Posted on 05/11/2020 9:38:30 AM PDT by Kaslin
April’s jobs report was the worst in U.S. history, with 20.5 million jobs lost thanks to the coronavirus and subsequent lockdowns. Some layoffs are temporary and likely to return as soon as lockdowns are lifted, but a full recovery could take quite some time. Exactly how long will depend in large part on the degree to which government policy prevents market dynamism.
To climb out of the massive pit the economy has been thrown into, it will take not just the release of workers from their homes, but also entrepreneurs and innovators capable of adapting to a new economic environment. Unfortunately, innovators are often treated very poorly by all levels of government. And the worst offender is arguably California, which, as the largest state, has a profound impact on the national economy.
Consider last year’s passage of AB 5. It upended California’s gig economy by requiring that contractors be reclassified as employees, even against their will, when certain thresholds were met. The arbitrary caps were set so low that self-employed freelancers have been devastated by a loss of work as many companies suddenly stopped working with California workers. They were forced to choose between giving up the flexibility and control that comes with self-employment or being newly unable to take on sufficient work to pay their bills.
The legislation looks particularly short-sighted in the era of social distancing, where Americans are looking for opportunities to work from home now more than ever.
Treating OYO as a franchise even when it does not meet the statutory requirements would impose unnecessary and costly regulatory burdens. Unfortunately, regulations tend to be written with the last business model in mind, while innovators are always looking for the next one. Regulators need to remember that they exist to cater to the needs of the market, not the other way around.
In response to economic pressure surrounding the coronavirus, states have suspended hundreds of regulations that were never actually needed in the first place. These range from restrictions on telehealth services to prohibitions on alcohol delivery.
Given the financial hit that the coronavirus has had on the travel industry, innovation and investment of the sort brought by OYO should be welcomed with open arms. Policymakers ought to reel in regulators who refuse to do so.
In good times it is easy to tolerate a certain number of bad policies, or to justify inaction on the grounds that there may be higher priorities than removing regulatory barriers. But when every policy could mean the difference between bouncing back economically and a prolonged depression, a critical look at the nation’s regulatory landscape is warranted.
Perhaps the worst over-regulation is that HCQ isn’t OTC like it is in many other countries. Could have shut down the whole lengthy stay-at-home nonsense. How many trillions did this over-regulation cost?
Way too many governors, mayors, etc. really overdid the power trip stuff.
Many of the restrictions, like garden seeds by MI gov Whitmer, are just silly.
“are just silly.”
Silly...but still abuse of power...way way way out of line.
Will never forget..and neither should Michiganders.
What’s an OYO? I think this should have been mentioned in the article.
The short answer about how we got here is that Woodrow Wilson promoted his fiction of a “living Constitution” campaigning for progress using concepts from Social Darwinism and intending the Supreme Court to sit as a permanent Constitutional Convention. He ignored the fact that the Enlightenment was the basis of our Constitution, which found its inspiration in the Christian concept of limitless worth for the individual. Franklin Roosevelt established a myriad of agencies staffed by unelected, unconfirmed experts who would rule and not serve citizens.
Instead of legislating, Congress would create legislators residing within impenetrable agencies. Instead of inherent liberties constraining government, a host of bureaucrats then conferred rights upon and applied constraints to citizens.
Reading the article helps...it’s a hotel chain.
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