Showing posts with label licensing. Show all posts
Showing posts with label licensing. Show all posts

Tuesday, May 17, 2011

Rules for fools

The Economist:

In the 1950s, when organisation man ruled, fewer than 5% of American workers needed licences. Today, after three decades of deregulation, the figure is almost 30%. Add to that people who are preparing to obtain a licence or whose jobs involve some form of certification and the share is 38%. Other rich countries impose far fewer fetters than the land of the free. In Britain only 13% of workers need licences (though that has doubled in 12 years)...

...The list of jobs that require licences in some states already sounds like something from Monty Python—florists, handymen, wrestlers, tour guides, frozen-dessert sellers, firework operatives, second-hand booksellers and, of course, interior designers—but it will become sillier still if ambitious cat-groomers and dog-walkers get their way...

America’s Licence Raj crushes would-be entrepreneurs. Consider three people who come from very different states and occupations. Jestina Clayton is an African hair-braider with 23 years of experience. But the Utah Barber, Cosmetologist/Barber, Esthetician, Electrologist and Nail Technician Licensing Board told her that she cannot practise her craft unless she first obtains a licence—which means spending up to $18,000 on 2,000 hours of study, none of it devoted to African hair-braiding.

Justin Brown is an abbot at a Benedictine abbey that supplements its meagre income by making and selling simple wooden coffins. But the Louisiana Board of Embalmers and Funeral Directors has ordered him to “cease and desist”. Heaven knows what harm a corpse might suffer from an unlicensed coffin. Barbara Vanderkolk Gardner runs a flourishing interior-design business in New Jersey. But when she tried to expand into Florida, the state’s Board of Architecture and Interior Design ordered her to delete all references to “interior design” from her website and stop offering “interior design services” in the Sunshine State...

You might imagine that Americans would be up in arms about all this. After all, the Licence Raj embodies the two things that Americans are supposed to be furious about: the rise of big government and the stalling of America’s job-creating machine. You would be wrong. Florida’s legislature recently debated a bill to remove licensing requirements from 20 occupations, including hair-braiding, interior design and teaching ballroom-dancing. For a while it looked as if the bill would sail through: Florida has been a centre of tea-party agitation and both chambers have Republican majorities. But the people who care most about this issue—the cartels of incumbents—lobbied the loudest. One predicted that unlicensed designers would use fabrics that might spread disease and cause 88,000 deaths a year. Another suggested, even more alarmingly, that clashing colour schemes might adversely affect “salivation”. In the early hours of May 7th the bill was defeated. If Republican majorities cannot pluck up the courage to challenge a cartel of interior designers when Florida’s unemployment rate is more than 10%, what hope has America? The Licence Raj may be here to stay.


Tuesday, April 12, 2011

Florida House votes to deregulate many businesses

From the Orlando Sentinel:

The Florida House voted Thursday to strip government oversight of more than a dozen professions, including auctioneers, yacht brokers and talent agents.

Some of the regulated professions generate thousands of consumer complaints annually.

The bill, HB 5005, would dump licensing, surety bonds and other consumer safeguards required of telemarketers, travel agents/vacation-package sellers and auto-repair shops.

Those industries ranked first, fourth and fifth, respectively, on the 2010 Top 10 Consumer Complaint List compiled by the Florida Department of Agriculture and Consumer Services. There were 8,599 filings on telemarketers alone.

I guess we know the reporters opinion, but that's for another day. Professional licensing is mostly pushed by the industries themselves to reduce competition, increase profits and add false prestige and credibility through a state stamp of approval.

As a result, we have dozens of boards, departments and a plethora of arcane rules that mostly serve to employ regulators and don't really do much to protect the public while making it expensive and time consuming to enter numerous professions. And there's no evidence whatsoever that licensing reduces consumer fraud or abuse. In fact, it gives the public a false sense of security since the state doesn't and can never have enough resources to police all these businesses as promised.

This vote was passed along party lines with Democrats predictably voting against economic freedom. Of course, the usual hysteria followed:

“Should we stop registering sex offenders because that’s all we do is register them?” asked Rep. Jim Waldman, D-Coconut Creek. “There comes a time when registration is critical.”

Leave it to a liberal to liken yacht brokers and interior designers to child molesters. That's how they view the private, productive and - gasp! - for profit private sector.