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too much government

Unnatural Disaster

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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general freedom too much government

Are We Graduating from Plastic?

In The Graduate (1967), the young man played by Dustin Hoffman gets advice from an elder. “Just one word: plastics.” “Exactly how do you mean, sir?” “There’s a great future in plastics.”

When the world bans all plastic in 2021, that will be the end of that market opportunity. Other components of civilization will be discontinued in 2022.

Maybe I’m being too pessimistic. After all, there’s always the black market.

A plastic-bag ban is underway in New York City. Four states and five territories have already banned disposable plastic bags, as have countries around the world. New Yorkers are reportedly two-to-one in favor. A friend who lives there confirms this widespread resignation.

“I’m not happy about what it [plastic] does to the environment,” says one New Yorker. “But . . . what it does to my environment if I don’t have them is a nightmare.”

“This is a good thing because it’s helping the environment,” says another.

The problem of trash disposal has been solved. We use garbage cans, pickups, landfills. It’s a problem that must be continuously re-solved. Like many other problems . . . such as how to carry groceries.

We adopted plastic bags because they are much more convenient than paper. Convenience, efficiency, effectiveness: many man-made components of civilization serve these goals.

Reduction to absurdity can persuade only if the listener rejects the absurd. In 1967, the idea of banning plastic bags and plastic straws seemed, to most, absurd. Today, maybe two thirds of New Yorkers lament the inconvenience but add whaddyagonnado . . . when you gotta protect the environment?

That this measure will not protect much of anything, but merely allow activists to think well of themselves is, itself, absurd.

This is Common Sense. I’m Paul Jacob.


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plastic, environmentalism, California, law, prohibitions, bans,

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ideological culture political economy too much government

Ex-Californians

California, “the U.S. state most synonymous with all varieties of growth — vegetal, technological, and human — is at the precipice of its first-ever population decline,” writes Derek Thompson of The Atlantic. And folks in other states like Texas and Idaho are none too happy. 

You see, the Californians fleeing are finding new homes elsewhere. Especially in Texas and Idaho.

Oddly, Mr. Thompson breezes by the biggest source of anxiety: ideology. “Texas Governor Greg Abbott issued a warning on Twitter to Californians moving to his state: ‘Remember those high taxes, burdensome regulations, & socialistic agenda advanced in CA? We don’t believe in that.’ The sentiment was echoed in various warnings in Dallas newspapers about the awful ‘California-ing’ of North Texas.” Thompson quickly moves on to interrogate how real the general exodus from the Golden State is.

Which is interesting — but much more important is the main worry about all immigration: will these new citizens vote to overturn the order that attracted them in the first place?

There is certainly anecdotal evidence that this can be a real problem.

Also not mentioned in the The Atlantic squib is just how messed up California now is.

What can be done? The idea humorously floated by an Idaho politician — a “$26 billion wall to keep out people moving from the Golden State” — is just a joke.

And secession/expulsion of the 23rd state in the union is not realistic, either.

What is realistic is for non-California politicians to float in the U.S. Congress a willingness to break up the state into separate pieces, creating at least two new states. At least then, Jefferson State citizens could put up with West California émigrés. 

This is Common Sense. I’m Paul Jacob.


N.B. There are very serious political problems of representation in California that breaking up could help fix, by increasing the number of legislators and minimizing the ratio between representatives and the people they serve.

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Texas, California, democracy, migration, immigration,

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free trade & free markets too much government

The Anti-Worker Ism

Progressives who lean socialist used to hide their worst intentions. Now they are letting it all hang out.

There have always been overt socialists in the U.S., of course. They would sometimes protest the reluctance of fellow travelers to fully embrace socialism’s moniker. But the sentiment “Ah, screw it, let’s just admit we want to destroy everything currently in existence” seems on the ascendance. Even a few major Democratic candidates for president are on board.

Exhibit 112 is the new nationwide push to stomp the gig economy.

Especially freelancing.

This follows Exhibit 111, the recent and so far successful push to stop independent contractors from engaging in voluntary transactions in California. (Many lawsuits are underway.)

After scanning the coiled legalese of 111 — I mean AB5, California’s law — many companies decided that ending relationships with California-based freelancers was prudence with a capital P. And that rhymes with G, and that stands for Golden. Which the Golden State used to, uh, B.

Not every self-employed person has been thrown out onto the street. There are carve-outs. Actually, the only known victims are taxi drivers, cleaners, nurses, comedians, writers, editors, musicians, transcriptionists, citizen initiative petitioners, etc., etc.

The crackdown on non-9-to-5 work arrangements has also resulted in much gnashing of teeth by gig-seekers of all ideological stripes. 

Obviously, then, such massive destruction of economic freedom must be inflicted on the federal level too. So House Democrats put AB5’s gig-killing provisions into Exhibit 112, that is, into HR2474, pending legislation.

Democratic candidates for president Pete Buttigieg, Elizabeth Warren, and Bernie Sanders have endorsed the California statute, a national version, or both.

Ludwig von Mises had a word for this. He called socialism “destructionist.”

This is Common Sense. I’m Paul Jacob.


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California, socialism, labor, progressivism, Democrats

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initiative, referendum, and recall too much government

The Gig Is Up

Eventually, champions of government intervention, of all forms of thwarting independent judgment and killing dreams, find themselves under assault. From the public. 

And you don’t need an economics degree to grasp why. 

Initially, an intervention prevents other people from pursuing projects, getting jobs, earning a living. Then, finally, government meddling goes a step too far. Maybe lawmakers had “good intentions,” but hey! This is me now! 

Your legislation needs tweaking!

This is where we are in California’s attack on the so-called gig economy. Hatched to “protect” Uber drivers or some such nonsense, Assembly Bill 5 makes it massively harder for companies to classify freelancers as independent contractors. After it was signed into law, many companies—from blogs to transcription services—told California-based freelancers adios

Millions of people lost work and options.

What walks of life are affected? All

“California’s new gig worker law is . . . threatening all performing arts,” complains Brendan Rawson at CalMatters.org. California has “overreached.” Gotta nip-and-tuck that otherwise “worthy” bill! Use only the magic arbitrary intervention in our lives that works!

Not everybody now being hurt was previously okay with pushing other people around, of course. I’ve never been a fan. One of my missions is defending the right of citizen initiative. Well, AB5 makes it much harder and more expensive for petition campaigns to hire people for such gigs as collecting signatures for an initiative in California. 

AB5 attacks earning a living, speaking freely, associating freely, and petitioning one’s government freely. Maybe the law will be rescinded. But there’s more mischief where that came from. 

So let’s protect other people’s freedom . . . and stop the overreach before it reaches us.

This is Common Sense. I’m Paul Jacob.


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California, gig, freelance, law, control, interference, intervention, labor,

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Categories
folly Popular tax policy too much government

A Fake Mystery

California’s new top banana is playing politics the old-fashioned way: passing the buck.

Last week Governor Gavin Newsom directed the California Energy Commission (CEC) to look into the state’s higher-than-average gasoline prices.

“Independent analysis suggests that an unaccounted-for price differential exists in California’s gas prices and that this price differential may stem in part from inappropriate industry practices,” he wrote in an official letter to the CEC.  “These are all important reasons for the Commission to help shed light on what’s going on in our gasoline market.”

Ah, shed light!

We are not talking about the bulb in your outbuilding.

Californians understandably grumble about having to pay higher taxes than elsewhere in the U.S. So Newsom pretends to suspect “inappropriate industry practices.” But what is inappropriate is Newsom’s directive to the CEC. As Christian Britschgi drolly informs us at Reason, Newsom, while lieutenant governor, had “supported a 2017 bill increasing the state’s gas taxes,” which looks like all we really need to know. Raise taxes, and businesses tend to increase prices rather than eat the extra cost. Higher gas prices are the result of higher taxes.

Duh.

But there’s more.

“When running for governor in 2018,” Britschgi explains, “he opposed a ballot initiative that would have repealed that same increase.”

So, is Newsom truly clueless of the obvious?

Hardly. And neither are “17 legislators who voted for the tax hike” who joined the governor in “wanting answers to this difficult headscratcher.” They are doing what pols usually do: deflect; misdirect; blame others . . . hoping that voters don’t pay close enough attention, or remember recent history. And busy people often do not.

Finding a bogeyman helps, too.

This is Common Sense. I’m Paul Jacob.


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Gavin Newsom, Governor, California, gas, tax, prices, folly,

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