Regulation in the public interest inevitably generates rents, that might be dissipated by inefficiently bestowing favors.  It also generates special pleading. The existing service is adequate. If additional service is required, the existing carriers can provide it. The applicant carrier is not competent to provide the service.  In Wisconsin, there will be an extensive review of all state certification of providers.
There is a virtual consensus among economists that state-enforced training requirements for a variety of low to mid-skill jobs, from catering to hair-braiding to interior decorating, have grown excessive, exerting a major drag on economic growth and employment—especially for people who don’t have the time or money to take thousands of hours of costly courses to practice a basic trade that isn’t particularly dangerous and whose skills can easily be judged by consumers.

Licensing requirements for low-skilled work have exploded over the past decades for no other reason than that professional guilds have been able to capture state legislatures and used them to help entrench their market positions. Legislators in other states should follow Wisconsin in scrutinizing existing occupational licensing programs and assessing which ones actually serve the common good and which ones exist to protect narrow and well-connected interests.
I wonder where the egg-graders and butter-graders will wind up.

No comments: