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.
Posted in Competition, Economics, Regulation of the Day
Tagged avelar, competition, cosmetology, cosmetology license, counterproductive regulations, ij, institute for justice, jestina clayton, john stossel, licensing, occupational licensing, restricting competition
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.
Posted in Regulation of the Day
Tagged charity, counterproductive regulations, florida, food not bombs, homeless, homelessness, orlando, private charity, regulating charity, regulations, safety net