A Riddle

Rep. Joe Wilson is under fire for yelling “you lie!” at President Obama during his health care speech last night.

Now, all politicians lie. It is their nature. So Rep. Wilson’s assertion, tactless as it was, is technically correct.

But Rep. Wilson is a politician too, and therefore a teller of lies. So, when calling another man a liar, could he have been lying himself?

The mind boggles.

Regulation of the Day 48: Barbers in Nevada

Want to be a barber in Nevada? You’ll need to get a license first. One of the requirements is a chest X-ray, of all things. And a blood test.

More onerous is the 18-month apprenticeship under a licensed barber, which requires its own license – plus another chest X-ray and blood test.

Occupational licensing regulations are rarely in place to benefit consumers. Their primary purpose is often to limit competition by putting up barriers to entry. Why do this? Because keeping the supply of barbers artificially low means that existing barbers can keep their prices artificially high.

Three of the four licensing board members must be licensed barbers. They write the apprenticeship rules and the license examination. They decide who gets in, and who gets left out. They have plenty of excuses built into the rules for excluding potential competitors.

Owing child support payments, for example, is by itself grounds for exclusion. What this has to do with cutting hair is beyond me. And getting a job cutting hair is one way to be able to make those payments. But there it is, encoded in state law. The board can legally keep you from being a barber if you owe child support.

A sure sign of an anti-competitive practice is using the force of law to prevent competitors from entering the marketplace. Where is the antitrust investigation into Nevada’s barber licensing?

Regulation of the Day 47: Irish Potatoes

Until last Friday, it was illegal for certain producers to sell or import U.S. No. 1 grade “Creamer size” (long and skinny) Irish potatoes. Creamer size potatoes are identical in taste, texture, and weight to their stouter, rounder counterparts.

In the Idaho-Eastern Oregon growing region, this led to over $7 million worth of potatoes to go unsold. That’s a lot of uneaten meals. Hopefully the USDA will repeal similar aesthetic restrictions on other types of food. It is bad policy to keep perfectly good food off the market, especially during times of recession and high food prices.

Dog Bites Man

I am shocked — shocked — that $6 million of stimulus money went to a company accused of “overbilling, bribery of union officials and other alleged improprieties on several large New York projects.” Such lapses in oversight never happen with government spending projects!

Minimum Wage, Maximum Unemployment

Teenage unemployment is 25.5% — an all-time high, and nearly triple the general unemployment rate.

Maybe the fact that the minimum wage has increased three years in a row has something to do with it. Why would an employer hire someone unless they produce at least what they’re paid?

A lot of younger people have little experience and no marketable skills. Such things take time to develop. Until they do, they will remain unattractive hires unless they can be paid what they’re worth. Minimum wage laws, of course, make that illegal in many cases.

Another case of good intentions gone awry.

Regulation of the Day 46: Chemical Weapons

If your company exports chemical weapons, make sure you keep good records. Every year, on company letterhead, you have to list ten things for the government. This includes which chemicals you exported, in what quantities, to whom, etc.

Reasonable enough. Chemical weapons in the wrong hands could pose a legitimate security threat. And supplying people with the means to kill other people is, shall we say, ethically dubious.

Still, the sixth item of our ten struck me as superfluous: “Purpose (end-use) of export.” This is rather obvious, is it not?

Regulation of the Day 45: Wooden Crates

Even the humble wooden crate cannot escape the government’ watchful regulatory eye. The rules include provisions for:

-Which types of trees from which countries may be used to make crates.
-Bark removal from the logs used to make the crates.
-Pest inspection.
-Heat treatment.
-Fumigation.
-Treated wood must be marked (the Department of Defense is exempt from this requirement).
-There are other rules for bamboo crates.
-And for loose wood.

The Starry-Eyed 37 Percent

Some time ago I said that President Bush’s chronically low approval ratings were a good thing. Evidence of widespread skepticism about politicians. Or at least one of them.

This is why I welcome today’s news that 52% of Americans — a clear majority — have an unfavorable view of Congress. There is still much to do, though. Even after enduring two simultaneous land wars in Asia, record spending, record deficits, a housing crisis primarily of congress’ creation, bank bailouts, cap-and-trade, and cash for clunkers, 37% of Americans still retain a favorable view of Congress.

Jeez, what’s it take? Maybe health care?

Regulation of the Day 44: Soil Scientists

In Wisconsin, you need a license to work as a soil scientist. The requirements are listed here, and the paperwork (up to 27 forms!) is here in case you’re interested in applying.

Economics 101: Where Do Monopolies Come From?

Bryan Caplan says there are only two ways for a monopoly to form: government protection, or being the best.

“If the firm has a monopoly because the government made competition illegal, the solution isn’t antitrust; it’s legalizing competition. If the firm has a monopoly because it’s the best, the solution isn’t antitrust; it’s a little freakin’ appreciation.”

Read the whole thing.