lower court.

[Read: Why Trump won’t stop suing the media and losing]

Now, the attorneys told the court in the November letter, no ruling would be needed in the case. “We write to advise the court that the parties are actively discussing a potential settlement,” read the joint letter, which was also signed by lawyers for Trump’s co-plaintiffs.

The attorneys did not explain the sudden shift in strategy. The merits of the case had not changed, but the broader context had: The litigants were no longer adversaries, and the plaintiff was about to become president of the United States. Musk had just spent more than $250 million to help elect Trump, moved into his Palm Beach property, accepted a position as a transition adviser, and was celebrating his new nickname—“first buddy.” The day before the letter was filed, Trump had appeared in South Texas with Musk to watch the launch of Musk’s latest Starship rocket.

In seeking to settle with Trump, X, it turned out, was at the start of a trend. A series of litigants that have fought the newly reinstated president in court, in some cases for years, have now lined up to negotiate. ABC News and its parent company, Disney, settled with Trump in December.

Meta CEO Mark Zuckerberg, who had been threatened with jail by Trump as recently as September, traveled to Mar-a-Lago on January 10 to negotiate a settlement with Trump in the Facebook case, which named Zuckerberg personally as a defendant. The deal they struck, according to two people briefed on the agreement who requested anonymity to discuss the arrangement, will cost Meta $25 million in damages and legal fees, a remarkable turn of events that coincided with other demonstrations by Zuckerberg of new fealty toward Trump. The Wall Street Journal reported today that $22 million will go to fund Trump’s presidential library, with the rest going to legal fees and the other plaintiffs.

“We don’t have any comment or guidance to offer,” Meta spokesman Andy Stone told me in a text message, before confirming the $25 million settlement.

These agreements stand to give the most litigious president in American history symbolic victories for himself and financial victories for his legacy. The settlement negotiations raise the question of whether Trump is using his new powers to bully his legal opponents into submission, and whether the litigants are seeking to purchase favor as they try to navigate the many regulatory threats from his new government.

Neither X nor the president’s legal team have publicly disclosed the terms of their settlement discussions with Trump, or even confirmed whether the cases have been settled. Ari Horltzblatt, the attorney for X who filed the settlement notice in the Ninth Circuit, declined to comment when reached by phone. The White House did not respond to a request for comment.

Multiple co-plaintiffs with Trump, who filed his 2021 case as class action lawsuits, also declined to comment this week when reached by The Atlantic. “No comment at this time,” Jennifer Horton, a Michigan school teacher who lost her Facebook account after posts that were flagged for COVID misinformation, wrote to me in a text message. “Check back with me later in week. I can’t talk right now,” radio host Wayne Allyn Root, who lost his Twitter account, wrote in an email.

[Paul Rosenzweig: It’s not amateur hour anymore]

Trump based his 2021 legal crusade against the social media giants on the assertion that they banned his accounts because of government pressure, in violation of the First Amendment. His co-defendants, including the feminist writer Naomi Wolf, have claimed substantial financial harm—“at least $1 million,” in Wolf’s case—from having their own accounts banned. The companies have argued that Trump has failed to show clear evidence that their decisions were directly dictated by a government power. Trump’s argument also has been complicated by the fact that he ran the federal executive branch at the time that his accounts were shut down; Joe Biden was still president-elect.

Ironically, some legal observers argue that Trump might now be committing the very sin that he accused Democrats of perpetrating against him—using the power of his incoming presidency to pressure private companies to take actions for his personal benefit. They worry the companies are agreeing to settlements less from fear that they would lose in court than fear that they would win.

“Trump may be doing what he claimed Biden was doing but he never really did,” Eric Goldman, a professor of law at Santa Clara University who has been tracking the X and Meta cases, told me. “If there is a cash settlement, it is because it’s just a staggering economic transaction to buy influence.”

The precedent for such legal surrender was established late last year by ABC News, which had been sued by Trump for defamation; the case concerned comments by the network host George Stephanolopolous that Trump had “been found liable for rape,” when a New York court had found him liable for sexual abuse under state law—though the judge later clarified that the behavior in question was “commonly considered ‘rape’ in other contexts.” ABC News struck a settlement with Trump in mid-December that sent $15 million from parent company Disney to help build his future presidential library and paid $1 million in legal fees, shocking First Amendment attorneys. (Attorneys for Disney had concluded that the case posed substantial risk, The New York Times reported, and that the settlement was a small price to pay to resolve it.)

The Wall Street Journal reported earlier this month that the parent company of CBS News, Paramount Global, was considering a settlement with Trump over his $10 billion claim that 60 Minutes illegally interfered with the election by favorably editing an interview with Vice President Kamala Harris. Paramount is in the process of merging with Skydance Media, a deal that would require approval by Trump appointees. “We have no comment,” Paramount Global spokesman Justin Dini told me in a statement.

Trump has also sued Gannett, the owner of The Des Moines Register, alleging consumer fraud for a poll the Register published before the 2024 election that showed Harris with a lead over Trump in Iowa days before the election. (Trump won the state.) Gannett has signalled that it intends to contest the case in federal court.

The Founding Fathers, for all their foresight, did not concern themselves with the possibility that a future president might use civil litigation to extract money or fealty. The U.S. criminal code does little to prevent the president, who is exempt from its primary conflict of interest provisions, from continuing civil litigation or profiting from court cases once he takes office.

[Read: The strategy behind Trump’s policy blitz]

Richard Painter, the chief White House ethics lawyer for President George W. Bush, told me that the current situation gives enormous power to a president who has indicated a willingness to use litigation to get his way. “What law prevents him from basically extorting media companies? Absolutely no law at all,” Painter said. “These suits are going to settle. It is not just the money he is getting from it. We are going to have the media be cowed by the president of the United States.”

The Trump case against YouTube and Sundar Pichai, the CEO of parent company Google, filed in 2021 with the X and Meta cases, has been lying dormant in a Northern California courtroom since December 2023, pending the outcome of the Ninth Circuit appeal of the case against X.

Musk’s decision to settle before an opinion now opens the possibility that the YouTube case will be revived unless that company too seeks a settlement. Jose Castañeda, a spokesperson for Google, declined this week to comment on the company’s legal strategy.

America Is Divided. It Makes for Tremendous Content.

The Atlantic

www.theatlantic.com › culture › archive › 2025 › 01 › jubilee-media-profile › 681411

This story seems to be about:

Photographs by John Francis Peters

Amid the madness and tension of the most recent presidential-election campaign, a wild form of clickbait video started flying around the political internet. The titles described debates with preposterous numerical twists, such as “Can 1 Woke Teen Survive 20 Trump Supporters?” and “60 Republicans vs Democrats Debate the 2024 Election.” Fiery tidbits went viral: a trans man yelling at the conservative pundit Ben Shapiro for a full four minutes; Pete Buttigieg trying to calm an undecided voter seething with rage at the Democrats. These weren’t typical TV-news shouting matches, with commentators in suits mugging to cameras. People were staring into each other’s eyes, speaking spontaneously, litigating national divisions in a manner that looked like a support group and felt like The Jerry Springer Show.

The clips were created by Jubilee Media, a booming entertainment company that has built a huge young following by turning difficult discussions into shareable content. Launched in 2017, it has produced videos with titles including “Flat Earthers vs Scientists: Can We Trust Science?” (29 million views), “6 Vegans vs 1 Secret Meat Eater” (17 million views), along with hundreds of others in which delicate subjects—Middle East politics, parenting strategies, penis size—are explored by strangers in gamelike scenarios. During an era of ideological chaos, when all consensus seems in flux, Jubilee has become a phenomenon by insisting that it’s okay, even fun, to clash. In doing so, it represents a challenge to traditional media: Jubilee’s founder, Jason Y. Lee, told me he’s hopeful that the company can host one of the presidential debates in 2028.

Jason Y. Lee (left) watches a taping of Surrounded. He relaunched Jubilee in 2017 as an effort to bridge national divisions revealed by Donald Trump’s election. (Photographs by John Francis Peters)

That idea shouldn’t sound far-fetched. The 2024 election demonstrated the influence of YouTube, TikTok, podcasts, and other online forums in fostering discussion that’s less regulated than what journalistic norms allow. Gen Z’s rightward swing since 2020, combined with its high rate of independent party identification, suggests a remarkable openness to persuasion from across the political spectrum. Basic policy shibboleths, such as the efficacy of vaccines, are being questioned by all sorts of constituencies; once-predictable public-opinion trend lines—regarding feminism, LGBTQ rights, democracy itself—are going wobbly. As Jubilee’s former creative director John Regalado told me, the internet is “updating our tolerance for disagreement—and disagreement on a lot of things that we thought were in the can.”

Jubilee has proved adept at mining this new paradigm for views. Its video with Shapiro was the fifth-most-watched bit of election-related content on YouTube, just a few spots down from Joe Rogan’s interview with Donald Trump; that “1 Woke Teen,” the fledgling TikTok commentator Dean Withers, was invited to the White House after his performance. The company’s offerings also include dating shows, a forthcoming dating app, and a card game to provoke interesting interactions with friends. Students at high schools and colleges have held Jubilee-inspired events to mimic the debates they see on-screen. Lee said he’s trying to build “the Disney of empathy”: a media empire that teaches people how to connect, listen, and healthily disagree—an ambitious, even fanciful-sounding notion in a time of cultural fracturing and political polarization.

Pursuing that goal has meant emphasizing seemingly old-fashioned media ideals—neutrality, fidelity, hearing from all sides—in ways that can seem extreme. Moderators, when they’re involved at all, take only the lightest touch in steering conversations, which can mean letting misinformation and misdirection fly. (Fact-checks happen after filming and are provided by another start-up, Straight Arrow News, which pitches itself as “Unbiased. Straight Facts.”) Cast members tend to seem like regular, if colorful, folks who speak off-the-cuff. The point isn’t to change participants’ minds—full-on ideological conversions almost never happen in the videos. Rather, Regalado said, Jubilee thinks of its efforts as a “practice” or a “ritual.” The awkward or upsetting moments that inevitably arise are part of the product. “That rawness and that authenticity is what young people desperately are seeking,” Lee told me.

Jubilee’s critics, however, contend that the company is simply manufacturing ragebait and platforming dangerous ideas in order to pull eyeballs. Regalado noted that angry viewers often leave comments joking that Jubilee might do “Holocaust Survivors vs. Holocaust Deniers” next—but in the company’s logic, that’s really not an outrageous idea. “Internally, Jubilee has argued about whether or not we would do that episode,” Regalado said, adding that he himself would “want to see that dialogue happen” so long as the Holocaust survivors understood what they were getting into. “I don't think it’s good for society to deny an opportunity for discourse.”

Jubilee’s headquarters have the rumpled, run-and-gun energy of a newspaper office. The ceiling panels are scuffed, the walls are decorated with movie posters, and the desks are dotted with equipment, knickknacks, and struggling houseplants. I visited on a Friday, when most of the staff was working from home, save for a casting director making calls from a private booth. Lee explained that, because Jubilee makes around 200 videos a year, finding participants is a constant chore. “One day we’ll be like, ‘Hey, we need to get nuns,’” he said. “The next day we’ll be like, ‘We need 50 gang members.’”

Lee took me into a corner office with a sweeping view of the Los Angeles International Airport’s tarmac. Using a dry-erase marker to write on the glass tabletop we were sitting at, he drew a graph. One axis was labeled “value” (as in social value) and the other “savvy” (as in business savvy). He wants most of Jubilee’s content to fall in the top-right quadrant, meaning it’s highly benevolent—informative, uplifting, helpful—but also highly entertaining and, therefore, profitable. He pointed to a sign on one wall that said Provoke Understanding and Create Human Connection. That’s Jubilee’s mission statement, whose acronym, PUCHC, is pronounced puke, so people “actually remember it,” he said.

Participants crash into one another while rushing to the debate chair. (Photograph by John Francis Peters)

Sporting a tastefully mussed mullet and canvas pants, Lee sounded like a start-up founder who has delivered countless pitches about his company’s significance. Clearly, however, his desire for impact is deeply rooted. Raised in Kansas by Korean-immigrant parents, Lee is a devout Christian. His résumé bears the hallmarks of can-do Millennial idealism: an internship on Barack Obama’s 2007 primary campaign; five months in Zambia working for the Clinton Health Access Initiative. In a 2017 TEDx Talk, Lee said that he grew up wanting to be a police officer in order to help people.

On Lee’s 22nd birthday, in 2010, he saw news reports about an earthquake devastating Haiti and felt a need to contribute in some way. He went to a New York City subway station and started busking for donations to relief efforts while filming himself. He came up short of his $100 goal for the day. But when he posted the video of his busking online with a pledge to donate a penny each time the video was viewed, something strange happened: He went viral, or at least more viral than any random guy warbling Coldplay on shaky footage could have expected. He then founded the Jubilee Project, a nonprofit to create socially conscious videos; two years later, he quit his six-figure consulting job at Bain & Company to run the project full-time.

The early version of Jubilee was very much a product of its time—a moment when the internet was widely assumed to be a force for progress. The Arab Spring, Kony 2012, the Ice Bucket Challenge: All were early-2010s mass mobilization efforts for a better world, fostered by Facebook, YouTube, and Twitter. Peppy infotainment start-ups—BuzzFeed, Upworthy, Vox—were proliferating, and legacy brands were “pivoting to video,” believing that traditional journalistic values could persist in new shapes.

Really, though, those values were being tested. The dynamics of the internet in those days encouraged newsgatherers to communicate with a clear point of view; the ability to drive traffic by targeting specific audiences, who could in turn orchestrate social-media backlash to coverage, helped make so-called both-sidesism distinctly unfashionable. The rise of Donald Trump, campaigning on what would be later called “alternative facts,” added to the widespread sense that media organizations would play a more active role in refereeing democracy. Traffic boomed, but cultural fracturing worsened as MAGA created its own information ecosystem via independent outlets and forums like Facebook.

After the 2016 election, Lee was disturbed by the divisions he noticed among his acquaintances. Back home in Kansas, people couldn’t fathom why anyone voted for Hillary Clinton; in L.A., they couldn’t do so for Trump. He felt pained to realize that the Jubilee Project’s PSA-like content—about topics including school bullying and global poverty—mostly seemed to be preaching to people who already thought as he did. He relaunched Jubilee as a for-profit company, pitching it as an effort to bridge ideological silos.

Lee and his team devised a set of “shows”: repeatable formats that could liven up discussions about any topic. Middle Ground asks two seemingly opposed factions—minimum-wage workers and millionaires, sex workers and clergy—to try to come to some sense of agreement through discussion. In Odd One Out, a group of similar people tries to root out a mole, thereby examining individual stereotypes (for example, a group of straight guys tries to identify the secretly gay one). Jubilee’s dating videos force people to “swipe” through potential mates in real life, which highlights biases, preferences, and the general inhumanity of apps such as Tinder. Surrounded, which encircles one expert debater with 20 to 25 rivals, is intended to showcase “the many versus a mighty,” Regalado said.

At best, the videos are eyeball-scorching documents of human behavior. The 2024-election hit “Can 25 Liberal College Students Outsmart 1 Conservative? (Feat. Charlie Kirk)” had a carnivalesque feel, showcasing all sorts of people trying out all sorts of rhetorical strategies—nitpicking; filibustering; even, from time to time, building logically sound arguments. Conversations got cut maddeningly short and insults flew to and fro, but that made it all the more satisfying when, for example, a nose-ringed student named Naima incisively landed a complex point about structural racism. Over 90 minutes, an odd kinship seemed to develop between Kirk—a slick and buttoned-up pundit who’s made a career out of “owning” liberals—and his opponents, almost like they were all in on a joke.

Sometimes the chemistry among Jubilee participants becomes poisonous. Last year, the company posted one of its most controversial installments, “Is Being Fat a Choice? Fit Men vs Fat Men.” It featured Myron Gaines, a manosphere podcaster, who repeatedly referred to overweight people—four of whom were in the room with him—as “fat asses” who should be put in a fitness “concentration camp.” Social media lit up with outrage directed toward Jubilee for giving voice to a vicious troll. Lee told me he felt that criticism was fair: Strong voices are good, but voices that hijack the conversation with an agenda and dehumanize other participants are not. “Every year, we put over 2,000 people in our videos,” he said. “I’m not gonna lie; there have been certain videos [where] I’m like, Oh, we might have gotten this balance off.”

Participants in Surrounded can raise red flags, signaling a vote to replace the current debater with someone else from their side. (Photographs by John Francis Peters)

Balance is a word that comes up often in the many, many takedowns that have been aimed at Jubilee over the years. Every issue may have two sides, but not all sides are equally valid, and some are even dangerous. Lee told me that Jubilee has a “harm clause” against featuring groups that openly want to hurt other groups. Harm, of course, is a relative—and ever-expanding—term. Jubilee’s team mostly resolves contentious programming decisions through internal discussion and debate, which seems fitting. For example: Lee told me he disagrees with Regalado about potentially doing a “Holocaust Survivors vs. Deniers” video. Certain topics are just “beyond the realm where people will give us any benefit of the doubt.”

Yet Jubilee’s success suggests why deplatforming—the strategy of blocking bigots and liars from public stages—has proved ineffective. Audiences can always follow provocateurs to alternative platforms; a billionaire can buy the old platform and raise up once-canceled voices. “An anti-vaxxer is about to be part of the Trump administration, and that’s not because of a Jubilee video,” Regalado said. “That’s because information is accessible to people in a new way, and ideas are being resurrected because of our relationship to the internet.” (He was referring to Robert F. Kennedy Jr., whom Trump selected to lead the Department of Health and Human Services.)

Lee declined to comment on his own political beliefs, but he said that his staff generally leans left; Regalado, who exited his full-time role at the company in 2023 but still contributes as a consultant and podcaster, told me he’s “a little bit more liberal than conservative.” Both men suggested to me that progressive critics of Jubilee, who believe that political debates on the platform tend to end up favoring the conservative side, may be reacting to an imbalance in the wider political culture. In the pugilistic, digressive arena of a YouTube debate, advocates for the right are just more experienced at getting their point across.

“Something that people will ask us quite a bit is like: You featured Ben Shapiro and you featured Charlie Kirk. Why aren’t you featuring those people on the left?” Lee said. “And usually the question I ask is, Who are you talking about?” The only establishment Democrat to sit down for a Jubilee video this past cycle was Buttigieg; other liberal Surrounded anchors were a TikToker (Withers) and a video-game streamer (Destiny). Of course plenty of other camera-tested Democrats exist, but they tend to be native to mainstream TV news, which hasn’t been a forum for robust, sustained argument since Jon Stewart shamed Crossfire off the air 20 years ago. Regalado characterized liberals as suffering from “a reluctance to meet the moment that we have.” He added, “Their ideas have suffered for it.”

The day after I visited Jubilee’s offices, I arrived at an industrial building in South L.A. for a taping of Surrounded that would pit 25 Christians against one atheist. In a circle of folding chairs sat youthful theologians with tattoos, a midwestern pastor in a fleece vest, and one blond-bearded Mormon in a suit. At the center was a blue-blazered 25-year-old named Alex O’Connor, who had come to argue that God probably wasn’t real and that Jesus probably didn’t rise from the dead.

At first, the mood was tense. O’Connor would state an assertion, and Christians would sprint up to debate him, sometimes crashing into one another on the way. A large countdown clock enforced 20-minute time limits on each round; as the conversations went on, the other participants started to raise red flags, signaling a vote to kick out the current champion of their faith and install a new one.

And yet, despite the gladiatorial trappings, the discussions turned out to be heady and technical—largely focused on disputes over interpreting specific biblical passages. At one point, the shoot’s director, Suncè Franičević, tried to create some sparks by urging participants to not be afraid to share personal experiences. Lee, watching the shoot alongside me, referenced the graph he’d drawn at Jubilee’s headquarters. This episode was shaping up to land high on the do-good side of the spectrum but possibly lower on entertainment value. “The question is,” he asked, “do you think people will watch it?”

Surrounded, which encircles one expert debater with 20 to 25 rivals, is intended to showcase “the many versus a mighty,” Regalado says. (Photograph by John Francis Peters)

As civil as the debate was, I felt the same thing I always feel while watching Jubilee content: squirming discomfort with confrontation but also amazement at the eagerness of the young participants to dive into thorny subjects. I’ve long thought that what Stewart said on Crossfire was correct—that bickering on camera just feeds division and sows confusion. But I’m also of a generation whose worldviews about religion and politics and so much else were, for many of us, set long ago, in the TV-news era. We then gorged on the internet’s wealth of sharp and smart commentary designed to tell us what we already thought. Jubilee, however, is largely being consumed by people who came up in the fractured aftermath, scanning comment-section flame wars and social-media controversies, trying to figure out where they fit.

I spoke with O’Connor afterward. He’s a rising YouTube star and podcaster who has participated in rollicking discussions with the likes of Piers Morgan, Jordan Peterson, and Richard Dawkins. Many of the Christians at the shoot recognized him from the internet and said they were, in spite of his atheism, big fans. He started his influencer career as a teenager ranting at the camera, but over the years, he told me, he’s learned to tone down the vitriol and show more humility. Commenters on his channel sometimes grouse that he’s gone soft, but his viewership numbers keep going up: He just hit 1 million subscribers on YouTube.

O’Connor’s trajectory made me think of something Lee had told me. In the time since the company was founded, online discourse has hardly become more empathetic, and America’s divisions haven’t healed. But Lee has faith that Jubilee’s influence will be felt in years to come, in the words and deeds of people who grew up watching the company’s videos, honing their sense for what productive—and not-so-productive—conversation looks like. “I am confident that we are nudging us towards better,” he said.

I asked O’Connor whether he bought into the idea that Jubilee really was teaching people how to become better thinkers and speakers. “I don’t know,” he said, choosing his words with the same care and precision that he had during the taping. “I think that kind of is an empirical question.”

The only evidence that he could offer was this: He’d been an atheist arguing with a room full of Christians, “and afterwards, we all went out to the pub—and we had a wonderful conversation.”

What the H-1B Visa Fight Is Really About

The Atlantic

www.theatlantic.com › ideas › archive › 2025 › 01 › trump-musk-sanders-immigration › 681274

The debate over immigration in America has taken a strange turn recently. Elon Musk, Donald Trump’s wealthiest backer and a prolific spreader of dehumanizing anti-immigrant conspiracy theories, finds himself defending an immigrant-visa program against his fellow right-wingers. Meanwhile, Bernie Sanders, perhaps the most prominent leftist in the country, has taken to harshly criticizing the same program for undermining American workers. Odder still, the richest man on the planet and the senator who thinks billionaires shouldn’t exist actually agree on what should be done to reform the program.

The policy in question is the H-1B program, which allocates about 85,000 temporary visas every year to foreign workers who hold at least a bachelor’s degree and have expertise in a “specialty occupation,” such as engineering or information technology. The program is relatively small, but the debate around it could have deep implications for both major political parties. For Republicans, it is a harbinger of a looming intra-MAGA war over skilled immigration that might intensify when Trump enters office. For Democrats, it represents a key front in the fight over whether the party should turn in a nativist direction to repair its toxic brand on immigration. In both cases, the struggle is a preview of just how unpredictable the country’s immigration politics could be over the next four years.

The debate began just before Christmas, when Donald Trump appointed Sriram Krishnan, an Indian-born former Twitter executive and a vocal supporter of skilled immigration, to be a senior AI-policy adviser in his incoming administration. Laura Loomer, the openly xenophobic MAGA influencer, criticized the decision on X and attacked Krishnan for his views on immigration. Other right-wing figures piled on. This prompted members of the tech right wing, most notably Musk, to defend both Krishnan and high-skilled immigration more broadly. The dispute quickly turned to the merits of the H-1B visa program, as the nativist right argued that the program was designed to replace American workers with foreign labor and the tech right countered that it is necessary to fill a shortage of highly skilled workers and help the U.S. compete with its rivals. “The ‘fixed pie’ fallacy is at the heart of much wrong-headed economic thinking,” Musk posted on X. “There is essentially infinite potential for job and company creation.” (The back-and-forth also featured less high-minded arguments. “Our country was built by white Europeans, actually. Not third world invaders from India,” Loomer posted on X. Indians make up more than 70 percent of H-1B holders.)

[Rogé Karma: Why Democrats got the politics of immigration so wrong for so long]

Eventually, Donald Trump weighed in on the side of Musk, claiming he’d always been supportive of the H-1B program. “I have many H-1B visas on my properties,” the president-elect told the New York Post. “I’ve been a believer in H-1B. I have used it many times. It’s a great program.” (In fact, Trump campaigned against H-1B at points in 2016, and he might have been mistakenly referring to his use of the H-2B visa program for lower-skilled immigrants who work on his properties.) Trump’s intervention caused the controversy to quiet down temporarily. Then an unexpected interlocutor entered the fray.

“Billionaires like Elon Musk claim it is crucial to our economy,” Sanders wrote in an op-ed for Fox News on Wednesday, referring to the H-1B program. “They are dead wrong.” The Vermont senator went on to accuse H-1Bs of allowing wealthy corporations to enrich themselves by importing cheap labor (or, in Sanders’s phrasing, “indentured servants”) at the expense of native-born workers.

Both Sanders and Musk turn out to have a point. Sanders is correct that the H-1B program has major flaws that are often exploited by corporations at the expense of workers. A 2021 analysis by the left-leaning Economic Policy Institute, for instance, found that at least a quarter of H-1B visas are allocated to outsourcing firms, which use the program to import foreign workers, train them up while paying below-market wages, and ultimately return them to their home countries, where they can do the same work at a fraction of the cost. In one infamous case, tech workers at Disney were forced to train their replacements, H-1B visa holders who were subcontracted by an Indian firm, before being laid off.

However, Musk is correct in the sense that most careful experimental studies on the program find that, overall, it has neutral or positive effects on the employment prospects and wages of native-born workers. Companies that receive H-1B visas tend to grow faster than companies that don’t—likely because many of them really are hiring foreign workers whose skills they need—and thus often end up employing more native workers overall. Employers receiving H-1B visas also tend to develop new products and technologies at higher rates, which helps create new jobs.

Despite their sharply different takes on the merits of the H-1B program, Musk and Sanders endorse the same set of reforms to it: a combination of raising the salary floor for H-1B visa holders and raising the cost to companies for maintaining an H-1B visa, which together would make it more expensive for a company to hire foreign workers over domestic ones.

But the fact that Musk and Sanders agree on solutions means very little about the prospects for reform, because the real conflict here is within the parties, not between them. This is especially true on the right, where the fight is over how the second Trump administration should approach skilled immigration. Trump was elected by a coalition that included Silicon Valley technologists, who tend to believe in immigration for skilled workers, and hard-core nativists, who believe that all immigration, at least from most non-European countries, is bad. Both sides will hold considerable power in the incoming administration; the tech right is represented most prominently by Musk and Vivek Ramaswamy while the nativist right is represented by Stephen Miller, a longtime opponent of even skilled immigration. Miller shaped much of immigration policy during Trump’s first term, including multiple efforts to limit the H-1B program, and has been tapped for an even larger role in his second.

[Rogé Karma: The truth about immigration and the American worker]

It’s impossible to know which faction will ultimately triumph in the second Trump administration. As Vox’s Andrew Prokop has pointed out, although Trump has rhetorically endorsed Musk’s position on H-1Bs, he tends to defer to Miller on the substance of immigration policy. The current, mostly online spat over H-1B visas is likely a preview of a larger coming showdown between Miller and Musk. (Complicating matters further, Trump recently appointed Miller’s wife to staff the Department of Government Efficiency alongside Musk and Ramaswamy.)

The left is engaged in a factional fight of its own. The Democratic Party’s approach to immigration is widely understood to have hurt its standing with working-class voters, including many Latinos. But a new politics of immigration has yet to emerge to take its place. Sanders’s criticism of the H-1B program suggests one direction the party could take: a return to old-school economic populism that portrays certain forms of immigration as a scheme perpetuated by corporations to enrich themselves at the expense of the American worker. Sanders embraced this position during his 2016 presidential campaign, at one point calling open borders a “Koch Brothers proposal” that would “make everybody in America poorer.”

Back then, Sanders’s immigration skepticism was met by widespread criticism from the left. Not this time. In fact, some of Sanders’s fellow Democrats have levied their own criticisms of the H-1B program. But the Sanders approach suffers from a glaring flaw: A large body of research shows that even low-skill immigration does not make native-born American workers worse off; high-skilled immigration almost certainly makes them better off. Claiming otherwise might be an effective way for Democratic politicians to win over immigration-skeptical voters. But in the long run, they might find out that false narratives about immigrants, once unleashed, are hard to control.

Starbucks and Disney team up, Taco Bell's upgrade, McDonald's DEI shift: Food news roundup

Quartz

qz.com › starbucks-disney-taco-bell-mcdonalds-dei-food-news-1851736551

Starbucks has rolled out new menu items alongside a limited-time promotion featuring Minnie Mouse tumblers. Taco Bell is also expanding its Luxe Cravings Box with fresh additions. Over at McDonald’s, the brand has launched a new McValue menu while also planning to scale back its DEI efforts. Meanwhile, Chick-fil-A is…

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Disney and FuboTV are teaming up in the streaming wars

Quartz

qz.com › disney-hulu-fubo-merger-1851732998

Disney (DIS) announced on Monday that it will be merging its Hulu + Live TV business with FuboTV (FUBO). The deal will allow Disney to continue with its sports streaming joint venture with Fox Corp. (FOX) and Warner Bros. Discovery (WBD).

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