Eric Boehm on How Licensing Laws Cripple Competition
Credit: Free Press Pics / Foter.com / 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.