Friday, June 2, 2017

Snake in the Grass

You can't concern yourself with bigger things
You catch the pearl and ride the dragon's wings

Easy to understand example of how licensing keeps people out of work and protects incumbents from competition. A teenager mows neighborhood lawns in an Alabama town. Someone working for a rival service threatens to report her to town officials because she is cutting grass without a license. A license costs $110.

The teen either has to pony up the fee and manage associated bureaucracy or leave the industry.

It should be readily apparent that licensing limits entrepreneurial actions of upstarts. It also tends to impact marginal workers the most.

Which is fine news for those already in the industry.

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