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IPFS News Link • Economy - International

Capitalism Smothers the Sharing Economy

• https://c4ss.org, Chad Nelson

Russia's Federation of Car Owners (FAR), like any good oligarchy, has complained to Russian state authorities that "rogue" elements such as Uber, Gett, and Yandex represent a "threat to society." Exactly what kind of threat do the web-based taxi services represent? FAR claims they don't have "real world" taxicab expenses. Code for: They threaten our profits by avoiding artificial entry barriers we've secured.

This desperate play at stifling competition by FAR is not unique. By petitioning the Russian state to put an end to the threat these companies pose, Russia may soon join the growing list of countries in which established taxi services have used lawsuits and state regulation to rein in competitors who operate outside of the standard business model.

On his Café Hayek blog, Donald Boudreaux discusses the attacks governments around the world are waging against new "sharing economy" services such as Uber and Airbnb. Though it's naïve to call Uber a part of the sharing economy, Boudreaux rightfully denounces the assaults, pointing out that these businesses offer a way for everyday people to turn their consumer goods into capital goods.


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