Free speech has been the cornerstone of democracy since time began and while governments have attempted to censor free speech in years gone by the Internet brought a very different challenge. There have been some very embarrassing leaks of data from governments around the world which seem to have jolted the politicians into action. While there is no doubt that many people do abuse the idea of “free speech” there is also no doubt it has kept politicians “honest”.
Stock market whispers
In years gone by we heard allegations of insider trading rings making millions of dollars by trading on inside information. The Internet has in many ways disbanded these insider trading rings, although some of the larger ones still exist, as the information is often readily available on the Internet. Speed has always been of the essence when it comes to investing and it is no different today.
If you look back over the years, it is obvious that regulators around the world have spent millions if not billions of dollars on trying to curtail insider trading. We have seen some high-profile prosecutions, many court cases fall by the wayside, but on the whole insider trading is still rife today. It may not be as commonplace as it once was but to suggest that insider trading has been “beaten” is just wrong. More censorship over the internet could well play back into the hands of the “real” insider traders?
Restricting free speech
Terrorist groups around the world have been using the Internet as their communication channel of choice to peddle their propaganda and recruit individuals. Nobody would disagree that tackling this type of Internet traffic is sensible but there is a grave danger it will killing free speech and “use a hammer to crack a nut”.
Investor confidence in governments is vital for the performance of stock markets because it gives a level of stability. As we touched on above, many politicians have been kept “honest” by various leaks which have forced them to act more appropriately – whether in their political life or their personal life. Few would argue that we do not need some type of regulation for the Internet but allowing politicians to effectively police the Internet and charge customers, directly and indirectly, is worrying.
Eroding democracy
If the latest attempt to regulate the Internet is successful then this will quite literally be the thin end of the wedge. Once politicians are able to introduce charges to cover “regulatory costs” and eventually dish out fines to companies, individuals and Internet service providers, they will see this as their next big income stream. We know for a fact that governments around the world have been looking at the Internet to see how easily it may be to raise funds. The Internet has literally changed the business world in which we live, allowing you to buy products from across the world at the touch of a button.
Some payment systems, such as the cryptocurrencies, have also been eroding government power because in their most basic form they allow different parties to deal on an anonymous basis. This in itself goes against the raft of regulations introduced by governments over the last 20 years prompting a growing hunger to control everything and ultimately a desperate power grab over the Internet.