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It is undemocratic for democratic governments to argue against encryption in any capacity. They are effectively using their citizens own money to weaken their security against unlawful search.
Agreed. Encryption is speech. We litigated that 20 years ago. There were t-shirts.
I have written my representatives in California multiple times on their bullheaded attempts to neuter encryption. They always reply with a line about "the children."

It seems that their minds are made up for one reason or another. It is unfortunate.

Their minds are open only to payments.
Encryption is a mathematical reality. It is physically impossible to stop and the modern internet really only works because it exists. These kinds of efforts are effectively unenforceable.
Weakening encryption allows for mass surveillance, the folks that will use it will use it. This is about collecting all citizens communication.
https://xkcd.com/538/

If you are jailed for using it I’ll bet people curtail use. Also, I would say it’s mathematically impossible to break in a practical amount of time, but physically quite vulnerable when you think outside the box.

It's impossible to stop serious bad actors from using it because it can be made undetectable and the information needed to do so is already widespread.

It's perfectly possible to stop the general public, which is exactly the point of these efforts.

The US has been campaigning against encryption for 30-40 years. The problem is that encryption has to be strong. Every time you weaken it, you leave yourself open to 'bad actors' who would like nothing better than to steal your identity, or drain your bank accounts, etc. The modern world relies on encryption for the world to work.

No encryption = no cashless society, no online banking, we'd be back to writing checks and we all know that they weren't particularly safe either.

If the Five Eyes campaigns are successful, wouldn't this lead to a better internet for the rest of the countries?

One where other countries develop alternatives (applications, submarine cables, encryption technology that can actually be exported) to avoid being spied on.

I mean, it's a shoot in the foot for the Five Eyes countries, but a win for everyone else (in terms of opportunities created).