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free trade & free markets too much government

Leave California

Should Uber and Lyft abandon California? 

At issue is the anti-​freelancer statute AB 5, passed last year in the Golden State, which outlaws independent contractors in many industries.

Including the wildly successful ride-​sharing business.

Horrified, threatened, Uber and Lyft have declared their willingness to suspend operations in California if they are forced to reclassify independent contractors as employees. 

You see, wage and salary contracts are heavily regulated already, and switching from independent contractors to employees means drivers would be entitled to expensive benefits. 

Which would upset the gig economy business model.

A model Democrats hate. This assault on independent contractors is something that Democratic presidential candidate Joseph Biden wants to impose nationwide. 

The Democrat-​controlled U.S. House passed such legislation in February.

For now, a court order has given the companies a temporary reprieve from another court’s order mandating compliance. 

Maybe the dueling decrees will end well for the ride-​sharing companies, allowing them to function. Maybe not. There’s also a citizen initiative in the mix. Proposition 22 on the fall ballot would substantially modify AB5 to make it possible for at least some freelancers to do their jobs in the state of nearly 40 million people.

On the other hand, should California officials succeed in imposing their mandate on the ride-​sharing firms, Uber and Lyft should follow through on their threat and leave.

The consequences of such attacks on the market should be made as plain as possible as rapidly as possible so that as many people as possible can make the connection between cause and effect.

This is Common Sense. I’m Paul Jacob.


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tax policy too much government

California Schemin’

Is California a failed state? It has an electric grid problem. And a vagrancy problem. Both of which stem from the bizarre ideological blind spots of a political class “benefiting” from the state’s high legislator/​citizen ratio, which insulates politicians from feedback.

Driving them power mad.

And one form of madness flowers in political greed, hubris and overreach.

“A pack of Democratic lawmakers in California are proposing a wealth tax for the state’s richest citizens, forcing them to pay more essentially just for owning a lot of stuff,” writes Scott Shackford at Reason. “They also, amazingly, want the tax to follow Californians who flee the state in response, attempting to make them continue paying taxes on wealth that’s not even in the state.”

Rob Bonta, Oakland’s Democrat in the Assembly, says the Golden State needs more gold, and he has made a startling observation. Wait for it. “Rich people have money,” Shackford summarizes, and Bonta wants to take it. To expand services.

But surely service expansion is not only not the only option, it is often the worst option. 

Take the state’s rolling blackouts. Was that caused by not enough or really bad legislation? President Trump points his finger at the Democratic-​controlled Assembly: “In California, Democrats have intentionally implemented rolling blackouts — forcing Americans in the dark. Democrats are unable to keep up with energy demand,” the president tweeted on Tuesday. But the New York Post identifies as a cause not “intentionally implemented” blackouts, but “inadequate transmission and an over-​reliance on renewable energy and issues with natural gas plants during high heat.”

Bad policy. Not too few “services.”

And the proposal to tax the richest Californians — or former Californians — to pay for more disastrous programs? 

Hubris and greed.

Not Common Sense. I’m Paul Jacob.


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too much government

Unnatural Disaster

Just get rid of it.

The “it” is AB‑5, the absurd new law attacking California freelancers. 

And those articulating the good riddance are the “151 Ph.D. Economists and Political Scientists in California” who have signed an open letter to California Governor Gavin Newsom and the state legislature.

The lawmakers who last year foisted the measure on Californians pretended that they were doing gig workers a big favor by making it impossible, in many cases, for companies to hire them for regular short-​term jobs.

After the legislation passed, many independent contractors quickly lost work — lots of work. For example, Rev, which produces transcripts and captions, said goodbye to all of its freelancers based in California. Many other companies — reluctant to be prosecuted for the crime of engaging in voluntary economic relationships between consenting adults — also ended relationships with freelancers.

Apparently, the anti-​gig lawmakers did not realize that losing one’s means of paying for food and rent is not that helpful. 

Tornadoes, hurricanes, and pandemics have a way of highlighting the importance of the economic and other institutions that make human survival and civilization possible. 

AB‑5 is like a natural disaster in its effects … but not natural.

“By prohibiting the use of independent contractor drivers, health care professionals, and workers in other critical areas,” the open letter explains, “AB‑5 is doing substantial, and avoidable, harm to the very people who now have the fewest resources and the worst alternatives available to them.” 

The solution is “suspend AB‑5.” 

It was always the solution, the obvious solution. 

But now it is even more obvious.

This is Common Sense. I’m Paul Jacob.


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California, gig, economy, regulations, freelancing, labor, employment,

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general freedom too much government

Are We Graduating from Plastic?

In The Graduate (1967), the young man played by Dustin Hoffman gets advice from an elder. “Just one word: plastics.” “Exactly how do you mean, sir?” “There’s a great future in plastics.”

When the world bans all plastic in 2021, that will be the end of that market opportunity. Other components of civilization will be discontinued in 2022.

Maybe I’m being too pessimistic. After all, there’s always the black market.

A plastic-​bag ban is underway in New York City. Four states and five territories have already banned disposable plastic bags, as have countries around the world. New Yorkers are reportedly two-​to-​one in favor. A friend who lives there confirms this widespread resignation.

“I’m not happy about what it [plastic] does to the environment,” says one New Yorker. “But … what it does to my environment if I don’t have them is a nightmare.”

“This is a good thing because it’s helping the environment,” says another.

The problem of trash disposal has been solved. We use garbage cans, pickups, landfills. It’s a problem that must be continuously re-​solved. Like many other problems … such as how to carry groceries.

We adopted plastic bags because they are much more convenient than paper. Convenience, efficiency, effectiveness: many man-​made components of civilization serve these goals.

Reduction to absurdity can persuade only if the listener rejects the absurd. In 1967, the idea of banning plastic bags and plastic straws seemed, to most, absurd. Today, maybe two thirds of New Yorkers lament the inconvenience but add whaddyagonnado … when you gotta protect the environment?

That this measure will not protect much of anything, but merely allow activists to think well of themselves is, itself, absurd.

This is Common Sense. I’m Paul Jacob.


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ideological culture political economy too much government

Ex-​Californians

California, “the U.S. state most synonymous with all varieties of growth — vegetal, technological, and human — is at the precipice of its first-​ever population decline,” writes Derek Thompson of The Atlantic. And folks in other states like Texas and Idaho are none too happy. 

You see, the Californians fleeing are finding new homes elsewhere. Especially in Texas and Idaho.

Oddly, Mr. Thompson breezes by the biggest source of anxiety: ideology. “Texas Governor Greg Abbott issued a warning on Twitter to Californians moving to his state: ‘Remember those high taxes, burdensome regulations, & socialistic agenda advanced in CA? We don’t believe in that.’ The sentiment was echoed in various warnings in Dallas newspapers about the awful ‘California-​ing’ of North Texas.” Thompson quickly moves on to interrogate how real the general exodus from the Golden State is.

Which is interesting — but much more important is the main worry about all immigration: will these new citizens vote to overturn the order that attracted them in the first place?

There is certainly anecdotal evidence that this can be a real problem.

Also not mentioned in the The Atlantic squib is just how messed up California now is.

What can be done? The idea humorously floated by an Idaho politician — a “$26 billion wall to keep out people moving from the Golden State” — is just a joke.

And secession/​expulsion of the 23rd state in the union is not realistic, either.

What is realistic is for non-​California politicians to float in the U.S. Congress a willingness to break up the state into separate pieces, creating at least two new states. At least then, Jefferson State citizens could put up with West California émigrés. 

This is Common Sense. I’m Paul Jacob.


N.B. There are very serious political problems of representation in California that breaking up could help fix, by increasing the number of legislators and minimizing the ratio between representatives and the people they serve.

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free trade & free markets too much government

The Anti-​Worker Ism

Progressives who lean socialist used to hide their worst intentions. Now they are letting it all hang out.

There have always been overt socialists in the U.S., of course. They would sometimes protest the reluctance of fellow travelers to fully embrace socialism’s moniker. But the sentiment “Ah, screw it, let’s just admit we want to destroy everything currently in existence” seems on the ascendance. Even a few major Democratic candidates for president are on board.

Exhibit 112 is the new nationwide push to stomp the gig economy.

Especially freelancing.

This follows Exhibit 111, the recent and so far successful push to stop independent contractors from engaging in voluntary transactions in California. (Many lawsuits are underway.)

After scanning the coiled legalese of 111 — I mean AB5, California’s law — many companies decided that ending relationships with California-​based freelancers was prudence with a capital P. And that rhymes with G, and that stands for Golden. Which the Golden State used to, uh, B.

Not every self-​employed person has been thrown out onto the street. There are carve-​outs. Actually, the only known victims are taxi drivers, cleaners, nurses, comedians, writers, editors, musicians, transcriptionists, citizen initiative petitioners, etc., etc.

The crackdown on non-​9-​to‑5 work arrangements has also resulted in much gnashing of teeth by gig-​seekers of all ideological stripes. 

Obviously, then, such massive destruction of economic freedom must be inflicted on the federal level too. So House Democrats put AB5’s gig-​killing provisions into Exhibit 112, that is, into HR2474, pending legislation.

Democratic candidates for president Pete Buttigieg, Elizabeth Warren, and Bernie Sanders have endorsed the California statute, a national version, or both.

Ludwig von Mises had a word for this. He called socialism “destructionist.”

This is Common Sense. I’m Paul Jacob.


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California, socialism, labor, progressivism, Democrats

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