Just when you thought it couldn't get any worse. Democrats are now pushing two very bad ideas: 1) Do away with the "gig" economy, as California has done with its draconian restrictions on independent contractors; and 2) nationalize the oil and gas industry.
The attack on American's right to work
The Biden administration has effectively declared war on gig work, with its Department of Labor proposing a new federal regulation inspired by California’s controversial AB 5 law that would limit people’s ability to be classified as independent contractors and work as they choose.
More on GIG ECONOMY
The End of Freelancing?
AB 5, which essentially bans independent contract and freelance work, was one of the most hated bills to emerge from the Sacramento sausage-making process in recent memory.
Using the aforementioned “ABC test” developed by the California Supreme Court, the law establishes who can legally work on a contractual basis and who must be a hired employee. The classification bar set by the test is so high that few freelancers can clear it. Consequently, almost every independent contractor has to become a hired employee, form their own business, or lose their job.
This is no accident: The aim of AB 5 was to force employers to put their gig workers on the payroll, along with all the costs — unaffordable for many businesses and organizations — that are associated with doing so.
In his public statements about the newly proposed regulation, Secretary of Labor Marty Walsh has resorted to the same duplicity that California lawmakers used first in passing, and then in defending, the indefensible AB5. In a recent press release, for example, Walsh said the rule is needed to safeguard “our nation’s most vulnerable workers,” ensuring that they are not deprived of “their federal labor protections.”
How to make the energy market collapse
In response, influential Democrats, including a leading U.S. Senate candidate, a former Department of Energy official, and an influential energy expert, are urging the U.S. government to socialize America’s oil and gas firms.
At a Houston conference last week, Jason Bordoff, Dean of Columbia University’s Climate School, called for the “nationalization” of oil and gas companies. “Government must take an active role in owning assets that will become stranded,” he said, “and plan to strand those assets.” By “strand” Bordoff meant “make financially worthless.” Bordoff made the point at least twice during the confrerence. Bordoff’s call shocked many in the audience. “Jason is smart, well-informed, and well-connected to the Biden Administration,” said someone who was at the conference, “so these comments are scary.”
The calls come on the heels of two other Democrat-led efforts to expand U.S. government control over oil and gas production. One is a piece of legislation called “NOPEC,” which passed the Senate Judiciary Committee in May. The bill would change U.S. antitrust law to revoke a policy of sovereign immunity, which protects OPEC+ members from lawsuits. If NOPEC became law, the U.S. attorney general could sue Saudi Arabia and other OPEC members in court. The result could be a disruption of global supplies of oil and other commodities if nations retaliated against the U.S.
The other is an effort led by Treasury Secretary Janet Yellen to cap the price of Russian oil sold on global markets, which I and many other experts have warned since June is unworkable, because China and India have said they would circumvent it, and could backfire, resulting in far higher oil prices. Last week, analysts with Rapidan Energy told the same Houston conference that the December 5 implementation of the Russian price cap could reduce global supplies of oil by 1.5 million barrels per day. Such an amount would create an oil price shock.
Earlier this month, Bordoff told the World Economic Forum, which has called for a “Great Reset” to quickly move from fossil fuels to renewables, that climate change required a “massive transition” that is “going to be messy, it’s going to be disruptive.” Said Bordoff, “I think part of the broader macro environment that's happening now is one of more disruptive change because of climate impacts, but also more disruptive change because of geopolitics coming out of the pandemic, coming out of this conflict, completely rethinking what the World Economic Forum is all about.”