In order to understand why California’s new Assembly Bill 5, (AB 5) is lousy you have to decipher who wins and who loses in the gig economy. If the losers are politically connected, it is logical that the losers will try to change the rules.
This is the downside of most government interventions. The goals of the “do-gooders” are overwhelmed by the special interests. Laws should be simple and have as little interference in the personal lives as possible.
The gig economy has provided opportunities for millions of Americans to make money. That’s not the same as having a “job” but that’s the point. Many gig workers have other jobs and many of the ones who don’t are in school or want to work part-time to make a little extra cash. Obviously, some of these people would like to have a different job which they can freely look for while doing gig work without any repercussions from an “employer” looking for loyalty or firm work hours.
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The response to the high wages demanded in low skill position was obvious.
Miso can offer Flippys (a robot for making food) to fast-food restaurant owners for an estimated $2,000 per month on a subscription basis, breaking down to about $3 per hour. (The actual cost will depend on customers’ specific needs). A human doing the same job costs $4,000 to $10,000 or more a month, depending on a restaurant’s hours and the local minimum wage. And robots never call in sick.
Sorry teenager trying to earn a few bucks to go to college, restaurants don’t need to hire you at the high wage that over-eager do-gooders are demanding.
The US Constitution defines three separate (and supposedly equal) branches of government:
Unfortunately, today we have a fourth branch of government:
- Administrative (or maybe called the Regulatory branch)
How did this happen?
The founders probably could not have anticipated this happening. In the day and age of the writing of the US Constitution, it was not anticipated that regulations would need to be created that were so specific that the Congressmen themselves could not write the words (or at least with the help of some assistants). Continue reading There is no fourth branch of the federal government
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