Tuesday, October 18, 2022

Inherently and inescapably reductive of national prosperity

From Biden’s plan to kill independent and gig work by Carol Roth.  They tried this in California with bad outcomes.  What's bad enough for California is, apparently, bad enough for the US.

A nice pocket profile economy:

For context, approximately 32.6 million American small businesses account for close to half of the economy and half the jobs in the U.S. This highly decentralized half of the economy represents economic freedom and requires a fair and equal playing field. In return, they provide that competition necessary to capitalism to balance out the other half of the economy that is highly concentrated in the hands of 20,000-plus big businesses.

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It is estimated that there are 57.3 million independent contractors, freelancers, and other “gig” workers currently in the U.S. These individuals, who come from all different demographic backgrounds and cover work specializations from caterers and film crews to writers and hairdressers, as well as your rideshare drivers, have myriad reasons for wanting to work independently.

A nation's prosperity is ultimately dependent on productivity.  You want to make things (land, labor, capital) faster to find, easier to use, and cheaper.  The more expensive, the harder to use, and the harder to find, the worse the economy will perform.

A proposition like this makes labor more expensive, harder to find, more scarce, and more regulated (read inefficient and bureaucratic).  It is inherently reductive of national prosperity.

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