Tag: unintended consequences

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initiative, referendum, and recall too much government

SF Scheme Scuttled

San Francisco, taxes, income, GBI

The proposed tax was very popular. In San Francisco. It polled at nearly 75 percent in favor. 

But it possessed a fatal flaw. 

And worse.

The fatal flaw? The numbers didn’t add up.

Organizers spent nearly half a million bucks developing and promoting and getting the petition signatures to place Proposition K on this November’s ballot.

The notion? Tax Amazon sales within city limits to fund a guaranteed income scheme in the Golden City.

But then they learned — after it qualified for the ballot — that it was an incoherent tax-​and-​spend mess. Its chief pusher, John Elberling, admitted, reports The San Francisco Standard, that “he made mistakes in calculating how Amazon earns its revenue in the city.” And, The Standard continues, “the City Controller’s office found that the tax measure would actually harm hundreds of small businesses in San Francisco and cut revenue to the city’s general fund by about $10 million a year.”

So Elberling ate crow, admitting to error (and also, apparently, to misleading petition signers), and a judge removed Prop K from the ballot.

Whew. Disaster averted.

Alas, Elberling promises to “perfect” his scheme, and advance it again.

Which is ominous, for the core idea itself — adding on more taxes to fund a trendy-​but-​disastrous “guaranteed income” — is not the way out of California’s progressive-​induced nightmare. It’s just a vastly bigger version of what’s gone on before.

If Californians don’t develop more common sense about the limitations of salvation-​by-​government, they are doomed to repeat such folly.

That goes double for San Franciscans.

Who this time have a reprieve, thankfully.

This is Common Sense. I’m Paul Jacob.

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Accountability folly free trade & free markets too much government

Jonesing for Disaster

Puerto Rico, Jones Act, protectionism, hurricane, unintended consequences, folly

First, do no harm. Second, stop harming.

You might think that these would be the Two Commandments of Government.

But no.

Politicians make a good show of saving us, sure. Sadly, appearance alone suffices. For them. Much easier to announce a new program than get rid of a harmful old one. 

Latest case? Courtesy of a storm and a new president, we now get to witness hurricane recovery mismanagement all over again, but this time outside the continental United States.

“The administration announced some bad news for Puerto Rico,” writes Scott Shackford at Reason. It will not, Mr. Shackford explains, “be waiving the Jones Act, which significantly restricts the ability of foreign or foreign-​owned ships from bringing goods to Puerto Rico.” 

The “unincorporated U.S. territory” that is the island must take its lumps.

The Jones Act* limits foreign ships port access … down to one. The mandate allowing port-​to-​port commerce only to American-​manned ships is designed to save a few jobs and grease a few union wheels in the mainland.

And now, especially, that old, ongoing “centralized government planning for the benefit of a small group of powerful U.S. shipping interests” amounts to a real kick to a people already devastated by Hurricane Maria.

Closing ports to much needed help doesn’t help. An emergency order could suspend the ongoing harm of throwing roadblocks in the way of a swift recovery and rebuilding.

Or Congress could repeal the Jones Act entirely.

Neither is likely.

So the wounded Puerto Ricans — prior to the storm hobbled by years of territorial misgovernance — can expect more fake government help. 

This is Common sense. I’m Paul Jacob.

 

* Not to be confused with the Jones-​Shafroth Act of 1917, which set up territorial  governance of the island.

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Accountability folly free trade & free markets general freedom local leaders moral hazard nannyism national politics & policies property rights responsibility too much government

Against Flexibility?

Seattle, Oregon, unintended consequences, work hours, scheduling, Fair Work Week, labor

Do politicians have any idea what they are doing?

In Oregon, Senate Bill 828 just passed the Senate and is now being favorably reviewed in the House. The law would require “large employers in specified industries to provide new employee[s] with estimated work schedule and to provide current employee with seven days’ notice of employee[’s] work schedule.”

But will the measure help employees? Really?

The notion is called the “Fair Work Week.” Pushed by Democrats, it has gained bipartisan support. The basic idea: allow time (under full force of law) for workers to manage their own schedules and personal economies.

Trouble is, in the name of making work easier to manage, it attacks flexibility.

Which is something many workers want. More than notification.

Indeed, the study commissioned by the City of Seattle for their similar regulatory scheme acknowledged that reducing flexibility is not necessarily a godsend for workers. 

“A more predictable schedule,” the report noted, “is not always one that an employee would prefer. A schedule known with certainty is a cold comfort if it yields too little income to survive.” 

The report went on to explain that many of the labor market’s scheduling inconveniences are themselves the result of other government regulations, such as ObamaCare.

Christian Britschgi, writing at Reason, predicts that passing the Oregon law would mean “a fairer worker week” for some, but for others, “no work week at all.”*

Meanwhile, the Seattle study noted that it was workers in small businesses who are most likely to be discomfited by last-​minute scheduling changes. The Oregon law applies only to big businesses.

This is Common Sense. I’m Paul Jacob.

 

* A standard, negative consequence of most “well-​intended” legislation.

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Accountability crime and punishment folly free trade & free markets ideological culture moral hazard nannyism national politics & policies

A Vapor’s Chance in Hell

vape, vaping, smoking, law, regulation, unintended consequence, illustration, photo

There is a big difference between government designed to protect our rights and a government tasked with protecting us from ourselves.

You couldn’t find a better example of this than the current Federal Drug Administration and its regulation of vaping.

Vaping is the imbibing of water vapor laced with nicotine and other ingredients. It is designed to replace the smoking of tobacco cigarettes. It is much, much less harmful than smoking. The genius of this innovation is that while it looks a lot like smoking, it involves no smoke. But it does involve inhaling, and blowing out wisps of … well, vapor.

It’s safer than smoking because smoking tobacco involves burning organic (and inorganic) matter, which puts tars and other chemical substances into one’s lungs.

But the competing companies that make the product are not allowed to tell us about its advantages.

New regulations of the e‑cigarette industry from the FDA prohibit a lot of truth-​telling in advertising. “Even if a few companies survive the shakeout caused by the FDA’s onerous regulations,” Jacob Sullum writes in Reason, “they will not be allowed to tell consumers the truth about their products.” It appears that “any intimation that noncombustible, tobacco-​free e‑cigarettes are safer than the conventional, tobacco-​burning kind” places them under a category that simply must “be marketed only with prior approval.”

The legal judgments Sullum quotes will make you sicker … than your first cigarette puff.

Paternalistic government designed to save us from our vices ends up blocking us from actually lessening the bad effect of those vices.

Some help.

This is Common Sense. I’m Paul Jacob.

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vape, vaping, smoking, law, regulation, unintended consequence, illustration, photo

 

Photo credit: micadew on Flickr

 

Categories
Common Sense folly free trade & free markets general freedom national politics & policies too much government

Fifteen or Fifty or Zero?

Finding the Right Balance

Washington Post columnist Catherine Rampell just stumbled into a truth. Raising minimum wages could be disastrous. Depending on the rate.

While “Bernie Sanders, Martin O’Malley and a host of other well-​intentioned liberals want to hike the federal minimum wage to $15 an hour,” she calls the proposal “badly misguided.”

And yet she says that the current federal wage floor, at “just $7.25 an hour … is absurdly low.”

Why, this Friday, she notes, marks six years since the last minimum wage hike!

Rampell recognizes that raising the minimum wage to $50/​hour would cause unemployment, massively. She also realizes that, in many low-​wage states, the mere $15 rate would do the same. But raising “the federal minimum wage to $10.10”? Might work! “This is a trade-off …”

Yes. Stop right there. Trade-​offs, indeed.

She wants us to think about getting the rates right.

Employers and job-​seekers do that already, in the marketplace. If businesses don’t pay enough, the workers will move on to employers who will. Force businesses to hire workers for more than their productivity? Unemployment results.

A minimum wage rate helps some and hurts others. Rampell admits that, appearing to “accept” 500,000 people losing their jobs as collateral damage to boost wages for others.

Her proposed fine-​tuning of rates supposes that politicians have greater knowledge about the “proper” price of labor than employers and job-​seekers. Moreover, she ignores the inevitable political game, whereby politicians take credit for rewarding some, while hiding the costs imposed on others.

Finding the “right minimum wage” rate is mainly about hiding the victims … so voters won’t notice.

This is Common Sense. I’m Paul Jacob.

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Finding the Right Balance

 

Categories
general freedom nannyism property rights responsibility too much government

Why the Tiny Domicile

Why The Tiny Domicile by Paul Jacob

The “tiny house” movement has gained momentum. More and more people — especially young people and childless people — see the virtue of very small houses. They are cheaper, can be made energy-​efficient, have an almost necessarily smaller “environmental footprint,” and are mobile.

And I can see the attraction. For one thing, a tiny house would be easier to clean than what I have. For another? Snug. Many of the efforts are very cleverly designed and built. And certainly for young singles, they make a great deal of sense.

But, wouldn’t you know it, there is a problem here. Government.

Urban housing authorities, zoning boards, and the like, have not exactly been accommodating to this new development.

Which is, in its way, typical, and typically frustrating. After all, many of the reasons folks are looking to tiny houses result from government regulation in the first place. City, metro and county governments have been so poorly accommodating to diversity in housing demands that costs have risen horribly.

This is all explained over at Reason, which draws the bureaucratic environment of the nation’s capital in relation to tiny homes: “they’re illegal, in violation of several codes in Washington D.C.‘s Zoning Ordinance. Among the many requirements in the 34 chapters and 600 pages of code are mandates defining minimum lot size, room sizes, alleyway widths, and ‘accessory dwelling units’ that prevent tiny houses from being anything more than a part-​time residence.”

This leaves Reason’s featured tiny home owner in yet another bad-​government-​induced limbo: “allowed to build the home of his dreams — he just can’t live there.”

We need tiny government. Or at least tiny-​accommodating government. Really… both.

This is Common Sense. I’m Paul Jacob.