I disagree with Schmidt. Misinformation is spreading because trust in institutions is eroding. This eroding trust is because of transparency and improved information dissemination. Most people don't trust the news anymore because it can easily be seen how biased they are. They don't trust institutions because they see how partisan most are. You can't just ban or regulate social media and expect the toothpaste to just…
Trust is not an all-or-nothing proposition. I know that institutions and established media have systematic blind spots and an agenda, and I think everyone with some critical thinking skills should know that, too. But that doesn't mean that there is no value to news, it means that maybe you should read from multiple sources, try to correct for known biases, ask critical questions etc.
Amplifying vox populi isn't the solution here.
(Also, empirically, while trust in media and institutions has eroded, I don't believe that "most" people don't trust institutions. Maybe that's the case in the US, but certainly not everywhere.)