patrick.net

The problem with America is that there's too much regulation in industries where it shouldn't be and there's very little regulation where there should be (e.g., financial industry).

Check out this link: http://www.economist.com/node/18678963

1. Jestina Clayton is an African hair-braider with 23 years of experience. But the Utah Barber, Cosmetologist/Barber, Esthetician, Electrologist and Nail Technician Licensing Board told her that she cannot practise her craft unless she first obtains a licence—which means spending up to $18,000 on 2,000 hours of study, none of it devoted to African hair-braiding.

2. Justin Brown is an abbot at a Benedictine abbey that supplements its meagre income by making and selling simple wooden coffins. But the Louisiana Board of Embalmers and Funeral Directors has ordered him to “cease and desist”. Heaven knows what harm a corpse might suffer from an unlicensed coffin.

3. Barbara Vanderkolk Gardner runs a flourishing interior-design business in New Jersey. But when she tried to expand into Florida, the state’s Board of Architecture and Interior Design ordered her to delete all references to “interior design” from her website and stop offering “interior design services” in the Sunshine State.

The cost of all this pettifoggery is huge—unless, that is, you are a member of one of the cartels that pushes for pettifogging rules or an employee of one of the bureaucratic bodies charged with enforcing them. Morris Kleiner of the University of Minnesota calculates that licensing boosts the income of licensees by about 15%. In other words, it has about the same impact on wages as membership of a trade union does. (Trade unionists who are also protected by licences enjoy a 24% boost to their hourly wages.)

Here's another example in the food industry:

http://theprimalchallenge.wordpress.com/2011/09/02/chicago-outrage-switch-from-real-strawberries-to-corn-syrup-or-get-shut-down/

Increased investments in risky exploratory ventures will not only drag the economy out of the ‘Great Stagnation’ but it will result in a reduced share of GDP flowing to corporate profits and an increased proportion of GDP flowing towards wages.

HousingWatcher says

I'm waiting...

Now I'm waiting.

uomo_senza_nome says

The problem with America is that there's too much regulation in industries where it shouldn't be and there's very little regulation where there should be (e.g., financial industry).

In terms of number of regulations on file, the financial industry is second only to energy.

That's not to say that those are effective regulations, mind you, but the statement that there's "very little regulation" in the financial industry is just plain wrong.

There are plenty of bad regulations on the books, but they are almost always the exception rather than the rule (and generally easiest to have changed with a little public attention).

I'm weary of anyone who makes blanket statements about regulations, especially when it comes to things like food and professional services. Yes, legitimate vendors get harmed by these sometimes, but the MUCH LARGER ISSUE of companies putting out contaminated, unsafe food or providing dangerous and damaging services is greatly mitigated, and as such it's a small price to pay.

And, of course, there are plenty of regulations that are clear examples of outright corruption.

My main problem with anyone waving the anti-regulation flag is the sheer amount of dishonesty being applied. They always bring up anecdotal cases of small businesses that get hit for not being aware of some food safety regulation or financial disclosure, all while glossing over the history of industrial waste, unsafe food, or false medical claims.

Authors on Patrick.net will soon require licensing and other requirements including bond submission.

I hope this is not a job for you H.W. !

Isn't SOMEBODY leading the Anarchy movement ?

How many rules could you create cowboy ?
Remember this one ?

MOST Communist country's and Dictatorships are mid collapse and HousingWatcher wants MORE restriction.

Not a surprise that TMAC posts another dumb picture instead of actually providing any evidence to back up his prior claims about regulations.

Kevin says

In terms of number of regulations on file, the financial industry is second only to energy.

That's not to say that those are effective regulations, mind you, but the statement that there's "very little regulation" in the financial industry is just plain wrong.

To me too much regulation that accomplishes nothing is the same as "very little regulation". I'm not trying to be politically correct here, but trying to cut through the BS and get to the point.

Glass-Steagall was good, but was repealed to allow the monster of derivatives market to flourish. There's too much debt and much of it cannot be repaid. Which means, every market participant will suffer on his portfolio/job/whatever in terms of this decade of deleveraging, while the banks continue to earn interest out of nothing, like parasites. This is the problem.

Kevin says

I'm weary of anyone who makes blanket statements about regulations, especially when it comes to things like food and professional services. Yes, legitimate vendors get harmed by these sometimes, but the MUCH LARGER ISSUE of companies putting out contaminated, unsafe food or providing dangerous and damaging services is greatly mitigated, and as such it's a small price to pay.

My original point being regulations where there should be very little, is harmful to entrepreneurial activity still stands. New jobs are created by somebody deciding to take risk, and they risk their capital or the investors' capital to do that. If you put a TON of regulations on the way, then the risk taker is heavily discouraged from starting up.

I'm not saying there should be no regulation in food industry, that would be ridiculous. What I'm saying there shouldn't be "ridiculous regulation" in the food industry. In the example I just quoted, healthy organic strawberries are better than corn syrup in the icecream. Why would the food regulation board insist on corn syrup or shut down? Mind you, corn syrup has been shown to have a lot of harmful health effects on humans.

Kevin says

My main problem with anyone waving the anti-regulation flag is the sheer amount of dishonesty being applied. They always bring up anecdotal cases of small businesses that get hit for not being aware of some food safety regulation or financial disclosure, all while glossing over the history of industrial waste, unsafe food, or false medical claims.

All my examples were honest, published in reputed journals. I'm not here to make a political statement, I'm just proving a practical point, that's all.

APOCALYPSEFUCK is Tony Manero says

When you consider all the states who charter their own thrifts and credit unions and have their own banking regulations, it's clear that financial services are probably, regulation for regulation, one of the most rigidly regulated industries in the history of the world. But if the cops are all paid off or retired, they'll simply loot and plunder unto death their customers or themselves.

Apoc, you're right. What I'm trying to say is there's very little effective regulation. It is like as if they may as well be not regulated at all.

I guess it is all philosophical. OK, You win. I can't find THE ONE anti business Regulation. But who did not love the radio commentator "Paul Harvey" One of his stories about special interest groups and gubmint regulation.......

"If one little vampire bat bit you, you could probly brush it off and continue. But if hundreds bite all at the same time, were going down".

CANCER ...... we ALL have a few cancer cells. TOO many will kill ya.

tatupu70 says

dumb picture

You and I are just alike. Focus on the picture ? Or did you want to regulate pictures ?

uomo_senza_nome says

Apoc, you're right. What I'm trying to say is there's very little effective regulation. It is like as if they may as well be not regulated at all.

Madoff could have walked, Corzine WILL. Pelosi and the like will continue insider trading benefits.

TMAC54 says

I can't find THE ONE anti business Regulation

OK--well I'll give you credit for admitting it at least. The next step is to stop spouting the BS propaganda.