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too much government

Unnatural Disaster

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

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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Accountability crime and punishment folly free trade & free markets general freedom ideological culture moral hazard nannyism national politics & policies privacy property rights responsibility too much government

Working to Boost Unemployment

occupational licensing, hair braiding, permission, law, crime, employment, unemployment, control, health

Some government officials work overtime to throw people out of work.

What I’m referring to differs from losing your job or business because of slack performance or slackening sales. Instead, you lose the right to earn your living a certain way so that the government can benefit competitors at your expense.

Occupational licensing is great at dis-employing people. The regulations are especially galling when the work being regulated obviously requires no formal training in order to be done well and safely.

Hair braiding, for example.

The Institute for Justice — which has done incredible work over the years representing victims of destructive government mandates — just won a victory for hair braiders in Iowa. Thanks to IJ’s efforts, a new law there exempts braiders from having to waste time and money getting a cosmetology license in order to practice their craft.

Such battles are never won permanently, of course. Washington, D.C., recently started requiring day care providers to get a college degree or lose their job. (As I have argued in a Townhall column, the same “logic” would justify forcing people to get college degrees to become parents.) IJ is helping affected parties to challenge the absurd law.

It is time for a new licensing requirement. Nobody gets to become a local, state or federal lawmaker unless he first writes a million times in a row, “I will never help violate the rights of any man or woman to earn an honest living.”

This is Common Sense. I’m Paul Jacob.

 

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Accountability general freedom moral hazard nannyism national politics & policies privacy tax policy

Hey, It’s Your Money

tax cut, trickle down, supply side, taxes, jobs, employment

I leave it up to you how to spend your own money. You decide, based on your own circumstances and priorities.

Oh, you don’t need my permission?

Of course not.

But some people think that if you spend your own money on your own priorities in accordance with your own judgment, it is indeed a problem. At least when you get to keep more of your own money because of tax cuts.

President Trump has often suggested that recipients of new corporate tax cuts will spend the additional money mostly on increasing wages and hiring new workers. Yet some major corporations reportedly say that they will spend the additional money on paying dividends or buying back shares. Maybe others will buy more advertising, storage space or tools. Various commentators fret. But why should a firm hire new workers if other expenditures would be more productive at the moment?

Of course, in the long run, a company that is more profitable and successful can hire more people and can pay them more.

But wages are not the only expense that companies must cover in order to be successful in the long run. Managers do, and should, devote resources first to the improvements that they conclude are most urgent. That a company’s resources increase because of a tax cut doesn’t alter the necessity or reasonableness of pursuing economic goals in accordance with one’s best judgment.

An approach that, to be sure, also benefits present employees as well as future ones.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets general freedom ideological culture national politics & policies

Workers’ Days

May Day, Labor Day, labor, communism, socialism, employment

Today is Labor Day. But it is worth remembering, “Labor Day” in most other countries is May 1 — also called “International Workers’ Day.”

One thing to be thankful for on our American Labor Day is that we can celebrate labor — perhaps, like me, you will celebrate it by working! — and not have it serve as a celebration of communism.

For yes, it was the socialists and communists who cooked up the original May Day labor celebration, in part to commemorate 1886’s workers’ protest gone horribly wrong, the Haymarket debacle. In the 19th century, much of the impetus for collectivism came from workers themselves, under the impression that they could do better if they rebelled and expropriated the capitalists’ holdings and “worked for themselves.”

For some reason these activists rarely struck out on their own, becoming entrepreneurs.

Nowadays, alas, many top-level entrepreneurs lean toward socialism, and it is the non-government working people who resist more government, and thereby the socialist program. Indeed, the most enthusiastic clade of socialists in America today seem to be in the ranks of the unemployed.*

Oregon was the first of these United States to make an early September celebration an official Labor holiday, in 1887. Seven years later, the federal government got on board. President Grover Cleveland signed it into law soon after the disastrous Pullman strike, to promote a more rule-of-law friendly celebration of workers, and avoid thinking about rioting and murder and police violence.

So, even folks like me, who labor in the vineyards of the people’s politics while still supporting private property and freedom of contract, can celebrate.

Or take a last summer nap.

Without any communists hiding under the hammock.

This is Common Sense. I’m Paul Jacob.

 

* In less than two centuries, socialism went from proletarian to Lumpenproletarian. Karl Marx? Rolling over in his grave.

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free trade & free markets general freedom national politics & policies responsibility

The Poverty Retirement Non-plan

conundrum, employment, unemployment, Gerald P. O’Driscoll, poverty, retirement

A “conundrum” is “an intricate and difficult problem” or “a question or problem having only a conjectural answer.”*

In his June 8 article, “The Jobs Conundrum,” economist Gerald P. O’Driscoll focuses on a very big problem that we do not have sure answers to, yet.

Unemployment figures are down, but the number of non-working adults in the prime of their lives is up. O’Driscoll explains: “Unemployment” is a term of art and does not mean simply the number of people not working. It comprises the number of people not working and who are looking for a job.” Many aren’t “unemployed” for the simple reason that they are not trying to be employed.

They are, I suppose you could say, in early retirement, mostly a kind of poverty retirement.

Economists call it a drop in “labor force participation.” It used to be that men in the prime of life not looking for work constituted a mere 6 percent of the population. Now it’s 15 percent.

O’Driscoll, I notice, doesn’t engage in much conjecture to explain why. He merely insists, instead, that the trend is big, unemployment figures don’t track it, and that it has huge consequences.

I’ve heard some interesting (and puzzling) theories about the whys, of course. Blame feminism; blame the welfare state; blame the Chinese!

But even before we settle on a definitive answer, many movers and shakers now contemplate establishing — and are even experimenting with — a universal basic income as a way to alleviate this problem.

My conjecture? It would make the problem worse.

This is Common Sense. I’m Paul Jacob.

 

* The original, primary meaning of “conundrum” — “a riddle whose answer is or involves a pun” — is not relevant to this pun-free column.

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folly ideological culture national politics & policies political challengers too much government

Fiorina Fires Back

Fiorina, employment, HP, CEO, Hillary Clinton, Barbara Boxer, jobs, Presidential, collage, photomontage, illustration, JGill, Common Sense

Politicians love talking up job creation. Presidential candidates, especially, pretend to a Svengali-like virtuosity in producing paychecks and, if only handed the keys to the White House, creating — presto! — a bunch more.

This year, Republican Carly Fiorina, the former CEO of Hewlett-Packard, has been repeatedly attacked by Democrats, democratic socialists and her Republican opponents for firing 30,000 workers during her tenure running the company. As if she did so out of meanness.

Sunday, on Meet the Press, Chuck Todd went at her again.

“I find it very rich,” Fiorina fired back. “Barbara Boxer, Hillary Clinton, all the Democrats who are attacking me, they’ve never created a job, they’ve never saved a job, and their policies destroy jobs, including Mrs. Clinton’s latest position on Keystone Pipeline.”

Mrs. Fiorina offers context for her “failure”: “I led HP through a very difficult time. The NASDAQ dropped 80 percent. Some of our strongest competitors went out of business altogether, taking every job with them.” As she sees it, her team “saved 80,000 jobs. We went on to grow to 150,000 jobs. We quadrupled the growth rate of the company, quadrupled the cash flow of the company, tripled the rate of innovation of the company. And went from lagging behind to leading in every single product and every single market. I will run on that record all day long.”

I’m not endorsing Fiorina, either as candidate or as CEO. Just sayin’ that those attacking her on 30,000 jobs don’t know anything at all about actually creating even one real one.

This is Common Sense. I’m Paul Jacob.

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Fiorina, employment, HP, CEO, Hillary Clinton, Barbara Boxer, jobs, Presidential, collage, photomontage, illustration, JGill, Common Sense