Tag: California

initiative, referendum, and recall too much government

The Gig Is Up

California, gig, freelance, law, control, interference, intervention, labor,

Eventually, champions of government intervention, of all forms of thwarting independent judgment and killing dreams, find themselves under assault. From the public.

And you don’t need an economics degree to grasp why.

Initially, an intervention prevents other people from pursuing projects, getting jobs, earning a living. Then, finally, government meddling goes a step too far. Maybe lawmakers had “good intentions,” but hey! This is me now!

Your legislation needs tweaking!

This is where we are in California’s attack on the so-called gig economy. Hatched to “protect” Uber drivers or some such nonsense, Assembly Bill 5 makes it massively harder for companies to classify freelancers as independent contractors. After it was signed into law, many companies — from blogs to transcription services — told California-based freelancers adios.

Millions of people lost work and options.

What walks of life are affected? All.

“California’s new gig worker law is … threatening all performing arts,” complains Brendan Rawson at CalMatters.org. California has “overreached.” Gotta nip-and-tuck that otherwise “worthy” bill! Use only the magic arbitrary intervention in our lives that works!

Not everybody now being hurt was previously okay with pushing other people around, of course. I’ve never been a fan. One of my missions is defending the right of citizen initiative. Well, AB5 makes it much harder and more expensive for petition campaigns to hire people for such gigs as collecting signatures for an initiative in California.

AB5 attacks earning a living, speaking freely, associating freely, and petitioning one’s government freely. Maybe the law will be rescinded. But there’s more mischief where that came from.

So let’s protect other people’s freedom … and stop the overreach before it reaches us.

This is Common Sense. I’m Paul Jacob.

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Photo by Dairo Cervantes

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Tags California, control, freelance, gig, interference, intervention, labor, law

A Fake Mystery

Gavin Newsom, Governor, California, gas, tax, prices, folly,

California’s new top banana is playing politics the old-fashioned way: passing the buck.

Last week Governor Gavin Newsom directed the California Energy Commission (CEC) to look into the state’s higher-than-average gasoline prices.

“Independent analysis suggests that an unaccounted-for price differential exists in California’s gas prices and that this price differential may stem in part from inappropriate industry practices,” he wrote in an official letter to the CEC. “These are all important reasons for the Commission to help shed light on what’s going on in our gasoline market.”

Ah, shed light!

We are not talking about the bulb in your outbuilding.

Californians understandably grumble about having to pay higher taxes than elsewhere in the U.S. So Newsom pretends to suspect “inappropriate industry practices.” But what is inappropriate is Newsom’s directive to the CEC. As Christian Britschgi drolly informs us at Reason, Newsom, while lieutenant governor, had “supported a 2017 bill increasing the state’s gas taxes,” which looks like all we really need to know. Raise taxes, and businesses tend to increase prices rather than eat the extra cost. Higher gas prices are the result of higher taxes.

Duh.

But there’s more.

“When running for governor in 2018,” Britschgi explains, “he opposed a ballot initiative that would have repealed that same increase.”

So, is Newsom truly clueless of the obvious?

Hardly. And neither are “17 legislators who voted for the tax hike” who joined the governor in “wanting answers to this difficult headscratcher.” They are doing what pols usually do: deflect; misdirect; blame others … hoping that voters don’t pay close enough attention, or remember recent history. And busy people often do not.

Finding a bogeyman helps, too.

This is Common Sense. I’m Paul Jacob.

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Tags California, folly, gas, Gavin Newsom, governor, prices, tax

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)

Tags brain drain, business, California, escape, tax policy, Yamaha

Accountability government transparency insider corruption local leaders media and media people nannyism national politics & policies political challengers Regulating Protest responsibility

Not Fine with Feinstein?

Sen. Dianne Feinstein, Democrat of California, election, candidate, California, Democratic Party, money, campaign

Could it be that Sen. Dianne Feinstein, Democrat of California, may not be liberal enough?

The San Francisco Democrat has ostensibly represented the Golden State in the United States Senate for the last 26 years. Before that, Feinstein spent eight years on San Francisco’s Board of Supervisors and then a decade as mayor.

Now, after 44 consecutive years as a public official, what does the 85-year-old Feinstein seek? More. That is, another six-year lease on her powerful perch in the U.S. Senate.

But the Executive Board of the California Democratic Party — Feinstein’s Party — just said, “No way!”

A whopping 65 percent of the 333-member board opted for State Sen. Kevin de León, a fellow Democrat seen as more “progressive.” Only seven percent supported endorsing Feinstein.

Keep in mind that Feinstein is already on the November ballot. She was the leading vote-getter in California’s primary last month. Yet, she received only 44 percent of the vote: a majority does favor someone else.

In February, 2,700 activists at the State Democratic Party Convention in San Diego voted 54 to 37 percent for State Sen. De León over U.S. Sen. Feinstein.

“Feinstein, who spends much of her time in Washington, has had a distant relationship with party activists for years,” noted the Los Angeles Times report.

Still, what Democratic Party activists want may not matter so much. Mrs. Feinstein enjoys tremendous name recognition and, according to the Times, has “$7 million in campaign cash socked away as of May, ten times what De León had.”

That money seems to be Sen. Feinstein’s real base of support.

This is Common Sense. I’m Paul Jacob.

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Tags California, campaign, candidate, Democrat of California, Democratic Party, election, money, Sen. Dianne Feinstein

Accountability crime and punishment folly free trade & free markets general freedom judiciary local leaders moral hazard nannyism Second Amendment rights too much government U.S. Constitution

Ought Implies Cantifornia

microstamping, bullet, California, law, guns, gun control

“Strip away the absurdity,” writes Scott Shackford at Reason, “and it’s essentially a very technical ruling.”

Shackford is explaining a bizarre recent judgment of the California Supreme Court.

Politicians in Sacramento had, years ago, passed a gun control measure requiring gun manufacturers to “implement microstamping technology that would imprint identifying information on bullets as they were shot from semi-automatic weapons.” In 2014, Smith & Wesson announced that it would pull some guns from the California market rather than comply. Why? The technology just wasn’t ready yet.*

Since California’s Civil Code contains a section reiterating an old commonsense principle to the effect that the “law never requires impossibilities,” the National Shooting Sports Foundation sued to block the law.

But the group just lost.

The Court did say it could protect citizens from punishment, but it refused to nullify the legislation on constitutional grounds.

Unanimously.

Why do this? Apparently to protect California politicians in their ongoing social engineering schemes.

The dollar costs of trying to comply with impossible demands are huge, of course. But the biggest costs may be more subtle.

In moral philosophy, it is a truism to say that “ought implies can.” In natural law as understood long ago, an impossible law was thought not a law at all, justifiably ignored by anyone and everyone.

In a just state, flouting of maddening regulations like California’s would lead not merely to the defense of the absurdly put-upon citizen — as this court ruling still allows — but also to the nixing of the “impossible” law.

This is Common Sense. I’m Paul Jacob.

* Shackford notes that “a cynic might theorize that this is the law’s actual intent.” I wouldn’t limit that suspicion to folks given to cynicism. Pragmatists and political scientists and almost anyone else would be placing bets on that, too.

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Tags bullet, California, gun control, guns, law, microstamping

free trade & free markets general freedom too much government

Bank on It?

marijuana, bank, California, California State Treasurer John Chiang, Federal Reserve

It took me a moment. And I assure you, I wasn’t high.

When I read that California State Treasurer John Chiang was considering a “marijuana bank,” my first thought was that he was talking about warehousing bud and leaf.

Well, no. That would be stupid.

So, maybe reporters and bloggers shouldn’t call it a “marijuana bank.” What these government officials are doing is trying to determine “the potential of a public bank to service the cannabis industry in California.”

A state bank, in other words. Not unheard of.

But would it be stupid?

Not according to Treasurer Chiang.* But his notion is not just about serving an industry that the federal government still tries to suppress — and continues to use its regulatory powers over banks to monkey-wrench.

Chiang defends his move in part on anti-capitalist grounds: “We see deepening public dissatisfaction and cynicism over the private banking system — a dissatisfaction that can be traced to the financial excesses of Wall Street, which triggered the worst recession since the Great Depression.”

Was the financial crisis the result of “bad actors” in the industry alone? No. The American banking industry is heavily regulated, the government-created Federal Reserve is very hands-on in its control of money and banking, and federal regulatory and financial bodies have exerted similar influence over housing industry financing for scores of years.

So of course a Californian politician wants to solve a government-induced problem by creating more government.

That’s what’s stupid, if you ask me.

This is Common Sense. I’m Paul Jacob.

* He’s going forward with a big study to “answer questions about costs, benefits, risks, and legal and regulatory issues, including the needs for capitalization, deposit insurance, and access to interbank transfers of funds.”

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