Category: property rights

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Accountability folly free trade & free markets general freedom initiative, referendum, and recall nannyism national politics & policies property rights responsibility too much government

Minimum Shock

minimum wage, closure, restaurant, business, prohibition, wages, pay, Berkeley, San Francisco

“Three restaurants vacated the Bay this week, with Berkeley’s Bistro Liaison getting the most attention,” the San Francisco edition of Eater informs us. “It’s a bittersweet exit for the owners, who plan to start new careers.”

The week in question was in February. But this was not an isolated event. Sixty-​four Bay-​area restaurants and fast food joints closed their doors this last winter.

That is a lot of closures.

Why?

Every eatery has a different story, but the entry December 17* provides a big clue: minimum wage hikes.

Citizens should hardly be surprised. They got what they asked for. The minimum wage went up to $13.00 per hour last July, and will go up another two bucks next year. And this was the result of a citizen initiative. “On November 4, 2014, San Francisco voters passed Proposition J, raising the minimum wage to $15.00 by 2018,” the City Office of Labor Standards and Enforcement tells us. 

And the thing about minimum wage laws is that they do not — either by magic or by law — directly raise any wages. They, by law and quite directly, prohibit wage contracts below the minimum established. 

Businesses then react, struggling to accommodate the newly imposed costs. Sometimes they keep all their employees and economize on other inputs, but often they must re-​arrange hours and workers and whole production schemes.

If hemmed in elsewhere, they just go out of business.

Just as one should expect, according to the law of supply and demand.**

Citizens might wish to reconsider. That is, initiate a measure to repeal a previously successful initiative … that gave us this unsuccessful policy.

This is Common Sense. I’m Paul Jacob.

 

* The entry reads thusly: “OAKLAND — alaMar Kitchen and Bar as you know it is shuttering on December 17, but will reopen in the new year with a fast casual format. The owner points to minimum wage raises and the cost of doing business in the Bay Area as the reasons cited for the closure/​change.”

** It is often said that businesses just “raise prices” and “pass along the costs” to consumers in general, but, for reasons of supply and demand, they cannot do this without decreasing sales and thus revenue.

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Accountability free trade & free markets general freedom national politics & policies property rights responsibility

Juicer Choosers

juicer, juice, silicon valley, innovation, risk, luxury, free markets, government waste, freedom

We all have our complaints about this company or that, this product or that.* And it is popular to rag on “consumerism” and the emptiness of “capitalism.” But put it into perspective: me “wasting money” on, say, an expensive juicer is nowhere near as offensive — that is, worth a rant, an excoriation, a philippic — than the government wasting money on … anything else. 

Or, for that matter, on juicers.

At this point, you may be wondering, “what’s with this juicer business?” 

Well, it is all about the hullabaloo regarding, er, a juicer business!

Juicero, to be precise.

The well-​funded-​at-​startup Silicon Valley biz makes the expensive Juicero Press. And news. Newsweek and Washington Post were just two major media outlets to lay into the company. They characterized Juicero and its product as a symbol of all that’s wrong with Silicon Valley.

Wow. What weight for one niche-​market company to bear.

While journalists in print and online fret over how Silicon Valley offers up empty gewgaws and gadgets for the “temporarily rich” — a few decades ago members of this class were excoriated as Yuppies — over at Star Slate Codex Scott Alexander reminds us that Silicon Valley does all sorts of things. 

One juicer cannot stand for everything else.

Besides, when “Capitol Hill screws up, tens of thousands of innocent Iraqis get killed,” Alexander writes. When “Silicon Valley screws up, people who want a pointless Wi-​Fi enabled juicer get a pointless Wi-​Fi enabled juicer.”**

Forcing many people to pay for dubious-​at-​best products, or enticing a few people to pay for harmless luxuries? You see why I prefer the latter. 

This is Common Sense. I’m Paul Jacob.

 

* You should listen to me curse my computers! Or, on second thought, no. You shouldn’t.

** “Which by all accounts,” Alexander concludes, “makes pretty good juice.” Even if squeezing the company’s frozen packets yourself works just as well.

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Accountability folly general freedom moral hazard porkbarrel politics property rights responsibility tax policy too much government

No Rich No More

Connecticut, taxes, revenue, budget, tax and spend, wealth, common sense

Connecticut has a budget problem. There’s not enough money to spend.

WTNH-​TV in New Haven paraphrased the situation along with the response of Connecticut’s very progressive governor: “Income tax revenue collapses; Malloy says taxing the rich doesn’t work.”

The news story explains, “Connecticut’s state budget woes are compounding with collections from the state income tax collapsing, despite two high-​end tax hikes in the past six years.”

Hmmm. Despite the tax increases? Or … “because the state of Connecticut depends too much on its wealthy residents,” as the report continued, “and wealthy residents are leaving …”

A Yankee Institute report notes that “the exodus of wealth from the state as top earners and businesses relocate to more tax-​friendly states” is a major problem. Institute President Carol Platt Liebau calls it a “terrible cycle of tax increases followed by deficits followed by even more tax increases.” 

Yet, state legislative Democrats are back pushing more tax hikes on “the rich.” Senate legislation would jack up the tax rate — retroactively — on those with income of $500,000 or more. House legislation would slap a 19 percent surcharge on some hedge fund earnings. In response, the head of the Connecticut Hedge Fund Association testified that his “industry is populated by exactly that type of person that will move based on tax policy.”*

A song by Ten Years After comes to mind: 

Tax the rich, feed the poor
Till there are no rich no more

Doesn’t sound like a good idea even in song.

This is Common Sense. I’m Paul Jacob.

 

* It’s worth noting that Gov. Malloy is now “against raising taxes again to fill the deficits and is instead focusing on spending cuts …”

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Accountability general freedom local leaders moral hazard national politics & policies property rights responsibility too much government U.S. Constitution

A Bad Haircut

Gov. Butch Otter, Idaho, asset forfeiture, licensing, veto

Eric Boehm over at Reason excoriated Idaho Gov. Butch Otter for giving libertarians “the double bird salute.” Boehm wondered if the governor, in vetoing two bills earlier this month, had been merely “trying to make libertarians mad.”

That’s not exactly fair. 

The two blocked bills, one reforming unjust civil asset forfeiture and the other easing pernicious regulation of cosmetology, did certainly appeal to libertarians. But they also appealed to conservatives and liberals. And both passed with bipartisan support.

House Bill 139 would have reduced the number of training hours for a cosmetology license and allowed folks to fix hair at special events like weddings without a license, etc. “The fact that many lawmakers, Republicans and Democrats, liberals, moderates and conservatives, are working together to advance legislation in the interest of economic opportunity and prosperity,” argued Wayne Hoffman of the Idaho Freedom Foundation, “is a thing of beauty for a profession that’s all about beauty.”

But beauty is in the eye of the beholder. Those who run cosmetology schools probably like more mandated hours and folks in the profession might wish for less competition. Governor Otter said as much, complaining that HB 139 was written “without input from interested parties or due regard for the health, safety and welfare of the public.”

Just how dangerous is a bad haircut? 

Putting safety in context, Hoffman explained that the current mandated hours of training for a cosmetology license “is more than is required to become an EMT in Idaho.” 

Gov. Otter vetoed HB 202, the civil asset forfeiture reform, at the behest of “law enforcement” — the very interested parties who gain from taking people’s stuff without bothering to charge or convict them of a crime. 

That makes no sense … according to Common Sense. I’m Paul Jacob.

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Accountability crime and punishment moral hazard nannyism national politics & policies property rights too much government

What’s Being Forfeited

asset forfeiture, banks, banking, IRS,TIGTA, Bank Secrecy Act

What do you call those who prey upon the innocent, illegally snatching their money? 

Thieves? Muggers? The Mob? 

Government.

Last month, the Treasury Inspector General for Tax Administration (TIGTA) issued a report on the Internal Revenue Service’s use of civil asset forfeiture against Americans accused — well, not accused … more like suspected … well, not actually suspected of doing anything wrong, but willy-​nilly deemed guilty without charge, judge, jury or conviction — of “structuring.” That’s depositing less than $10,000 in cash into a bank to avoid all the paperwork demanded by the United States Congress at that amount.

Congress passed the Bank Secrecy Act, making structuring illegal, supposedly to trip up drug traffickers and money-​launderers. But that is obviously a ruse, as the TIGTA report makes abundantly clear. The IRS is simply snatching money — they won’t tell us how much — right out of individuals’ and businesses’ bank accounts. 

Pity the cash-​oriented business that doesn’t accumulate at least $10,000 to deposit.

The TIGTA report highlights that an incredible 91 percent of the time, the IRS acted “against individuals and businesses whose income was legally obtained,” and whom the IRS did not suspect of criminal activity. Also, through the IRS’s process of thievery “the rights of some individuals and businesses were compromised.”

Why is the IRS using the law to pilfer from the innocent, instead of the guilty? 

As I explained Sunday at Townhall​.com, it is easier and more profitable to make “quick hits” against innocent businesses rather than devious criminals.

When those responsible for protecting the innocent from criminals, instead, illegally twist the law to victimize the innocent, it’s called tyranny. And what is forfeited is much more valuable than mere money.

This is Common Sense. I’m Paul Jacob.

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Accountability crime and punishment free trade & free markets general freedom initiative, referendum, and recall moral hazard nannyism national politics & policies property rights

Good and Bad News

Civil Asset Forfeiture, crime, drugs, marijuana, stealing, theft, police abuse

On the issue of “civil asset forfeiture” — police seizing property from folks merely on suspicion, without a criminal conviction — there is good news.

In Idaho, House Bill 202a just passed both legislative chambers overwhelmingly. “Among other changes, HB 202a would no longer allow civil forfeiture of the vehicle of a person who merely possessed a controlled substance,” explained a Spokesman Review report, “without using the vehicle in connection with trafficking offenses or obtaining it with drug-​trafficking proceeds.…” It also puts off the table “property that’s merely in proximity to illegal drugs” and the mere possession of cash.*

Legislation is moving forward in Arizona, too. House Bill 2477 passed to the Senate Judiciary Committee last week — which unanimously cleared it despite what the Arizona Republic called “strong opposition from … primarily people representing law-​enforcement and prosecutors’ groups that benefit from the funds.”

The bill heightens the standard of proof required for making seizures stick from “preponderance of the evidence” to “clear and convincing evidence.” HB 2477 also increases reporting requirements, and creates a process police must follow to spend seized funds.

Unfortunately, there is also bad news.

Even with the new Idaho law and the enaction of the Arizona legislation, police in both states will continue to take people’s stuff without a criminal conviction. The level of abuse would be diminished, but not ended.

Citizens in both states can and should use the ballot initiative process to end this injustice. In total.

We must restore the bedrock principle of innocent-until-proven-guilty.

This is Common Sense. I’m Paul Jacob.

 

* Other provisions include a court determination on “whether a property seizure is proportionate to the crime alleged,” absolving “innocent owners from having to pay the state’s costs associated with an attempted seizure,” and some required record-keeping.

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