Millennials love their Uber, and the sharing/gig economy has been a bright spot for innovative approaches to make cab riding a thing of the past. What’s not to like? Drivers seem to be happy, in that they voluntary agree to work for Uber. Their customers seem to be happy, as they continue migrating away from cabs to Uber and Lyft. Obviously cab company monopolies are unhappy with the creative destruction of entrepreneurial innovation. And politicians, ever the friend of established interests, are unhappy.

In California, progressive politicians passed Assembly Bill 5 in January to eliminate the ability of gig workers to be classified as independent contractors, but rather to be treated as employees. This gives some measure of health insurance and unemployment benefits, as well as sick leave. Since this bill eliminates the business model of Uber and Lyft, they are fighting back and have sponsored a ballot initiative to allow the voters to have a say this fall. One of the key benefits to being an Uber driver is the flexibility to decide when you want to work, something that being an employee does not typically allow, which explains why most Uber drivers would prefer to stay independent contractors.

But of course, these workers don’t know what’s good for themselves. Unfortunately, they have politicians like California’s Attorney General Xavier Becerra looking out for them. In response to Uber’s threat to leave California, Mr. Becerra responded:

Any business model that relies on short-changing workers in order to make it probably shouldn’t be anywhere, whether California or otherwise

This is the height of political arrogance and hubris. Mr. Becerra knows nothing about what it takes to run a business, he knows nothing of the individual experiences of the workers who want to work in a contractor role (and seemingly does not care). But he’s quite certain that he knows what kind of business model ought to be allowed–customers and employees desires don’t matter. The systemic knowledge of the millions of Uber/Lyft customers, employees and independent contractors is far greater than the individual knowledge of the California politicians fighting Uber & Lyft. I look forward to California voters having their say in this issue.

EDIT Update 18 August: Perfectly predictable; UBER shutting down on Friday. I’m sure Californians will appreciate their legislature’s noble intentions. As FEE reports:

There was nothing humble or cautious about the approach California took to regulating the ride-sharing industry. Legislators took a cursory look at a business model they clearly didn’t understand, wished it was different, and thought they could rewrite it entirely on their own. This hubris has not improved conditions for workers, but brought the industry to the brink of destruction.