Tag: business

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too much government

Escape from New York

New York City, Zohran Mamdani, socialism, business, middle class

People in New York City with any money and property are unhappy about the prospect of a communist mayor. They apparently see the potential of the government taking much more of their money less a politician’s promise and more a revolutionary threat.

While Zohran Mamdani might lose, it’s not looking that way. (Note the standing of his chief competitor.) Therefore, many homeowners are fleeing, without waiting for Election Day.

One destination is next-​door Connecticut, site of a failed revolt in 1991 against the enactment of a state income tax. New Yorkers reasonably suppose that the taxes imposed by a Mayor Mamdani would prove worse than that — and worse than New Yorkers’ already-​heavy tax burden.

Escapees are also worried about crime.

Mamdani could do much unilaterally but would need the cooperation of the state legislature and governor or the city council to impose the tax hikes he’s dreaming about. Still, these entities hardly serve as bulwarks of limited government.

We know that New Yorkers are lurching to Connecticut because, as the New York Post reports, a “bidding war frenzy and soaring prices” have hit the state’s housing market.

According to real-​estate agents there, the frenzy resembles that of early pandemic times. Properties are being scooped up within days. Deals are cash on the barrelhead, even for multi-​million-​dollar homes. Sale prices are much higher than expected.

And the bidders are coming “out of New York City,” the agents say. Prospective buyers have been “mentioning concerns about the mayoral election.…”

Good news, for a while, for Connecticut home sellers and their real-​estate agents. Bad news for everybody else, soon enough.

This is Common Sense. I’m Paul Jacob.

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First Amendment rights free trade & free markets national politics & policies

Politically Exposed Persecution

fascism, freedom, business, censorship

National socialism, as operated by the actual Nazis, did not seize all the major industries and run them as collectives or state-​owned businesses. The Nazis applied party control directly to big business, as a political-​regulatory matter. 

How different is what woke Democrats have been doing to business today, here in America, using multiple agencies of the United States federal government’s regulatory apparatus?

Marc Andreessen, investor, innovator, business genius, and early Internet pioneer, explained how in a discussion on the Joe Rogan Experience, last month.

Start with debanking, which the regulators can tell banks to do to “politically exposed persons.” Mr. Andreessen told Joe about a friend who was debanked, apparently because his job title was involved in the business use of crypto-currency. 

And debanking is exactly what you think it is: de-​platformed from the financial system.

Don’t worry, statist: you are not “politically exposed.” This only applies to critics of our quasi-​fascist system.

This commercial censorship is run pretty much like censorship on the social media companies after 2016, by soft pressure … the “raw power” of a “privatized sanctions regime.” Government functionaries notify a bank that a person or business is “politically exposed,” and the bank — fearing getting on the bad side of regulators — kicks the customer off the rolls. 

Politicians can haughtily state that it was the bank that did it. Banks, after all, are not obliged to serve everyone! They can pick and choose their customers.

Besides, there is no First Amendment right to have a bank account.

This is how woke bureaucrats can rule like Nazis.

This is Common Sense. I’m Paul Jacob.

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crime and punishment free trade & free markets general freedom

Rogue City Government?

repair shop parking

Is it a coup?

Two years ago, Azael Sepulveda, a mechanic, sued the city of Pasadena. The city had demanded that he provide 28 parking spots before he could open a shop to fix things. The property his shop is on can accommodate only a few parking spaces.

With the help of Institute for Justice, which fights for people’s right to earn an honest living all over the country, Sepulveda reached a settlement with the city. He would be allowed to open.

Hurray. Big hassle, but now he could go on with his life.

Except that for two years the city has still blocked him from opening up.

So IJ had to sue again. And get this. Members of the Pasadena City Council recently said that for the past year they have been kept in the dark about developments in the case. This, “even though the city’s attorney claims to be acting on ‘instruction from city council.’”

That attorney, Bill Helfand, has been arguing that the city should be immune from litigation to enforce the city’s own settlement.

So … is it a coup? Is Helfand running local government himself, unauthorized, randomly ignoring settlements and whatnot?

Could some weirdly pervasive and persistent miscommunication be the problem? It just seems unlikely that mislaid telephone messages are why Sepulveda is still being stonewalled.

Whatever the problem is, Pasadena, fix it. “Stop with the games,” as IJ says. And let Azael Sepulveda get started fixing other things.

This is Common Sense. I’m Paul Jacob.

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education and schooling general freedom ideological culture

Lilly Loves Me

Starbucks, ideological culture, friendship, business

Lilly loves me. That’s the good news. 

I love her, too. Funny thing, though, I don’t even know Lilly’s last name. You see, she works at my local Starbucks. She makes a mean flat white. 

I do know how to say “thank you” in Vietnamese — sounds like “gahm un.” Her folks hail from Vietnam. One day a man spoke Vietnamese with her and she lit up. So I learned those two words in Vietnamese. 

The bad news — or the other good news — is that she recently hurt my feelings. 

You see, after my heart attack of a couple months ago, I scaled back my flat white drinking. When I first ordered a tall (that is, a small) instead of my usual venti (large), well, my Starbucks peeps thought there might be a tear in the universe. 

I explained that I wanted to cut down on my caffeine and milk intake post heart attack.* Which immediately got them onboard with my change.

But soon I backslid to a grande (medium). Then, with the price difference to move up to a venti size so enticingly small … well, I was back to venti. 

The other day when Lilly was delivering my drink, she saw its size and questioned, “You’re already back to a venti?”

Ouch! It felt like when I’ve disappointed my kids or wife or other loved ones. 

Because … Lilly is a loved one. I care about her — like so many of her workmates whom I’ve gotten to know. And she cares about me, a venti-​size concern! She wants me to live. More than the extra 20 – 30 cents her employer might make from the larger drink. 

When I mention Starbucks, many think about it being a liberal corporation.** I, however, think about the mostly young people I’ve met, working their butts off to advance themselves while being so kind and decent with customers; thoughtful in conversation. 

Young people these days … I love ’em. 

This is Common Sense. I’m Paul Jacob. 

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* For the record, this change wasn’t something my cardiologist specifically advised; just me trying to improve my diet to live a long time.

** Consider that back in 2020 Starbuck’s pioneering CEO Howard Schultz wasn’t “progressive” enough to be comfortable running for president in the Democratic Party. 

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crime and punishment First Amendment rights general freedom regulation

Criminal Discrimination?

The Joker, Uncle Sam, racism, business, regulations, quota

It’s okay.

You don’t have to associate with criminals. You don’t have to employ them and worry how they’ll act on the job. It’s not your duty to give criminals or persons with a criminal record access to your life or property and hope for the best.

If only we could leave it at that. 

That’s not our world though. In our world, our government, working hard to rip America apart in every way possible, is suing the Sheetz chain of convenience stores because it doesn’t hire applicants with a criminal record.

The “problem” is that too many such failed applicants are nonwhite.

The Equal Employment Opportunity Commission accuses Sheetz of “disproportionately screening out Black, Native American/​Alaska Native and multiracial applicants.” The agency babbles that “employment practices causing a disparate impact because of race or other protected classifications must be shown by the employer to be necessary to ensure the safe and efficient performance of the particular jobs at issue.”

Of course, the “disparate impact” exists not because of these classifications but because the denied applicants have criminal records. Sheetz didn’t decline these applicants because of their skin colors.

Nevertheless, Sheetz is supposed to have somehow “shown” that refusing to hire applicants with criminal records reduces Sheetz’s own risks and the risks for customers.

Elon Musk, commenting on this story, has it right: “You know The Joker is running things when the law-​abiding are being prosecuted by the government for not hiring criminals!”

These days Uncle Sam and The Joker do look alarmingly similar.

This is Common Sense. I’m Paul Jacob.

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deficits and debt tax policy

Deadbeat California

Gavin Newsom, California

The injustices pile up so thick and fast that one can’t really keep track. Some state governments are especially prolific in producing them. Governments like the Deadbeat State, formerly known as the Golden State.

Now businesses in California must pay the price for the state government’s profligacy during the pandemic, when it borrowed $20 billion from the federales to help pay unemployment benefits. California is refusing to repay.

In the budget proposal for 2023 – 2024, $750 million had originally been set aside to begin repaying this debt. But Governor Gavin Newsom killed the provision. So, in accordance with federal regulations, businesses must take up the slack. Starting in 2023, the unemployment tax rate that businesses will pay, which had been 0.6 percent, is being increased by 0.3 percent until the loan is repaid.

“California is just not really an employer-​friendly state,” says Marc Joffe of the Cato Institute. “This one thing will not be a difference between a business remaining open or closing, but it’s just another burden on top of the many burdens the state puts on employers.”

A major contributor to the size of this debt is the state’s failure to act to prevent massive fraud in filings for unemployment benefits. LexisNexis estimates that fraudulent payments amount to more than $32 billion.

California taxpayers must pay for this unsalutary neglect one way or another. But what Newsom has done ends up penalizing businesses in particular. 

Yet another reason to avoid doing business in the state.

This is Common Sense. I’m Paul Jacob.

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Accountability local leaders tax policy

Balking in Baltimore

Baltimore, taxes

So far, the besieged businessmen of the Fells Point area of Baltimore are only threatening to withhold payments of taxes and fees to the city.

If and when they follow through, the plan is to place the withheld funds in escrow. The money would then be turned over to the city government if and only if the city again meets minimal standards of performance. 

Tax resistance? Sure. But not in the usual mode.

Fells Point shop owners are rebelling against a “culture of lawlessness” in their streets, streets managed or mismanaged by the city. They want police to do more — be free to do more — about crime.

In a letter to Baltimore Mayor Brandon Scott and other officials submitted not long after several shootings in the area, thirty-​seven Fells Point businessmen demand that the city “Pick up the trash. . . . Enforce traffic and parking laws. . . . Stop illegal open-​air alcohol and drug sales. . . . Empower police to responsibly do their job. . . . Please do your job so we can get back to doing ours.”

What will happen? I fear that, despite this worthy protest, city officials will continue to turn a blind eye. I fear that they will regard the protest as a PR problem, one that will go away and allow them to go on with the usual business of government — the way they see it. Their evasive initial responses to the letter are not encouraging.

Baltimore businesspeople are not trying to dodge city taxes here. They understand very well that one cannot expect to get something for nothing. They just want to get something.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets too much government

Retreat to Atlanta

California, Yamaha, brain drain, business, escape, taxes

“California is the place you oughta be” — or so sang Jerry Scoggins for The Beverly Hillbillies. That may still hold true, if you are an oil millionaire retiring to a pleasant climate.

But if you are trying to make your fortune, the direction is outbound.

Take, for example, the case of Yamaha Motor USA.

The company’s big bike sales — motorcycles 500cc and up — went way down during the last dozen months, 19 percent. And since Yamaha’s operations are in California, hits to revenue like that intersect alarmingly with ongoing hits to the cost of doing business. 

Which explains the decision to move the company to “just outside of Atlanta, Georgia,” as reported by Jensen Beeler in Asphalt & Rubber.

“It should be an obvious statement that California is an expensive place to operate a business,” Beeler explains. “The state isn’t known as being a tax haven for corporations, the property values are high, which means buildings are expensive, and the standard of living for Los Angeles is one of the highest in America, which means that employees have to be paid a premium as well.”

And Beeler’s report does not even mention the state’s regulatory burden.

Problem? Southern California is “where the bulk of the motorcycle industry resides,” and Yamaha will face some difficulty being so distant from its industry’s major talent pool.* But there are a few automotive and motorcycle companies in Georgia, so Yamaha is not alone.

Indeed, if politicians continue to wreak havoc on their business sector, the Golden State bike industry will lose more than just Yamaha.

This is Common Sense. I’m Paul Jacob.

 

* The company will keep “a small cadre of Yamaha employees” behind in Cypress, California, focusing on testing and racing.

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Illustration by JGill (running silhouette from Max Pixel)

 

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Accountability folly free trade & free markets ideological culture local leaders moral hazard nannyism property rights too much government

Amazon’s Jeff Bezos Is …

Jeff Bezos, Amazon, Seattle, taxes, homeless tax, business

A half a year ago, when trying to make sense of the much-​publicized search for Amazon’s “HQ2” — a second headquarters city, away from Seattle — I concentrated on the subsidies that cities and metro areas were apparently throwing at Amazon.

It all seemed desperate, indecent.

But there was a story behind the story. Amazon has every reason to be looking for an escape route from the Evergreen State’s biggest city. 

The city’s leadership is nuts. 

“Seattle City Council members have finally released draft legislation,” the Seattle Times’ Daniel Beekman wrote last month, “for a new tax on large employers that would raise $75 million next year to address homelessness.”

The council blames the big companies for enticing workers into the city, thereby driving up rental costs and housing prices.

The tax would be on employee hours, would go into effect next year, and “in 2021, it would be replaced by a 0.7 percent payroll tax on the same category of companies,” explains the Seattle Times.

Now, if you tax something you discourage that something. That’s why progressives like sin taxes on sodas and fast foods. To discourage consumption. 

So when progressives seek to tax big producers, they are apparently trying to tax away the housing crunch by driving away big business.

Amazon reacted. It put a halt to an expansion project.

“Jeff Bezos is a bully,” said Kshama Sawant, the confessed socialist, speaking for the council. “I think we are in broad agreement on that.”

If that is her attitude, and that of the council — and the consensus of the city’s denizens — then what Amazon’s Jeff Bezos really is?

A “good businessman.”

This is Common Sense. I’m Paul Jacob.

 

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Photo by JD Lasica

 

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Accountability folly free trade & free markets local leaders nannyism property rights responsibility too much government

How to Ruin a Thoroughfare

city planner, city planning, Portland, Oregon, Better Naito, business

Cities require some planning. But the further beyond a certain minimum, the greater the ease with which a central planning authority can be captured — by zealots with more stars in their eyes than brains in their heads.

Portland, Oregon, is a case in point. Students from Portland State University had this brainchild: “Better Naito,” a project to transform SW Naito Parkway to “enhance the lives of pedestrians and bikers along the Waterfront,” as Jessica Miller of Cascade Policy Institute explains. Their notion was to reduce “car capacity from two lanes to one” during the peak season (actually more than half the year), opening up the cordoned-​off lane to folks walking and riding bicycles.

I’m not kidding.

Though proponents of the program enthuse about the “positive feedback” from the public, they tend not to deal with complaints from adjacent business owners, who now “see fewer shoppers” and must accommodate “employees who experience longer commutes.”

Opponents are organizing. The Portland Business Alliance promotes its petition with a simple question: “How Exactly Is ‘Better Naito’ Better?”

Portland is a prime example of the New Urbanism in action, which seems set on creating cramped places for people to live and discouraging folks from using their own cars. I’ve talked about this before, focusing on planning critic and Cato Senior Fellow Randal O’Toole. He has long been fighting the city planning cranks who appear dubious about their very job: providing roads and sewers and waterways that serve the all a city’s citizens, native, newcomer, and traveler alike.

My advice? Sign that petition, if you vote in Portland. 

The rest of us better plan to take a hard look at our city planners.

This is Common Sense. I’m Paul Jacob.

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