Eric Boehm on How Licensing Laws Cripple Competition

Credit: Free Press Pics / / CC BY-NC-SACredit: Free Press Pics / / CC BY-NC-SAOccupational licensing requirements pose significant hurdles to entrepreneurs interested in starting or expanding a business. Of particular concern are regulations known as Certificate of Necessity laws, which often apply to trucking companies, movers, limousine and taxi drivers, and even hospitals. As Eric Boehm reports, these laws allow private companies to use the strength of the state government to keep competitors from entering the market, or to require large up-front investments of time and money that discourage potential competitors. It adds up to a system that benefits the established, entrenched interests at the cost of entrepreneurs―and, ultimately, consumers.


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