Posted on 08/25/2014 5:10:23 AM PDT by MichCapCon
Texas Attorney General Greg Abbott, who is running for governor of that state, has rolled out a plan that would repeal a number of occupational licensing rules. These standards restrict individuals from engaging in certain commerce without permission from the state (and often include paying extra money, taking tests, and meeting other requirements).
The plan notes, “Regulation by licensure results in less competition, fewer choices, higher costs, and the potential to thwart innovation. These effects are not always visible to the consumer, but they are nonetheless built-in costs without justification in most instances.”
The National Center for Policy Analysis notes, “Of all the proposals designed to help poor and lower-income people, this one deserves major kudos. It does not involve expansion of a massive government program, and it reduces the cost to those who wish to profit from their knowledge and skills. It will also boost economic growth and tax revenue, since studies indicate that such licensing reduces job growth by 20 percent.”
Abbott’s plan would specifically get rid of or significantly reform licensing for interior designers, salvage vehicle dealers, dog trainers, coaches, auctioneers, barbers, cosmetologists and towing boat operators.
According to “License to Work,” a national study on the burdens of occupational licensing from the Institute for Justice, Texas has the 17th most burdensome laws. Michigan is ranked 21st and is particularly burdensome towards moderate-income occupations. Michigan also licenses painters, barbers, lower-level contractors like those putting up gutters and laying tile, and other areas rarely licensed in other states like floor sanders, alarm installers, glaziers and other alteration contractors.
The main opposition to Abbott’s proposal comes from the groups representing industries which are being deregulated. The stated claim, of course, is that the repeal of licensing and regulatory rules would harm health and safety. This is the standard assertion, but there is little or no evidence that removing most licensing standards will cause harm — and the entrenched interests who make that claim rarely even try to show that it does.
The reality is that these organizations are looking to use government to protect their members from competition in the marketplace. But that is not a proper role of government.
Personally I believe unless a trade or profession, if carried out incorrectly, poses a direct threat to public health and/or safety it should not require a state license.
If a local government wants to levy a tax for businesses wanting to operate in their city or county those taxes should not actually be a form of protectionism and extortion.
Local governments should not be requiring proof of competency from professions or trades that are not regulated by the state. Nor should they be requiring additional proofs of such when a state license has been issued. I see no reason why painters, brick pavers (not masons) and fence builders to hold a local contractor’s license.
Most of the license requirements for occupational jobs are absurd. I was a real estate appraiser for over 20 years. When I first started all that was required was a note pad, a pen and a camera - and getting someone to hire you. When then savings and loan debacle took place the blame was placed on the very tip of the dog’s tail - the appraiser. The answer to making sure that it never happened again was to require that an appraiser be licensed which only resulted in a booming industry for state regulators and places offering the required “training”. Oh, and “license fees” to be offered up to the state every two years.
Twenty years, and hundreds of appraisals, later, I still had to prove my worth with training classes before I could renew my license. At what point does one become fully trained and competent enough to work in their chosen profession? In this case.....never. Inspired by the collapse of the real estate market fueled by lenders doing sub-prime, low-doc and no-doc loans, I quit.
That is it in a nutshell. In a few years only large corporations with staff to deal with all the regulations will be able to do business because the small guy will never be able to run his business and keep up with all the regulations. Not to mention they are expecting a degree of schooling that many of these guys do not have to just read and understand their regulations and that is when they do not have contradictory regulations(many times in the same book)
Try starting a trucking company. It is madness.
How sweet now illegals can sell tacos out of the trunk of their cars.
100 years ago corporations needed governments for stability
today governments need corporations for stability.
politicians desire large corporations since it just easier to deal with one big donor. Since the politicians have no respect for right vs wrong, they don’t and can’t understand the individual electorate.
licensing is not always a bad thing. Think contractors after a hurricane.
Then again the way Artificial Intelligence and other service jobs are proceeding, it is possible NO license will ever be needed again for any service. (ie lawyers, psychologists, marketing, consultants, insurance salesmen, etc.)
that is because a few bad apples ruined the business.
using water to “look like” you were putting in chlorine.
casing homes for later theft.
improper handing of toxic chemicals.
florists who take money for events like weddings and then disappear?
This is like Medieval guilds.
http://en.wikipedia.org/wiki/Guild
Not generally, pretty much always. But it is a lot easier for your typical HR manager to verify a certification versus experience.
I dont mind them having to get a license to begin with, the continuing education requirements really rub me the wrong way though.
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