Quotulatiousness

April 29, 2019

Cannabis stores struggling against cheaper black market weed outlets

Filed under: Business, Cancon, Law, Liberty — Tags: , , , , , — Nicholas @ 05:00

In a rational world, a license to sell legal cannabis from a storefront where you have almost a legal monopoly would be a license to print money — the market demand is very clearly real and widespread. Yet Toronto’s legal cannabis stores are still suffering:

How much would it suck to go through all the trouble of opening a legal weed store, only to have dozens of people do the exact same thing without paying for permits, inspections or meeting any sort of government regulations?

How much would it suck to then watch these people not only get away with their illegal operations, but do so while luring your customers away with cheaper prices?

Probably as much as it would suck to sink years of your life into building a retail cannabis business and then learning that only 25 of such stores could exist in all of Ontario — and that the owners of those stores would be chosen at random.

It’s been nearly one month since Doug Ford’s PC government allowed the first wave of brick and mortar retail cannabis stores to open across Ontario. Three have launched so far in Toronto, where five licenses were issued in total, but many consumers aren’t pleased with consistently long lines and higher (than pre-legalization) prices.

So, like the rest of Canada, Toronto continues to buy black market weed.

Roughly 20 unlicensed dispensary storefronts are still up and running across the city as of April 25, in addition to more than 100 illegal marijuana delivery services.

You can find them all on WeedMaps, a popular online cannabis community that’s been listing these types of businesses for adult consumers in North America since 2008.

It’s not that police and bylaw enforcement officers can’t find these illicit dispensaries — I mean, operators are advertising their locations and menus online for all to see.

The problem is that no level of government can (or will) shut them down for very long.

“Why not?” you ask? Well, it’s complicated.

April 4, 2019

Of course Facebook is now in favour of government regulation … it’ll keep out their competition

Filed under: Bureaucracy, Business, Government, USA — Tags: , , , , , — Nicholas @ 05:00

The recent calls for the government to regulate social media got support from Mark Zuckerberg, which seems to have surprised some in the media. It’s not at all uncommon for established firms to not only welcome government oversight but to actively support it — because it’s a highly effective strategy to strangle smaller competitors and keep new competitors from entering the field:

On Saturday, Mark Zuckerberg appealed to the government for increased regulation of the internet including his company Facebook. According to Zuckerberg, increased government action is needed to protect society from harmful content, ensure election integrity, protect people’s privacy, and to guarantee data portability. If enacted, the government would possess a wide range of control over internet businesses. For Zuckerberg, this is for the public’s best interest.

But make no mistake about it, Zuckerberg’s cries for regulation is not an appeal to his humanitarianism. On the other hand, it solves glaring issues that Facebook has faced since the 2016 election.

[…]

With increased government oversight, Facebook’s leadership will finally be able to pass the buck to someone else. The government will provide them with a clear set of rules that they will be accountable for. Any negative press coverage that occurs outside of those guidelines, will not be attributable to their company but to the rule-making body of the government. This will allow Facebook’s leadership to regain credibility within a clearly definable framework that they are not responsible for creating.

But perhaps Zuckerberg’s appeal for regulation is even more cunning. Government regulation will undoubtedly be met with higher costs. Internet companies will have to spend more on staffing to be in compliance with the increased burdens implemented by the rule-making body. We saw this play out in the banking industry after the Great Recession. A study conducted last year found that since 2009, banks have been fined a total of $345 billion dollars in penalties and noncompliance costs. Further, another study found that in 2016 banks spent $100 billion dollars on regulatory compliance alone.

Large internet companies like Facebook and Google will easily absorb the strain of increased regulatory costs. It is the smaller businesses that will feel the financial squeeze. With increased regulatory compliance spending, smaller startups will face an even bigger hill to climb to compete with the likes of Facebook.

Another “feature” of government regulation is what is known as “regulatory capture”, as the regulating body and the regulated organizations, after an initial period of ostentatious “conflict”, settle down into a cosy symbiotic relationship … in only a few years, many of the regulatory staff will find themselves working for one of the regulated organizations, and vice-versa. The regulatory body will — like all bureaucracies — start to care more about keeping itself alive and growing than about the original reason it was set up. Small organizations will stall or go extinct, and only the existing dinosaurs will carry on, protected from competition by their regulator’s powers.

March 22, 2019

Understanding the Great Depression

Filed under: Business, Economics, Environment, Government, History, USA — Tags: , , , , , , — Nicholas @ 02:00

Marginal Revolution University
Published on 23 May 2017

In this video, we examine the causes behind the Great Depression with the help of the aggregate demand-aggregate supply model.

In 1929, the stock market crashed and an air of pessimism swept across America — making bank depositors nervous. What would you do if you thought your money might not be safe with the bank? You’d probably want it back in your own hands. What happened next? A run on the banks.

Along with the Stock Market Crash of 1929, it’s one of the iconic moments of the early days of Great Depression. However, the Great Depression was an incredibly complex downturn in which the economy experienced a series of aggregate demand shocks. By the end of this video, you’ll walk away with a better understanding of the many factors behind the Great Depression and how to apply the AD-AS model to a real-world scenario.

February 3, 2019

The CBC, Netflix, and the questionable role of mandatory “CanCon”

Filed under: Cancon, Government, Media — Tags: , , , , — Nicholas @ 03:00

Chris Selley explains why the CBC’s own shows are appearing on Netflix and how this undermines the raison d’être for government-funded CBC television:

To the vast majority of Canadians, including those who support the CBC, the idea that Netflix represents any kind of threat — and should thus be taxed or forced to carry minimum amounts of Canadian content or otherwise regulated, as various groups urge — will just seem irretrievably bizarre. Whether or not it’s a good idea, CanCon only works in a restricted market where channels broadcast specific things at specific times. Back in the day you might just find yourself bored enough to watch or listen to something you didn’t really want to, and it might just be Canadian.

No one watches anything on Netflix that they don’t want to — no one single, anyway — so there’s no earthly reason to put stuff there if people don’t want it. The irony, though, is that there’s a ton of Canadian content on Netflix, precisely because people want to watch it. And as University of Ottawa professor Michael Geist explained in a blog post on Friday, Netflix makes it very easy to find: Not only are there direct links to Canadian TV shows and films, but it algorithmically detects a user’s preference for CanCon and recommends other titles.

Goodness, just look at all the Canuck shows: Baroness Von Sketch Show, Workin’ Moms, Mr. D, Kim’s Convenience, Schitt’s Creek, Intelligence … hang on a tic, those are all CBC shows! How did those imperialist Silicon Valley pigdogs get their filthy hands on it? Because as more and more Canadians cut the cord, Netflix is a perfectly logical place for CBC and the production companies it works with to showcase their work — not just to Canada but to the world. In short, there doesn’t seem to be any problem or threat here at all, to anyone — just success, and the opportunity for more.

We cut the cord about six months ago, and haven’t missed broadcast TV in the slightest (so I hear … I wasn’t watching much TV even before then). I watch Minnesota Vikings games on DAZN and The Grand Tour on Amazon Prime, and that’s just about all my screen time (YouTube and other online video sources more than compensate).

January 31, 2019

Coming soon for Canadians – mandatory maple-flavoured search results

Filed under: Business, Cancon, Government, Media, Technology — Tags: , , , , — Nicholas @ 03:00

Michael Geist relates the ongoing efforts of ACTRA to get the federal government to mandate high visibility for Canadian content in search engines:

The escalating battle being waged for new Internet taxes to fund Canadian content does not stop with proposals for new fees on Internet access and online video services. Cultural groups also want to increase the “discoverability” of Canadian content by mandating its inclusion in search results. According to the ACTRA submission to the broadcast and telecom legislative review panel, it has been calling for search engine regulation for the past 20 years:

    ACTRA stated during the 1999 CRTC process that Internet search engines would become the gateway for consumers to access the vast array of entertainment and information now available from around the world. We argued then the CRTC should regulate them.

It now argues for mandated inclusion of Canadian content in search results for cultural content under threat of economic sanction:

    Regulating search engines would be difficult, but ACTRA recommends the government approach search engines like Google, Bing and others, and request they ensure Canadians are offered some Canadian choices in their search results. While it is neither possible nor appropriate to interfere in the final selection made by individuals, Canadian consumers should have a real choice, including Canadian films, television programs and music. We expect companies would concur with the government’s reasonable request to be seen as good corporate citizens. If a particular search engine does not agree to this request, the government should impose an appropriate regulatory constraint or burden, such as amending the Income Tax Act to discourage Canadians from advertising on search engines that fail to comply.

January 29, 2019

Bell Canada wants the feds to crack down on Virtual Private Networks

Filed under: Cancon — Tags: , , , , — Nicholas @ 03:00

Michael Geist discusses some revelations from Bell’s communications with the federal government during the NAFTA negotiations:

Just days after Bell spoke directly with a CRTC commissioner in the summer of 2017 seeking to present on its site blocking proposal to the full commission, it asked Canadian Foreign Affairs Minister Chrystia Freeland to target VPNs as Canada’s key copyright demand in the trade talks. Its submission to the government stated:

    The Canadian cultural industry has long been significantly harmed by the use of virtual-private-network (VPN) services, which facilitate the circumvention of technological protection measures put in place to respect copyright ownership in other jurisdictions such as Canada…When the ability to enforce rights in national markets breaks down it inevitably favours the largest markets (which become the de facto “global” market) at the expense of smaller open economies like Canada. This harms Canada both economically and culturally.

    Canada should seek rules in NAFTA that require each party to explicitly make it unlawful to offer a VPN service used for the purpose of circumventing copyright, to allow rightsholders from the other parties to enforce this rule, and to confirm that is a violation of copyright if a service effectively makes content widely available in territories in which it does not own the copyright due to an ineffective or insufficiently robust geo-gating system.

This is precisely the concern that was raised in the context of the Bell coalition blocking system given fears it would expand to multi-use services such as VPNs just as a growing number of Internet users are turning to the technology to better safeguard their privacy and prevent online tracking.

In fact, the Bell submission went even further than just VPNs, urging the government to consider additional legal requirements on ISPs to enforce copyright rules:

    Notice-and-notice has been a very incomplete solution to the problem of widespread digital piracy. While we do not believe it should be eliminated, the Government should explore other ways to secure the cooperation of service providers whose services are used for piracy (such as the site-blocking regimes required in Europe and also in place in many other countries throughout the world).

January 23, 2019

QotD: Regulation doesn’t scale well

Filed under: Bureaucracy, Business, Government, Quotations, USA — Tags: , , — Nicholas @ 01:00

A nation state is, with certain exceptions such as Kiribati, a very large entity. A modern “nanny state” is conducted on a scale beyond anyone’s comprehension. The single measure that might be good for a given town in, say, West Virginia, cannot possibly be good for another in Idaho, and adds debilitating paperwork at both ends. Meanwhile, the scale of the regulation is so great, that small family operators right across the country, lacking huge resources for lobbying and propaganda, will inevitably be scrood. For the truth is big guvmint and big bidnis interface only with each other.

David Warren, “The no-brainer chronicles”, Essays in Idleness, 2017-02-16.

January 5, 2019

Leave the Strand Alone! Iconic Bookstore Owner Pleads With NYC: Don’t Landmark My Property

Filed under: Architecture, Books, Bureaucracy, Business, Government, USA — Tags: , , — Nicholas @ 04:00

ReasonTV
Published on 4 Jan 2019

Leave the Strand Alone! Iconic Bookstore Owner Pleads With NYC: Don’t Landmark My Property

More from the article at Reason:

If New York City moves ahead with a proposal to landmark the home of the Strand Book Store, it would be putting a “bureaucratic noose” around the business, says owner Nancy Bass Wyden. “The Strand survived through my dad and grandfather’s very hard work,” Wyden says, and now the city wants to “take a piece of it.”

Opened by her grandfather, Benjamin Bass, in 1927, the Strand is New York City’s last great bookstore — a four-story literary emporium crammed with 18 miles of merchandise stuffed into towering bookcases arranged along narrow passageways. It’s the last survivor of the world-famous Booksellers Row, a commercial district comprised of about 40 secondhand dealers along Fourth Avenue below Union Square.

On December 4, 2018, the New York City Landmarks Preservation Commission held a public hearing on a proposal to designate the building that’s home to the Strand as a historic site. If the structure is landmarked, Wyden would need to get permission from the city before renovating the interior or altering the facade.

“It would be very difficult to be commercially nimble if we’re landmarked,” Wyden tells Reason. “We’d have to get approvals through a whole committee and bureaucracy that do not know how to run a bookstore.”

Wyden’s outrage derives in part from her family’s decades of struggle to keep the business alive.

The Strand survived, she says, because of “my grandfather and my dad’s very hard work and their passion … Both worked most of their lives six days a week” and they “hardly took vacations.”

December 1, 2018

CAFE killed the North American passenger car

Filed under: Business, Cancon, Government, USA — Tags: , , , , , — Nicholas @ 03:00

The move by GM to close many of its remaining car manufacturing facilities in Canada and the US is a belated rational response — not to the market, but to the ways government action has distorted the market. In the Financial Post, Lawrence Solomon explains how, step-by-step, the CAFE rules have shifted drivers out of sedans and wagons and into minivans, pickup trucks, and SUVs:

Before the U.S. government introduced Corporate Average Fuel Economy (CAFE) standards to increase the distance cars could travel per gallon of gas, sedans and full-size station wagons were popular and SUVs were unknown. CAFE, which effectively governed the entire North American market thanks to the Canada-U.S. Auto Pact, incented manufacturers to artificially raise the cost of large passenger cars in order to favour smaller, more fuel-efficient vehicles. It soon claimed its first victim: the full-size station wagon, whose flexible interior accommodated both passenger and cargo needs, and which, at its peak, came in 62 models to satisfy different tastes.

But, although CAFE priced the station wagon out of the market, the market still demanded a vehicle that offered its flexibility. Enter Lee Iacocca, the chairman of Chrysler, who helped develop the minivan and convinced the U.S. government to deem it a truck rather than a passenger vehicle, thus exempting it from the strict CAFE standards that killed the station wagon. The minivan took off — the first 1984 model, built in Windsor, sold 209,000 its first year — followed by the SUV, which also was deemed a truck rather than a passenger vehicle. By 2000, the passenger car had less than half the market. Today it accounts for only about a third.

CAFE standards didn’t only claim certain car models as victims, they also made the whole industry a victim by making it dependent on government whims and then handouts. CAFE also distorted the market by creating credits for ethanol and electric vehicles and by creating a lobbyist’s dream through ever-changing regulations that led car manufacturers to continually game the system to favour their own vehicles over those of competitors.

Perversely, by improving mileage, CAFE also increased distances travelled and emissions of pollutants such as carbon monoxide and nitrogen oxides. The 2025 CAFE targets (since cancelled by President Trump) ran to almost 2,000 pages and were estimated to add an average of US$1,946 to the cost of a vehicle. Tax loopholes also helped accelerate SUV sales — like all light trucks, they were exempted from the gas-guzzler’s excise tax and also given preferential tax treatment as business vehicles.

November 20, 2018

Remy: The Legend of Stan Lee

Filed under: Government, Liberty, Media, Politics, USA — Tags: , , , — Nicholas @ 04:00

ReasonTV
Published on 19 Nov 2018

Remy recalls a time when experts were claiming “Hitler was a beginner compared to the comic-book industry,” and how Stan Lee took a stand.

Written and Performed by Remy
Video Produced by Meredith and Austin Bragg
Music tracks and background vocals by Ben Karlstrom

November 10, 2018

Remy: I Love L.A. (Parody)

Filed under: Humour, Media, USA — Tags: , , , — Nicholas @ 04:00

ReasonTV
Published on 9 Nov 2018

Remy updates the iconic Randy Newman anthem for 2018.

Parody written and performed by Remy
Camera and editing by Austin Bragg
Music tracks, background vocals, and mastering by Ben Karlstrom

Reason is the planet’s leading source of news, politics, and culture from a libertarian perspective. Go to reason.com for a point of view you won’t get from legacy media and old left-right opinion magazines.
—-
LYRICS

Nice fall day
In L.A. County
Sitting watching all the leaves change
Temperature dipping into the low 70’s
I dress accordingly

Roll down the window
Put down the top
You know what
Maybe roll it up on second thought
That guy was higher
Than the pension of a state employee

Can’t use straws here
No fois gras here
You can’t park here
Lots of laws here

Every toilet
Barely flushing
But the sun is shining all the time
Looks like another bill to pay

I love L.A.
We Love it

“Definitely recommend this crystal here.
Oh and this one is our number one seller.”
“What’s that for? Anxiety?”
“No. Typhus.”
“Ah”

Public school graduates
Can barely read
And when they try to park
Well this is what they see

Sweet regulations
Ain’t nothing like em nowhere

Beachside
We love it

Mountainside
We love it

Riverside
We…eh….

Fixed streets
We love em
We love L.A.

“Unfortunately I’ll have to fail your restaurant.
I found a rat in the kitchen.”
“That wasn’t a rat that was my, uh,
emotional support rodent.”
“Well why didn’t you say so!”

“And this right here is a great hemorrhoidal crystal.
Uranus is in retrograde.”

I love L.A.
We love it

November 7, 2018

Quebec cabbies sue provincial government for declining revenues and lost capital cost due to Uber competition

Filed under: Business, Cancon, Law, Liberty — Tags: , , , , — Nicholas @ 03:00

William Watson makes the argument that it’s the ripped-off taxi customers who should be suing, not the cabbies:

There are at least two problems with the court case, one technical, one regarding fairness. The technical one: Cabbies want compensation for both declining revenue and the capital loss on their permits. But that’s double-counting. The permit is an entitlement to earn the revenues. Its value falls only because expected revenues have fallen. Give operators one or the other, if the law eventually says you must, but not both. They can have their compensation but not eat it, too.

The fairness question concerns where the taxi cartel’s surplus came from all these years, which is no mystery: It came from taxi users. But what are we, chopped liver? Why don’t we start a class action suit of our own to get back all the money ripped off from us over decades of artificially restricted taxi supply?

Basic fairness would certainly require that. Unfortunately, the law may not. The taxi drivers’ case against the government is that, despite statutes on the books about needing a taxi permit in order to provide taxi services, when Uber came along the government decided not to enforce the law. That created two classes of taxi driver: Uber drivers, whom the government turned a blind eye to, and regular taxi drivers, whom it continued to subject to close regulation. That double standard was an unfairness, yes, but a minor one compared to the long-lasting aggravated rip-off of consumers.

Bottom line: Taxi drivers lobby for and get a law allowing them to overcharge their customers. When in a bout of good policy sense (a “Taxi Spring” you might say) the government decides not to enforce it, the taxi drivers set about suing taxpayers instead. However unfair that may seem — and it’s exasperating! — I suppose, in the end, supply-and-demand must take notice of the principle of rule of law.

November 4, 2018

QotD: LEED indulgences

Filed under: Bureaucracy, Business, Environment, Government, Quotations, Religion — Tags: , — Nicholas @ 01:00

I am not religious but am fascinated by the comparisons at times between religion and environmentalism. Here is the LEED process applied to religion:

  • 1 point: Buy indulgence for $25
  • 1 point: Say 10 Our Fathers
  • 1 point: Light candle in church
  • 3 points: Behave well all the time, act charitably, never lie, etc.

It takes 3 points to get to heaven. Which path do you chose?

Warren Meyer, “When Sustainability is not Sustainable”, Coyote Blog, 2013-07-30.

November 3, 2018

“[I]t makes no sense to punish Americans with tariffs in order to convince foreign governments to stop punishing their citizens with tariffs”

Filed under: Economics, Government, Politics, USA — Tags: , , , , , — Nicholas @ 03:00

Veronique de Rugy discusses the mercantilist errors that still influence politicians and voters on free trade policies:

There are many changes to domestic policy that could help protect Americans from the predations of protectionism. For instance, when considering whether or not to grant U.S. firms “trade remedies,” such as countervailing duties, officials should have to take into account the consequences for American consumers of any tariffs they’re thinking of imposing. Policy makers aren’t currently required to do that, and one agency — the International Trade Commission—is actually forbidden from doing so.

This must change. Recent developments prove that it’s dangerous to simply assume all U.S. presidents and a critical mass of legislators will remain committed to the principles of reciprocal free trade. Buyers of imported goods or products made with imported materials — which, to be clear, is all of us — can’t depend on the economic acumen of the policy makers deciding whether or not to impose tariffs. Instead, consumer protections need to be built into the regulatory process. Because there are virtually always more workers in consuming industries downstream of the trade barrier than there are in the sector receiving the protection, a requirement to take the harm to consumers into consideration would make it very hard to impose protectionist policies.

Some free trade sympathizers have floated the possibility of Congress reclaiming its power to impose tariffs from the White House. Sen. Mike Lee (R–Utah), for instance, has introduced the Global Trade Accountability Act, which would require congressional approval for tariff increases or other “unilateral trade actions.” Unfortunately, if this otherwise well-designed bill became the law of the land, it would be akin to guarding the hen house with a hungry dog instead of a fox.

An extensive literature shows that moving tariff-setting policy away from Congress (and its parochial, locally focused interests) was a critical part of reducing protectionist influence in Washington. President Trump is terrible on this issue, but in general, a president is more likely than are members of Congress to consider the interest of the entire country — and, hence, to support broad trade liberalization.

November 2, 2018

Operation Choke Point

Filed under: Bureaucracy, Business, Government, USA — Tags: , , — Nicholas @ 03:00

In Forbes, John Berlau details how expansive regulatory powers and vindictive bureaucrats make doing business in the United States less “free enterprise” and more “shame if something were to happen to it”:

Every Halloween, there exists the temptation for bloggers, pundits, and commentators to describe routine events in the news with adjectives like “scary” and “frightening.” Sensitive to sounding clichéd or inflammatory, I try usually to avoid using such terminology in my descriptions of the policy process.

Yet after reading through new documents introduced into a lawsuit stemming from the Obama administration’s “Operation Choke Point,” I find that “scary” and “frightening” actually fit. These documents show that powerful bank regulatory agencies engaged in an effort of intimidation and threats to put legal industries they dislike out of business by denying them access to the banking system.

While I am often outraged about things the government does, now I am truly scared and frightened about the ability of government bureaucrats to shut down arbitrarily whole classes of businesses they deem to be “politically incorrect.” As one who champions the FinTech sector and the benefits it can bring, I also worry that such powers may be uses to shut down innovative new industries, such as cryptocurrency, that carry some perceived or real risks.

Choke Point was a multi-agency operation in which several entities engaged in a campaign of threats and intimidation to get the banks that they regulate cut off financial services – from providing credit to maintaining deposit accounts — to certain industries regulators deemed harmful a bank’s “reputation management.” The newly released documents – introduced in two court filings in a lawsuit against Choke Point — show that the genesis of Choke Point actually predated Barack Obama’s presidency, and began when President George W. Bush was in power.

[…]

When the Obama administration came into power, the FDIC would expand the definition of “reputation risk” even further, and other federal agencies, bureaus, and departments would soon jump on the proverbial bandwagon. Much of Operation Choke point would again be accomplished by “guidance documents,” which my Competitive Enterprise Institute colleague Wayne Crews refers to as “regulatory dark matter,” since they have legal force but allow regulators to bypass the sunlight of the notice-and-comment process of a formal rule.

In 2011, an FDIC guidance document featured a chart of business categories engaged in what it called “high-risk activity.” These included “dating services,” “escort services,” “drug paraphernalia,” “Ponzi schemes,” “racist materials,” “coin dealers,” “firearm sales,” and “payday loans.” The FDIC would post this and similar lists in other guidance documents and on its web site.

A staff report of the House Government Reform and Oversight Committee puzzled over many of these categories. “FDIC provided no explanation or warrant for the designation of particular merchants as ‘high-risk,’” the report observed. “Furthermore, there is no explanation for the implicit equation of legitimate activities such as coin dealers and firearm sales with such patently illegal or offensive activities as Ponzi schemes, racist materials, and drug paraphernalia.”

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