Government Must Not Mess With Innovation: Borthwick

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Dec. 5 (Bloomberg) -- John Borthwick, CEO at Betaworks, talks with Tom Keene about government intervention in innovation on Bloomberg Television’s “Bloomberg Surveillance.”

Interesting social experiences?

Specifically the ones tied to physical products?

Tied to physical products and they have to deal with the city, state, and federal regulation.

Tim talked about it earlier, but i think you will see over the next two or three years, you will see governments -- local, federal, international governments or non-u.s. governments, get involved in a coastal -- in a whole slew of technology related things.

As it relates to businesses like uber, as they scale up you will have local cities trying to figure out how it relates to their existing franchises an existing fleets.

It will be very uneven.

I am saying generally government should stand back away from this because government's role at this stage, you can't actually discern what the new economy -- for example, do you predict the city of new york will stand back as uber takes market share from limos and taxicabs?

The previous it ministration would have.

The new administration, we will see.

You have stuff and you want to share it and you make money on it.

When does regulation makes sense?

You had a report yesterday uber brings and $20 million a week.

Should they be regulated and taxed like a regular taxi commission?

That number was from leaked documents so it is not confirmed, but it is also a top line revenue number.

You have to figure out what their cut is and how it slows down.

The $20 million a week is hard to gauge.

But the company is clearly making a lot of money and has done extraordinary things.

You and view this as peer to peer sharing, but i also view it as an asset like lifestyle.

A whole generation of people are leaving college and coming into the job market and they are viewing their world and they are saying, hey, i don't actually need to own the assets my parents owned.

I don't necessarily need to own an apartment.

I can rent.

I know people are moving from place to lace.

-- place to place.

Same thing with uber.

And same thing with bitcoin.

The economy is being restructured and at this point it is hard to discern exactly what the role of government should be.

I think the risk of government overreaching -- look, i was on the stand against iker soft in the antitrust case and it is one of the things in my career that i regret because i think it was an attempt to overreach on technology policy and try to design -- government cannot design technology.

Tim adams, i say this with great respect to your political contributions to the nation.

Who makes the decisions?

Politicians mr.

-- or a regulator brooklyn saying a taxicab medallion is $1.3 million and uber is cleaning :00 . who makes decisions about government intrusion into these new -- sharing economy.

We have heard something they will pay some kind of hotel-like taxes.

These companies are building a business, smart people and they have to figure out how to relate in the economy.

You cannot underestimate the power of the existing economy and all of the money and influence that is in that.

I think that keeping as much as possible -- the technology, giving it the ability to reshape the economy, before government gets involved.

John borthwick with us.

Let's rip up the script.

It has to do with the disruption.

Tim adams is with us.

He is with the iif, --

This text has been automatically generated. It may not be 100% accurate.

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