California is on the verge of driving out another business

American Thinker ^ | August 13, 2020 | Andrea Widburg

[lasereye]

Once upon a time, California was the Golden State, a shining example of how America should be run. Then the Democrats took over. Since then, the state has gone downhill fast.

One of the worst things the state assembly did just last year was to pass legislation that effectively killed the “gig economy” (i.e., people who enjoy freelance work that enables them to control their own time). Now, thanks to that law, the lockdowns, and a problematic judicial decision, California has another hit coming: Uber’s pulling out.

California’s AB 5 went into effect on January 1. Although ostensibly meant to protect employees, the law was instead a massive gift to unions. This is because the law effectively made it impossible for companies both inside and inside of California to employ independent contractors. Suddenly, a whole host of people found themselves unemployable. The newly unemployed included freelance journalists and musicians, independent truckers, and, significantly, drivers for app-based businesses such as Uber, Lyft, and DoorDash.

Initially, Uber, Lyft, and DoorDash vowed to keep doing business in California. What they hadn’t counted on, though, was the extra whammy of California’s response to the Wuhan virus. The state locked down, then it partially unlocked, and then it locked down again. The state is apparently caught in an infinite loop that sees it futilely battling the virus even as it successfully wipes out the economy.

The last straw was a recent judicial decision saying that the drivers for these ride-hailing businesses are employees entitled to the full panoply of benefits under California law. With the California economy in tatters, and a hostile judicial ruling, Uber’s CEO has finally had enough and announced that the company is pulling up stakes in the state

[OttawaFreeper]

I am waiting to see what happens to public employees’ pensions. They already have massive unfunded liabilities and it’s only a matter of time in which such people are told that you might as well forget about seeing a dime from them. All of this not dissimilar from what happened in the Soviet Union and East Bloc.

[George from New England]

The poker hand is in Biden’s election. Make the other 49 states bail out Calif.

[null and void]

I am waiting to see what happens to public employees’ pensions.

[sphinx]

California public employees’ pensions are insanely bloated. They are bloated because the unions and California democrats have engaged for decades in a game of overpromising, corrupt accounting, and kicking the can down the road. This has been done in plain sight. The only innocents in the room are those few who have tried to blow the whistle and call for reform. But the political system in California is corrupt. It knew exactly what it was doing, it knew that it was not sustainable, and it is now demanding a federal bailout.

No bailouts. We should not be paying off crooks and thieves out of pity for the mess they knowingly created.

Write down California’s public employee pensions to whatever level is actuarily sustainable. If that means cutting them by 50 percent, so be it. California public employees will still be getting a better pension than most of the serfs whose taxes are paying for their inflated salaries and benefits.

[Steely Tom]

Lake Berryessa!

[SKI NOW]

. Although ostensibly meant to protect employees, the law was instead a massive gift to unions. This is because the law effectively made it impossible for companies both inside and inside of California to employ independent contractors.

And the number one reason was to make sure independent contractors weren't falling through the tax crack.

[SierraWasp]

Bingo!!!

[A_Former_Democrat]

Are you The Zodiac?

[setter]

“California public employees’ pensions are insanely bloated”

Not just CA. MY wifes family are 90% firefighters in Ohio-nepotism at its finest.

Her cousin few years back retired as Fire Chief at 130,000 per year pension. He is 56 or 57. He just started another job for the state in arson control $90k per year.

The coward cop in Parklands retirement was 110k per year

[Intar]

I work routinely with law enforcement investigators here in Kommifornia and they all brag about the fact that they can retire with a full pension then move to another municipality or to a state position and collect a double or even triple pension after just a few years on the new job. These loopholes need to be plugged.

[setter]

Teachers do the same thing. Retire at age 53 then go teach at another school.

Gov’t employees should have to work until age 62 before collecting pension.

[Rebelbase]

“I am waiting to see what happens to public employees’ pensions.”

Wailing and gnashing of teeth!

[CodeToad]

Perfect.

[SunkenCiv]

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• Uber Eats Start Free Delivery From Black-Owned Restaurants [2020]
• CA Senator to Unemployed Freelancers Begging to Work: You're Upset Because We Took Away Your "Lollipops" [2020]
• EXCLUSIVE: 'Today will be your last working day with Uber.' Watch as choked up executive tells 3,500 rideshare employees they are being laid off effective immediately over a three-minute ZOOM call [2020]
• Uber layoffs, following Lyft, Airbnb, add to SF economic pain [2020]
• 'Republican AOC' Laura Loomer gains steam in congressional run [2020]
• Uber Driver Who Stopped Working to Avoid Coronavirus Dies from Disease [2020]
• California Runs Off the Road. The new state labor law AB5 is causing trouble far and wide. [2020]
• Workers Resist California's Newest Bad Law [2020]
• [early Biden rally] Uber Eats driver, 46, 'kicked to death by gang' while protecting moped outside cafe [2019]
• Orange County Sheriff's deputy arrested after pulling gun on Lyft driver, agency says [2019]
• Rep. Dan Crenshaw: 'Republicans are the party of Uber' [2019]
• Uber/Lyft Driving is facing big changes in California [2019]
• Uber will refuse to comply with new California law requiring them to reclassify [tr] [2019]
• California passes landmark bill that threatens to upend companies like Uber and Lyft [2019]
• War on the Gig Economy: California Prepares To Vote On Killing Off Uber, Lyft [2019]
• So how do I do this? (red-flag vanity)(Red Flag laws) [2019]
• This City Just Voted to Give Minimum Wage of $30 to Uber and Lyft drivers [2019]
• California Assembly votes to tighten rules on contractors [2019]
• Driving Up Wages - Women and Uber [2018]
• DC Is Tired of Lyft and Uber Being Better Than Its Awful Metro [2018]
• Get woke, go broke: Uber Executive Calls On White Men To 'Make Noise' About Diversity [2018]
• Women Uber Drivers Earn Less Than Men, But Discrimination Isn't to Blame [2018]
• Uber's C.E.O. Plays With Fire [2017]
• Passenger From Hell Threatens to Accuse Uber Driver of Rape [2017]
• Uber president Jeff Jones is quitting as management turmoil at the ride-hailing company deepens [2017]
• 'Medallion' Bubble Burts Around The World (Taxicabs) [2017]
• Trump Transition Brings Good News for "Gig Economy" Employers, But Dramatic Change May Be Unlikely [2017]
• Cops Say Uber Driver Saved Passenger, 16, from Sex Trafficking: 'I Knew What Was Happening' [2016]
• Uber pulls self-driving cars from San Francisco streets, bowing to regulators' demands [2016]
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• Hollywood Comedian Slaps Uber Driver After Learning He Voted For Trump [2016]
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• Human Smugglers Hail Uber Drivers to Take Migrants to U.S.-Mexico Border [2016]
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• Could Uber Drive Young People Into The Arms Of The GOP? [2016]
• The Many Benefits of Ridesharing [2016]
• Shattuck: It's finally time to kick cabs to the curb for good [2016]
• California's war on private business is getting even worse [2016]
• San Francisco to Require Uber, Lyft Drivers to Obtain Business Licenses [2016]
• The Sharing Economy Is Not Ready For Hillary [2016]
• Bernie Sanders says Uber's employees are treated unfairly, so why does his campaign use Uber... [2016]
• Bernie Sanders Bashes Uber, Uses It For All His Taxi Rides [2016]
• Older Drivers Hit the Road for Uber and Lyft: How retirees are augmenting retirement income [2016]
• Taxi, Uber Black drivers block streets in protest of Uber X, Lyft [Article and Videos] [2015]
• Almost No More White NYC Cab Drivers, but Blacks Still Can't Catch a Ride? [2015]
• Despite Opponents' Attacks, Uber is Just What Americans Need [2015]
• Anti-Liberty Politicians [2015]
• How Driving for Uber lets me live the American dream [2015]
• Sorry, taxis. Uber's popularity is about more than cheaper fares [2015]
• Memo to Hillary: Uber Is Good For Low-Income Families [2015]
• Uber Shows How Free Markets, Not Regulations, Protect Consumers [2015]
• Uber Shows How Free Markets, Not Regulations, Protect Consumers [2015]
• UBER AND THE STRUGGLE FOR ECONOMIC LIBERTY: The people vs. government-created monopolies. [2015]
• The War on Uber [2015]
• Uber's California dreamin' turns into a nightmare [2015]
• It's All About Uber! Not. [2015]
• A Possible Uber Setback for Ride-sharing in California [2015]
• Former cabbie switches to Uber [2015]
• Uber for benefits: An idea that could transform America's economy [2015]
• To Improve Street Safety, San Francisco Bans Cars From Turning [2015]
• California Says Uber Driver Is Employee, Not a Contractor [2015]
• Uber Driver Deemed Employee By California Labor Commission [2015]
• Uber drivers are employees, not contractors: California Labor Commission [2015]
• Waiters No More: Unemployed Actors Now Drive Ubers [2014]
• Uber Vs. The Status Quo [2014]
• Hands off My Sharing Economy [2014]
• The "Sharing Economy": Will Americans Embrace The Entrepreneurial Revival? [2014]
• Try It, You'll Like It, Or: Economics for Beginners [2014]
• Rideshare Apps Prove to be Economic Boon for National and Local Economies [2014]

  ---

• Under Fire for Sexual Harassment and Gender Bias, Uber Hires Eric Holder [2017]
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• Ethics Board Fines Obama Campaign Manager $90K for Uber Lobbying [2017]
• Former Obama Aide Fined $90,000.00 for Illegal Lobbying [2017]
• Uber CEO leaves Trump advisory council [2017]
• Uber Offers To Pay Illegal Immigrants' Lost Wages Because Of Trump Policies [2017]
• Thanks to Trump ties, #DeleteUber campaign grows on social media [2017]
• Uber customers lash out at ride sharing service amid anti-travel ban (snowflakes boycotting UBER) [2017]
• Eric Holder: Fingerprinting Is Racist (What A Moron!!!) [2016]
• Uber and Lyft will leave Austin, TX after losing vote on fingerprinting [2016]

  ---

• The Amish Uber? Michigan Man Starts His Own Horse and Buggy Service [2018]
• Michigan Legislature Passes Sensible Transportation Reforms [2016]
• Michigan Considers Freeing Up Uber and Taxis [2016]
• In Michigan, Uber Operates in a Legal Gray Area -- These Bills Would Change That [2016]
• Ann Arbor Uber Crackdown Illustrates Need for Statewide Ridesharing Framework [2016]
• Why Is Uber Under Attack After The Kalamazoo, Mich., Shootings? [2016]
• Kalamazoo Shootings: 6 Dead, 2 Wounded After 'Random' Shootings in Michigan [2016]
• One Step Toward 'Reinventing' Michigan [2014]
• Michigan Bill Could Give Ride-Sharing an Uber Lift [2014]

[ConservativeInPA]

California is doing much worse that driving out another business. In essence what they have done is pick winners and losers. That is not just Uber and Lyft being the losers, but just as importantly the little guy driving his car, paying his expenses and trying to earn a profit. Look upon them as small businesses that happen to be outsourcing market and sales to Uber. California's decision leads to an entire list of problems.

1.) At the macro-level it is a deterrent to all businesses looking to operate in CA. Business owners must wonder are they to be chosen as a winner or a loser in the future. The only way to insure that you are a winner is that you pay lobbyists, who in turn pay off politicians. Effectively this is a protection racket being run by government. It is worse that the old mafia's protection racket because the mob never had the force of law, as in legislation, on their side.

2.) This decision deters entrepreneurship. Risk is at the heart of entrepreneurial endeavors. The magnitude can always be measured on the personal level. There is an opportunity cost associated with business decisions. You must forego something when deciding on another. The little Uber driver is an entrepreneur, running his own business. He made decisions to not do something to be an Uber driver. He may have left a job for instance. Choices such as these have consequences, and now everyone involved is feeling the pain because of something they could not control. Uber, the company, is an entrepreneurial endeavor itself. It created a new business model. While ride services are not sexy, Uber chose that line of business over others. They took investor's money to develop business in CA. And now those who used their hard earned capital to invest in an entrepreneurial venture will feel the pain, or perhaps not achieve as high of an ROI that could have been possible. This is through no fault of their own. The bottom line, CA messed with people's personal choices and now the people have to feel the pain. Which leads to:

3.) CA's decision deters investment.

4.) While my personal assessment of making money in the gig economy is rather negative, I have recognized through my daughter's friends that it is about much more than making money. If taken seriously, it is running a small business. This is perhaps the most valuable thing that Uber and Lyft offer drivers. It's an education in business. There are fundamental lessons that can be learned and latter applied to other business startups. This is another play on stifling entrepreneurship, but in a different manner. It takes away very valuable learning experiences. Fewer people will have the experience of failure, or maybe success, that aids in starting a new business. Failure in my estimation is probably more important that success. Bottom line, this means fewer small businesses in CA because one of the avenues to gaining experience to start a business is now gone. This also means fewer businesses in the future that would hire employees. Read that as unemployment.

5.) Another problem with CA's decision is that it at it's core anti-competitive, which in turn is anti-capitalistic. In economic terms, pure competition relies on a.) many competitors b.) delivering a homogeneous product or service, with c.) perfect information (knowledge of supply/demand, prices, etc.) There is more to this, but I will spare you the econ lesson. What is important to know is that Uber and Lyft increased competition and that is a good thing. For years government sold concessions, licenses, etc. to taxi drivers/companies. Taxi companies had a monopoly or in some cases an oligopoly. CA's decision takes it right back to that. So besides being bad Econ 101, what impact does that have? After all, maybe some of those Uber drivers could drive taxi. The problem is government created monopolies that in turn delivered an inferior product at a controlled price - controlled by some government regulatory body. Bottom line, that is bad for consumers - they get an over-priced, piss poor product. Increased competition leads to better products and services, at better prices to meet the needs of more consumers. In this case, citizens of CA. They should be hopping mad, but I doubt they will be given their record of voting for the Rat bastards.

I feel it's important to point out the bright side of CA's decision. If you're a lazy ass government employee in CA you're still sitting pretty on the side that gets to pick winners and losers. (That is dripping with sarcasm for the slow folks, since so many don't have a sense of humor.)

[Sirius Lee]

I’m sure there’s a huge exception for H1B contractors.

[Alberta's Child]

California’s stupid law is a disgrace, but there’s really nothing “entrepreneurial” about an Uber driver. Uber is nothing more than an app for gypsy cabs, when you think about it. A real entrepreneur would build on this model or come up with an entirely new idea.

[Steely Tom]

I measure angles in radians.

[Deplorable American1776]

Oh no... Uber is leaving California! How will Liberals get food delivered... Maybe they'll starve to death becau se they don't know how to carry out... 😋