There’s just no way regulation can keep pace with innovation, and pols who think it can are living in a land of paleo-fantasy.Ridesharing giant Uber has come under heavy fire recently with a string of revelations about its safety record, collection of private data, and relationship with the media. If Uber did actually mislead its customers, it should certainly be held responsible. But Uber’s stature looms so large that its unique controversies also threaten to cast a shadow over the “sharing economy” as a whole.
The rapid rise of the sharing economy is changing the way people around the world commute, shop, vacation, and borrow. Services like Airbnb, Yelp, and yes, Uber are disrupting long-established industries, from taxis to hotels. In the process, the sharing economy is creating new opportunities for those looking for work, and offers consumers greater convenience, better prices, and higher quality.
You’d think that, despite the actions of a few individuals, policymakers would embrace this pro-consumer movement. Sadly, you’d be wrong.
The response to the sharing economy from many policymakers in the United States and abroad can be best described as “ban first, ask questions later.” Even in Las Vegas—a city where nearly anything goes—consumers are forbidden from taking advantage of the benefits that the sharing economy can bring in the form of Uber and Lyft. And now Portland, Los Angeles, and San Francisco are all suing Uber for refusing to play by their old regulatory playbooks.
Defenders of the status quo claim the old rules protect consumers. But it’s more likely the rules just protect established, politically connected interests. As we detail in a new study published by the Mercatus Center at George Mason University, consumers can benefit more from the sharing economy’s better service options than they can from one-size-fits-all “consumer protection” rules that end up doing very little to benefit consumers.
Being cautious about how we regulate doesn’t mean that bad actions go unpunished. When companies do bad things they ought to be held accountable for them. But civil and criminal laws are already on the books in all 50 states that give wronged persons the ability to seek recovery against those who are at fault.
http://www.thedailybeast.com/articles/2014/12/30/why-do-progressives-want-to-ban-uber-and-airbnb.html-----------------------------------------------------------------
A very strange parallel with Bitcoin.
