Wednesday, November 19, 2014

Our Anti-Business Pro-Business Conservatives

Josh Barro had a great column in the New York Times a couple of weeks ago about how schizophrenic the Republican party can seem about whether it is really the pro-business party or not. He cites the examples of Uber, and the attempt to prevent it from operating in Philadelphia, and of Tesla, which is opposed by the cartel of car dealers, since Tesla wants to sell directly to consumers. Here is the bottom line.
Anticompetitive business regulations are mostly imposed at the state and local level, and they usually have a strong built-in lobby: the owners of the businesses that are being shielded from competition.
The R.N.C. chairman, Reince Priebus, probably doesn’t get a lot of phone calls from taxi medallion owners, or car dealers, or other businesspeople who want to be insulated from competition.
But local politicians do; Republicans may be especially likely to hear from them because small business owners are a constituency that skews Republican.
As a result, in practice, it’s not clear Republicans are any more pro-market than Democrats when it comes to business regulation.
Now this is maybe not the best moment to to be touting Uber as a model unregulated small business, what with an executive seemingly power-mad over his ability to track his customers. But the bottom line stands. You either believe that competition lowers costs and improves services or you don't. If you do, you don't bring the government in every time an existing monopoly cries foul over a new entrant.

In the same vein, the Republican pro-business mantra doesn't seem to extend to the businesses that won't be able to sell their information services abroad if the rest of the world thinks they will just turn everything over to the US Government. In spite of the business arguments for the anti-surveillance USA Freedom Act, Republicans voted overwhelmingly against it. (Including Rand Paul, who, to give him credit, says he opposed the bill because it did not go far enough toward reining in the NSA.)

And the final example of the day is provided by George Leef in Forbes: Copyright Law Is Creating An Information Oligarchy, Not An Information Democracy. As Leef says,
Today, copyright does far more to create an information oligarchy than the robust information democracy the drafters of the Constitution and the first act had in mind.
I probably wouldn't go as far as Leef proposes in dismantling copyright completely, but it is so abused today that it's hard to argue we wouldn't be better off without it than with it under present law. Leef is at the John Pope Center for Higher Education Policy, where I have spoken in the past, a right-leaning education think-tank. I probably agree with what he writes no more than half the time, but he is onto something important here: it's insane how heavily copyright is wielded by the information monopolies to swat down the little guys, whose energies are supposed to be protected and encouraged by the party that allegedly so hates big government. Please explain to me how the progress of science and the useful arts is encouraged by a copyright term so long that Disney's original Steamboat Willie (aka Mickey Mouse) is still protected. (And it wasn't really original in the first place. It was based on an earlier cartoon, but that is a story for another day.)


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  2. There may be a pro/anti business issue for republicans soon.

    They are in favor of the Keystone pipeline, so pro big business.

    If the pipeline gets built it may require many eminent domain cases- where the government forces people (many of them small businessman or farmers) to sell their land. Anti-business and also pro-big-government.

    I'll be curious how that plays out.

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