Lessons in Entrepreneurship: Lemonade Stand Edition

Jennifer Hughes is in charge of issuing permits for Montgomery County, Maryland’s government. She told WUSA, a local tv station, that it is “technically illegal to run even the smallest lemonade stand in the county, but inspectors usually don’t go looking for them.” Some enterprising children recently set up some lemonade stands outside of the US Open, which is played in Montgomery County. They plan to donate the money they make to charity. Officials quickly shut down the stands and fined the childrens’ parents $500.

After a round of bad publicity, the County rescinded the fines. They are also allowing the children to re-open the lemonade stands, so long as they’re on an out-of-the-way road.

It’s good that these children are learning about entrepreneurship and running a business at such a young age. One worries, though, about the lessons Montgomery County is teaching them.

CEI Podcast for June 15, 2011: Do ATMs Kill Jobs?

 

 

Have a listen here.

In a recent NBC interview, President Obama blamed ATMs for taking away bank tellers’ jobs, and computerized airline check-in kiosks for eliminating aviation jobs. Communications Coordinator Lee Doren points out that innovation doesn’t affect the number of jobs so much as the types of jobs. Accomplishing more while using less labor is actually the key to prosperity. People looking for an explanation for today’s high unemployment need to look elsewhere.

Standardized Test Scores Continue to Disappoint

Today’s Wall Street Journal reports that “Fewer than a quarter of American 12th-graders knew China was North Korea’s ally during the Korean War, and only 35% of fourth-graders knew the purpose of the Declaration of Independence, according to national history-test scores released Tuesday.”

Results like these show precisely why education is too important to trust to free markets. Children would be far better served if government were to take a leading role in K-12 education… oh, wait.

Nevermind.

Headline of the Day

Time: Are Australia’s Koalas, Battling Climate Change and Chlamydia, On the Path to Extinction?

Regulation Roundup

The latest happenings in the world of regulation:

A new Senate bill amending copyright law would make lip-synching to other people’s music a jailable offense. The legislation has bipartisan support.

Two women were arrested in New York for eating donuts in a park while unaccompanied by minors. Strangely specific!

A church in Charlotte, North Carolina was fined $4,000 for violating the city’s tree-pruning regulations. The penalty is $100 per branch incorrectly cut.

-Another bill winding its way through the Senate would allow states to tax companies that have no physical presence inside their borders. I’ve written on similar state-level proposals before. It’s a bad idea.

A new Mercatus Center study ranks the 50 states by economic freedom and regulatory burden. New York scored the worst. New Hampshire and South Dakota did best. You can read the study here.

-Wayne Crews has a good article in Forbes about why antitrust regulators should back off the proposed AT&T/T-Mobile merger.

Los Angeles would like to pass regulations for what colors BB guns can be.

CEI Podcast for June 9, 2011: The Other Black Friday

 

Have a listen here.

The World Series of Poker is underway. The tournament is perfectly legal. And anyone over 18 can play poker in a casino. But it has been illegal to play the game online since April 15, now known to poker fans as Black Friday. Policy Analyst Michelle Minton goes over the controversy and explains why prohibition doesn’t work.

SWAT Team Raids House Over Student Loan Payments

Seriously. This is not a joke.

Kenneth Wright does not have a criminal record and he had no reason to believe a S.W.A.T team would be breaking down his door at 6 a.m. on Tuesday.

“I look out of my window and I see 15 police officers,” Wright said.

Wright came downstairs in his boxer shorts as a S.W.A.T team barged through his front door. Wright said an officer grabbed him by the neck and led him outside on his front lawn.

“He had his knee on my back and I had no idea why they were there,” Wright said.

According to Wright, officers also woke his three young children ages 3, 7, and 11 and put them in a Stockton police patrol car with him. Officers then searched his house.

As it turned out, the person law enforcement was looking for was not there – Wright’s estranged wife.

“They put me in handcuffs in that hot patrol car for six hours, traumatizing my kids,” Wright said.

Wright said he later went to the mayor and Stockton Police Department, but the City of Stockton had nothing to do with Wright’s search warrant.

The U.S. Department of Education issued the search and called in the S.W.A.T for his wife’s defaulted student loans.

I understand that revenue-starved governments are looking for funds wherever they can find them. But there are less dangerous ways to reduce the budget deficit.

UPDATE: Matt Welch reports that DOE says the warrant wasn’t for defaulted student loan payments. But they won’t say exactly why they used a SWAT team.

Regulation of the Day 180: Braiding Hair

Businesses often use regulations as a cudgel to bludgeon their competitors. Occupational licensing is one of the most-abused types of regulation. John Stossel’s latest column shows how by telling the story of Jestina Clayton, an immigrant from Africa who braids hair for a living.

Her customers are satisfied. But now her competitors want her to take 2,000 hours of classes and spend thousands of dollars to get a cosmetology license. This even though braiding is the only service Jestina offers. And because the her competitors are the very people who grant or deny licenses, it will be easy for them to keep entrepreneurs like Jestina out of business even after she completes the licensing requirements.

Jestina’s story repeats itself every day in any number of occupations. Stossel writes:

Once upon a time, one in 20 workers needed government permission to work in their occupation. Today, it’s one in three. We lose some freedom every day.

“Occupational licensing laws fall hardest on minorities, on poor, on elderly workers who want to start a new career or change careers,” Avelar said. “(Licensing laws) just help entrenched businesses keep out competition.”

This is not what America was supposed to be.

He’s right.

Constitutional Arguments for Marriage Equality

This video from Cato shows why the legal arguments against allowing gay marriage don’t hold water. If the embedded video below doesn’t work, you can click here to watch it on YouTube.

Regulation of the Day 179: Giving Food to Homeless People

Last Wednesday, three people were arrested in Orlando for giving food to homeless people in a local park. They violated city regulations that require “groups to obtain a permit and limits each group to two permits per year for each park within a 2-mile radius of City Hall.” The rules apply to events that give food to over 25 people; the arrestees fed about 40 people.

Their charitable work could cost them each a $500 fine and up to six months in jail. All three are affiliated with a group call Food Not Bombs that regularly gives meals to homeless people. The Wednesday event that led to the arrests was a deliberate resistance to the ordinance. Hopefully they will succeed in overturning it; the last thing government should do when people try to help each other is get in the way.