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Airbnb lost in Jersey City, New Jersey. Yesterday, angry voters put restrictions on rentals. They didn't like the noise and disruption and they didn't like outside investors converting homes into semi-hotels without taxes and regulations. This came right after the shooting death at an Airbnb party house in California. The Jersey City vote is sure to provoke similar initiatives elsewhere. This will snowball.
As for Uber, a similar story. Ride-sharing kills established taxi and car service companies and brings a lot of traffic to airports and city centers. There's pushback. In California, a new law says Uber and Lyft drivers are entitled to all kinds of benefits that disrupt the ride-sharing business. In New York City, the number of Uber cars allowed is capped. That really hurts. Again, this kind of restriction will likely spread.
I would like to invest in these new industries. I think they are a force for good. I use them but the pushback makes me think twice. If we over-regulate, we take the profit out of the business. We take drivers out of the business. We take rental units out, too.
And, more than anything, over-regulation would deny our innovators the success they deserve. America advances when bold new ideas are allowed and encouraged. We lose if we stamp them out.