The battle over Airbnb is taking center stage at the Democratic National Convention. The fight is emblematic of the dispute between Republicans and Democrats over who should steer the economy: government regulators, on the one hand, or consumers and business innovators on the other.
Democrats are attacking Airbnb and similar Internet sites that enable people to earn cash renting their homes out. Senator Elizabeth Warren and several like-minded lawmakers are calling on the Federal Trade Commission to crack down. They’re determined to regulate anything and everything. They claim to be for the little guy, but they’re protecting a rigged economy that favors hotel unions and the real estate industry. To heck with the budget traveler who needs a temporary place to stay for less than a pricey hotel or the home-sharer who needs to make extra cash.
Airbnb is fighting back, running ads defending its service. Meanwhile, in New York State, Governor Andrew Cuomo is still mulling over whether to sign a bill that would make it illegal for most New Yorkers to advertise their apartments on the sites.
And in California, Airbnb is being pummeled with local regulations in Los Angeles, San Francisco, and Sacramento. Visitors to Disneyland used the short-term rentals until the city of Anaheim banned them entirely in January.
The attack on Airbnb is an example of pro-regulation politicians depriving consumers of choices and impeding start-up industries. For decades, politicians from both parties have piled on regulations. But Donald Trump declared war on excessive regulation during his GOP presidential acceptance speech last week, calling it “one of the greatest job killers of them all.”
Airbnb is now used by people in 34,000 towns and cities in 191 countries. In New York City, for example, it is heavily used by women over sixty who rent out their homes to make ends meet, allowing them to stay put after retirement or the death of a spouse.