I
was originally inspired by John Stossel to write this chapter. I was watching his program on Fox Business
Network and he was discussing how over regulated society is. In this particular episode it was about
licenses. Licensing is a quality control
device to ensure that a person is capable of performing a certain type of job
or task such as a driver’s license or a plumber’s license. According to Stossel licenses do more than
protect us from bad plumbers, but also dead flowers! That’s right, I said dead flowers. Some States in the United States license florists to
ensure the quality of the flowers you buy.
They license hair stylists and other occupations as well. States will require these people to pay fees,
sometimes in upwards of a thousand dollars or more, and job training just to be
able to cut someone’s hair. Some times
they even have people get a license even if the training for that license has
nothing to do with the job or service they wish to perform. An example of this comes from Stossel’s
episode where a woman wanted to provide a service in the form of Jamaican hair
braiding. She was forced to get a
license and go to a class on how to cut hair and at no time was she ever
instructed on how to braid hair. In
other words she had to get a license on a service she was never going to
perform, hair cutting, just so she could braid hair. Money and hours wasted.
The
situation with licensing gets worse:
Imagine some kids who want to open a lemonade stand on a street corner
or even right in front of there own home.
The government shuts them down because they did not get a license to
open up a business (which is used for tax purposes). Well it happened, and not just to kids with
lemonade stands. It happened to kids who
wanted to sell pumpkins (compliments of their parents) and to kids trying to
sell cookies. Just search the internet
and you’ll find this kind of foolishness everywhere. It’s no wonder it’s so hard to open a
business.
Why
do governments license these things so excessively?: Well I can only give my opinion, but I think
its government greed. For one the States
get revenue when only licensed businesses sell there products and not from the
untaxed street corner lemonade stand.
This is especially true when it can take over $1,000 just to get a
license from the government, and that’s not including the training costs. The other reason is to remove
competition. For instance a New York cabby can only get a medallion to own a cab by
paying anywhere from $100,000 to $600,000 depending on what the New York City taxi and
limousine commission decides. It only
takes $600, classes and a drug test to drive though. It is a system designed to suppress the
competition by pricing them out of the market, thus it is almost impossible to
be an independent operator. Lobbying at
its best, government sponsored monopoly at its worst.
The Alternative: So
rather than licensing people arbitrarily to protect people dead flowers (mind
you, who would shop at a florist if there flowers are just going to die the
very next day) lets be smart about it.
Let’s decide what is absolutely necessary to be licensed. Police and Firefighters come to mind. Doctor’s, plumbers, electricians, and
architects are another. No one wants a
bad doctor, so let’s make sure they have a certificate confirming that they
have been trained to heal the sick.
Plumbers and electricians need to be licensed to ensure our homes don’t
become money pits. Architects need a license
to ensure buildings won’t fall down upon its occupants. It should not stop a non-architect from
designing a building; it will just need an architect to give it a pass before
it is built. So those jobs that provide
specialized construction all need some form of license.
I can only think of only one other
occupation, a trial lawyer. I do not mean law professionals in general, but
only the lawyers who become advocates for the defense and prosecuting
attorneys. A legal letter or other such services do not require a lawyer’s expertise
as there is instructions to write such things on the internet and your write to
defend yourself should not be infringed because you yourself are not a lawyer.
I say this because some one was actually arrested for writing a legal letter on
behalf of an elderly man who designed a church for his community which was
built. The elderly gentleman did not have a license to be an architect, and to
try and keep him out of jail a friend wrote a legal letter on his behalf. This
friend was arrested for writing a legal letter without having a license to be a
lawyer, in which he was incarcerated for a month until he apologized to the
court. Take note that he could have been out sooner, but he was trying to
maintain his rights as a citizen and that his incarceration was a court order
and he was not convicted of a crime.
Conclusion: I question why it is a crime to
help your fellow man and why government wishes to corrupt itself by maintaining
monopolies on chosen businesses. By the way monopolies can only exist if
governments let them. We have this at the federal level with health insurers
having monopolies in particular States. So I say lets end the arbitrary
corruption of government licensing. To learn more on this and other issues you
may simply watch more of John Stossel on the Fox Business network.