West continues to pillory big government, and it's failures....this one the insane level of regulation that government seems to find necessary.
9. "Occupational licensing is supposed to protect the public from unsafe and untrained operators, but in many professions, it is unnecessary and costly.
A prime example of overreach is the licensing and training requirements for hair braiders. Hair braiding is a common service in the African-American community, but in some states, braiders must complete at least 300 hours of training, or have three years of experience and complete 150 hours of training, similar to requirements of cosmetologists.
However, hair braiding does not involve handing potentially dangerous chemicals used on hair, so the thousands of dollars hair braiders must spend on licensing for the health and safety of the public makes no sense — and deters the entrepreneurial spirit."
ALLEN WEST AND PAMELA VILLARREAL Nanny state takes toll on black America - Washington Times
In "Race & Economics, Dr. Walter E. Williams continues on the theme of the damage big government does to the economy:
10. State and local government regulates business and entry into occupations through
license laws, from medicine and law, to barbers, cosmetologists and plumbers.
a. “The Council of State Governments lists more than 800
occupations as licensed in at least one state, ranging from fortune-tellers in Maryland to rainmakers in Arizona (Council of State Governments, 1994).”
http://web.missouri.edu/~podgurskym/...es/kleiner.pdf
In many cases
licensing requirements are highly questionable. In California, a would-be barber must receive instruction in bacteriology, histology, and diseases of skin, hair, glands and nails. In some cases, local residency is a requirement.
11. Why? The effect of licensing is to
restrict the number of practitioners. A second effect is to
raise the price of a good or service. Of course, it also has the effect of raising the incomes of incumbent practitioners, which explains why most licensure laws are the result of
intense lobbying by incumbents demanding more protection from competition.
a. When an unlicensed trade lobbies for licensing, they always seek “grandfathering” from new requirement…leaving same for new entries.
These are all local and state laws and regulations. These are the easiest kinds of laws to address and change by citizens wanting to make change. They are laws that can actually be addressed by collecting petitions in supermarket parking lots, holding bake sales, conducting local demonstrations, attending town meetings, knocking on doors, etc. If these laws are on the books it is because people don't really mind them or care about them. It could also indicate an understanding by the public that sometimes some stupid laws stay on the books, but overall they appreciate and support government regulations that protect health and safety.
"If these laws are on the books it is because people don't really mind them or care about them."
Hardly.
Government regulations are a perfect example of the crony capitalism exemplified by the governance of Benito Mussolini, Adolph Hitler, and Franklin Roosevelt.
It was called 'corporatism' when the above trio practiced it, and encouraged businesses to join a cartel that included government.
It is opposed to competition, and hurts the customer.
Consider licensing of taxis....
12.
In NYC, taxis require a medallion,a system began in 1937 and cost $10 for each person then operating taxis. 13,566 were issued. Only 54 new ones have been issued.
a. “A taxi medallion sold yesterday for a record
$600,000- making the lowly license-to-drive one of the fastest growing investments anywhere. The seller was a Pakistani native who decided to retire from his yellow cab career after cruising city streets for 25 years. When he started driving his first taxi in 1981, he bought his medallion for $30,000.”
600G MEDALLION NOT TOO SHABBY, CABBY - NYPOST.com
b. The value of the medallion shows what
a buyer is willing to pay for government protection from free-market competition.
Williams, “Race & Economics,” p. 63
13. But there is a response to the medallion-taxi-monopoly: illegal or “gypsy” cabs…residents of poor and poorly served communities simply install meters, and put lights on their private cars! It is estimated that 30,000 ‘gypsy’ cabs operate in the city.
a. “Driving a gypsy cab is one of the most dangerous jobs in New York City. Since 1990, 180 drivers -- an average of over two a month -- have been killed while on duty, according to the New York City Taxi and Limousine Commission.”
One of the Most Dangerous Jobs in New York: Gypsy Cab Driver
14. “Today, tens of thousands of New Yorkers seeking to follow
a rich tradition of entrepreneurship face a bewildering array of laws and regulations that prevent or stifle enterprise.The entrepreneurs featured here, and countless others like them, deserve a chance for a better future made possible when economic liberty--
the right to pursue an honest living without arbitrary government interference--becomes a reality for all New Yorkers.”
City Studies | The Institute for Justice
15. Washington, D.C. is the biggest surprise....in 1979, there were about 8,400 taxis....almost all, owner-operated.
- Thanks to open entry, the Washington taxi industry consists of mostly self-employed people who work and conduct their business as they see fit. It has been estimated that at least 50% of the taxi owners are part-time operators who work after and before hours spent at other jobs.
- A number of owners lease their taxis to family members and other individuals on a full-time or part-time bais.
- Consumers benefit immensely: Washington had one taxi per 71 citizens, while NYC has one per 615. Williams, “Race & Economics,” p. 70.
- The price of a license in Washington....five dollars.