Delegate Freitas shares how occupational licensing led his 10 year-old daughter into criminal activity...
We are in an ‘over-licensuring’ period.
A buddy of mine from San Diego is a barber. After I get back from leave and am rocking the full beard I ask him if he can do a straight razor shave for me before I go back to work.
“I could but I’m not allowed to” is his response.
He’s done thousands of them but the license to do it cost $24,000 and it would take him a decade to recoup his costs. So I can’t get a straight razor shave from someone who is qualified to do them.
You could probably reduce almost all licensure outside of medical fields (and many within) and not present any new risk to the consumer.
The issue I have is it's always sold to us as "Consumer Protection" to help us. But who's spending billions to lobby for it? It's the companies that want to prevent future competition from entering the market.
Ford, Chrysler, Chevy etc all lobby to ADD billions in regulations and red tape each year because they know they have teams of lawyers, compliance professionals, and design teams that can accommodate.
There's no way a new car company can be started from the ground up these days unless you have a trillion bucks lying around (Elon Musk - Tesla).
The Mises Institute wrote in 2016 that the "Sharing Economy" Reveals that Licensing Laws Are Really About Shutting Down the Competition .
It's a good read. Check it out.
The sharing economy has completely reshaped the way we do business with each other as well as expanded opportunities for those looking to go into business for themselves. While the rest of the world is celebrating the accessibility and affordability that the sharing economy has brought to numerous sectors, there are those who see this emerging market as “highly disturbing.”
Armand Lauzon was frustrated as he watched his cousin struggling to make it in the “brick and mortar” world of nail care. In the salon where Lauzon’s cousin worked as a manicurist, it was typical for the owners to take a 50-85 percent cut of its employee’s earnings.
Since Lauzon only takes a 15 percent cut of its professionals’ earnings, many have managed to triple their income. However, not everyone in the community was enthusiastic about Lauzon’s efforts.
While consumers were pleased to have a variety of options to choose from, Belle’s competitors have tried to use the state to regulate Lauzon’s site in order to secure their own futures.