Tag: regulations

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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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national politics & policies too much government

The Ratchet Racket

ratchet, coronavirus, Covid, pandemic, epidemic, law, regulations, government,

Various models and curves and soothsayers predict that the coronavirus will lay off as the summer sun waxes. And then rush back in the autumn.

So we should not look at just near-term threats, but also look at cycles of contagion month-to-month, year-to-year. 

Yet, it is not just the dreaded coronavirus that must be seen over time. “Crisis measures are often ineffective,” writes Matthew Feeney, at Cato Institute, “and can survive the crisis they are implemented to counter.”

Because government power and interference tend to ratchet up with each crisis, there is a whole lot of reason to suspect that we will not go back to normal. Indeed, “the new normal” is now a catchphrase.

The quarantine shutdown has been, if not total, totalistic. Feeney acknowledges such extremist (he didn’t use that word) measures may sometimes be justifiable. But warns of that ratchet, of new powers given to government not devolving after the crisis.

Ted Galen Carpenter, also at Cato.org, draws a “fundamental lesson” from the panic: “Americans need to resist the casual expansion of arbitrary governmental power in response to the current coronavirus crisis.”

The extreme measures of the shutdown — called by economist Gene Epstein “The Great Suppression” — should have been widely discussed before the contagion hit. Instead, they were discussed in meetings behind closed doors.

But most of us were already up to our necks in the political muck fighting off the everyday kludge of the old normal level of too-much-government.

You know, from the previous turn of the ratchet.

This is Common Sense. I’m Paul Jacob.

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ratchet, coronavirus, Covid, pandemic, epidemic, law, regulations, government,

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free trade & free markets too much government

The Exceptions Disprove the Rules

freedom, prohibition, rules, regulations, red tape, bureaucracy,

“I’ve instructed my prosecutors not to charge certain low-level nonviolent offenses to avoid people being held in jail unnecessarily,” Maryland’s Attorney General Marilyn Mosby informed the state’s Republican governor. She also urged the governor “to release all inmates in state prisons who are over 60,” explains The Washington Times, “approved for parole or scheduled to complete their sentences within the next year.”

This is all to avoid a prison pandemic. Meanwhile, the “Food and Drug Administration (FDA) announced Monday that it would permit states to create laboratories for designing COVID-19 tests,” Reason magazine tells us, adding that the FDA “has also decided to permit pharmacists to make their own alcohol-based hand sanitizers.”

Reason’s Robby Soave asks the obvious question: “Why do the people who are working hardest to fight the coronavirus have to ask a slow federal bureaucracy for permission to save lives?”

The New York Times reports that Dr. Helen Y. Chu, an infectious disease expert in Seattle, tried mightily to perform tests on subjects, early in the epidemic, to track how the virus was spreading. She was stymied every which way.

By bureaucracies.

The kludge of bad regulations and laws merely adds cost and annoyance during normal times; during emergencies they present major stumbling blocks to public health.

So, when our leaders make special exceptions, they demonstrate that the regulations were always bad — now just worse.

Real leadership would nix these rules, permanently.

And, for that matter, end the war on drugs — and prostitution and other victimless crimes.

One of the infractions Maryland’s AG decided to go lax on, however, is public urination. That crime has victims and ought to remain a public health violation.

Though perhaps not worth imprisonment.

This is Common Sense. I’m Paul Jacob.

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freedom, prohibition, rules, regulations, red tape, bureaucracy,

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property rights too much government

Zoned Out

zoning, regulations,

There are ways of cultivating community standards without resorting to zoning and similar regulatory regimens by state and local governments. They have been studied, written about, and they can be found here and there around the country, though most famously in Houston, Texas.

But zoning’s the norm in urban and suburban communities.

Ask Marietta Grundlehner.

She had been running an online clothing boutique from her home in Fairfax County, Virginia, and has been forced to shut it down.

Well, a court has ruled that she must remove all her inventory from her home. You can have a home business in Fairfax, but not inventory of goods for sale.

Ms. Grundlehner had been earning, she said, about $30,000 a year as a “LulaRoe Fashion Retailer” in an industry billed by its online organizer as “social retail.” The ecommerce hub, lularoe.com, makes an enticing pitch for its business model: “Find your joy and fulfillment by creating a positive impact in your community.”

But it was a neighbor who turned her in and sicced the local government on her.

That Fairfax resident sure did not think she was having a “positive impact” in their community.

Grundlehner hopes for a regulatory change to save her business, but Christian Britschgi of Reason has a word for that battle: “uphill.”

Still, online businesses are on the ascendency. Too many run afoul of zoning laws. And online entrepreneurship being the wave of the future, local governments might want to forget their old gentrification utopianism and meet the real world, the place where people actually live. 

This is Common Sense. I’m Paul Jacob.

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paternalism too much government

Save Me, Good and Hard

SEC, Security and Exchange Commission,

The problem with making my own decisions? I might make a mistake.

That’s not good for me, is it?

So what you government boys ought to do is make me scrape and bow and beg for permission. Make me fill out more forms, struggle with invasive new privacy-invading requirements. Make it super-hard to comply — so I give up before I do anything . . . ill-considered.

That way, you prevent me from taking actions that might just possibly go badly — like investing my own hard-earned money the way I want to.

The SEC is seriously considering meeting this demand. 

Give it to me good and hard, SEC! 

But let me clarify. By “me” I mean every small independent investor. By “give it to me” I mean “don’t give it to me.”

Don’t do what Securities and Exchange Commission Chairman Jay Clayton and other SEC commissioners are considering: imposing a regulation to “effectively ban many middle-class investors from buying mutual funds and exchange-traded funds.”

Don’t make it lots harder to use the Robinhood app to make certain low-fee or no-fee purchases. Don’t prevent investors from buying funds through discount brokerages and apps like Robinhood unless they first fill out an intrusive questionnaire about their personal finances and pray for permission.

Don’t make us beg to invest.

Don’t. 

Stop mulling whether to further harass Americans who want to be free to make their own choices and live their own lives. 

Don’t enslave. 

Liberate. Laissez nous faire, you condescending thugs.

This Common Sense. I’m Paul Jacob.

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too much government

Nixed Ski Trek App Flap

Tread Share, regulations, Colorado, environmentalism,

In Colorado, like other states, the people’s ingenuity often surprises. And in the Rocky Mountain State, like elsewhere, governments are known to worry about what free people do — and, unsurprisingly, often get in the way.

A popular new ride-sharing app, called TreadShare, hit the market last month, designed to alleviate traffic on I-70, the route from Denver to popular skiing destinations. The app makes the trip to the mountain slopes far cheaper than Uber of Lyft — not to mention easier on the environment.

So, of course, the State of Colorado has superciliously suppressed this innovation. Over safety worries, allegedly.

“The idea behind the app is for carpoolers to share the cost of gas and mileage, incentivizing the drivers to bring additional passengers and the passengers to get a cheap ride up to the mountains,” writes Taylor Sienkiewicz in Summit Daily. “Shortly following the launch, TreadShare received a ‘cease and desist’ letter from the Colorado Public Utilities Commission. This caused TreadShare to shut down operations and another similar app, Gondola, not to launch.”

Not receiving an apparently required $111,250 annual license, nor proof the company performs background checks on all drivers, the state government has “helpfully” squelched these two ride-sharing services.

What about safety? The Colorado State Patrol, whose job is ostensibly to maximize highway traffic safety, might wish to work with the app-makers to provide any useful security features.

But preventing organized carpooling through pricey up-front licensing requirements and ridiculous red tape doesn’t seem like promoting safety, but more like typical high-handed government regulatory overreach.

Thankfully, citizen activists have formed a group and are petitioning the legislature to join the rest of the Centennial State in the modern world. 

This is Common Sense. I’m Paul Jacob.

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free trade & free markets national politics & policies too much government

Plunger Politics

plunger, flag, regulations, laws, Trump, flush,

President Donald Trump may win re-election because he dares speak the truth about toilets.

A Washington Post tweet presents the president talking about the insanity of American plumbing: “People are flushing toilets ten times, 15 times, as opposed to once. They end up using more water.”

Jeffrey Tucker, in a terrific piece for the American Institute for Economic Research, focuses on our national disgrace: “I know a man — a proxy for tens of millions — who came from a foreign country, threw down $500 per night at a New York hotel, and was astonished to find himself plunging the toilet within the hour of checking in. 

“Not surprising,” Tucker writes. “Not unusual. American toilets don’t work right. This is why there are plungers next to every toilet.”

And Tucker suggests that Trump may beat whoever ends up as his Democratic challenger for no better reason than because, every now and then, Trump sides with common sense against bureaucrats, regulators, and politicians. And, in this case, seeks to do something about it.

Would any Democrat dare mention that it is Congress that ruined our commodes? 

Of course, Republicans let it happen. 

Our toilets, I have long insisted, provide a perfect object lesson for what is wrong with government today. Early in the history of this Common Sense commentary, I explored the theme: it has been over 20 years ago since I wrote of “A Congressman in Your Bowl”; a few years later, when I started writing columns for Townhall.com, I offered “Flush Congress.”

I don’t know precisely what Trump can do regarding either the plumbing issue or the clogged-up Congress issue, but I — plunger in hand — salute him for trying to do something.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets too much government

Location, Location, Dislocation

Yuh-Line Niou, housing, regulations,

“While Lower Manhattan is desperately in need of affordable housing,” writes Yuh-Line Niou in an official statement of her re-election campaign for New York State Assembly, “we cannot pit the need for housing against the need for green space, especially when so many good alternatives are available. . . .”

Assemblywoman Niou (D-Lower Manhattan) is making the case against a housing project in her district. What she is really trying to do is save the Elizabeth Street Garden, a one-acre sculpture garden.

Uh, OK.

I have nothing against sculptures or gardens, but it seems like a strange sort of public space to exist in a high-demand real estate locale like Manhattan.

But you know what is stranger? 

Ms. Niou also supports the notion that “housing is a right.”

Christian Britschgi, of Reason, notes her pickle, drawing our attention to the similar predicament of a socialist city councilwoman on the other side of the continent, in Seattle. “Now, one can reasonably argue that open space is a precious commodity in a city, one that needs to be balanced against the need for shelter,” Britschgi writes. “But it’s hard to argue that while also asserting that housing is also a right that needs to be guaranteed by the government.”

Niou insists that “both need to be protected and expanded,” and somehow thinks the “best way to achieve this is by engaging the community from the start so decisions are made with a full knowledge of community sentiment and impact.” 

Not mentioned? Rent control.

It is almost as if pols have no idea that goals they promote might be exacerbated by existing policies they dare not criticize.

Or even bring up.

This is Common Sense. I’m Paul Jacob.

Yuh-Line Niou, housing, regulations,

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free trade & free markets political economy Popular

Opportunity for . . . All?

licensing, license, permission, work, labor, regulations

Simple pleasures are the best. So are simple questions.

Senate Bill 2306 in North Dakota “would make it easier for spouses of military personnel to transfer their existing occupational licenses for use in North Dakota, provided they are in good standing and licensed by a reasonable entity,” explains Rob Port at his SayAnythingBlog.

Occupational licensing has exploded, covering a mere 4-5 percent of occupations 60 years ago, but nearly 30 percent today. That’s a serious hurdle for folks trying to break into the marketplace.

Over at the Foundation for Economic Education, economist Daniel Mitchell calls licensing a “win-win” for politicians and interest groups that “get to impose barriers that limit competition.” 

Not winning? Taxpayers and consumers, says Mitchell. “Or a poor person who wants to get a job.”

An Institute for Justice report released last November concluded that “licensing costs the American economy $197.3 billion” annually by “preventing people from working in the occupations for which they are best suited” and “forcing people to fulfill burdensome licensing requirements that do not raise quality.” Meanwhile, the health and safety benefits attributable to this licensing labyrinth seem scant.

A recent Grand Forks Herald editorial endorsing SB-2306 pointed to the state’s “more than 13,000 unfilled jobs, many of which require licensing,” arguing that “[o]ften, trailing military spouses are qualified to fill those openings, but because of the existing licensing process they are not able to immediately work.”

“[W]hy not make this sort of license reciprocity good for everyone moving into our state?” Mr. Port adroitly inquired.

Yes, Big Government: Tear down these barriers!

For all.

This is Common Sense. I’m Paul Jacob.

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ideological culture national politics & policies too much government

Warren’s No Socialist

Elizabeth Warren, housing bubble, crash, regulations, finance

Senator Elizabeth Warren knows that when people trade, both sides gain. She made that clear last year, in a fascinating interview in The Atlantic. But then she went blithely on, saying that she could fix markets by creating a “level playing field.”

Markets create value, but Mrs. Warren asserts that “when the markets are not level playing fields, all that wealth is scraped in one direction.” 

How? People are still trading, even in bumpy playing fields. 

She turns to the crisis of 2008, when many people discovered that they had entered into unsustainable mortgages. She explains how her shiny new regulatory program leveled that playing field.

But her scheme did not even out the bumps in the mortgage industry that existed before the crash:

  • the moral hazard of Fannie Mae and Freddie Mac, 
  • the previous congressional “fix” that pushed banks to accept poor people as good loan risks when they were not (in the name of racial justice, of course), 
  • the regulatory rule that created ratings agencies sans competitive market incentives, and
  • the Federal Reserve policies that fed the whole housing bubble mania.

She just added another burdensome layer of government.

Politicans sure love to pile on.

Now she offers a new scheme, a child-care program that Reihan Salam, this week again in The Atlantic, says “risks increasing the federal deficit, driving up the cost of child care, and squeezing stay-at-home parents.” 

And Mr. Salam says that last risk is one Warren should understand particularly well, since she had “made her reputation as a public intellectual by warning against it.”

Warren’s no socialist — she wants to “save capitalism”! Yet by only adding to government kludge, she might as well be one.

This is Common Sense. I’m Paul Jacob.

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Elizabeth Warren, housing bubble, crash, regulations, finance

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