This is more a story of how established businesses collude to prevent small businesses from gaining a foothold and threatening the commerce they have already cornered.
On a very small scale this is an example of what can go wrong when the tentacles of Fascism reach into even the small towns. Clearly there is an unhealthy relationship between the forces of the existing businesses and the local government.
The issue is free enterprise vs unfair restriction of competition.
The local government is only acting on the preasure being applied by the colluding establishment.
I agree that it is wrong but you have pointed your anger at the wrong people. I can assure you that if the local businesses were not pushing to shut down any competition there would be no issue at all.
We shouldn't be upset with the government when they do something stupid? Are you fracking crazy?
The kid put all his savings into a business that he should have been able to figure out was only viable if he was allowed to operate it outside the law of the city he lives in.
I'd say he was the stupid one.
Funny, this coming from someone that everyone else thinks is the stupid one.