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free trade & free markets regulation

Bet on Rigging the Games

Is the Maryland Lottery and Gaming Control Agency’s cronyism really “a little too obvious,” as Reason magazine ironically argues?

Both the casino group’s model letter and the Maryland agency’s nearly identical letter to the Commodity Futures Trading Commission speak of “our grave concerns regarding the introduction of so-called ‘sport events’ contracts,” how citizens are being put “at risk” by enabling avoidance of state regulations, etc.

Casinos compete with online prediction markets. One way to compete is just to compete. If some of your casino customers are drifting to online betting, find ways to make the in-person experience more appealing. Improve advertising. Jigger the odds ever-so-slightly more in favor of players. Increase the dollar value of wins. Etc. We might call this the economic means of competition.

The other way to compete? Deploy the political means: cajole government to bludgeon competitors. Thus the American Gaming Association, which represents casinos, would like the federal government to do something to impede online prediction markets — the trading of contracts about what’s going to happen in sports and otherwise on platforms like Kalshi and Polymarket.

Sean Maloney, who heads the competing lobby group Coalition for Prediction Markets, explains how prediction-market betting differs from casino betting.

“[A casino] wins when you lose. A sportsbook will kick you off if you win too much. An exchange has no such incentive. It just takes a small fee, and two equally situated counterparties can trade. That’s why consumers prefer prediction markets.”

My prediction? Industry foes of market competition won’t be persuaded.

This is Common Sense. I’m Paul Jacob.


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regulation

Gigless in Seattle

A few years ago, Seattle imposed what amounted to a $26 an hour minimum wage for persons who deliver food for app-based services like DoorDash. Unfortunately for drivers, they don’t get paid this wage while waiting for the next order they can deliver.

Thanks to the new costs, customers say things like “I ordered a $12 sandwich. $12 grew to $32! I just deleted the app.”

Drivers say things like “Work has become slow because of the new law.” DoorDash reports 1.7 million fewer orders in Seattle in 2024. The new law took effect in January of that year. 

“These are unimaginably complicated markets where the company’s main job is interfacing between restaurants and delivery workers and customers,” explains economist and Manhattan Institute research director Judge Glock. “Then you have an economically illiterate city council or mayor who thinks, basically by looking at an industry through reading the news, they can appropriately regulate the exact wage.”

A former president of Seattle’s city council, Sara Nelson, says politicians caused a problem that must be fixed. By letting the market function? No, by “better” central planning, by fine-tuning the regulatory mechanism: “If we had gotten the minimum pay standard right, we would not see the decline in the revenue.”

The market did get it right. 

People who wanted flexible gig work got the work and got tips. Customers got the deliveries and gave tips. And companies had more freedom to adjust to changing markets. 

If Seattle wants to return to that happy situation, it must repeal the law.

This is Common Sense. I’m Paul Jacob.


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ideological culture regulation too much government

Air Conditioners — Threat or Menace?

Is it selfish, asks Good Morning Britain, to want air conditioning?

Yes, it’s selfish to want to live and prosper and be comfortable in 90 degree heat. 

And this “selfish” cooling is bad because . . . ?

According to “the experts” queried by the Good Morning Britain presenters — which broadcasts using “non-green” energy — it’s bad because “we know” that the cooling of indoor air will heat up the outdoors — and therefore the planet.

Catastrophically, of course.

But we don’t know.

It’s one of many unproven assertions about the future of weather that get tossed around to make us feel guilty about not wanting to live in caves and eat dandelions. 

We do know that people deal capably with often extremely variable weather and other problems by using manmade food, shelter, clothing, and transportation — as well as cooling and heating. All highly suspect in the minds of Europe’s climate catastrophists. Who even attack farming.

Some climate autocrats in the UK are now actually making Brits take out their air conditioning units. Catastrophically, of course. One North London resident “was forced to ‘permanently remove’ two air-con units from the back of their home.” Council members ordained that there was “no justification” for the units. Another resident ordered to rip out his AC prevailed after appealing to a Planning Inspectorate — because he had solar panels.

“Air-con engineers told The Telegraph that they had been called out to remove perfectly operational units worth thousands of pounds across London.”

It’s a Blitz that the Brits are doing to themselves. Soon we’ll have to airlift the few who are still sane out of there. Think of it as a civilizational Dunkirk.

This is Common Sense. I’m Paul Jacob.


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First Amendment rights general freedom national politics & policies regulation

Mandatory Internet IDs

An assault on your freedom to use your computer without having to “verify your age” has migrated from states like California, Colorado, and New York to the United States Congress.

This is the so-called Parents Decide Act, which would “require operating system providers to verify the age of any user of an operating system.”

The honor system, the for-now method of the California law, doesn’t stop ten-year-olds from claiming to be 35. For such laws to “work,” the PC would have to require you to verify your age before you can use it.

That method cannot help but be invasive, like scans of your ID card or your face. Sure, many users of mobile computing devices have private security using their faces or fingerprints, but those users do not intend to share this secret information to third parties — which sure seems like what’s going on here.

PC Gamer observes that, although the method of age verification is crucial “in terms of privacy and data security,” the Energy and Commerce Committee will be deciding such things after passage. 

They’d have to pass the bill for us to see what’s in it.

Whatever the method, many users would obey, conscientiously giving the PC — and the PC or OS maker — ID or facial info that might be linked to purchase info in the company’s database.

Could such databases be hacked and provide criminals with new information with which to commit their crimes? Only if the umpteen stories per day on successful hacks of the databases of major companies are any clue.

“Save the children” is the familiar sales pitch, but if government is in charge of saving the children, our children are in trouble.

This is Common Sense. I’m Paul Jacob.


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privacy regulation

Driving VPNs South

Public Safety Canada, an agency responsible for safety, security, emergency preparedness and this kind of thing, recently urged Canadians to protect themselves when using public Wi-Fi by also using a VPN. 

“Using a VPN protects your data,” the agency said. 

True.

Unless — unless others in the government succeed in requiring VPN companies to uniformly sabotage the privacy of their customers.

The mechanism for crippling VPN’s? That would be the pending legislation to force VPN providers to retain personal data which users expect them not to retain, in this way killing these companies’ very reason for being as well as Canadian Internet users’ reasons to employ these companies. 

We netizens want some security. A VPN required to track and store information  on customers seeking security is, ipso facto, insecure.

Bill C-22, or the Lawful Access Act, introduced by the Minister of Public Safety and Emergency Preparedness in March, would require customers’ data to be retained for a year. Everybody’s data, mind you, not just the data of persons suspected of a crime.

“Oh this is just rich,” says Windscribe, a VPN provider based in Toronto. “Bill C-22 is driving VPN businesses like ours out of Canada because of the required user logging. And in the same breath you tell people to secure their data with VPNs.”

If things go on like this, Ottawa’s impulse to destroy or try to destroy online privacy will override any contrary impulse to help people preserve online privacy. Thereby obliging Canadians who do value it to figure out a way to override the override.

This is Common Sense. I’m Paul Jacob.


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regulation too much government

Regulating BBQ

Los Angeles councilwoman Nithya Raman wants city officials to impose new regulations on backyard grilling when conditions are dry and windy. The mayoral candidate proposed restricting “backyard barbecues, fire pits and other open flames” in residential neighborhoods when such conditions exist.

Cities often prohibit burning leaves on windy days, in part because burning leaves may spread too easily when it’s blustery. But barbecues are more contained.

National Review’s Noah Rothman suggests that the caution would be more plausible if California had ever suffered a “rash of fires — or even just one — attributable to the careless mishandling of charcoal briquettes.”

Accidental causes of conflagrations tend to be things like lightning strikes and faulty power lines. These work in conjunction with poorly managed forests.

Arson, a big danger in recent years, comes in a variety of forms, as Mr. Rothman explains. “The record-breaking 2024 Park Fire was set by an intoxicated motorist who pushed his car into some flammable brush after an accident.”

The Palisades Fire was “first set by an embittered anti-capitalist vigilante” who hated the rich.

Arson and drunk driving are already illegal.

Anybody can try to cook hamburgers by setting a fire in the middle of high vegetation and calling this a “barbecue.” But that’s not the kind of thing Raman had in mind.

Fortunately, another councilwoman, Monica Rodriguez, managed to block Raman’s effort to toss a wet blanket on barbecues.

“The last thing Angelenos need,” Rodriguez says, “is a ban on hosting a carne asada in their own backyard.”

This is Common Sense. I’m Paul Jacob.


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international affairs national politics & policies regulation tax policy

How to Lower Gas Prices

Gasoline prices have skyrocketed. The Iran War is to blame, but the President has not been able to bring it to an end.

Still, he has offered a small fix. A federal gas tax suspension!

In its favor, this temporary measure would offer some relief. In addition, the federal government shouldn’t be attaching an excise to fuel sales anyway. The states already burden our fuel bills with their own taxes.

As if to seize a political win, Senator Josh Hawley (R.-Mo.) declared he will introduce a bill to enact that suspension.

Cutting off a source of revenue would increase the deficit, of course. But there is a simple solution to that: spend less. For example, the fuel taxes are supposed to fund road repairs. All but two percent of U.S. roads are state roads now. During the emergency, suspend the two percent spending on repairs and let the 98 percent of spending carry on, as it does now, at the state level.

Adam N. Michel at Cato argues that the best way to spend less would not only reduce the deficit but also lower gas prices: end the Iran War. 

And not just rhetorically. 

But Michel and his Cato colleagues offer a more politic plan, too: don’t merely suspend the tax, end the tax forever and end the highway spending burden along with it. “States know what their infrastructure needs are,” he contends, “and they have the fiscal tools — gas taxes, sales taxes, user charges, debt, and privatization — to meet them without a federal middleman.” 

Before October, Congress is supposed to re-authorize the federal highway program. Don’t. Dismantle it all. 

For good.

This is Common Sense. I’m Paul Jacob.


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general freedom nannyism regulation

Killer Cars for Your Safety

“It is in my memory banks,” Eric Peters wrote last month, referencing an android on an old Star Trek episode, “the long-ago time when GM was a car company.”

Yes, in the “long-ago” they “made an almost infinite variety of vehicles to suit almost any need and budget, all of them designed and engineered to free their owners. Some were utilitarian. Others were beautiful. Some were arrogant. None were parenting. They were made by adults who respected other adults. What became of that GM?”

The answer? Government.

Specifically, the National Highway Traffic Safety Administration, as directed by Section 24220 of 2021’s Bipartisan Infrastructure Law. 

“By 2027, every new car sold in the United States could be required to actively monitor the person behind the wheel,” explained Shawn Henry, the Chief Security Officer at CrowdStrike until last year. “That means watching your eyes, tracking your behavior, and constantly evaluating whether you’re alert enough to drive. For a lot of drivers, that starts to feel less like safety and more like surveillance.”

The idea is for your car to remove you from control.

The excuse for this nanny-state totalitarianism — a human-made robot take-over! — is that it will save lives. If you are too tired, too excited, too sleepy, or just walking erratically, the idea is for your smart car to prevent you from taking the wheel. 

But it would only save lives under normal conditions. In an emergency, your actions — watched over with loving grace by your ultra-smart car — could look like you’re on drugs or worse, and the car, not understanding the emergency, blocks your escape.

That is, if the NHTSA ever finalizes the regulation.

In a world where the CIA can execute you by making your car drive off the road (yes, it’s a thing), adding more overriding tech?

The wrong direction.

This is Common Sense. I’m Paul Jacob.


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First Amendment rights regulation

Operation Choke Point Choked

The government should not be pushing private firms, including banks, to sever relationships with customers on ideological grounds. 

Nevertheless, in 2013 the Department of Justice and FDIC began pressing banks to cut off services to certain “high risk” industries, like the gun industry. The initiative was called — with laudable candor — Operation Choke Point. The pressure was an expression of the Obama administration’s hostility to Second Amendment rights and various views and advocacy, not a response to alleged lawbreaking by the debanked customers.

The Trump administration first sought to end this practice in 2017. But the urge to censor and punish viewpoints, including by debanking, resurged during the Biden administration.

In 2025, President Trump, in his second shot at heading the executive branch, issued a new executive order directing federal agencies to review the situation and issue new regulations to protect customers. It was to be made clear to banks that despite the impression conveyed by other administrations, so-called “reputational risk” — which boils down to hostility to certain views and enterprises — is not a warrant to fire customers.

A finalized and, one hopes, truly final rule has just been issued. It prohibits relevant agencies from criticizing or penalizing a supervised institution based on “reputation risk” or from instructing institutions to kill accounts because of customers’ constitutionally protected speech or activities.

The proper functions of government do not include acting to punish people directly or indirectly for their speech . . . or other exercise of their rights. The fact that just such a squarely improper (and illiberal) policy endured through several administrations shows just how shaky constitutionally guaranteed freedoms are in the current ideological climate.

This is Common Sense. I’m Paul Jacob.


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judiciary litigation regulation

Justice Delayed Forever

In 2023, the families of persons who had died because of Boeing’s lies about safety were told that it was too early to challenge the Justice Department’s deferred prosecution agreement (DPA) with Boeing. Now, in 2026, the same Fifth Circuit says that their challenge is too late.

When was the perfect Goldilocks moment? When was lawyer Paul Cassell supposed to challenge, on behalf of his clients, “the Justice Department’s 2021 deferred prosecution agreement and 2025 non-prosecution agreement (NPA) with Boeing”?

Cassell reports that several years ago, Boeing “lied to the FAA about the safety of its new 737 MAX aircraft.” After Justice investigated, it charged Boeing with a criminal conspiracy — yet immediately signed a “sweetheart DPA” that let Boeing avoid a criminal conviction so long as it paid penalties and compensation to the families. 

And promised to do better.

In court, the families proved that the Justice Department had hidden the agreement from them even though legally obliged to consult with them. The same judge who acknowledged this in 2022 went on to rule, in 2023, that there was nothing he could do.

Appealing that decision, Cassell was next foiled by the Fifth Circuit, which ruled in December 2023 that any relief for the families was “premature.” Now, many complications later, the Fifth Circuit has “simply ignored its previous promises.”

With Boeing suffering no proportionate consequences for its incompetence and dishonesty about safety, it is just a matter of time before similar cases are repeated.

This is Common Sense. I’m Paul Jacob.


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