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Posts Tagged ‘licensing laws’

Licensing Laws Deepen South Africa’s Electricity Crisis | Mises Wire

Posted by M. C. on June 14, 2023

The Electricity Regulation Act of 2006 is a textbook example of licensing laws that ultimately serve incumbents at the expense of not only prospective competitors but also customers who can benefit from innovations made by these competitors. In the case of South Africa’s electricity crisis, licensing laws are making South Africa’s electricity crisis unnecessarily more difficult to solve because NERSA has the last word on who can compete and how competitors can compete in the electricity market.

https://mises.org/wire/licensing-laws-deepen-south-africas-electricity-crisis

Since 2007, South Africa has been experiencing an electricity crisis. Eskom (a South African state-owned company) cannot produce enough electricity to meet increasing demand, so Eskom has implemented rolling blackouts, which is also called “load shedding” by the South African government. Rolling blackouts involve Eskom periodically and intentionally stopping the delivery of electricity to certain parts of South Africa to avoid a total blackout.

The severity of rolling blackouts increases as Eskom’s capacity to produce electricity decreases, and the severity of the rolling blackouts are categorized into stages—where “stage 1” is the least severe and “stage 8” is the most severe for now. Energy experts and even government officials have suggested solutions but to no avail because the South African government ignores them.

In this piece, I argue two points. First, I argue that South Africa’s electricity licensing laws need to be eliminated or amended. Second, I argue that those same licensing laws prevent effective and affordable electricity supply solutions from being implemented, deepening South Africa’s electricity crisis.

Here are some facts about South Africa’s electricity crisis. According to data from Statistics South Africa, Eskom’s yearly average electricity production share is 94 percent, and South Africa’s electricity production decreased by 11 percent while Eskom’s electricity production decreased by 18 percent since the beginning of the rolling blackouts in 2007.

The decrease in South Africa’s electricity production is attributed to Eskom’s aging infrastructure and corruption. According to data from EskomSePush, South Africa experienced 311 days (over seven thousand hours) of rolling blackouts in 2022. Rolling blackouts have negatively affected businesses and livelihoods to the point where businesses have experienced significant decreases in profits and also had to cut jobs as a consequence. On the lighter side—and I say this sarcastically—the rolling blackouts have assisted South Africa in beating its climate goals, since less production in electricity leads to less emissions of greenhouse gasses.

Eskom’s domination in South Africa’s electricity market is no accident. Legislation has given Eskom unique privileges and protection from outside competition ever since its inception in 1922. Anton Eberhard writes:

See the rest here

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Freedom Is a Stabilizing Influence – The Future of Freedom Foundation

Posted by M. C. on February 5, 2022

Free to try, and fail, Americans prospered, building a country that became the envy of the world. Economic barriers and restrictions on movement between the states were forbidden, making the United States the largest free-trade zone since the Roman Empire. There were no feudal obligations or status; no military conscription (except during the Civil War); no income tax or Social Security tax; no licensing laws or monopoly privileges to protect favored interests

https://www.fff.org/explore-freedom/article/freedom-is-a-stabilizing-influence/

by Scott McPherson

The nativists at Breitbart are sounding the alarm. “Reports: U.S. Society Grows More Divided Amid Diversity” was a headline at Breitbart on January 28. The reports noted come from the Associated Press and the Carnegie Foundation for International Peace. Both suggest a growing divide between different people in the United States, and apparently foreigners are to blame.Freedom was the crucible for generations of diverse peoples, raising productivity, wages, and living standards to levels never before seen in all of human history.
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According to the Breitbart story, “the AP report comes as academics admit that the United States is being politically divided by the ‘demographic shift’ caused by immigration of global migrants into an otherwise stable society.” In other words, things would be great if poor people from other countries just stopped trying to improve their lot in life by emigrating here. The Carnegie Foundation claims that the United States is “perniciously polarized” and “especially susceptible to polarization” through “the durability of identify politics in a racially and ethnically diverse democracy.”

It cannot be denied that considerable effort is employed to push people into warring tribes, based on superficial differences of race, ethnicity, gender, religion, or the politics of envy that vilifies the prosperous and productive. But handwringers on the right who fret about immigration misdiagnose the problem. A quarter of Republican voters, according to a recent YouGov poll, think their candidates should prioritize “securing the border,” compared to 5 percent who want tax cuts. Only 8 percent of the “law and order” party cares most about rising crime. Leftists, finding in every perceived problem the catalyst for another government program (like secret, government-funded flights of immigrants to locations around the country and generous welfare handouts), fuel the fire.

The first issue that ought to be addressed is the very notion that the United States is a democracy. The word never appears in our Constitution or its political antecedent, the Declaration of Independence. Early American statesmen warned against democracy and had no use for it as a system of government. The failure of the political right and left to uphold the principles of our constitutional republic politicizes everything and polarizes everyone. A return to limited, constitutional government would do more to stabilize our society than any border wall.

The diversity found on this continent throughout the history of European settlement is beyond comparison. People with different languages, customs, and religions found their way from Great Britain, France, Germany, Ireland, the Netherlands, and elsewhere, laying the foundation of a thriving society. Dreams of personal liberty, security against religious and ethnic persecution, and the opportunity to own land drove millions of people to leave everything behind, most likely forever. No officious bureaucrats, “swarms of Officers,” harried the people. These colonists were poor, insular, and provincial, to be sure, but the cold, stark reality of hacking their lives from a forbidding wilderness was foremost in their minds. Through the cold, stark reality of a North American winter, and the brutal summer heat and biting insects, these different people from many cultures built cities, towns, and villages from the Atlantic seaboard to the foot of the Appalachian mountains, their independent spirits, ironically, binding them closer to each other even as they became estranged from their home countries. They rejected the ancien regime in their hearts if not yet in form.

When the lone remaining colonial power in the region, Great Britain, began to exercise arbitrary authority over these people in the 1760s, tensions increased until they reached a literal breaking point. War brought political independence and a new country uniting all, in several states, under a federal government. The Constitution of 1787, which became the law of the land in 1789, ushered in a new age. Political stability was provided by a written document to restrain this new government, specifically limiting and enumerating its powers and including a Bill of Rights. Radical notions like equality before the law, individual rights, and reverance for private property and freedom of contract would take root and grow, and the result was an explosion of effort and ever-expanding opportunities.

Free to try, and fail, Americans prospered, building a country that became the envy of the world. Economic barriers and restrictions on movement between the states were forbidden, making the United States the largest free-trade zone since the Roman Empire. There were no feudal obligations or status; no military conscription (except during the Civil War); no income tax or Social Security tax; no licensing laws or monopoly privileges to protect favored interests; no regulations dictating working hours or a minimum wage; no free housing or government healthcare or food stamps; no war on drugs or restrictions on gun ownership. General education and literacy rates were quite high, despite the absence of a large and expensive public school system. Teachers were often itinerant, and certainly not unionized. Foreign visitors marveled at the motivation and cooperation of Americans and how little interaction they had with their government.

A glaring exception was slavery. This evil institution was allowed to continue for nearly eight decades. It was abolished in 1865 by the Thirteenth Amendment and the last obstacle to fulfilling the promise of the Declaration of Independence, that all are created equal, was finally removed.

To this land, the poorest and most ignorant of the world would flock. By the millions they came, in wave after wave, from Ireland, Italy, Portugal, Greece, Eastern Europe, and the Orient. Throughout the 19th century, they came relentlessly, escaping centuries of persecution, religious intolerance, and economic stagnation. Except for occasional and short periods, there were no restrictions placed on newcomers. From the end of the Mexican War in 1848 until 1920, there were no immigration restrictions at all. In a January 29 piece for RedState, the writer Bonchie said that “a country cannot sustain itself with the rule of law being so ignored and its borders so flaunted,” but during a century of open immigration, the population and economy of the United States flourished. The arts and humanities thrived. Freedom was the crucible for generations of diverse peoples, raising productivity, wages, and living standards to levels never before seen in all of human history. What we need is a return to the principles that made such a revolution possible.

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If it please the crown, may I work for a living? | The Daily Bell

Posted by M. C. on August 26, 2019

https://www.thedailybell.com/all-articles/news-analysis/if-it-please-the-crown-may-i-work-for-a-living/

By Joe Jarvis

The Sheriff of Nottingham in the tale of Robin Hood didn’t just collect taxes.

He didn’t consult a chart and calculate what each person owed for the maintenance of the paths through the Sherwood Forest. It would be hard to make such a mundane bean-counter evil.

The reason the Sheriff of Nottingham could abuse his power was that it was so arbitrary.

There was no tax rate. The Sheriff simply took what he wanted. He kept most for himself and gave some to the crown, in exchange for his power.

This is the type of power all tyrants want. Specific laws and taxes are no fun.

But with arbitrary power, you can take vengeance on your enemies. You can reward your friends. You can grant monopolies, destroy businesses, impoverish entire demographics, and trade leniency for status.

That’s how the Sheriff of Nottingham’s power and wealth came to rival Prince John’s.

Unfortunately the “Sheriff of Nottinghams” exist in real life, in bureaucratic offices across America.

For example, last year two freelance novelists from Charlottesville, North Carolina received letters from the tax collectors, ordering them to pay thousands of dollars in back taxes.

The city said they failed to pay for a business license. To work from home, and write.

Officials think these writers need a license to put words on paper.

It’s bad enough if the city expects every freelancer who lives in the city to read the tax code and pick out whatever few sentences mandate that they pay for a business license.

But it’s even worse when reading the code wouldn’t help anyway…

The city claims completely arbitrary authority to demand taxes for “personal or business service, not specifically included” in the ordinance.

The words “freelance” or “novelist” or “writer” do not appear in city code at all. The city can tax– or not– whoever they wish, based on that vague line in the city code.

There is a Robin Hood in this story…

And that’s what all these licensing laws come down to, restriction on the freedom of expression.

Free people have the right to work, to sell their labor, and to contract with whoever they wish. That’s freedom of expression.

And yet so many cities and states demand that you ask permission to make a living.

This one is especially personal to me since I make a living as a self-employed writer.

I’m glad that these writers are fighting back against Charlottesville.

But personally, I find the best way to combat small-time tyrants is to vote with my feet.

Maybe the peasants of Sherwood forest had nowhere else to go. But these days, why stick around and let the Sheriff of Nottingham abuse you?

Puerto Rico has been welcoming freelancers and self-employed with open arms…

That’s why I recently started the application process so that I can move to Puerto Rico by the end of the year, and start paying a 4% tax rate.

And it isn’t even too expensive to form the company and apply.

I am using a service provider called PRelocate. They actually walk you through the process and file your application for you, all for free. They make their money from getting a small slice of the taxes your company pays to the government.

That means the only costs will be for the government fees, about $1,100 total.

A small price to pay for the amount I’ll save in taxes.

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