I remember several years ago, Paul Krugman was in the UK debating a couple of conservatives on a television show there. At one point, Krugman said, “Well not everyone is going to start their own business.” And a female PM said, “Why not?” Krugman didn’t even respond because it was such a ridiculously stupid thing to say. But I noted at the time that if everyone went into business for themselves, there would be no businesses — just contractors everywhere. One can hardly imagine a more inefficient system. There would be no way to improve productivity by scaling up. But of course, conservatives like the idea of everyone starting their own business so they can label workers as less worthy than business owners.
But among a lot of younger computer types, this idea sounds great. A nation of contractors, that’s the ideal! But the laws of economics have not changed. Business management has not changed. But the public intellectual space has changed to allow the myth of contractors to be used by big businesses to take on none of the traditional responsibilities of having employees while at the same time not having to pay the large cost premium of actual contractors.
This, of course, is what is going on with companies like Uber and Lyft. The drivers are just small business people, not employees! As Michael Hiltzik put it last week, “That concept is so alluring, on the surface, that it has spread to house cleaners, launderers, delivery persons — you name it.” The California office of the labor commissioner found that Uber drivers are actually employees and not “independent contractors.”
This case has a special relevance to me. Right now, I’m working for a company out of London. I’ve never met the owner or my main contact. I get paid for work done, which I do on my own time frame using my own tools, working in my own office. I am, in other words, the very definition of an independent contractor. And I’m very happy with that. But I’ve had employers in the past who wanted to claim that I was an independent contractor. There are lots of reasons for this, but one of the biggest is to avoid costs like payroll tax contributions. But at the same time, they wanted to dictate how I dressed, when I worked, where I worked, and generally wanted to micromanage me. I was not an independent contractor in those cases, although I was often so desperate for work that I went along with it.
The commissioner’s office found that Uber was far too controlling of what its drivers did for them to be considered independent contractors. What’s more, it noted that Uber is wrong to say that it is just a technology company. If it weren’t for the drivers, it would have no business. But consider this: Uber requires that drivers pass a background check. How does that make any sense if all that Uber is doing is hooking up drivers and fairs? Well, of course, it doesn’t.
In another case, US District Judge Edward Chen noted, “Uber does not simply sell software; it sells rides. Uber is no more a ‘technology company’ than Yellow Cab is a ‘technology company’ because it uses CB radios to dispatch taxi cabs.” And that really does reveal the whole game. The only reason that Uber has been allowed to get away with its shenanigans is because the technology that it uses is newer than other technologies. But there is nothing new about what Uber is doing to maximize its profits.
Amazon was created just shy of 20 years ago. For most of that time, it did not collect any state sales tax. It still doesn’t collect sales taxes in 19 states that have them. And the one thing we all know is that Amazon’s profit margins are razor thin. So it has used this illegal subsidy for many years, destroying local book stores who could not get away without paying sales tax. In California, the sales tax is at least 7.5% and where I live it is 9.25%! How many local bookstores now gone would still be in business if they had been able to grab almost as much as 10% in profits off the top?

All this nonsense of the “sharing economy” and the “new economy” has to stop. We are not a nation of contractors. We are not a nation of people who only want to buy stuff online. We are pretty much the same as we’ve always been. It’s just that the rich and powerful are using new technologies to trick us into taking even more away from us.

Any connection between the massacre at the Emanuel AME Church and the Confederate flag is, of course, indirect. So don’t consider this article about that vile act. People have been talking about the Confederate flag and that’s a good thing. But I will repeat what I’ve said many times over the last several years: I hate the Confederate flag. As
But like I said, that was an arguable question 150 years ago. And that’s perhaps why the liberals of that time said to the south, “Welcome back!” There was no punishment. Even the President of the Confederacy — a man who under most circumstances would have been hanged along with many others — spent just two years in federal custody and then went on to have a successful life, dying rich and having a huge public funeral. This was the early version of Obama’s looking forward. And the conservatives responded to that the same way they responded to Obama’s mercy.
Brian Beutler wrote a very interesting take on, 


Donald Trump announced his run for the presidency last week. I am of the opinion that we should take him just as seriously as any of the other Republican presidential candidates. The only thing that he lacks is actual experience, which is also true of many of the Republicans running. He’s a deeply unserious person. But I don’t see how that sets him apart from the others. The Republican Party has decided to abandon any notion of leadership and to simply pander to its crazy (elite created) base. Trump is as good on that score as anyone else.
But there has been a bit of a dust up about the announcement. You see,
But the whole thing is such a great example of Donald Trump’s campaign. What is it that qualifies him to run for office? He’s rich. He can buy credibility just as easily as he can buy Neil Young’s song and pretend that it means the opposite of what it does. But it also speaks to Trump in the wider sense of Republican politicians. They are all so incredibly unhip, but they think they can trick the rest of us by talking about the NASCAR owners they know or surrounding themselves with music that you know they don’t listen to when they are alone.
On Sunday, I was with my dad at a
On this day last year, the last of Syria’s chemical weapons were shipped out for destruction. Also, on this day in 1180, the Genpei War started in Japan. Also, on this day in 1758, the British beat the French at Krefeld. Also, on this day in 1940, Hitler came to Paris to celebrate the fall of France. I could literally go on and on and on. In fact, today isn’t a particularly great day for war. But every day is a great day for war!
Well, dear readers, I have started a new job of sorts. It is freelance writing — technical stuff with no byline. And it seems like it is going to be consistent work. But it has been getting in the way of my constant stream of frankly curious wisdom. Not that you would notice, because I haven’t missed any scheduled articles yet. But right now it is 5:30 pm on Saturday and I am just starting to write the last article for tomorrow. [Update: this was originally scheduled for Sunday evening, but got pushed back. -FM] Normally, I’m a bit further ahead than that. In fact, I prefer to stay two days ahead. And I hope to get another half a day’s writing in by the time I go to sleep. I can do that because I have nothing that anyone would mistake for a life.