 With uber shaggy in California. This is a cool story. I'm not a cool story a sad story very sad story about destructive California politics. It's a new it's not a surprise but You know, we'll see if uber has the guts to follow through with its threats California passed a law a few months ago called a b5 a b5 basically, I don't know all the nuances and all the nitty-gritty of it, but basically Bands the use of independent contractors on a regular basis if you're using somebody on a regular basis whether it's a rider whether it's a Driver whether it's a delivery guy You need according to a b5 you need to count them as employees, which means you need to give them benefits You need to give them a health care You know, you have to offer them the whole slew and of course they get they get then a Salary they get they get withholding they get the whole everything that's got to do with being an employee so you and The the person who's gonna work for you don't get to decide whether they're an independent contract or not whether they're an employee or not The government gets a site for you now the government already has Criteria for who can be an employee and who can be a Contractor there's a whole list of this. So they're very strict in terms of limiting your ability to use contractors for a limited period of time for particular types of work And all kinds of limitations we used to go through this at the Institute When could we make somebody a contractor? When did we have to make them an employee? What a b5 does is it expands the definition of employee far greater and Shrinks the ability to use contractors to In a dramatic fashion dramatically shrinks the definition of what a contractor is and who can be a contractor all specifically aimed specifically aimed at Turning the the drivers for uber lift and all the food delivery services Into employees instead of contractors since law passed a few months ago Last year I think since then the the all these tech companies all these delivery companies I've been doing basically two things one. They've been suing to claiming the law is whatever Unconstitutional wrong whatever and and delaying and by the way none of them have turned the employee there the people They work who work for them into employees. They're all still treating them as independent contractors So they sue to try to delay They've also put together a proposition that Californians will vote on in November. So the idea is we're not gonna play by the rules. We're gonna pay fines We're gonna sue. We're gonna hold this off in court for as long as we can and Then we've got this proposition in November to overturn AB 5 So we'll delay until November So that has been happening and then what happened recently is that the attorney general of California sued The the company's saying wait a minute. You're just delaying the law is the law You have to bite by the law. You have to start treating them as employees and Uber and lift said no way and they so they he filed an injunction against them. They filed a Motion at the Supreme Court to overturn the injunction against them the Supreme Court basically ruled I think yesterday No, you have to there's a law and you have to follow the law and the law says you have to treat them as employees and Uber and lift both said and by the way, the attorney general of California was very clever He didn't file the injunction He didn't file the injunction on Uber and lift to force them to use To convert everybody to employees immediately on like Uber eats Because everybody needs Uber eats right now, right? I mean Uber eats is like off off the charts right now because Of COVID because restaurants are closed so everybody is using Uber eats right now So you didn't follow on that because he knew it would be unpopular. He only filed on the on the you know regular Uber and regular lift So Uber and lift both announced yesterday that They're gonna appeal some more. They've got more peels but basically The Supreme Court of California gave them until the 20th of the month and Uber and lift says look if we don't get this overturned by the 20th Then we're out of California. We're basically shutting down in California. Now. They too are not shutting down Uber eats They can still treat their drivers as contractors until the Attorney General in California goes after them there until November, but They will shut down Uber and lift in California now I for one hope they do that finally somebody needs to stand up to the bastards and Sacramento Somebody needs to stand up to these statists and tell them we're not gonna. We're not gonna work on those terms We're just not gonna work on those terms Uber did this a long time ago in Austin, Texas Austin, Texas Had all these requirements that Uber had a fulfilled background checks and all kinds of stuff I think Uber does background checks anyway But this was onerous in terms of what the city council in Austin Required Uber to do super said okay, and they just left the city and for a long time You derive in Austin you'd expect to be able to use Uber, and you couldn't use it and it was like I think them that the brains of all those Gen X's were blowing up I think there were exploding brains all of Austin, Texas because nobody could quite get their hands around the fact that a company would Leave and leave them stranded. Don't you have a you know? God-given right to an uber whenever you want it within three minutes on demand whether they make money or not Finally, I think after a couple of years where all kinds of other Companies filled in the gap for uber, but none of them really worked very well uber We negotiated with Austin and came back into Austin, so I'd love to see them leave California Love to see them leave California. I think it would be I think it would be great It was good for consumers to learn it would actually increase the probability that they win in November on proposition 22 proposition 22 Which would reverse the law so it would it would give it would increase their probability Let let consumers actually suffer the consequences of stupid government policy. I can't imagine you know anything better than that so It's cool and Let's hope it actually happens let's hope That uber actually shrugs in the face of Immo illegitimate laws that restrict their behavior That would be very cool It's interesting That all of this I mean uber and lifter considered these villains and Nobody nobody accuses them of overcharging uber and lifter fairly, you know cheap Services fantastic as compared to taxis and and anything else Convenient a whole generation I think it's not both cars and and so you'd argue that environmentally it's it's good right for your cars Better usage of assets that car otherwise just sits there now You can make a living driving it and and that's a benefit all these benefits and uber still loses huge amounts of money huge I think Last quarter they lost one point something billion dollars, right? So not like they're making a fortune and they can afford to pay their drivers a lot more No, they're losing money. They actually don't have the money To pay drivers as employees who would raise the cost of labor dramatically Who cares who cares the unions are demanding it in the name of labor rights and the politicians, you know The leftist politicians in California What do they care about whether companies making money or losing money? What are they made their money? You know where they made their money. They made their money and the capital gains taxes on capital gains When ubo in public and all those uber employees cashed in and made money the state of California Has a very high capital gains Tax and they make their money when Silicon Valley companies go public It's time for Silicon Valley to move out of California It's time not only for uber and Lyft to shut down operations in California. They should They should close their offices in California. They should move their headquarters to Austin, Texas Or to national Tennessee or to I don't know we know Nevada or somewhere We know Nevada is not a good place. No, they should go to a university town. They need tech guys You know Austin, Texas is perfect and and leave the state of California Yeah, I shouldn't leave California California's where the battle is California's where the fight is why you know the last People you want to leave California's a right here is fighting. So you want them to be where the action is But you know even a right might move one day one day, I'm not gonna say more than that But Yeah, let's see Silicon Valley move. There are the good university places other than the barrier Not nobody no way may be quite as good as the barrier But let's hope that uber actually does indeed Shrug. All right, let's see. I think I saw some questions here. That's that that's that That's that That's that I'm looking for questions. Okay, Michael asked Michael contributes 34 Canadian dollars 34 99 Canadian dollars, which is about 25 US dollars just shows you how how you know Low the Canadian dollar has gone since the financial crisis when they were almost a parody Where the dollar Canadian dollars are almost worth an American dollar 25 years dolly says I hope uber shrugs because if not It just continues to embolden government and to fear more and more into business. Absolutely Absolutely, there's got to be a consequence And again, I think they need it and and there's got to be I mean They will feel good about it And there's got to be consequences to The consumers and there's got to be consequences the drivers a lot of the drivers want this a lot of the drivers of lobbying for this They want to be employees. Well screw you if you're going to lobby for this You won't be employees and you won't be contractors. You will be out of a job And that's that's reality Teaching people a lesson that's reality conveying a message And and uber and lyft can help reality can can make that happen right can make that happen What we need today what I call the new intellectual would be any man or woman who is willing to think Meaning any man or woman who knows that man's life must be guided by reason By the intellect not by feelings wishes wins or mystic revelations Any man or woman who values his life and who does not Want to give in to today's cult of despair cynicism and impotence And does not intend to give up the world to the dark ages and to the role of the collectivist roads All right, before we go on reminder, please like the show. We've got 163 live listeners right now 30 likes That should be at least 100. 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