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Clinton's Ol' Timey Economy

- July 30, 2015

In Swinging Left, Clinton And Other Democrats Have Vowed To "Crack Down" On Uber And The Innovative Sharing Economy

TODAY, CLINTON WILL SPEAK IN BROWARD COUNTY FLORIDA WHERE THE LATEST DEMOCRAT-LED ATTACK ON UBER HAS RAN THE COMPANY OUT OF TOWN

Clinton Will Address The National Urban League Convention At The Broward County Convention Center. "On July 31, the candidates will appear on the same stage at the Greater Fort Lauderdale/Broward County Convention Center. Appearing at a session called "Off To The Races," the candidates will present their ideas for saving America's cities, where four of five black Americans live. Confirmed speakers include Bush, the former Florida governor, and Clinton, the former secretary of state, Democratic U.S. senator and first lady." (Anthony Man, "Together In Fort Lauderdale: Jeb Bush And Hillary Clinton To Share Stage For First Time As Presidential Hopefuls," Sun Sentinel, 7/26/15)

"Tough New Regulations" And A Threatening Lawsuit Have Forced Uber And Lyft To Cease Operations In Broward County. " If an Uber driver picks you up in Palm Beach County and takes you down to Fort Lauderdale-Hollywood International Airport, it's breaking the law, Broward County's lawyers argue in a lawsuit they've threatened to file. After Broward commissioners voted in April for tough new regulations for the firms, in which freelance drivers pick up fares using a smartphone app, Uber and Lyft stopped serving Fort Lauderdale-Hollywood International Airport and the Port Everglades cruise ship terminal, and the two firms have since told Broward County they intend to stop pickups in that county by the end of this week." (Eliot Kleinberg, "Your Uber Ride Down To Broward County Could Be Illegal," Palm Beach Post, 7/27/15)

ATTACKS ON UBER AND OTHER INNOVATIVE FIRMS HAVE BECOME A THEME FOR THE CLINTON CAMPAIGN AND DEMOCRATS ACROSS THE COUNTRY

Earlier This Month, Clinton Promised To "Crack Down" Upon On-Demand Firms, Using Rhetoric That Is "Sure To Worry Uber And Other Techno-Middlemen." "And she promised to crack down on firms who 'wrongly' classify their employees as contractors rather than employees-rhetoric which is sure to worry Uber and other techno-middlemen. The digital revolution, Ms Clinton said, is sparking innovations and bringing flexibility but also threatens to undermine labour regulations." (H.C., "The Kitchen Sink," The Economist , 7/13/15)

In An "Allusion To A Class Of Companies Of Which Uber Is The Largest And Most Prominent," Clinton "Warned" Of A So-Called "Gig Economy." "Meanwhile, Democratic frontrunner Hillary Clinton recently warned that the 'on-demand, or so-called 'gig economy'' is 'raising hard questions about workplace protections' - not an explicit reference to Uber but an allusion to a class of companies of which Uber is the largest and most prominent." (Timothy B. Lee, "Uber Is the Perfect Poster Child For The Republican Economic Agenda," Vox, 7/24/15)

Clinton's Comments On The Sharing Economy "Struck A Nerve" In Silicon Valley, Which Is Home To Young Start-Ups Like Uber, Instacart And Airbnb. "Presidential contender Hillary Clinton's comments on Monday on the sharing economy struck a nerve in Silicon Valley, home of such companies as Uber, Instacart and Airbnb. 'This 'on demand,' or so-called 'gig economy,' is creating exciting opportunities and unleashing innovation but it's also raising hard questions about workplace protections and what a good job will look like in the future,' Clinton said in her first major economic speech as a Democratic candidate for the November 2016 presidential election." (Sarah McBride, "Clinton's Sharing-Economy Remarks Draw Reaction In Silicon Valley," Reuters, 7/13/15)

With Clinton's "Hash Words For Uber" She "Faces The Risk Of Looking Uncool." " Despite Clinton's harsh words for Uber, Jake Sullivan, one of her top policy advisors, told a group of Washington journalists at a breakfast Tuesday organized by the Christian Science Monitor that there's no easy answer. "It's a huge question and a very hard one," he said. While Clinton faces the risk of looking uncool by criticizing Uber, Bush faces an even tougher question." (Jay Newtown-Small, "Bush Hails Uber, While Clinton Criticizes, Time, 7/15/15)

Democrats Across The Country Have Campaigned Against On-Demand Firms Like Uber

Liberal Mayor Bill De Blasio Tried Unsuccessfully To "Limit The Number Of Uber Drivers" In New York City. "In New York City this past week, liberal Mayor Bill de Blasio tried to limit the number of Uber drivers on the streets, only to be rebuked by the state's more centrist governor, Andrew Cuomo." (Nicholas Riccardi, "The Fight Over Uber Exposes Deep Divides In The Democratic Party," Associated Press, 7/27/15)

  • Uber's Win Served As A "Warning To Democrats" For Taking A "Tough Stance" Against On-Demand Economy Firms. "The win for Uber could serve as a warning to Democrats weighing a tough stance against on-demand economy firms. But some on left, including labor groups - a key constituency for any Democratic candidate - are pressing for restrictions requiring that those company workers be treated as full employees." (David McCabe and Tim Devaney, "Hillary Clinton's Uber Problem," The Hill, 7/24/15)

California's Labor Commissioner Levied A Decision That "Strikes At The Heart" Of Uber's Business Model. "California's labor commissioner said an Uber Technologies Inc. driver who connects with customers through the company's app must be considered an employee, a decision that strikes at the heart of its business model." (Eric Newcomer and James Nash, "A California Ruling Just Challenged Uber's Entire Business Model," Bloomberg, 6/17/15)

  • Democrat Commissioner, Julie Su, Is An Appointee Of Democrat Governor Jerry Brown. "The ruling by the agency headed by Commissioner Julie Su, an appointee of Governor Jerry Brown, was filed in San Francisco state court Tuesday." (Eric Newcomer and James Nash, "A California Ruling Just Challenged Uber's Entire Business Model," Bloomberg, 6/17/15)

Disagreement Over Regulations Has Left Uber's Future "Up In The Air" In St. Louis. The St. Louis Metropolitan Taxicab Commission on Wednesday did not vote on allowing ride-hailing services including UberX to operate here at a meeting that turned testy as times. Chairman Lou Hamilton said the reason not to vote was out of deference to Mayor Francis Slay and County Executive Steve Stenger, who appoint commission members. Two proposals made on code changes to allow such services, one written primarily by Hamilton and the other from Uber, were ultimately too different, said Mary Ellen Ponder, Slay's chief of staff. (Leah Thorsen, "Future Of Uber In St. Louis Still Up In The Air," St. Louis Post-Dispatch , 7/29/15)

Even In Clinton's Favorite Vacation Spot, The Hamptons, Uber Left Town After Issues With "Local Regulations." "Sadly for Ms. Elrod and Ms. Harris, the app is unusable from Montauk to Sag Harbor, having essentially skipped town in June after running afoul of local regulations that stipulate that all drivers picking up and dropping off in the town of East Hampton (which includes Montauk, Amagansett and much of Sag Harbor) have a business office here and a license from the town to operate." (Jacob Bernstein, "Muffle In The Hamptons, Uber Makes Some Noise," The New York Times, 7/25/15)

The Far-Left Crusade Against On-Demand Firms Has Created A "Fundamental Divide" In The Democrat Party

Clinton's Comments And The Debate Over Uber's Future In New York City Have Exposed A "Fundamental Divide At The Center Of The Democratic Party." " Uber is part of the ever-growing, so-called gig economy, or sharing economy. Clinton's comments, and a debate over Uber's future in America's biggest city, have exposed over the past few weeks a fundamental divide at the center of the Democratic Party that could have ramifications for the 2016 presidential election and beyond."(Brett Logiurato, "Antitax Crusader Grover Norquist: Hillary Clinton 'Just Declared War On The Future' - And On Uber," Business Insider, 7/28/15)

  • Former Senior Adviser To President Obama Dan Pfeiffer Tweeted That "Progressive Politicians Are Making A Major Error By Positioning Against The Sharing Economy." DAN PFEIFFER: "Progressive politicians are making a major error by positioning against the sharing economy. We need to be shaping the future not opposing it." (Dan Pfeiffer, Twitter Feed, 7/20/15)

Labor Advocates Have Left Clinton "Standing In A Delicate Place Between Supporting Symbols Of Innovation And Backing A Progressive Approach To Protecting Workers." "That has left Clinton standing in a delicate place between supporting symbols of innovation and backing a progressive approach to protecting workers. So while some on the left have made examining contractors a priority - and the Obama administration issued new guidelines on the topic - Clinton and others have been wary of linking that issue too closely to high-profile tech companies." (David McCabe and Tim Devaney, "Hillary Clinton's Uber Problem," The Hill, 7/24/15)

  • Heath McGee, President Of The Liberal Think-Thank Demos, Accused On-Demand Firms Of Replacing Middle-Class Jobs With "Insecure, Not-As-Good-Jobs." "'If a technologist wants to disrupt an industry that has middle-class jobs and replace them with insecure, not-as-good jobs, there has to be a conversation about that,' said Heath McGee, president of the liberal think-tank Demos. 'Just because there's an app doesn't mean it's anything different. ... It's a question as old as the economy.'" (Nicholas Riccardi, "The Fight Over Uber Exposes Deep Divides In The Democratic Party," Associated Press, 7/27/15)

EXPERTS DISPUTE CLINTON'S "SEDUCTIVE" LIBERAL REHTORIC AND SUGGEST THAT THE SHARING ECONOMY BENEFITS JOB GROWTH, WAGES AND LOW-INCOME NEIGHBORHOODS

Gary Burtless, Economist For The Brookings Institution, Said The Current Political Narrative Of New On-Demand Firms "Upending The World" May Be "Seductive To Coastal Elites In New York, Washington And San Francisco," But These Theories "Lack Hard Evidence." " The narrative of new apps upending the world may be seductive to coastal elites in New York, Washington and San Francisco, said Mr. Burtless of Brookings, noting that some have devised 'big theories' based on 'their own interaction sitting in the back of a car.' But these theories, he worries, lack 'hard evidence.'" (Josh Zumbrun and Anna Louie Sussman, "Proof Of A 'Gig Economy' Revolution Is Hard To Find," The Washington Post, 7/27/15)

The American Action Forum Found On-Demand Car Services, Such As Uber And Lyft, Created $519 Million In Growth And Created 22,000 Jobs Between 2009 And 2013. "On-demand car services such as Uber and Lyft likely contributed more than half a billion dollars in economic growth over a four-year period, according to an analysis of Census data by a right-leaning think tank. The American Action Forum (AAF) found that the ride hailing industry created $519 million in growth between 2009 and 2013. The think tank also found that the sector created 22,000 jobs." (David McCabe, "Businesses Like Uber, Lyft Produced $519M In Growth, Study Finds," The Hill, 7/29/15)

A Study By Princeton University Found Uber Increases Demand For Workers While Providing Its Partners With Higher Pay And More Flexible Opportunities

A Study By Princeton University Found Uber's Drivers "Generally Receive Higher Earnings Per Hour Than Their General-Population Driver Counterparts." "As can be seen in Table 6, Uber's driver-partners generally receive higher earnings per hour than their general-population driver counterparts. In 16 of the 18 markets available, the median earnings per hour of Uber's driver-partners exceeded the average hourly wage of taxi drivers and chauffeurs."(Jonathan V. Hall and Alan B. Krueger, "An Analysis Of The Labor Market For Uber's Driver-Partners In The United States," Princeton University, 1/2015)

(Jonathan V. Hall and Alan B. Krueger, "An Analysis Of The Labor Market For Uber's Driver-Partners In The United States," Princeton University, 1/2015)

  • In 16 Of 18 Markets Available, The Median Earnings Per Hour Of Uber's Driver-Partners Exceeded The Average Hourly Wage Of Tax Drivers And Chauffeurs. "In 16 of the 18 markets available, the median earnings per hour of Uber's driver-partners exceeded the average hourly wage of taxi drivers and chauffeurs." (Jonathan V. Hall and Alan B. Krueger, "An Analysis Of The Labor Market For Uber's Driver-Partners In The United States," Princeton University, 1/2015)

The Study Found Uber's Driver-Partners' Hourly Earnings Are "Essentially Invariant To Hours Worked During The Week" As Opposed To "Other Part-Time Or Intermittent Jobs In The Labor Market" That "Typically Entail A Wage Penalty." "The finding that hourly earnings for Uber's driver-partners are essentially invariant to hours worked during the week also makes Uber an attractive option to those who want to work part time or intermittently, as other part-time or intermittent jobs in the labor market typically entail a wage penalty." (Jonathan V. Hall and Alan B. Krueger, "An Analysis Of The Labor Market For Uber's Driver-Partners In The United States," Princeton University, 1/2015)

Janice Fine, Professor Of Labor Studies At Rutgers University, Said Uber Is "Possibly As Good Or Better Than Your Average Taxi Job In America Today" And Has The "Added Plus For Drivers Of Eliminating The Middle Man And Being Able To Take Calls From Home." "Janice Fine, a professor of Labor Studies at Rutgers University, sees a stain of inevitability. 'Uber has become embedded in our culture,' she said, 'and there is no going back. People love it, it is very convenient and has cachet-a 10 on the coolness scale. On the consumer side,' she went on, 'there is little not to like, notwithstanding that there have been some issues with screening drivers, etcetera. On the driver's side, it is possibly as good or better than your average taxi job in America today, and has the added plus for drivers of eliminating the middle man and being able to take calls from home.'" (Emily Greenhouse, "Can Hillary Clinton Turn Her Uber Problem Into An Opportunity." Bloomberg, 7/28/15)

An Analysis Of Low-Income Neighborhoods Found Uber Provided Rides That Were "Less Than Half As Much" And Came In "Less Than Half The Time" Of A Taxi

A Survey Conducted By BOTEC Analysis Corporation In Low-Income Los Angeles Neighborhoods Found Uber "Took Less Than Half As Long As Calling For A Taxi, And The Trip Cost Less Than Half As Much." "This study reveals a pronounced difference in response time and cost per ride between taxi and UberX ride service provision in low-income areas of Los Angeles. On average, these riders could expect to wait twice as long and pay twice as much for a taxi as for an UberX ride. These differences are substantial for individuals with limited incomes." (Rosann Smart, Brad Rowe, Angela Hawken, Et Al., "Faster and Cheaper: How Ride-Sourcing Fills a Gap in Low-Income Los Angeles Neighborhoods," BOTEC Analysis Corporation, 7/2015)

  • "These Difference Are Substantial For Individuals With Limited Incomes." (Rosann Smart, Brad Rowe, Angela Hawken, Et Al., "Faster and Cheaper: How Ride-Sourcing Fills a Gap in Low-Income Los Angeles Neighborhoods," BOTEC Analysis Corporation, 7/2015)

Co-Author Mark Kleiman Found That The Benefits Of Uber Were "Clear-Cut, And Consistent Across Neighborhoods And Days." 'The answer was clear-cut, and consistent across neighborhoods and days,' writes study co-author Mark Kleiman. To gather data, pairs of riders called for a taxi and an Uber along pre-planned routes. The riders recorded the time between picking up the phone or opening an app and getting in a car. They also tracked how much each ride cost, then switched off. After each ride, whoever took a taxi last time took an Uber next time." (Davey Alba, "Uber Cheaper, Faster Than Taxis In Low-Income Neighborhoods," Wired, 7/20/15)

Economists Dispute Clinton's Notion That This Is Anything New With The "Gig" Economy, With Americans Who Are Self-Employed Or Holding Multiple Jobs Have Been In Decline Over The Past Decade

Economists Have Noted That Regular and Irregular Work Have Always "Coexisted" And Have Suggested That New "Gig" Opportunities Arranged Via Smartphone Are Not "Truly Novel." "Economists note that regular work and irregular work have always coexisted; some are skeptical of whether gigs arranged via a smartphone are truly novel." (Josh Zumbrun and Anna Louie Sussman, "Proof Of A 'Gig Economy' Revolution Is Hard To Find,"The Washington Post, 7/27/15)

  • "If Companies Like Uber And Its Ilk Were Fundamentally Undermining The Relationship Workers Have With Employers, That Shift Would Be Showing Up In At Least Some Of The Key Economic Indicators ." "If Uber and its ilk were fundamentally undermining the relationship workers have with employers, that shift would be showing up in at least some of the key economic indicators. Hundreds of thousands of Americans, or even a few million, may have dabbled in the gig economy, but in the context of the 157 million-strong U.S. labor force, the trend remains marginal." (Josh Zumbrun and Anna Louie Sussman, "Proof Of A 'Gig Economy' Revolution Is Hard To Find," The Washington Post, 7/27/15)

The Share Of Americans Who Are Self-Employed And Unincorporated Has "Slowly Declined Over The Past Decade." "Many workers cobbling a living from tech platforms in the gig economy should be classified as self-employed. But the share of Americans who are self-employed and unincorporated has slowly declined over the past decade, to about 6.5% of workers today, down from as high as 7.7% in 2005 and as high as 8.5% in the mid-1990s, according to Labor Department figures." (Josh Zumbrun and Anna Louie Sussman, "Proof Of A 'Gig Economy' Revolution Is Hard To Find," The Washington Post, 7/27/15)

  • 6.5 Percent Of Workers Today Classify Themselves As Self-Employed And Unincorporated. "But the share of Americans who are self-employed and unincorporated has slowly declined over the past decade, to about 6.5% of workers today, down from as high as 7.7% in 2005 and as high as 8.5% in the mid-1990s, according to Labor Department figures." (Josh Zumbrun and Anna Louie Sussman, "Proof Of A 'Gig Economy' Revolution Is Hard To Find,"The Washington Post, 7/27/15)
  • That Is Down From A High Of 7.7 Percent In 2005 And 8.5 Percent In The Mid-1990s. "But the share of Americans who are self-employed and unincorporated has slowly declined over the past decade, to about 6.5% of workers today, down from as high as 7.7% in 2005 and as high as 8.5% in the mid-1990s, according to Labor Department figures." (Josh Zumbrun and Anna Louie Sussman, "Proof Of A 'Gig Economy' Revolution Is Hard To Find,"The Washington Post, 7/27/15)

Even Though Some Workers Are Embracing The Opportunities Offered By On-Demand Firms, The Share Of Americans Who Hold Multiple Jobs Is Also In Decline. "Some workers might have a primary job and do some TaskRabbit work on the weekend for extra cash, or sell artisanal greeting cards on Etsy as a hobby. But the share of people who hold multiple jobs is also in decline-only 4.8% of workers do, down from 5.5% in 2005 and 6.3% in 1995." (Josh Zumbrun and Anna Louie Sussman, "Proof Of A 'Gig Economy' Revolution Is Hard To Find,"The Washington Post, 7/27/15)

  • Currently, 4.8 Percent Of Workers Hold Multiple Jobs, Down From 5.5 Percent In 2005 And 6.3 Percent In 1995. " But the share of people who hold multiple jobs is also in decline-only 4.8% of workers do, down from 5.5% in 2005 and 6.3% in 1995." (Josh Zumbrun and Anna Louie Sussman, "Proof Of A 'Gig Economy' Revolution Is Hard To Find," The Washington Post, 7/27/15)

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