Biden’s Labor Department recently proposed a new rule that not only would result in jobs lost, but it would CRUSH your economic freedom as well. Carol Roth, economic expert and author of ‘The War On Small Business,’ joins Glenn to explain how this policy would flip the gig economy upside down — along with the millions of contracted workers within it. And even worse? Roth says the big players involved — like Uber and DoorDash, for example — could survive such a change. But it’s far less likely the small business owner could say the same. This is a BIG win for BIG business, BIG government, and the BIG unions…
Transcript
Below is a rush transcript that may contain errors
GLENN: Okay. So Uber, DoorDash, plunged in the stock market, as the labor department proposes gig worker change. What does this mean?
CAROL: So I wrote about this in the war on small business. This is one of those things that sounds really nice in theory. And is absolutely terrible for economic freedom. This is basically taking California's AB5 law. And we know that California is, you know, the stomping ground, the place where they test every bad idea that they want to take national. And they basically said, if you are an independent contractor, hmm that's not really going to work for us anymore. We're going need to you. Unless you have your own business entity, and start running yourself like a business entity, we are going need to you to be an employee. And that creates all kinds of issues. Not just for Uber and Lyft. They like to sell it. As we're going after the big guys.
But really, for 32.6 million small businesses and the 53 million people, who want to have flexible work -- because as a small business owner, for me to have to bring somebody on, when I might only need them, once a month, during a business season. Or what not. Now I have to make them an employee. I have to pay insurance for them. I have to pay their portion into Social Security.
It may screw up my 401(k) plans, and my set plans, and all these kinds of things. Because now you have all these employees who weren't employees and now are employees. And it just trickles through your business. I, as a small business owner, can't afford that. These bigger guys, they have access to capital.
They have big human resource departments. They, even though some of them are fighting it, you know, some of them love it. Because it shakes out all of the competition, and then from your standpoint, it takes away your economic freedom.
You know, they like to talk about choice. Well, what about your work, your choice? Why do you not get to work?
I want to work flexibly. I want to work, maybe one day on Uber. One day on DoorDash. One day on something else.
And the idea that just because -- you know, somebody uses your platform from time to time to earn money. I mean, is your babysitter going to become your employee now? The guy who does your shoeshine. You use him every week. So why is he not your employee?
But this is a giveaway to the unions.
GLENN: Unions.
CAROL: To the big special interests. And to certain big businesses, that will crush economic freedom in this country.
GLENN: It is -- I just had a guy from DoorDash. We ordered something from some restaurant. And they forgot a salad. Now, I wasn't disappointed. My wife was disappointed.
This guy comes, and he is so great. And usually, when you have a salad, as they're walking back to their car, you can have like two pizzas missing. And they'll like, yeah. Call them. And they'll just deduct it.
This guy was like, no. No, no, no, no. I'll go pick it back up.
I'll let him know the mistake. And I'll go pick it back up. And we're like, no, really, you don't have to. It's a salad. And I'm bargaining. Please, don't, I'll pay extra, if you don't go get it. He said, no, no, no.
I have to go get it. I tried to tip him. He wouldn't take a tip. He said, you know what, I have crashed -- my life has crashed. My wife left me. She was cheating on me. He said, I've gone back to school. I'm going to get my doctorate in whatever.
And he said, I'm providing a good service. You've already tipped me enough. I want a fair deal. And I want to do my job with integrity. And I thought, this guy is fantastic.
CAROL: Where can we hire this guy? Did you get his phone number?
GLENN: I know. He's fantastic. Just totally fantastic.
But he's looking at it because he can do that, when he has time. When he's not studying or going to school.
CAROL: Right. Exactly.
GLENN: That is huge for the American people. Huge.
CAROL: We have all kinds of job openings. We have 1.67 jobs open for every person.
If you want to become an employee, you have that opportunity. People don't want that. They want the flexibility. They want the opportunity to be their own boos.
Do what they want to do on their time, and you have the government saying, I'm sorry. We can't make a contract together. I can't do what I want. And say, Glenn, I'm going to work with you, from time to time. That's not okay. We will dictate that to you. We want more taxes. We want to interfere. And what ends up happening is it takes those jobs away.
It makes them go away. Because the reasons these models exist around the gig economy, is because they are independent contractors. And it works for beet parties.
When they go out and survey these independent contractors. And say, would you rather be employees?
The overwhelming majority say, no!
So the only people that are benefiting. Again, big special interests. Big government. Big business.
GLENN: Yeah. Is -- I mean, can they just do it? Can the labor department just do this?
PAT: There will be a comment period. And I will put something up on my Twitter. We need people in -- just like you vote. You need your voices. Call your representatives. You need to comment. Tell them to keep the government out of economic freedom. Let people work the way they want to work. Absolutely no on this.
GLENN: Do they actually listen to the comment thing?
CAROL: So I have been told that, you know, so few people. Maybe not the comments. But when you call your reps. So few people actually pick up the phone and call, that if they get 20 calls. They're freaking out. That's like a barrage.
So you actually can. If you get a group of people together, make a difference. Because it's kind of like Twitter. You know, all of a sudden, a few people start saying something. And then everybody is saying this.
It's that squeaky wheel, that gets the oil.
That vocal minority, that can affect change. And especially right now, everybody is on edge, with the economy.
GLENN: Yeah. Last thing we should do is start cutting jobs.
CAROL: Yeah. Exactly. Seems like not a great idea.
GLENN: One last story, federal reserve announced six large banks are going to participate in pilot climate scenario, of social credit system.
What the hell -- what does this -- I think I know what that means. Do you know exactly what this means?
Because they're saying, oh, no, no, no.
This is just -- everything that is bad is a conspiracy theory. This is -- we're just trying to see this climate thing, play out, to see if we can be stable and if the credit score thing will work?
CAROL: Yeah. I mean, whatever they're saying it's not going to be, you can pretty much count on, that's what it's going to be. And that's the concern over the Federal Reserve potentially rolling out a currency they control, a central bank, digital currency. Not control where they control the money supply, but where they can actually control the one that you own. And they can program it. And they can take away your ability to use it. And all those kinds of things.
So my guess is sort of what they're piloting. They're already talking about CBDCs. They're already trying to develop that.
And so much like we've seen, some private companies try to do lately. But say, well, you know, we're not happy with -- you ate too much meat, this month, and so we're not going to let you buy this burger.
We're just going to shut that access down. But, hey. If you buy the healthy salad. You can access it. If not, you'll have to wait to access the money.
Again, the opportunity here for just massive control, and lack of economic freedom, is the most un-American thing I can think of.
GLENN: There was one other thing, that I wanted to talk to you about. We talked about it yesterday. Gosh, it was just in my head yesterday, it just slipped out. I can't remember.
CAROL: PayPal. Central Bank, digital currencies.
GLENN: Yeah. Well, PayPal is what I'm going to get into tomorrow, because we just ran out of time. PayPal, you know, they said, oh, yeah. We're -- that was a mistake. All of that stuff.
Did you see what happened, Stu?
STU: They're saying they're going to fine --
GLENN: Yeah. They said they were going to fine people, $2,500. You know, if you broke their standards.
Their standards were way broad. And then they came back and said, how did that policy come in here? We must have mice in the equipment here.
CAROL: And it was specific to misinformation. Because there are actually a couple of other things, that they still fine you for, that they didn't take away. This is a new thing that they added around misinformation. The question is why is a payment provider, hiring a team, to monitor information.
Like, on what planet does that make sense, other than the planet that we've been talking about? Where, you know, all these different forces, come together. And basically, you know, expire, using my word. To take away your economic freedom.
GLENN: So let me just give you this.
Dan Schulman. You know who he is, Stu?
He's the head now, of PayPal.
And his folks, and this is all on his stuff.
Democratizing and transforming financial services and ecommerce, to improve the financial health of billions of people, family and businesses all around the world. He has vast experience with payments and mobile technology.
He's now leading PayPal to, quote, reimagine how people move and manage money. And how merchants and consumers interact and transact.
That's great. PayPal has now been listed as one of the top companies on just capital. Capital letters. Just -- just capital.
CAROL: Just.
GLENN: And Forbes' just 100 list. Featuring companies doing right by America. PayPal has also been recognized as fortune change the world company for its work on tackling the biggest challenges facing society.
Dan's leadership. Now, listen to this. An impact to be recognized by several notable organizations.
When I hear this --
CAROL: Can I guess? Can I guess? Is it the World Economic Forum?
GLENN: Well, when you hear this, you'll think, holy cow, what are they washing this guy for?
He is one hundred black men of New York honor Dan with the excellence in economic empowerment award. New York Urban league presented him with the Frederick Douglass Award. Let's see.
In 2021, he also received the Voices of Solidarity Award, presented by vital vices.
He has won the Oak Crown Honor, presented by prime minister Xavier Bettel. In 2020, the Robert F. Kennedy Human Rights Award.
He won the Ripple of Hope Award. Dan was recognized by Endeavor Global with the high impact leader of the year award. For his work --
CAROL: Anything financial on that list, Glenn?
GLENN: So far, no. So far, no. However, he's on the Council for Economic Education.
CAROL: Okay.
GLENN: Dan was recognized with the Brandon Legacy Award, in honor of the late Supreme Court justice. You know, who he had a lot in common with common human dignity, with her.
Also, he's a doctor of humane letters. Blah, blah, blah.
Now, ranked third on Fortune's list of the world's greatest leaders. This guy cannot get more awards, right?
He's top 20 businesspersons of the year. Name one of the most 100 creative people. One of the top 50 CEOs. Top ten most innovative CEOs in banking.
He's also a life member of the Council of Foreign Relations. He's also with the World Economic Forum as a member of their international business council. And the Board of Governors. And the board of stewards, for the future of financial and monetary systems platformed.
CAROL: Shocked. Shocked. I tell you, when I heard the word reimagined. The last thing that came into my mind, was the World Economic Forum. Shocking.
GLENN: Yeah. And he's not just on -- with the world economic forum. He is part of the WEF International Business Council.
CAROL: Lord. And you know what is so crazy, go back to who were the two founders of PayPal was the merger of Elon Musk's X.com and Peter Thiel. These guys who are so interested in freedom and free speech. And now look what it's become. We'll have to get them to come back and save PayPal too.
GLENN: I know. I know. They're both embarrassed what it has become. Both embarrassed. Thank you so much, Carol. We'll talk again.
CAROL: It's such a pleasure.
GLENN: Carol Roth. CarolRoth.com/Glenn.
