Posted on 02/13/2015 7:11:29 AM PST by reaganaut1
Free-market advocates have long argued that occupational licensure laws do a lot of damage but little or no good. The first strong challenge to such laws I can recall reading was in Milton Friedman’s 1962 classic Capitalism and Freedom. Not content to pick off the easy and obvious cases, he went after the hardest one, licensing of doctors, and argued that people would be better off without it.
Since then, many economists have made similar arguments against licensure, ranging from risible and obviously anti-competitive instances such as interior designers to professions like medicine and law where poor quality work can have serious consequences. In this recent article published by the Foundation for Economic Education, for example, Robert P. Murphy argued that market mechanisms such as competency certification are far superior to licensure.
Rarely have I come across interest in this issue from liberals, probably because they’re so habitually inclined to think that government regulation must improve upon market results that they don’t take critiques of licensure seriously. (One counter-example, however, is the fact that some left-leaning law professors are willing to stick their necks out and criticize the way state licensing of attorneys harms poorer people, a point I discussed here.)
So it was surprising to read that in President Obama’s proposed budget, there is a small (by federal government standards, anyway — $15 million) amount of money for a study of occupational licensing requirements in the fifty states. That idea got a favorable shout out on the leftist site Vox. Writer Timothy Lee observes that “many states have expanded licensing rules to professions where it does make much sense,” and links to a study by the resoundingly libertarian Institute for Justice showing that occupational licensing has grown like kudzu over a southern field in summer.
(Excerpt) Read more at forbes.com ...
There are just as many snake oil salesmen with license as there are without; you need only watch any modern advertisement they are mostly in the vain of "Better Call Saul"; Personal Responsibility... Caveat Emptor!
As far as snake oil salesman go Gov't regulators is the worst of them all, and none of them are licensed or subject to any degree of effective watchdog.
Isn’t this am issue best left to the states?
The author believes this ‘study’ may result in less licensure...I believe it will lead to a federal level of licensure.
As much as I think getting a license to braid hair is ridiculous, I agree with you; it needs to be left up to the States. Certain occupations lobby the government to require college certification and licensing to keep competition out, which is a bad deal for everyone; except for the government and college employees and the businesses that lobby to prevent competition.
I happen to be in a licensed profession - engineer.
I just can’t imagine the federal government, especially one led by Obama, eliminating licensure for engineers. But I fear the feds would love to get their dirty hands in the licensing process - so this $15 million ‘study’ is suspect, in my opinion.
BTW, at the state level, every few years there is talk of moving the goal posts. The board which decides these things is heavily weighted with professors who do very little actual engineering design. However, they are quite certain that most of us aren’t qualified with a mere 4 year degree and license exam. So, they periodically push for a master’s degree requirement for licensure...to include us who are already licensed. Talk about lining their own nests.
Exactly, just another fedgov powergrab in the making. States rights should prevail in “professional licensing”. Take building contractors and real estate occupations for instance, which are largely subject to regional influences. At least with state regulation, persons engaged in these activities must meet established consistent standards of performance that cannot be readily escaped from with exculpatory language in their employment contracts.
There are certainly some professions that I would agree should be licensed. But some States have gone overboard in requirement for occupations that require a talent instead of extensive education and which poses no safety risk.
You are right, it’s all about the money as far as governments go.
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