1000 cuts. Entrepreneur vs regulations and licensing

66 occupations have greater average licensure burdens than emergency medical technicians. The average cosmetologist spends 372 days in training; the average EMT only 33. That’s a lot of licensing.

In the 1950s, only one in 20 U.S. workers needed the government’s permission to work within their occupation. Today it’s almost one in three.

Intrusive regulations, licensing and bureaucracy are not civic virtues, they are leading causes of small business death and personal poverty

Intrusive regulations, licensing and extraordinary bureaucracy and irrationalities are not a civic virtue, rather it is a lobbied effort to suppress competition, keeping a high barrier to entry for those aspiring to these occupations—minorities, those of lesser means and those with less education. Industry associations benefit by preserving an artificial scarcity, local government collects fees for licensing. It’s a win, win, lose

The licensing of lower-income occupations is irrational and arbitrary.

If a license is required to protect the public health and safety, one would expect state by state consistency. For example, only five states require licenses for shampooers, but it is highly unlikely that conditions in those five states are any different from those in the 45 states and District of Columbia where shampooers are not licensed.

Forcing would-be workers to complete expensive licensing, take unnecessary classes, engage in lengthy apprenticeships, pass irrelevant exams or clear other needless hurdles does nothing to ensure the public’s safety. It simply protects those already in the field from competition by keeping out newcomers.

Nevada

  1. In Nevada 31 percent of the workforce must have licensure in order to work
  2. It is a criminal offense to practice music therapy without a license
  3. Barbers must endure 890 days of education and apprenticeship, pass four exams and pay $140 in fees. And, Nevada does not offer reciprocity for licenses obtained in other states
  4. For the most discerning and litigious client, Nevada’s licensing of interior designers requires payment of a $250 fee and six years of education or experience. The American Society of Interior Designers aggressively argued to State legislatures the threat to public health and safety from unlicensed interior design.

California

  1. the second most broadly and onerously licensed state in the country.
  2. The state requires a license to work in 62 of the low and moderate-income occupations.
  3. On average applicants to licensed occupations can expect to pay $300, lose 549 days to education and experience requirements and pass one exam.
  4. Why does a tree trimmer need a license, or a landscaper, dietetic technicians, psychiatric aides, still machine setters, funeral attendants, dental assistants and farm labor contractors. Why do mobile home installers need 1,460 training days to work in California when the national average for the occupation is 245.  

“If they [aspiring florists] can’t take the instruction and pass the exam, how can they do an arrangement that you and I want to buy?” – Head of the state horticulture commission of Louisiana

Marijuana

Lets talk about California and the legal marijuana business, licensing, taxes, regulations, small business and its predator – big business. 

California pronounces itself as a place of aspirational immigrant small business pilgrimage “California leads U.S. in immigrant entrepreneurship, study finds”.

The ‘recent immigrant’ first/second generation

…business is largely in retail businesses as that industry does not demand English proficiency, the labor of relatives can be acquired cheaply and they are largely in older inner-city locations that can be rented and run cheaper – and with less large chain competition.

California has lots of good things to say about itself.

But the government propaganda and its call as an immigrant small business mecca is in conflict with the reality.

POT: California “…poised to become the largest recreational cannabis market in the world. It’s also a great place to get a job helping marijuana growers, processors, and sellers or work in adjacent services including legal advice, marketing and security”

California wow headlines “The California Cannabis Equity Act: “persons most harmed by cannabis criminalization and poverty be offered assistance to enter the multibillion-dollar industry as entrepreneurs or as employees with high-quality, well-paying jobs.

But, after the Public Relations paid headlines and political good press moved on: “Many people are still buying weed on the illicit market, thanks in part to steep markups and high taxes in legal pot shops, along with local restrictions”.

As free-wheeling and fast as the creation of the industry was, it was regulated and killed by 1000 cuts just as fast, for example

Regulations are killers. California hurts the same people it celebrated. Whereas once the small biz owners had TV appearances, now they had none

And so, big biz, able to shoulder the taxes and regulations, and with access to policy makers, started taking over. And so it goes

You be wondering “whatever happened to…”

This happened

Pot store bankruptcies happened

The End?