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boot-stamping-face

Occupational licensing hurts the poor

This is a continuation of the series on why capital concentration is the result of government, not of the free market.

Occupational licensing is one of those nasty abuses of the citizenry that should outrage both the right and the left, yet it’s still rampant in this country.  It is a perfect example of government protecting the bigger and stronger, and stomping on the weaker.  It hurts low-income entrepreneurs the most and has no rationale that is not already fulfilled by private, voluntary rating systems such as Google and Yelp.

Local and state governments make money through licensing fees, occupational schools make money from mandatory classes, and incumbent businesses are protected from competition.  Who are the losers?  Hard-working poor people who are ready and willing to provide valuable services but are threatened with jail and fines if they do so.  Consumers also lose, by paying higher prices than they would in a free market.

Next time on this series: the financial industry.