Tag: P2P

Categories
free trade & free markets

A Ride on the Private Side

If you’d like to catch a flight without the usual delays and post-​911 regulation-​inflicted hassles, used to be you had to own your own plane, charter one, or buy a time share in one.

Now you can use a smartphone app to book a seat on a private jet — just as you use an app to book an Uber driver outside the confines of the hyper-​regulated taxi industry. Sure, private-​jet seats are still pricey. But the New York Times reports that lower-​end bookings are comparable in price to that of first-​class seats on Delta or American.

Private JetNew services find spots for you on planes en route to pick somebody up that would otherwise be empty, or let you subscribe to blocks of time for use on a variety of jets. Result? More and more passengers are able to ride private jets thanks to startups like JetSmarter and Magellan Jets.

Those of us who lack the means to exploit this option-​expanding development should still welcome it as a step in the right direction, away from burdensome regulatory regimes that slow us all down. I doubt we’ll get rid of the regulatory bog at the airport any time soon. After all, we’re still stuck with the government-​subsidized USPS postal monopoly despite the competition in package delivery provided by UPS and FedEx.

But without the pressure and example of such relatively unencumbered alternatives, our situation would be worse; our prospects, dimmer.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Old Rules Gotta Go

Old hat. Long in the tooth. Creaky as an outhouse door.

These are just some of the expressions that apply to how our cities, states and metro areas are run — by ancient principles that do not serve the common good.

Last weekend I wrote about the ongoing revolution in transit, the peer-​to-​peer online app services offered by Uber, Lyft and the like. These ride-​sharing services allow normal folks to give and receive car rides at great convenience.

They blow mass transit “out of the water” and throw taxi service sideways. Super-​convenient, they make it cheap and safe for people to co-​operate in new and productive ways.

Art Carden, at EconLog, notes the “social waste” that governments add to the system. While the new app-​based services provide true solutions to the high transaction costs of negotiating among many people, governments give us squabbles: “the battle over the rules governing the conditions under which people will be allowed to do certain things is pure social waste,” Carden argues. “The social waste is reflected in the resources consumed in the fight over the rules.”

We’ve gotta have rules, of course. But they needn’t require micromanagement, massive restrictions, or high taxes.

The new era will be run (if allowed) on the basis of convenient co-​operation, transaction costs reduced by communications technology.

The old era that still rules the roost runs on clunky old ideas that Carden rightly calls “mercantilism,” the political ideology that Adam Smith argued against … in 1776.

Government should undergird free markets, not intrude and dominate by licensing near-monopolies.

This is Common Sense. I’m Paul Jacob.