Occupational Licensing Keeps Millions of Jobs Out Of The Market

in #politics7 years ago (edited)

Economists from the University of Minnesota and Princeton University, have previously estimated that occupational licensing schemes around the United States are keeping more than 2.8 million jobs out of the market.

And along with that loss, comes a cost to consumers that's estimated to be over $200 billion.

These days if you want to do something like braid hair, be a tour guide, organize flowers, make drinks, or do someone's makeup, you're going to need to first weave yourself through the regulatory web that's in place; before you can voluntarily serve your fellow man.

And what has all of the licensing achieved?...

Better results in the way of price and service? Unfortunately not. It contributes to fueling monopolies, by working to keep competition out of the market which could work to lower prices for consumers.

Economists admit that with these intense occupational licensing schemes, that consumers are being forced to pay more, but the service isn't improving.


In some cases, various lawsuits have been launched to try and challenge these licensing schemes and a few of them have been able to achieve some success.

Florida happens to have some of the worst occupational licensing restrictions in the country, but they've recently announced that they will be fast-tracking some reforms.

The Florida House just a few days ago, was successful in passing a bill (74-28) that would slash licensing requirements for jobs such as hair-braiders, geologists, boxing timekeepers, manicurists, and barbers.

The bill will be looking to lower the training hours that are required before getting licensed, as well as making exempt some of the specific skills that are now required before someone can serve in a certain industry in the market. Though it might be a slight step in the right direction, it still isn't enough.

When it comes to which state is the worst in the way of their licensing rules, Florida ranks in 5th place according to the Institute for Justice which tracks licensing requirements around the country.

These occupational licensing laws are a problem because they are preventing millions of people from finding work, or perhaps doing something they'd prefer to do or are naturally skilled at doing. And if someone out there is a great hair-braider, bartender, or manicurist, it seems uncivilized to prevent other people from making willing, voluntary exchanges with them doesn't it?

In the end, it isn't the people who these rules are helping, because they aren't promoting safety. They are helping to keep prices high, quality low, and keep many people living a lower standard of living than they could otherwise live, if they were allowed to make a voluntary exchange with those around them who were willing. Things would be much better off if they didn't first need to seek permission from the state before trying to serve others who were willing to accept their services.

Pics:
Pixabay

Sources:
https://www.investors.com/politics/commentary/a-government-permission-slip-to-work/
http://reason.com/blog/2018/01/16/florida-house-passes-licensing-reforms
http://ij.org/press-release/florida-house-passes-bill-reform-repeal-dozen-job-licenses-2/
http://orlando-politics.com/2018/01/12/week-ethics-transparency-16-bills-house-passed-week/
http://dailysignal.com/2018/01/19/will-florida-lead-the-way-in-job-creation-through-occupational-licensing-reform/
http://ij.org/press-release/new-website-shows-human-cost-occupational-licensing-laws/

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Just another excuse to extort money from the populace. It doesn't increase safety or provide better services but creates the illusion of safety at additional cost. Consumers are the best licensers, they will promote those who provide good products and services and shun those who don't. Simple and efficient but deadly to governments.

thanks for sharing such valuable information. Pointless titles and regulations that we have self-imposed as the people. Laws that protect nothing and no one.

Sad fact : it requires more hours (nationwide) to be a hairdresser than a police officer

We deal these liceneing schemes here in Canada as well ! i think its totally rediculous , the service isnt any better i find , its just another monopoly type of cash grab costing the consumers more money usually as well ! look at me , i need to pay $69.00 dollars every year just to renew my security license ! and i do all the work by filling out the paper on line and sending it in ! then they send me a new picture I D saying the dates im licensed for , just like a drivers license , but at least with that its every 5 years and not a yearly expense !! So for a piece of plastic I pay 69.00 dollars every year for !! ITS TOTAL BS !!Thanks for sharing @doitvoluntarily , upped and resteemed !👍😀👍👍👍

The public likes to think of licensing as a way of being sure that the person they hire is competent. Unfortunately, any idiot can get through the testing process.

So, you can have an electrician that doesn't know what he is doing, or cuts corners, and just because he has a license, doesn't insure anything.

Take a person who is good at massage. Everyone they touch loves it. But, that person cannot sell their talents. But, a meat fisted, clumsy, not at all empathic, bafoon can spend the money and get 500 hours of overseen massage time and get a license.

But, to be fair, how does a bureaucrat tell the difference between a person who is excellent in the field, and one that is mediocre? They can't. If they had any of the skills that the license, they would be doing something that paid a lot more.

So, it is all a farce. Just a show that the govern-cement is doing something. (while making stealing some more money)

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Even the IT industry has so many certifications and lots of people of have the certifications cannot do the job.

My grandmother was a Floridian and a widow who supported two children on a barber's income, cutting hair in her own home. This way, she kept her business overhead low and was able to be home for her kids while earning money. Nowadays, a single mother would have to take out a loan just to get the education required to cut hair. And then she can forget about setting up a business in her own home. Occupational licensing makes entrepreneurship an extremely difficult proposition for people in the lower economic strata.

And it's all due to economic collusion. If you want to ensure that you and your cronies will never have to worry about competition from cleverer, nimbler entrants into your market, there's only one thing to do: demand that the government license your trade or profession.

I think this is a problem of almost everyone, here in Argentina the costs are increasing and not necessarily improve the service, quite the contrary, there is a reduction in service and increase in cost.
excellent material dear friend / @ doitvoluntarily thank you very much for making us arrive
I wish you a great day

It’s exactly the same as if you were a contractor. In NY not only you need Home Improvement License, but you also need EPA (useless) OSHA (useless), three types of insurances...
I had to get all of it.

A friend of mine grew a big business.

When I asked him what the most valuable part of his business was - he said Government licenses. Mostly from the EPA is his case.

There is something seriously wrong when government licenses are the most valuable part of your business.

Why can't they just create a unified licence with all the requirements, instead of too many unnecessary ones, i get your frustration as it is the same where i am

And you have to renew it every few years. Its just another way to get the money from you.

It's a wonder people even bother starting a business! Then they want to tax your earnings too. Messed up.