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folly free trade & free markets general freedom moral hazard national politics & policies tax policy too much government

Whose Side Are They On?

Excuse me if I drive over familiar roadways. But we are witnessing one of the great revolutions in human cooperation.

And our governments and politicians are working mightily to block traffic.

I refer, of course, to Uber and Lyft and the like.

The innovation that these companies bring to market? Enabling everyday drivers to leverage their personal investment in a capital good — a car or SUV — to make extra bucks (or even a living) while efficiently serving people who want rides.

Ride-​hailing apps on smart-​phones provide more security and consumer guidance than the old taxi services ever bothered to even try. The elaborate online rating system, where drivers rate riders and vice versa, provides a new market in information that outstrips government “regulation” as a consumer defense system.

And consumers get better rides, cheaper.

The Uberization of ride sharing competes directly with taxis, of course, and that’s a problem … for taxi companies. And the politicians who have regulated them for years. This regulation never was about consumer protection, but politicians just feathered their own nests with campaign contributions through crony capitalism, helping some taxi services at the expense of others.

And customers.

The latest idiocy hails from Massachusetts, which has enacted a 20¢ per trip tax on all ride-​sharing apps, with 5¢ of each charge slated for subsidizing the old, established taxi services.

Taxachusetts’s Republican governor, Charlie Baker, has been sucked in to the government racket, choosing to support old cronies rather than customers.

Still, it could have been worse. The advocates of the tax had initially demanded Uber be banned.

This is Common Sense. I’m Paul Jacob.


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Uber, Lyft, Taxi, protection, tax, crony, cronyism, illustration

 


Illustration based on original cc photo by GörlitzPhotography on Flickr

 

Categories
crime and punishment folly free trade & free markets general freedom

Drive Free or Die

Ever told your kids to share? That’s aiding and abetting, you know.

Sharing is illegal.

At least, it is in Portsmouth, New Hampshire … regarding Uber.

The popular ride-​sharing company may be widely heralded as the flagship of the new sharing economy, but a Portsmouth city ordinance effectively blocks the service, requiring that the company provide background checks on all drivers, which Uber calls “draconian.”

While the company is trying to get the city to alter that mandate, several Uber drivers have ignored the ban, continuing to pick up passengers. In October, police stopped Stephanie Franz, who now faces a $500 fine.

Chris David has also continued to drive for Uber. After he recorded a verbal altercation with a cabbie on a city street and posted it to YouTube, David was charged with wiretapping — a felony.

Taxi companies are upset, too, claiming the ordinance creates “a free-​for-​all.” A Portsmouth Taxi executive bemoaned, “Anybody can come in.”

Before the ordinance took effect in September, only 28 cabs were allowed to operate. “That’s like limiting the number of restaurants and bars in Portsmouth to 28 to keep them full day and night,” argued Assistant Mayor Jim Spilane.

In the “Live Free or Die” state, barriers to earning a living and heavy-​handed criminal charges have led to the pro-​Uber slogan, “Drive Free or Die.”

Tonight at 6:30 pm, there’s a #FreeUber rally at the Portsmouth City Hall. If you’re nearby, please go help explain that government regulations ought to accommodate economic advances, not frustrate them.

That is, if you can find a legal ride.

This is Common Sense. I’m Paul Jacob.


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Uber, taxi, sharing, free uber, Common Sense