All entrepreneurs are criminals

(written by lawrence krubner, however indented passages are often quotes). You can contact lawrence at: lawrence@krubner.com, or follow me on Twitter.

Along with the theory that most entrepreneurs start off breaking the rules, and only later, if they are successful, do they turn their operation into something legitimate:

The Man Who Does Not Exist insisted on anonymity in exchange for sharing his story. He considers himself a New York entrepreneur who wants to make a buck and doesn’t have much patience for what he views as arbitrary rules and regulations, such as those that govern renting apartments to Airbnb subscribers. He’s aware of the dubious legality of his operation, not that it fazes him. Even as the city has begun to halt business practices like his, he sallies forth, trying to wring as much financial gain for as long as he can. Given their location and pleasant surroundings, there is scarcely a day an apartment stays empty for the night.

…The Man Who Does Not Exist tells me he is a libertarian and, in the parlance of Silicon Valley, views himself a disrupter. At its core, business is a zero-sum game. People are dollar signs, and external restrictions are simply hurdles to jump over. Thus his disgust for New York’s attempt to stop Airbnb and people like him.

The city claims that if people receive compensation for their extra rooms they should, in essence, give the government a cut. Last year it cracked down on New York promoter Toshi who started a hotel company using Airbnb. After a year-long legal battle, he is now forced to pay the city $1 million as part of a legal settlement for converting a residential space into a full-on hotel. Meanwhile, the state Attorney General is subpoenaing Airbnb for its customer records.

The Man Who Does Not Exist claims regulations that govern rental apartments are akin to drug laws. They are useless, unenforceable, and an affront to the general public. How is the city going to find every residence that is lodging someone? Are these people really comparable to large hotel chains? The city simply wants Airbnb to stop altogether because it has yet to offer any compromise. That seems unlikely, given its rampant success.

…The Man reasons that if Airbnb homeowners or renters paid hotel tax, they would not benefit in the long run (a common talking point among the libertarian creed). Current laws, for example, include a tax that goes directly to the Javits Convention Center — a place scant numbers of New Yorkers have ever visited.

“Why are they entitled to a cut?” he asks.

Post external references

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    http://pando.com/2013/12/08/airbnb-says-this-man-does-not-exist-so-i-had-coffee-with-him/
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