Category Archives: Government Regulation

Why Trump’s Message Resonates With Working-Class Voters

working class Trump supporters

This is the tl;dr version of my contribution to the TLP Round Table on Donald Trump’s rise to the status of presumptive Republican nominee.

Various motivations for Trump’s popularity have been posited over the course of the election cycle. Tribalism and xenophobia. Social order authoritarianism. Anger at the establishment. Anti-PC backlash. A yen for creative destruction.

I even have some sympathy for that last one. What is the point of preserving a GOP that has failed so resoundingly to deliver on the promise of limited government? Why not blow on the tiny orange flame of a Trump-match and see if it catches fire? Some wildfires make the ecosystem stronger.

But that is not my point here. There is another faction of Trump support, which has been overlooked amid all the self-righteous indictment of his surprising success. That faction consists of working class voters who spend their lives on the financial brink, who could not come up with $400 to face an emergency, but who, as a result of the statist, two-party-dominated system, cannot escape the inevitability of big government.

We advocates of free markets too often fail to explain, cogently, why free trade and voluntary exchanges deliver the best outcomes for the most people. We fail to explain why it is not just big corporations, businesses and entrepreneurs that get hurt by government interventions into the free market—but also the workers. And when those workers complain about the various ways in which they struggle to make ends meet, we too often dismiss it as a deficiency of effort, rather than a legitimate complaint against the system.

This makes no sense. We know better. We know that over-regulation, barriers to entry, excessive government spending, crony capitalism, and welfare for the rich are all bad for the economy and particularly bad for workers. We know these policies cause work to be less remunerative and hit poor people the hardest.

Why then, when they complain, do so many of us respond by dismissing them as lazy, unmotivated, unproductive and entitled? We should be capitalizing on their complaints. They are incontrovertibly legitimate.

The Mercatus Center at George Mason University recently published a study estimating that regulatory drag has stunted the size of the U.S. economy and made Americans significantly poorer than they would otherwise be. Their numbers, while shocking, seem woefully inadequate to reflect the true costs working people pay for intrusive government.

Through “subsidies,” regulations and entitlements, government intervention into the market drives up prices-relative-to-incomes on most of the things consumers need most. Housing, education, and healthcare all far outpace inflation. Meanwhile, government consumes 36% of GDP, and on everything from contact lenses to gasoline to occupational licensing, Americans must pay more while struggling to participate in a system that is rigged against their efforts.

It is simply not possible to sell people on the wealth potential of a free market while castigating them for failing to succeed in a system that requires hundreds of hours and thousands of dollars to get the mandatory license for a job washing hair.

In that regard, the Democrats have a point (incomplete and poorly made, to be sure) when they say, “you didn’t build that” or, “you’ve also been lucky.” Would-be business owners pay their extorted dues to the government-backed bureaucracy. In return, they are protected from competition by various barriers to entry, government-enforced monopolies, tax-payer funded subsidies, and other massive transfers of wealth from taxpayers to the favored recipients of government largesse. It makes a certain twisted sense to demand more compensation in proportion to their success.

One of these men understands how money and economies function. He led a grassroots movement that motivated millions of young voters. In response, the GOP changed its rules to keep him from gaining traction. The other one is the new face of the Republican Party.

One of these men understands how money and economies function. He led a grassroots movement that motivated millions of young voters. In response, the GOP changed its rules to keep him from gaining traction. The other one is the new face of the Republican Party.

Don’t like it? Great. I don’t either. Let’s repeal the barriers to entry, the legal monopolies, the government grants and below-market loans. Let’s get rid of the regulations and the occupational licensing, the mandated dues and the bureaucratic red tape and all the other bullshit.

This is, in fact, what we put Republicans in the House and Senate to do.

Yet over and over and over again, with a few principled exceptions (e.g., Rand Paul, Justin Amash, Thomas Massie, and, yes, Ted Cruz), Republicans have broken their word, expanded government, and asked us to be patient while they focus on getting reelected.

Revealing the true direction of their priorities, the GOP establishment acted to keep Ron Paul supporters from gaining traction in their ranks. The liberty movement has not died as a result, but it may have left the party. Inside the GOP, it has been replaced by an orange-faced baboon leading an army of alt-righters shouting “cuck” repetitively as they rock back and forth in fear of outside stimulation.

I will not deny a certain satisfying schadenfreude at that turn of events. And there is value in knowing such a cancer festers on the right. But there is equal value in understanding that Trump would not be succeeding on their support alone. He is also propelled by a significant faction of working-class voters desperate for better jobs, a stronger economy, and higher purchasing power.

Sanders is right about a lot of problems, wrong about the solutions. Sanders supporters who can understand the distinction may be an untapped area of future liberty votes.

Sanders supporters may be an untapped area of future liberty votes.

In that regard, Trump’s message resonates with voters on the right for some of the same reasons Bernie Sanders’ message resonates on the left. If big government, high taxes, and crony capitalism are inevitable – because neither of the viable parties intends to do much about them – why not use one’s vote to fight for a bigger piece of the stunted pie? Trump at least pays lip service to the struggle. He promises jobs and protectionism, a reprieve from debt and stagnation.

Of course I know he will not deliver. Trump’s “solutions” will further hurt working class people, by driving up prices and contracting the size of the economy.

Trump is Sanders in orange-face.

The point is, if a liberty-movement aims to rise from the ashes of the Trump-fire, it must speak to the struggles motivating voter support for these two surprise candidates. It must explain why no amount of further tinkering will alleviate the real pain that government intrusions into the economy cause to real people, why the only solution is to unwind those intrusions in the first instance.

Then it needs to actually deliver.

Sarah Baker is a libertarian, attorney and writer. She lives in Montana with her daughter and a house full of pets.

Want To Bring Jobs Back To America? Cut Taxes And Regulations


Originally published at The New Minutemen.

Demagogues like Donald Trump and Bernie Sanders are campaigning based on the promise to bring jobs back to America. Both blame others (Trump blames foreigners and Sanders blames the rich) for the plight of the middle class. Like many demagogues before them, both men are drawing much support.

However, neither demagogue points out the real reason why companies won’t bring jobs back to America. The country’s tax and regulatory structure is internationally uncompetitive and strangling of small businesses.

The U.S. income tax code is complicated and is harming economic growth. It is in dire need of reform, especially since it is what most small businesses pay. We need to move away from using it to punish financial success or for social engineering and simply use it to collect revenue. It needs to be easy to understand, with few deductions, and fair.

The corporate tax code is even more of a disaster. The U.S. has the second highest rate in the world at 40% (35% Federal rate + average of states.) Our economic competitors have corporate rates that are much lower. If given a choice, corporations are going to head overseas because the tax costs are much lower.

What America needs is tax and regulatory reform, not cheap demagoguery. What I propose is simple, reduce corporate and income tax rates down to 17% and make it flat. The first $5,000 is taxed 17% so that everyone will have the skin in the game. After that, the next $5,001-$55,000 is tax-free. Then every penny over $55,000 is taxed 17%.

Not just taxes need to be addressed, but also regulations. Thankfully, there’s already a piece of legislation already designed to help on that front. The REINS Act needs to be passed into law. This would require Congress to vote on each proposed regulation that has an economic impact of $100 million or more.

If we fix America’s tax and regulatory code, the jobs will come back because it will be less expensive for companies to do business in America. That goes for both big and small businesses.

But you won’t hear this from the demagogues Trump and Sanders because both men are big government statists. To get America moving, let’s stop listening to these two and shrink the size of government. Only then will companies bring jobs back to America.

I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at The and Rare. You can also find me over at the R Street Institute.

Sorry To Disappoint, But Getting Government Out Of Marriage Is A Fantasy


In the wake of the Supreme Court’s decision making gay marriage legal in all 50 states, the rally cry of many libertarians and conservatives is to get government out of marriage. Presidential candidate and Kentucky Senator Rand Paul wrote an op-ed suggesting just that. While that’s a tempting proposition, it’s probably not possible without a major overhaul of everything from government benefits to nearly the entire civil and family legal code.

Let’s start on the Federal level. The Christian Science Monitor had an article that describes all the various benefits and rights that are granted as a result of marital status.

The sheer volume of benefits offered to married Americans may make it difficult for the United States to disentangle itself from the “marriage business.” In the US, there are 1,138 benefits, rights and protections granted under legal marital status, based on federal law, according to the Human Rights Campaign. Benefits of marriage extend to areas of Social Security, tax law, immigration, employee benefits for federal workers, and health coverage to name a few.

Unless we repeal or modify every single one of these programs and rights, simply eliminating marriage will create new legal nightmares.

Jason Kuznicki of the Cato Institute found that while decoupling the Federal tax code from marriage is a good idea, there are many aspects of marriage related law that serve a valuable function in a free society. Among those are:

  • Ability to sponsor spouses for immigration visas.
  • The presumption of legitimacy that make child custody matters much easier for married couples.

When you look at the state and local level, the argument for “getting government out of marriage” falls apart even more. Here are just some of the other benefits and rights that marriage provides:

  • Spousal immunity from giving testimony against each other.
  • Enrollment on a spouse’s insurance plan and other benefits.
  • Automatic right of visitation in a hospital or the right to make medical decisions as next of kin.
  • Can be held responsible for spouse’s debt.
  • Right of automatic inheritance if spouse dies.
  • The right to file joint petitions for adoption.

To get “government out of marriage” is a fantasy because it takes away an efficient way to handle civil and family matters. However, there is an alternative that libertarians and conservatives can support, which is a separation of civil and religious marriage. All references to “marriage” in the law can and should be replaced with “civil marriage.”

For legal purposes, only a civil marriage is required to access the spousal benefits and rights. That is granted by a marriage license issued by state governments and all that is simply signing a piece of paper and having it signed off on. All the state is doing is recording the marriage. It is not passing judgment on the wisdom of the ceremony. If they want an actual ceremony, they can pay more money for one.

A religious marriage is simply what it sounds like, a marriage performed by a minister or clergy and not merely signed off on by a bureaucrat. Those could be done by combining the religious ceremony and the minister signs off on it, just as done today or it can be done outside the religious ceremony.

Since it is impossible to “get government out of marriage”, libertarians and conservatives should concentrate on separating civil marriage from religious marriage.

I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at The and Rare. You can also find me over at the R Street Institute.

Louisiville Should Find Way To Accomodate Home-Sharing


Published originally at the R Street Institute’s blog:

The growth of the popular home-sharing website Airbnb over the past few years has engendered opposition in some quarters. Most recently, Louisville, Ky. is the latest city to try and essentially ban the service.

Airbnb allows homeowners to rent out a spare room, a couch or even an entire house on a short-term basis to travelers. Hotels and the rest of the lodging industry don’t like it because, in many cases, Airbnb rentals are priced cheaper than hotel rooms on a per-night basis.

Louisville says that property owners who rent their properties on Airbnb are essentially operating illegal hotels. According to The Courier-Journal, owners who don’t stop renting out their properties on Airbnb could be subject to fines of as much as $500 a day.

Read more here


I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at The and Rare. You can also find me over at the R Street Institute.

No-one Should Be Forced to Join a Union Against Their Will…


From Reuters:

Wisconsin Senate approves right-to-work bill, sends to state Assembly


(Reuters) –

The Wisconsin Senate narrowly approved a “right-to-work” bill on Wednesday that would bar private-sector employees who work under union-negotiated contracts from being required to join their unions or pay them dues.



The bill, which would make Wisconsin the 25th U.S. state with a right-to-work law on the books, cleared the Republican-led Senate on a 17-15 vote following hours of debate marked by periodic angry shouts from opponents in the Senate gallery.



Supporters of organized labor chanted “Shame!” as the legislation was passed and sent for further consideration to the state Assembly, where Republicans also hold a majority.



One Republican senator, Jerry Petrowski, broke with his party and joined all 14 Democrats in the chamber in voting against the measure.



Wisconsin Governor Scott Walker, a possible Republican presidential hopeful, is expected to sign the bill if it reaches his desk.

Walker drew accolades from conservatives across the nation in 2011 when he ushered through legislation curtailing the powers of most public-sector unions in Wisconsin amid large protests at the state capitol in Madison.



Supporters of the right-to-work measure contend it could attract more businesses to the Midwestern state.

“I think this is something that is going to have a direct impact on the manufacturing sector in Wisconsin,” Senate Republican leader Scott Fitzgerald said after the vote.



Opponents cast the bill as an assault on organized labor and blue-collar workers that would limit union revenues.

“They are evaporating the middle class, and no one in this room seems to care,” Senator Dave Hansen, a Democrat, said during the floor debate.

So ignore the rather clearly biased language in the piece and video linked above, if you bother clicking through and reading it… If you’ve seen one piece about the subject, you’ve pretty much seen them all, and this one is no different.

Wisconsin is debating “Right to Work” legislation in house committee right now, after passing in the senate. A right to work measure (which may or may not be substantially identical to the one passed by the senate) is likely to pass the house as well, and governor (and likely Republican presidential candidate) Scott Walker is likely to sign it.

As per usual, leftists are up in arms about anything that might favor individuals over organized labor…”Anti-worker, anti-poor, anti-little guy, anti-union, destroying the middle class, 1% evil” etc… etc…


Can someone tell me how making it illegal to force someone who doesn’t want to join a union, to join a union… is anti-union?

That’s all “right to work” means… You can’t be forced to join a union if you don’t want to, and employers can’t be forced by the government to recognize or deal with a particular union if they don’t want to.

The “right to work”, is simply the right to freely associate and form contracts as we choose, which is supposed to be a right guaranteed us in this country (of course, so often it is not… but that’s another issue entirely).

Wait… What? Unions can force people to join who don’t want to?

Yes, they can, and they do.

Most people don’t know this, but in 26 states, unions are given special powers and privileges by the government, which you as in individual, or a private company or other organization would not have.

One of these, is that you can be forced to join a union against your will, if you want to get a job in a particular industry, or at a particular employer, or to keep your job at an employer after a union comes in.

Worse, in some states, you can opt out of the union, but even if you do, the union can still take dues straight out of your paycheck against your will, as if you were a member. They can also negotiate for you against your will, and set the terms and conditions under which you work, against your will.

Of course, since you aren’t a member, even though they’re taking your money and controlling your job, you don’t get to vote in the union, control its decisions in any way, or get any of the benefits of membership. The union gets your money, and all the benefit as if you were a member, without actually having to be accountable to you at all. And there’s nothing you can do or say about it.

Oh and the union can then do things like use that money to get politicians you oppose elected, get legislation you oppose passed, and change the terms and conditions of your employment against your will, without your approval or consent.

In those same 26 states (as well as federally in some cases), employers can be forced to recognize and negotiate with a union, even if they don’t want to. In fact, even if the union doesn’t actually represent their employees in some cases, or only 50.01% of their employees decide that a particular union will represent them.

“Right to Work”, is about ending some of those, frankly insane, conditions that unions operate under.

… Or at least that’s what it’s supposed to be about… It doesn’t always end up that way, because politics is what it is, so you have to be careful and pay attention to the details…

In “right to work” states, unions are still free to form, recruit members, and to collectively bargain in those members interests with employers. Workers are still free to join unions. Employers are still free to negotiate terms and contracts with the union, and if the employers don’t want to negotiate, unions are still free to use the power of their membership to make the employer negotiate through strikes, work stoppages and slow downs, and other organized labor actions.

The only difference, is that the union just can’t FORCE anyone to join the union, or force employers to negotiate with the union, or get the government to do it for them.

Why is this a bad thing?

It isn’t. Straight up, it isn’t.

It’s not bad for employees, it’s not bad for employers, it’s not actually bad for the unions if the unions are doing what they’re supposed to be doing, It’s not bad for consumers who consume the goods and services these employers provide.

In fact, in reducing union overreach to whatever extent it may (probably not too much, but one can hope), and in reducing the overall cost of doing business in the state of Wisconsin, it’s likely to benefit consumers with lower prices, and potentially with more business and more jobs in the state

This doesn’t always work out… It has generally done so in relatively business friendly states like Tennessee, North and South Carolina, Georgia, Alabama (I said relatively… relative to Illinois, New York, Wisconsin etc..). In those states, which are right to work, non union manufacturing has generally done well, in some cases even boomed. Not only that, but wages have substantially increased in those areas, not crashed as predicted by unions.

Right to work has not had as positive an impact in say, Indiana, or Michigan (yes, Michigan has been right to work since 2012… and yes, organized labor is still having a collective fit over that fact), which are comparatively less business friendly, higher tax, higher regulatory burden, and higher cost of living. In fact, mostly, companies have used the change in status to help them get rid of legacy contracts which were burdening their bottom lines, and then move to other states.

That however isn’t really the fault of right to work… it’s the decades of anti-business regulation and being forced to accept bad union contracts (and to be fair, decades of bad management as well).

Overall, right to work in and of itself is not a negative for anyone… well… except two groups.

The only parties it’s bad for, are union officials, and the politicians they’re in bed with). The officials depend on the politicians to pass legislation that favors the union officials, in exchange the politicians depend on the officials for large donations, and the use of their organization for street level politics (campaign volunteers, donor lists, call lists, phone rooms, rally fillers, doorbell ringers etc…). Without the forced membership and dues, the union officials don’t have as much money to donate to those politicians in exchange for favors, nor as many warm bodies to throw at their campaigns.

Also, if people can leave the union at will, it means that those officials have to watch their steps, and actually be accountable to union members…. Unfortunately something which has proven to rarely be the case today.

Leaving aside the corruption angle, and even the economics of it…

Does “right to work” reduce unions power? Potentially yes, if people don’t want to join, or want to quit the union.

However, I don’t see that as a bad thing. Why would that be a bad thing?

If people don’t want to be members of the union, why should the union get more power? Or any power at all?

Shouldn’t a union get it’s power from the strength of it’s membership, who support it, and in turn are supported by it? Shouldn’t a union attract and retain members because they are effective at doing so?

If they can’t do that… why should the union exist at all?

If they CAN do that, then why do they need the government to force people to join, and force companies to negotiate with them exclusively?

If the unions actually do what they’re supposed to do, and what they say they do… Why is this even an issue?

Right… thought so… 

Here’s the thing though… Even if it were a provable economic net negative, that actually did harm jobs and wages, and even if all of the horrible terrible no good very bad things unions and democrats claim of right to work were true…

…I would still be in favor of right to work.


It’s a question of individual rights

I generally favor right to work, because I’m in favor of fundamental individual rights, including, but definitely not limited to: freedom of conscience, freedom of association, freedom of self determination, the right to private property, the right to the fruits of ones labors, and the freedom to make contract as one sees fit.

I generally support right to work legislation, presuming that’s what it really is (as with all legislation, what it claims to be, is often nothing to do with what it is, so pay attention to the details), because no-one should be forced to join any organization against their will (even if it’s absolutely for their own good), and no organization should have the right to control others in the way unions do, without those persons consent (even if doing so is to those persons benefit). It really is that simple.

For that matter, in general, I oppose involuntary collectivism, and preventing involuntary collectivism is what “right to work” is supposed to be about.

I’m all for voluntary collectivism… absolutely 100%. If you agree and consent to be a part of a group, and to take action as part of that group, or be represented by that group, great. More power to you, and to them.

In fact, I’m all for unions. I think collective bargaining is a wonderful and powerful tool, and I wish more people across more industries and market segments would take advantage of it.

An aside… I’m not just blowing theoretical smoke here. I’ve got a personal stake in this, both as a matter of principal, and as a practical matter in my own profession.

The level of worker exploitation, and in general negative, harmful, and just plain stupid labor practices in information technology, my chosen profession, is absolutely despicable.

Employers routinely extract far more labor from employees than they are paying for, or than that is reasonable for employees quality of life or professional development; while at the same time deliberately suppressing those employees wages, and denying them opportunities for improvement or advancement.

… and we allow them to do this. We accept it, because we don’t believe we have the power to change it, or we feel too insecure to do so.

The only way these conditions are going to change, is if they obviously  and clearly no longer work to increase profits or improve stock prices.

Actually, it’s been repeatedly and conclusively proven they not only don’t help, but they substantially harm organizations, including their bottom lines… but execs still love them because the stock market loves them (That’s another issue entirely)

That being the case, the only way needed change is going to happen, is if enough of us in the profession stop accepting these conditions, and do something about them.

A company can’t be pumping its stock prices, if it doesn’t have anyone keeping it’s computers and networks operational…. or at least not for more than a few weeks. 



Stop working for companies that use these practices. Insist on being paid for our time. or in receiving compensatory time off. Report companies for labor law violations, and make sure the laws are properly and evenly applied, through the use of the media and political pressure (I think most labor laws are horrible and stupid and shouldn’t exist, but so long as they do, the greater tyranny is that they are applied capriciously and unevenly based on political whim, and lobbying).

Most importantly, as managers, leaders, and thought leaders in the industry, don’t allow and accept these practices in your own organization. When they pop up… and they will.. gather together, and pound them into the dust before they can take over.

One of the more effective ways we could do all of that, is with collective bargaining, and collective and consistent messaging to the media, and politicians (though sadly, I don’t think it’s likely to happen any time soon). Not necessarily a union, but some type of voluntary collective organization to increase our negotiation power and leverage, and help to prevent things like companies requiring hundreds of hours of uncompensated overtime.

If enough of  us act… whether collectively or as individuals, we can force changes. Without enough of us acting in concert, we can’t… And if we can’t, we’re left depending on the government to “fix” things… and you know how I feel about that. 

It’s when you take that choice away by force, that I have issues. Forced unionization is never OK… and that includes “democratic” forced unionization.

Just because you got a few dozen of your friends together and you all voted to give you the “right” to control everyone else, doesn’t actually give you the right to control everyone else. Even if there’s 50 million of you, and 1 of everyone else. Otherwise, there are no individual rights, only privileges and entitlements dispensed by the will of the majority. That’s no less tyranny than a dictatorship of one man… and in some ways is a greater one.

“Oh, but democracy is great. It’s the will of the majority, so you just have to go along”

Right… because giving more control over your life to everyone else is always a great idea, especially when jobs and money are at stake.

Giving your coworkers a vote on how much you can make, how much you can get paid per hour and how much of a raise you can get when, how many hours you can work, what tasks you can do, how you can do them, whether or not you can be promoted and when…

…Actually, often a veto, not just a vote…

And people like this idea why?

No thanks. Not up for that.

I have no problem with unions, in fact I think they’re great in theory, and I’d like to see a lot more of them, a lot more active, doing what they are supposed to be doing…

So long As:

1. Participation (including fees or dues) is voluntary
2. They are not given special privileges or powers over individuals or employers by the government
3. Individuals and employers are free to negotiate and form contracts outside the union
4. The union cannot set the wages, benefits, conditions and terms of employment, and working conditions; for individuals or employers, without their consent.

If they’ve got consent for collective representation of all the workers, and the employer agrees to the conditions and terms… GREAT. That’s what collective bargaining is for.

Otherwise, what gives you or anyone else, the right to determine those things for me, my employer, or anyone else?

Just because you and your friends voted on it?

I don’t think so, no.


I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

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