Category Archives: regulation

License to Rent-Seek

Posted on August 1, 2011 | Comments Off on License to Rent-Seek

Few regulations are more blatantly anti-competitive than occupational licensing. Incumbents place barriers to entry to keep pesky competitors out of the market. Licensed occupations also enjoy an artificial 15 percent wage premium because of the supply restrictions. The Economist recently ran a column on licensing’s rent-seeking aspects:

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.

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Posted in Economics, Public Choice, regulation

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Bipartisan Regulatory Reform

Posted on July 29, 2011 | Comments Off on Bipartisan Regulatory Reform

Usually, “bipartisan” means “twice as stupid.” But for real regulatory reform to happen, both parties need to be involved. President Obama’s recent executive orders requiring agencies to comb their books and repeal unneeded regulations should save a few billion dollars. But that’s just a drop in a $1.7 trillion bucket. Over at Fox Forum, I explain one bipartisan idea that could potentially save much more:

Agencies cannot be trusted to clean out their own books because they have no incentive to. Agency administrators want to maximize their
missions and budgets. Having them police themselves will not yield real savings.

There is a relatively easy fix: get independent outsiders with no stake in the outcome go through the Code of Federal Regulations make the
repeal recommendations. President Obama should appoint a bipartisan repeal commission to do just that and then send its package of repeal
proposals to Congress.

Congress, worried about backlash from interest groups with vested interests in existing rules, would have every incentive to water down
the package. To avoid that, Congress should impose on itself a requirement to have a straight up-or-down vote on the package within a
short time-say, 10 legislative days-with no amendments allowed.

Read the whole thing here.

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Posted in Public Choice, regulation

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A Common Mindset

Posted on July 28, 2011 | Comments Off on A Common Mindset

And not very rigorous, either. Click the image to enlarge. Original here.

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Posted in Economics, regulation

Dublin Dog Poop Regulations Are Even Stricter than Vienna’s

Posted on July 20, 2011 | Comments Off on Dublin Dog Poop Regulations Are Even Stricter than Vienna’s

After reading the recent post on Vienna’s dog poop regulations, a friend sends along this photo from Dublin, Ireland (click to enlarge):


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Posted in Nanny State, regulation

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Reforming Regulation through Executive Order

Posted on July 18, 2011 | Comments Off on Reforming Regulation through Executive Order

President Obama has issued two executive orders this year directing agencies to comb through their books and repeal unneeded or harmful rules. The first one repealed about 30 rules, and will save about $1.5 billion.

It will be about four months before the second rule’s savings become known. My hunch is it will be in the same ballpark as the first executive order.

In this short article and accompanying radio segment (see the upper right hand side for the audio), I put the executive orders in context and put forward an idea that would save even more money.

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Posted in Media Appearances, regulation

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Police Shut Down Renegade Lemonade Stand

Posted on July 18, 2011 | 2 comments

Appleton, WI police taught some children a lesson about regulation’s true purpose by shutting down their lemonade and cookie stands. The children live about a block from an annual Old Car Show, and have been selling lemonade and cookies near the event for six years.

Vendors inside the car show didn’t appreciate the competition. So they talked the city government into passing a new ordinance that put the girls out of business.

After a round of bad publicity, city officials are thinking of re-writing the ordinance.

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Posted in Competition, Economics, Public Choice, regulation

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Regulation of the Day 182: The Definition of a Hot Dog

Posted on July 8, 2011 | Comments Off on Regulation of the Day 182: The Definition of a Hot Dog

Having solved the state’s fiscal crisis, California’s state legislature has moved on to more important issues, such as the legal definition of “hot dog.” According to S.B. 946 [PDF, p. 32], that definition is:

“Hot dog” means a whole, cured, cooked sausage that is skinless or stuffed in a casing, may be served in a bun or roll, and is also known as a bologna, frank, frankfurter, furter, garlic bologna, knockwurst, red hot, Vienna, or wiener.

 The intention is to differentiate cooked hot dogs from uncooked sausage products.

Most states have part-time legislatures. California’s is one of the few full-time bodies. Every so often, there are calls to change that; maybe this hot dog bill will spark someone to move on that much-needed reform.

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Strangely Specific Regulations

Posted on July 8, 2011 | Comments Off on Strangely Specific Regulations

People seem to want a government that solves problems. They have gotten exactly what they asked for. In the U.S., regulatory agencies employ over 270,000 problem-solvers. Worldwide, there are even more. When there are that many regulators, they will come up with some very creative problems to solve. The next someone tells you the economy is dangerously unregulated, refer them to this list:

  • In New Hampshire, it is illegal to have a ferret in your possession while on your way to a hunting trip.
  • Also in New Hampshire, ventriloquism is a licensed occupation.
  • In Juneau, Alaska, regulations prohibit animals from entering barbershops. Remember, humans are animals. And the city code doesn’t offer an explicit definition of “animal” that excludes humans. So technically, nobody is allowed inside a Juneau barbershop. Not even to water the plants, which are allowed. (Hat tip to Eli Dourado)
  • It is illegal to counterfeit cat and dog tags in Grand Forks, North Dakota.
  • If you’ve ever been in a duel, you may not work as a first responder in Kentucky.
  • Minnesota regulations prohibit washing teflon-coated cookware with abrasive sponges.
  • In New Orleans, it is illegal to inflate meat.
  • In Connecticut, it is illegal to use a white cane unless you can’t see it.
  • Delaware has a particularly postmodern regulatory code. In that state, it is a felony to wear a disguise while committing a felony.
  • In Indiana, it is a class B misdemeanor to dye birds and rabbits.
  • In Cambridge, Massachusetts, it is against city law to shake carpets in the street.
  • In La Plata, Maryland, taxis with three doors are illegal.
  • According to Chapter 9.32.040 of Moab, Utah’s city code, boobie traps are illegal.
  • All ice sold in El Paso, TX is required by law to be made inside city limits unless it’s made from distilled water.
  • It is against the law in Massachusetts for construction workers to wear stilts.
  • In Nevada, forgetting to close a gate is a misdemeanor.
  • In Fairfax County, Virginia, it is illegal to use a pogo stick on a city bus unless the driver specifically asks you to.

Modern America isn’t the only time or place where regulators pay astonishing attention to detail. Just for fun, here are a few strange rules from the other side the Atlantic:

  • 16th century England had antitrust regulations similar to our own. In an early example of preventing vertical integration, it was illegal to be both a tanner and a currier.
  • In England, it is illegal to turn off someone else’s lamp if both of you are on or near a city street.
  • In Turin, Italy, failing to walk your dog at least thrice daily is punishable with a €500 fine.

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CEI Podcast for July 7, 2011: How Much Does Regulation Cost?

Posted on July 7, 2011 | Comments Off on CEI Podcast for July 7, 2011: How Much Does Regulation Cost?

 

Have a listen here.

One federal government study says federal regulations cost $1.75 trillion. Another says it’s $62 billion. The difference is almost a factor of 30. Vice President for Policy Wayne Crews compares the two, and talks about the hazards of calculating regulatory costs and benefits. As it turns out, $1.75 trillion might be an understatement.

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Proposed DC Taxi Regulations Would Harm Drivers, Customers

Posted on July 7, 2011 | Comments Off on Proposed DC Taxi Regulations Would Harm Drivers, Customers

One of the best arguments for free markets is that bad things happen when businesses and government get together. As with church and state, it’s better to keep them separate. DC residents are finding that out for themselves, as this video about proposed taxi regulations shows.

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Posted in Competition, Economics, Public Choice, regulation

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