Ignore Regulators, or Not?

Some big blow out businesses have been built over the past few years.  They have some things in common.

  • They are marketplaces
  • They use mobile to connect their marketplace
  • They have a decent transaction volume natively
  • They totally ignored government regulation and blew through it

Mike Dudas tweeted this out and inspired this post.

Last summer, I was at a Freedom to Farm event in Wisconsin. It was supporting the Farm to Consumer Legal Defense Fund which I urge you to join.  It’s $50.  I met Joel Salatin at the event. We were chatting about the organic movement, and I said to him in order for it to be successful at scale, there needs to be some mobile marketplaces that connect farmers directly to consumers-and they need to be too big to regulate.

So far, I haven’t seen a killer app in this space.  Organic farming has big logistical problems compared to the taxi industry.  It also goes over longer distances.  Organic farmers can sell virtually everything they grow because demand is so high.  Food also has different issues than simply taking a ride in a car.

Governments will fight back, and they fight back hard.  They will fight back because they want to protect crony capitalist monopolies.  They’ll fight back because they want to protect tax revenue.  They’ll fight back just because they want to continue to have control.  Their intent isn’t to do anything but bankrupt and destroy the people they find offensive.

In Santa Monica, the government is going to heroic lengths to stamp out AirBnb.   Governments have gone to great lengths to shut down innovation in all kinds of things, from ride sharing to organic farming.

From my perspective, I see it differently.  Independent people ought to be able to reach a bargain and decide for themselves.  People ought to be able to use their private property in almost any way they want.  In this age of crowd sourcing, instant communication, sensors, and the ability to change reputations online, we ought to be figuring out more ways to enable marketplaces rather than destroy them.  They are creating value for people, which is why they are so sticky.

Governments all over are currently oppressing your individual right to freedom and destroying the value of assets when it engages in oppressing people from exercising those rights.  This is why I favor limited government, and only 50% of one political party agrees with me right now.