Business

The clock is tick(tok)ing for TikTok

170 million American TikTok users might be forced to pick up a book by the end of the year (gasp). Last Thursday, a congressional committee voted unanimously to advance a bill to the House that would essentially ban TikTok in America, this Wednesday, the House passed the bill.

The bipartisan bill aims to “protect the national security of the United States from the threat posed by foreign adversary controlled applications.” Practically, the bill gives ByteDance two options… find a US company to buy TikTok within six months or lose access to its American users completely.

Why make TikTok do this?

US lawmakers have expressed concerns about TikTok’s influence for a long time, claiming the app’s parent company, ByteDance, is linked to the Chinese Communist Party and calling the app “part of our foremost national security threat”. Lawmakers have also stated that the app poses a risk to Americans’ data.

TikTok responded: The committee’s resolve to get the bill passed only grew after TikTok issued a notice which attempted to mobilize users by calling their representatives and asking them not to ban the app. This resulted in a massive flood of calls to lawmakers in what many have called a huge backfire for the video sharing platform.

The authors of the bill responded furiously to what they called a "massive propaganda campaign," that was “so bad we turned phones off… Which means we could miss calls from constituents who actually need urgent help with something," a senior Democratic aide added.

The app isn’t happy

A spokesperson for TikTok told the WSJ, “It’s a ban based on zero evidence,” and the app has emptied its purse to fight a ban: spending over $21 million since 2019, according to the nonprofit research group OpenSecrets.

• TikTok has also said that it has gone to great lengths to protect US user data and provide third-party oversight of the platform, which they say should be enough for lawmakers.

China is pretty mad, too. A representative of the foreign ministry accused the US of “suppressing TikTok” and said, “In the end, this will inevitably come back to bite the United States itself.” Ironically, TikTok is banned in China (though a similar but heavily censored app is allowed) and in some other countries.

There are still hoops to jump through

While the bill was passed through the House, it still needs to get through the Senate, where its fate is more uncertain.

• Senate Majority Leader Chuck Schumer has remained noncommittal and hasn’t clarified when he’ll bring the bill to the Senate floor, setting the stage for what could be a lengthy process to get it passed.

• A few senators, including Sen. Rand Paul, are concerned that the bill may violate the right to free speech.

Last week, President Biden stated that if the bill were to be passed through the Senate, he would sign it, even though he joined the platform last month.

What do Americans think? TikTok is used by over 170 million American users, who are divided on its potential ban. A recent poll from the Associated Press and NORC Center for Public Affairs Research found that 31% of US adults would favor a nationwide ban on TikTok use while 35% would oppose a TikTok ban.

Big-box retailers are downsizing

If there’s one thing we need in life it’s more Macy’s popping up. Best Buy and Macy’s are the latest major retail chains to announce that they will try to improve in-person business in the post-pandemic online shopping era by opening smaller, more streamlined stores.

What might this look like?

For Best Buy: Along with the 24 big stores Best Buy closed in 2023, the electronics chain said it will close 10 to 15 more large locations over the next fiscal year and open a number of small stores in places where it has no prior physical presence.

For Macy’s: Amid declining sales at department stores, Macy’s announced it will close 150 locations and, by the end of 2025, open 30 smaller ones, which will measure 30,000 to 50,000 square feet (which is about 20% of a giant mall Macy’s).

Some other notable stores that are downsizing: Nordstrom, Bloomingdale’s, Target, Kohl’s, Whole Foods, and (the granddaddy of the swedish meatball) Ikea. These stores are hedging their bets that smaller locations with reduced inventories and improved customer service (like faster pickups and returns) should allow them to better compete with the convenience of services like Amazon Prime.

• Best Buy and others are also expanding their new small stores into rural and suburban areas that wealthy families moved to during the pandemic, according to the Washington Post.

Fun fact: In 2023, new leases on over 25,000 square-foot spaces hit their lowest share of all retail space since CoStar Group started tracking the metric in 2006.

Boeing really can’t catch a break

2024 really hasn’t been Boeing’s year. From a door plug incident to repeated criminal investigations, can their miserable year get any worse? The answer is a resolute yes. For the last week (or months), Boeing’s name has been dragged through the dirt, but for good reason.

• A technical issue on a LATAM flight tossed passengers around the cabin, injuring 50, leaving “blood on [the] ceiling”.

• Another plane had passengers record video (see here) of an engine bursting into flames mid-flight, forcing the pilots to make an emergency landing.

However, those are only the problems that the aviation company has faced in the air.

On land, however…

Boeing has had a whole host of issues, to put it mildly:

• An FAA audit, which was opened after a door plug flew off a Boeing 737 Max 9 on January 5, found Boeing failed to comply with quality-control requirements.

  • The airline engineers and mechanics were fully aware of potential problems with the aircraft the day prior to the incident, according to the NYT.

• The DOJ launched a criminal investigation into Boeing’s compliance with a settlement related to its role in two fatal 737 Max plane crashes in 2018 and 2019.

  • The DOJ also opened a probe as part of the criminal investigation into the Jan. 5 blowout of a Boeing door plug on an Alaska Airlines flight.

• A whistleblower who raised concerns about the company’s production line in 2019 was found dead on Saturday of a ‘self inflicted gunshot wound’.

Clearly, Boeing is really going through it. While the company gets its crap (for lack of a better word) together, its halting its plans to ramp up production of its 737 planes, which has left other airlines that rely on Boeing to supply planes for them with fewer aircraft.

Other airlines are struggling as a result

If you thought one of the world’s biggest plane manufacturers, suppliers, and designers going through this much trouble wouldn’t spread to the rest of the aviation industry, well… you’d be wrong.

Southwest said it expects just 46 of Boeing’s 737 Max 8 airplanes when it initially planned to receive 58 of them, plus, it won’t get any of the long-awaited Max 7 jets. As a result, the company had to cut flight capacity plans and changed its financial outlook for the year. Poor Southwest.

Boeing rained on everyone’s parade: United Airlines has temporarily stopped hiring pilots, Alaska Airlines said its capacity for the year is looking bleak, and Ryanair is lowering its passenger forecast. Why? All because Boeing can’t deliver planes.

However, Airbus (Boeing’s top competitor), which delivered 49 planes in February compared to Boeing’s 27, is rejoicing at the news. Good for them.

Hey everyone,

We recently put together a FREE E-book to help you navigate the complex media landscape. Step by step, we outline how you can take control of your consumption of information in an objective and rational manner.

If this sounds like something you may like, click the link below for no cost.

We also offer a 75-page full version of the E-book that offers an even more comprehensive look into how you can take advantage of the information around us, for only $2.50.

Grab Bag

The IRS… wants to help you? This can’t be right

The creepy picture matches my feelings about how unnerved I feel that the IRS is trying to make life easier. There are three certainties in this world: life, death, and taxes. And apparently, the IRS wants to make the third one a little easier.

Earlier this week, the IRS launched its Direct File pilot program, an online tool that lets Americans prepare their taxes for free without using third-party tools like TurboTax or H&R Block Tax Software.

Who can use it?

For this tax season, the online resource is only available for some federal income tax filings:

• Only these 12 states are eligible for taxpayers to use the program: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.

• Plus, filers must have “very simple tax situations”. Meaning regular W-2 employees, not anyone with investment income or complicated finances.

The Treasury Department estimates that about a third of all US tax returns (or up to 19 million taxpayers) are eligible for the program.

High hopes

Taxpayers spent an average of $150 on private tax preparation services last year, per the Treasury Department, so the IRS claims Direct File is a godsend. That being said, the for-profit tax prep industry (which brings in $14 billion annually) isn’t the happiest about the IRS scalping its customers from them. They claim that their services already offer free filing options for quite a few taxpayers, though, they might not be as great as they claim (sorry TurboTax).

The IPA of water has business booming

While at first glance Liquid Death might look like a new IPA, it’s actually just sparkling water. And people love it. Liquid death is hitting record valuations, and is advertised everywhere. But what makes it so special?

The water company which is adorned with skulls across its cans (no, not you, Voodoo Ranger) was valued at $1.4 billion (double its valuation from 2022) on Monday when it got $67 million from investors, which include some pretty recognizable names:

• Dune actor Josh Brolin.

• NFL player DeAndre Hopkins.

• And the entertainment group Live Nation, which already sells Liquid Death at its venues.

Perfect timing

Given the cans bizarre, punky look along with a tallboy can, some who don’t drink have picked it up as a nonalcoholic substitute for when they’re out with friends, and it’s a great time to do so:

• So many people are extending their dry-January that sales of near beer, mocktails, kombucha, and other nonalcoholic alternatives skyrocketed by 30% last year.

• They’re expected to grow another 25% through the next two years.

Out competing the competitors

The company is more than just a substitute for an alcoholic drink, however. After expanding to iced tea and seltzers, Liquid Death announced a powder mix called Death Dust that could be its first step into a crowded energy drink market where another newcomer, Celsius, continues to shine.

How did they break into such a competitive market? Liquid Death says most of its success comes from marketing itself (Voodoo Ranger did it first) as a cool-looking, sustainable drink for those who want to “murder their thirst”. Liquid Death has garnered almost 8 million followers across TikTok and Instagram by doing things most brands wouldn’t even think about, including:

• Releasing an iced tea–lemonade beverage named “Armless Palmer” and then renaming it “Dead Billionaire” after Arnold Palmer’s family threatened to sue.

• Selling skateboards printed with Tony Hawk’s actual blood.

• Collabing with Travis Barker on a limited-edition enema.

Fun Fact: At least 240 people have a tattoo of Liquid Death’s flaming skull logo, according to Forbes.

Fast Facts

Big Bacon: A loose 450-pound pig named Kevin Bacon was caught on a Wisconsin family’s home security camera before being returned to its pen.

Hematoma Helmet: A Dutch cycling team unveiled a new helmet that looks… interesting.

Spy Stunts: Chicago’s Museum of Science and Industry opened a new exhibit about the science behind James Bond’s famous stunts and gadgets.

Lightning Map: Check out this map of where lightning strikes in the US. It marked over 36.8 million lightning strikes.

Son of a Son: Florida lawmakers are honoring the late Jimmy Buffett with a Margaritaville license plate for drivers in the state.