July 29, 2014 10:26 AM
Earlier this month, Professor David Begg of Transport Times published a new report on automated transport technology focusing on the potential impacts on London. This is one of the first attempts to apply this new technology to urban areas in a systematic way.
The U.S. Institute of Electrical Engineers has estimated that up to 75 percent of all vehicles will be autonomous by 2040. Automated vehicles are the future but they are also quickly becoming the present. The chief concern among proponents is the potential for burdensome government regulation. It is absolutely critical lawmakers and regulators do not stand in the way of automated vehicles.
In his report, Begg explains, like many others have noted, an issue with this technology is who is to blame when a “robot car” is involved in a collision. He asks, “Who is liable? Is the driver to blame? Is the car maker to blame? Might ‘no fault’ legislation be needed to deal with his problem?”
To be sure, there are very real issues surrounding products liability and insurance. But this is frankly a secondary concern when confronted with the overwhelming evidence that driverless transport will save thousands of lives annually, and so far there is little indication that common law evolution cannot handle the advent of automated vehicles. Yet Begg only mentions these potential accident reductions (over 90 percent of crashes are due to human error) after expressing his speculative concerns.
July 29, 2014 7:52 AM
This is Part 20 of a series taking a walk through some sections of Ten Thousand Commandments: An Annual Snapshot of the Federal Regulatory State (2014 Edition)
Each year, a relative handful of Executive agencies accounts for a large number of the rules produced. The five executive departments and agencies listed nearly—the departments of the Treasury, Interior, Commerce,Transportation and Health and Human Services—were the biggest rulemakers in 2013.
These top five, with 1,451 rules among them, account for 44 percent of the 3,305 rules in the Federal Unified Agenda pipeline.
A little surprisingly, for the second time, the Environmental Protection Agency does not appear in the top five (it is sixth). Including the EPA’s 179 rules brings the total to 1,953 rules, or 48 percent.
(There had been 223 EPA rules the prior year, and no one believes EPA is regulating less. We’ve seen earlier that rules were delayed for political purposes, and also that a large portion of federal rules no longer get listed in the Unifed Agenda following new top-down directives.)
Also shown nearby are the top five Independent agencies in terms of rules in the Agenda pipeline. They are: Federal Communications Commission, Securities and Exchange Commmission, Office of Personnel Management, Nuclear Regulatory Commission and the Social Security Administration.
July 28, 2014 9:58 AM
A recent piece in American Banker magazine explores how Bitcoin and other cryptocurrencies can help the underprivileged, particularly the millions of unbanked people who do not have bank accounts. This is an area where digital currency could do much good.
In fact, the online microfinancing platform Kiva has already begun a peer-to-peer service, known as Kiva Zip, whose model resembles some of the features in Bitcoin. Microfinancing is a form of lending for lower-income people that provides smaller loans than commercial banks are typically able to offer. Kiva Zip’s peer-to-peer structure means that users interact directly with each other, without administrators or other institutions acting as a middleman.
Another service known as Swarm is already proposed to implement crowdfunding based on the Bitcoin protocol. Crowdfunding is a service where persons or companies propose a project or service they wish to develop and create a campaign to solicit funds for development. It is typical for campaigners to offer prize incentives for larger contributions, such as earlier access to the product or other perks.
These new innovations represent just the initial adaptations of the Bitcoin protocol. In order for these technologies and services to continue to develop—and to help people—it is imperative that new regulations not be prematurely implemented. Otherwise, it will not be just Bitcoin businesses that suffer. Those at the bottom of the economic ladder could suffer as well, as they would lose precious opportunities to access capital.
July 28, 2014 9:55 AM
Coauthored with Alex Bolt.
President Barack Obama spuriously claimed, "These so-called right-to-work [RTW] laws, they don't have anything to do with economics," when he futilely attempted to thwart Michigan’s enactment of a right-to-work law.
A new study by the Competitive Enterprise Institute demolishes Obama’s spurious claim by showing how RTW laws, which free workers from a mandate to join a union in order to be employed, benefit states. RTW laws produce better income, population, and job growth than in forced-unionism states.
July 28, 2014 7:33 AM
Seventy-four new regulations, from spearmint oil to insurance exchanges.
July 25, 2014 1:19 PM
Should we worry about a crisis in subprime auto loans? That question has been asked in the financial media lately.
My answer is yes, with caveats. While there are important differences in the auto and mortgage markets, there are similar government interventions that have the potential to fuel a bubble in car loans the same way they did for home loans.
First, the differences. So far, thankfully, there is no auto equivalent of a Fannie Mae, Freddie Mac, or other government-sponsored enterprise to inflate the car loan market. Sure, there have been lots of bailouts in the auto industry in general, but the secondary market in car loans has developed largely on its own.
And without a government backstop, it is much smaller than the mortgage market ever was. An otherwise alarmist front-page story this week by The New York Times conceded, “the size of the subprime auto loan market is a tiny fraction of what the subprime mortgage market was at its peak, and its implosion would not have the same far-reaching consequences.”
Also, unlike with mortgages, there is no expectation among the vast majority of lenders of borrowers that a car’s value will appreciate. Most folks know that a car will be “underwater” the minute it is driven off the lot, and the loans are priced with that reality in mind.
Yet, there are some striking similarities. But not the ones the NYT or other nannyists point to.
July 24, 2014 6:09 PM
This week, an unprecedented circuit split emerged in Halbig v. Burwell and King v. Burwell over whether health insurance premium assistance is available in states that didn’t set up health insurance exchanges. Many commentators have since claimed that there’s no way Congress intended to deny premium assistance to residents of the 36 so-called “refusenik” states that have not set up their own health insurance exchanges.
But in January 2012, Jonathan Gruber—an MIT economics professor whom the The New York Times has called “Mr. Mandate” for his pivotal role in helping the Obama administration and Congress draft the Affordable Care Act—told an audience at Noblis that:
What’s important to remember politically about this is if you're a state and you don’t set up an exchange, that means your citizens don't get their tax credits—but your citizens still pay the taxes that support this bill. So you’re essentially saying [to] your citizens you’re going to pay all the taxes to help all the other states in the country. I hope that that's a blatant enough political reality that states will get their act together and realize there are billions of dollars at stake here in setting up these exchanges. But, you know, once again the politics can get ugly around this.
July 24, 2014 3:16 PM
General Counsel Sam Kazman talks about what the Halbig decision means for the Affordable Care Act, as well as broader principles such as taxation without representation and the rule of law. Click here to listen.
July 24, 2014 12:04 PM
Almost anyone can fraudulently obtain taxpayer subsidies to cover most of the cost of their health insurance on the Obamacare health insurance exchanges. That’s the gist of recent news coverage in The New York Times, Reason, and Associated Press. The fraud is possible because the government doesn’t check’s people’s eligibility, or verify the claims they make in their applications, contrary to what former HHS Secretary Sebelius certified in January.
Applicants can submit a fake name and social security number, and no one even checks—not the government, not insurers, not Obamacare contractors. This is the finding of a recent investigation by the federal Government Accountability Office, as described in The New York Times and Reason magazine.
This matters because most of the cost of health insurance policies on the exchanges is picked up by taxpayers through tax credits, to the tune of billions of dollars a year. (87% of Healthcare.gov customers are getting taxpayer subsidies to purchase health insurance, with taxpayers on average footing 76% of the bill.)
July 23, 2014 1:56 PM
Libertarians are justifiably excited about the prospects of ridesharing companies such as Uber and equally justified in their disgust of regulators intent on preventing the expansion of ridesharing services. However, supporting the regulatory accomodation strategy that Uber appears to have adopted and supporting free market policies are two very different things. Over at The Skeptical Libertarian, I attempt to briefly outline these concerns and urge libertarians to keep their eye on the prize: dramatic transportation services deregulation. Read it here.