Americans are by now broadly aware of the threat posed by Chinese-owned TikTok, including its threat…
CFIF on Twitter CFIF on YouTube
TikTok’s Latest Assault: Ripping Off American Artists and Songwriters

Americans are by now broadly aware of the threat posed by Chinese-owned TikTok, including its threat to U.S. national security.

In recent days, we’ve witnessed in real time another emerging TikTok threat reaching the headlines:  The threat it poses to intellectual property protections, which undergird America’s status as the most artistically and musically productive and influential nation in human history.

Universal Music Group, however, has decided to stand up and fight back by removing its catalog of songs – including artists like Taylor Swift, Drake and Billie Eilish – from TikTok.

Tone-Deaf TikTok has built its aggressive worldwide empire largely on the backs of music created by American artists, as even its corporate leadership openly admits.  As TikTok’s very own…[more]

February 08, 2024 • 12:44 PM

Liberty Update

CFIFs latest news, commentary and alerts delivered to your inbox.
Home Press Room CFIF Opposes Any Increase to FDIC Deposit Insurance
CFIF Opposes Any Increase to FDIC Deposit Insurance Print
Monday, April 10 2023

WASHINGTON, D.C. – Amid banking sector turmoil, some in Washington, D.C., advocate a “solution” that will only make matters worse:  expanding the current $250,000 deposit insurance limit by the Federal Deposit Insurance Corporation (FDIC) through its Deposit Insurance Fund (DIF).  The Center for Individual Freedom (CFIF) unequivocally opposes any Congressional or regulatory proposal to increase that $250,000 cap.  

“Any scheme to raise the FDIC’s current $250,000 deposit insurance cap fails the tests of both fairness and economic efficiency,” said CFIF President Jeffrey Mazzella.  “To put this in proper perspective, consider that Americans’ median bank account balance is approximately $5,300, according to the federal government itself.   Accordingly, since the FDIC’s insurance fund is subsidized by fees paid by banks to the federal government, everyday working Americans would be asked to provide a bailout for wealthier Americans through higher banking fees and credit costs. That’s the textbook definition of a regressive tax.  

“For additional perspective, keep in mind that when the FDIC was established in 1933, it insured deposits up to $2,500, which amounts to approximately $58,000 in 2023 dollars,” Mazzella added.  “The FDIC’s creators sought to avoid granting it a blank check that would enable excessive financial risk, and therefore strictly limited the guarantee amounts.”  

“Enlarging the $250,000 insurance limit also creates a dangerous moral hazard risk,” added Timothy Lee, CFIF’s Vice President of Legal and Public Affairs.  “If market participants anticipate that American taxpayers will ultimately cover even higher losses, that will incentivize even riskier future behavior.”  

The Government Accountability Office (GAO) itself came to that same conclusion, asserting that additional guarantees “have introduced moral hazard – encouraging market participants to expect similar emergency actions in future crises, thereby weakening their incentives to properly manage risks and also creating the perception that some firms are too big to fail.”  The GAO also found that it “could weaken incentives for newly protected, larger depositors to monitor their banks, and in turn banks may be more able to engage in riskier activities.”

“In other words, higher government guarantees would mean capitalism when wealthier market participants win, and socialism when they lose.  Many in Congress recognize the danger and unfairness of expanded deposit insurance, and CFIF urges all others in Congress and throughout the federal government to join them in opposing any and all increases to the $250,000 cap,” Lee concluded.  

CFIF is a constitutional and free-market advocacy organization with over 300,000 supporters and activists nationwide.  

###

Related Articles :
Notable Quote   
 
"The debt load of the U.S. is growing at a quicker clip in recent months, increasing about $1 trillion nearly every 100 days.The nation's debt permanently crossed over to $34 trillion on Jan. 4, after briefly crossing the mark on Dec. 29, according to data from the U.S. Department of the Treasury. It reached $33 trillion on Sept. 15, 2023, and $32 trillion on June 15, 2023, hitting this accelerated…[more]
 
 
— Michelle Fox, CNBC
 
Liberty Poll   

Assuming that Robert F. Kennedy, Jr., is able to get on most 2024 ballots as a third-party or independent candidate for President, from which major party candidate do you believe he will take the most votes?