Who Regulates Uber?

I was singing the praises of Uber to Mrs. Knabe. She asked, "Who regulates Uber?" The short answer is no one, and everyone. The non-government regulation of Uber, in my opinion, is far more effective than the government regulation of taxi and livery services. 

I have never had a bad experience with Uber. I have had plenty of bad experiences with cabs. How can this be? How is it possible for Uber, with no government regulation, no agency protecting the consumer, to consistently provide a superior service to the regulated taxi service?

Technology in only part of the answer. With Uber, I rate each ride, and that data is used by Uber to control the quality of its service. But that's only part of the answer because the Taxi and Livery Commissions around the country could do the same thing if they wanted. The real answer is Uber is focused on providing a service that customers want and Taxi and Livery Commissions are focused on serving the owners of taxi medallions. If after a ride with Uber I was dissatisfied, I could instantaneously notify Uber. I could do the same with a cab, but I believe my complaint to Uber would be acted on and my complaint to the Taxi and Livery Commission would not have an impact.

It is not unique to Uber and taxis that regulation by consumers is more effective than the regulation of expert panels. Despite that, unfortunately, both the Left and Right want to rely on experts to manage a system instead of letting consumers punish poor service and reward good service.

Of course, the government is colluding with taxi and livery services to restrict Uber and others from entering the market. To protect consumers of course.

The Virginia Department of Motor Vehicles sent cease-and-desist orders Thursday to Lyft and Uber, telling the two taxi-like services they must stop operating in violation of state law or face fines against their drivers...

Along with the cease-and-desist orders, the DMV on Thursday told the public to research any ride service and learn about its insurance coverage, vehicle maintenance and driver screening process before using it. It pointed people to a list on its website at www.dmvNOW.com/knowyourride, where users can search for a company to see whether it is registered and insured under state regulations.

Neither Lyft nor Uber is on the approved list.

Source: http://hamptonroads.com/2014/06/virginia-dmv-orders-lyft-uber-stop-operating

  

Hillary For President!

I don't dislike Hillary. She's a dying breed on the Left:  A Moderate Democrat. But, she is a member of the party that inflicted Obamacare on the country and still defends that mistake. It will take special circumstances for me to vote for her.

A Hillary presidency may not be a bad thing, if she governs like her husband did from 1994 onwards. I think Bill was one of the greatest Republican President's of the 20th century, after, that is, the Republicans took over the House. From that time on he embraced free markets, de-regulation, a stable dollar, and fiscal rectitude. He governed successfully by being everything the current Democratic Party loathes, which is why I'm bemused by his current status in the party.

We will see if Hillary is pulled to the Left by the extremists that control the Democrats or if their fever breaks and she can run from the middle. If that occurs, she may win. And I may vote for her.

What Zero Lower Bound

There is a notion in economics that monetary policy is ineffective when interest rates approach zero. The theory posits, among other things, that interest rates can't fall below zero, and near the zero lower bound, there is nothing more the monetary authorities can do to stimulate the economy. The Fed's pursuit of quantitative easing, buying financial assets in the open market, contradicts the zero lower bound proponents, including most Keynesians and Krugram.

But in any case, what zero lower bound?

European Central Bank Cuts Deposit Rate to Negative The European Central Bank cut its benchmark interest rate to a record low on Thursday and, in an unprecedented attempt to stimulate the euro zone economy, said it would begin charging interest on deposits held by the bank. The so-called negative deposit rate has never been tried on such a large scale and is a bid to push down the value of the euro and encourage banks to invest excess cash rather than hoarding it in central bank vaults. The European Central Bank cut its benchmark interest rate to 0.15 percent from 0.25 percent, and the deposit rate to minus 0.10 percent from zero. Those actions had become all but certain after data earlier in the week showed that inflation in the euro zone fell to an annual rate of 0.5 percent in May, a level considered perilously low.

$12 Light Bulbs.

Light bulb prices have taken a sharp turn upward since the beginning of the year due to the Energy Independence and Security Act of 2007 , which in effect, elminates the incandescent light bulb in the US.

The purpose of the act was

To move the United States toward greater energy independence and security, to increase the production of clean renewable fuels, to protect consumers, to increase the efficiency of products, buildings, and vehicles, to promote research on and deploy greenhouse gas capture and storage options, and to improve the energy performance of the Federal Government, and for other purposes.

I don't know exactly how a $12 light bulb protects consumers, but maybe those in favor of this bill didn't imagine $12 light bulbs. The arguments forcing consumers to buy $12 light bulbs instead of $2 light bulbs are, to my mind, unconvincing, but $12 is what we shall pay.

To me it doesn't matter that much. Light bulbs are not a large part of my household budget; I'm fortunate in that respect. But light bulbs and energy costs are a much larger portion of the average family household budget, and for those just starting out, like my daughter and my son, every penny counts. Forcing them to pay an extra $10 for a light bulb is a hardship. That's $10 they won't be able to spend on food, clothing, entertainment, or 401-K. There is no stimulative effect of a $12 light bulb. It forces consumers to spend less on some items so they can spend more on light bulbs.

All of this crossed my mind as I listened to Gina McCarthy introduce the EPA's Clean Power Plan that calls for sharp reductions in carbon emissions from stationary power sources. In her impassioned introduction to the proposed regulations she asserted multiple times all the critics who previously predicted high prices and reduced economic activity from these type of laws and regulations were wrong.

Then I looked at the sign for the $12 light bulb and wondered if Ms. McCarthy has been to the grocery store recently to see how the government protects consumers.

The Selling of the President 1968

From "The Selling of the President 1968" by Joe McGinnis

Kevin Phillips, the “ethnic specialist,” was twenty-seven years old, pale and dour…

“Essentially what I do is determine what blocs can be moved in what states by what approach,” he said. “'Group susceptibility' I call it.

"For instance, in Wisconsin you have Germans and you have Scandinavians, and the two groups respond to very different things. First, we determine where the groups are and then we decide how to reach them. What radio station each listens to, and so forth.

Sounds like the Obama campaigns except substitute Facebook and Twitter for radio and add special interest, gender, and race to ethnic groups. Yes, I did just compare the Obama campaign to the Nixon campaign.

I'm so Bored with the Inequality Debate

My daughter last night was frustrated others in her class didn't study as much as she did and got the same or better grades. I told her not to worry, the do-gooders in the world were going to eliminate inequality. All would be well.

I'm so bored with this debate. It's dishonest, trivial or inane. Often all three simultaneously.

10 Questions Libertarians Can’t Answer, and Hope You Won’t Ask!

10 Questions Libertarians Can’t Answer, and Hope You Won’t Ask!

A Sample:

1. Which Koch brother has more authority over you? We all know libertarians take their orders from the Koch brothers, and that libertarian intellectuals are just hired guns for the Kochs. But what if the Kochs disagree? With whom must they side, Charles or David? Is it just the high bidder?

and

6. How could a libertarian society produce new generations? Libertarianism is a philosophy only for old white males. But while old white males can certainly have sex with one another, they can’t reproduce without a woman. So, how could a libertarian society possibly be successful over time, without any women?