PDA

View Full Version : It's Easier to Become a Barber in Alabama Than Nevada, Thanks to Crony Capitalism




Suzanimal
01-19-2015, 05:38 PM
It's Easier to Become a Barber in Alabama Than Nevada, Thanks to Crony Capitalism


Academics have long known that many state occupational licensing standards are onerous. To become a barber in Nevada, for instance, you will have to pass four examinations, pay a $140 fee and spend nearly two-and-a-half years in classes and apprenticeship. In fact, Alabama is the only state that does not have occupational licensing requirements for barbers. All to cut hair!

It would make sense that poor Americans in Alabama have an easier time becoming a barber than those in Nevada do. Now, we have the data to back that up. In a soon-to-be-published paper, Stephen Slivinski, a senior economist at the Goldwater Institute, finds that states with strict occupational licensing standards have lower levels of low-income entrepreneurship.

Slivinski used two different data sets, one from the Kaufmann Institute on low-income entrepreneurship and a second from the Institute for Justice on occupational licensing standards. The former compares a state’s number of low-income entrepreneurs—people who are self-employed like many barbers or taxi drivers—with its low-income population. By that metric, Colorado has the most low-income entrepreneurs; 7.5 of every 1,000 low-income Coloradoans report that they are self-employed. Mississippi has the fewest with just one out of every 1,000.

http://i.imgur.com/BvCupJg.png


Slivinski then used the Institute for Justice data to see how many, out of 51 low-income occupations, states license. For instance, Louisiana licenses 41 of those 51 jobs, the highest rate in the country. Five different states—Indiana, Kentucky, Ohio, South Dakota, and Vermont—tie for the least restrictive occupational licensing regimes, with licensing requirements for just eight of the 51 low-income occupations.

http://i.imgur.com/BcGpo0i.png

He then compared each state’s rate of low-income entrepreneurship with the percentage of low-income occupations licensed there, while controlling for other explanatory factors like the percentage of the male population and percentage of the state’s population that is Hispanic/Latino. It was particularly important to control for the latter variable because low-income entrepreneurs, it turns out, are disproportionately more likely to be Hispanic or Latino. That means states with high populations of Hispanics and Latinos were likely to have higher rates of low-income entrepreneurship, regardless of the occupational licensing standards.

But that wasn’t always the case. “A state like Arizona has a higher than average percent of Latino population and actually has a lower than average rate of entrepreneurship among the Hispanic and Latino workers,” Slivinski said. “So the question became, why is that the case? Can you explain it with other factors? Sure enough, occupational licensing turns out to be one of the stronger explanatory factors in the data.” In other words, states with more onerous occupational licensing standards had lower rates of low-income entrepreneurship.

Why do some states have such varying levels of occupational licensing standards? It’s largely about crony capitalism. Incumbent businesses—in this case, incumbent low-income entrepreneurs—lobby their state legislatures to erect barriers to entry in their field on safety, health or some other ground. Those reasons generally are flimsy. The 29 states that don’t license tour guides do not appear to have a problem with huge numbers of ill-informed or lost tourists, for instance. But those new barriers to entry, generally in the form of educational requirements and fees, reduce competition for the incumbent businesses. That’s not good for consumers or aspiring, low-income entrepreneurs—but it’s great for the incumbent businesses.

“There’s virtually no public health or safety justification for any of these things,” Slivinski said. “The question is how do you explain that. It’s largely because of what you might call cronyism or barriers to entry being too high to keep out competitors.”

...


http://www.newrepublic.com/article/120791/study-occupational-licensing-hurts-low-income-entrepreneurs

DamianTV
01-19-2015, 09:06 PM
Requiring a License for ludicrus things like Lawn Mowing is to exploit the existence of Govt to prohibit any business competition.

There are reasonable exceptions. Medicine is one of those fields, but at the same time, I have little confidence that the Big Pharma abuses medicine to increase profits. The Profit Margin will always be more valuable to Cororations than Human Life. But to stay on point of Ridiculus Licenses, why are so many Licenses required for stupid things? *gasp* scissors are sharp! Uh, no shit Sherlock. Work with food? Cook the damn food and wash both your hands and cooking utensils! Fucking DUH. Why not require a License to sell SHOES? Why not require a License to go Downhill Sledding as a recreational activity? Why not require a License to even eat Bacon?

One Papercut will usually not kill a person, but ten thousand papercuts will bleed a person to death.

jmdrake
01-19-2015, 09:25 PM
I know people in Tennessee who have finished "barber college" but can't pass the licensing exam. Here is a list of flashcards for a barber exam (unsure which state).

http://quizlet.com/19050348/barber-250-practice-test-flash-cards/

Check out this question!

The barber-surgeon who is considered the greatest surgeon of the Renaissance and the father of modern surgery is

Answer?

Ambrosia Pare

Why on earth does someone need to know that for any reason other than playing Jeopardy?

DamianTV
01-19-2015, 09:45 PM
I know people in Tennessee who have finished "barber college" but can't pass the licensing exam. Here is a list of flashcards for a barber exam (unsure which state).

http://quizlet.com/19050348/barber-250-practice-test-flash-cards/

Check out this question!

The barber-surgeon who is considered the greatest surgeon of the Renaissance and the father of modern surgery is

Answer?

Ambrosia Pare

Why on earth does someone need to know that for any reason other than playing Jeopardy?

A man visited a Buddhist Master in the hopes of being taught how to become enlightened. The Buddhist Master invited the man into his home and offered him a cup of tea, to which the man politely accepted. The Master poured the cup of tea, then continued to pour even more tea into the cup despite spilling all over. The man asked the Master why he continued to pour tea into a full cup, to which the Master generously replied: "You are like this cup. You can not fill a cup that is already full. Come back to me with an empty mind and I may one day be able to teach you the ways of enlightenment".

The moral is that by filling up peoples heads with garbage, their minds have no room to accept new concepts, such as why people are expected to get permission to work and produce from those who do not work nor produce.

alucard13mm
01-19-2015, 09:59 PM
If i wanted to start a business, id have to pay 150usd for license and permit from the city. 200usd to my county registar for more permits and to register my business name. Required to have my business info for 4 weeks in a local newspaper, which also cost money.

All this for a small Online business with a tight budget.

jmdrake
01-19-2015, 10:02 PM
If i wanted to start a business, id have to pay 150usd for license and permit from the city. 200usd to my county registar for more permits and to register my business name. Required to have my business info for 4 weeks in a local newspaper, which also cost money.

All this for a small Online business with a tight budget.

If you're online, fly under the radar.

idiom
01-19-2015, 10:41 PM
America is like the least free capitalist society I have heard of. The regulatory capture is insane.

alucard13mm
01-20-2015, 07:20 AM
If you're online, fly under the radar.

Nah. I also had to have a permit to buy wholesale... it was unavoidable. lol. I wish I could fly under the radar.

Come to think of it the cost of getting all those permits and license was around 600usd..

I got ripped off by the County registar. They said they will post my business info on a newpaper for me.. charged me like 120usd.. >.>...

Suzanimal
01-20-2015, 08:29 AM
Nah. I also had to have a permit to buy wholesale... it was unavoidable. lol. I wish I could fly under the radar.

Come to think of it the cost of getting all those permits and license was around 600usd..

I got ripped off by the County registar. They said they will post my business info on a newpaper for me.. charged me like 120usd.. >.>...


But if we don't get permission to be free signed in triplicate and notarized the terrorists win./sarc

http://i.imgur.com/nZtCmsp.png

Keith and stuff
01-20-2015, 05:29 PM
It's Easier to Become a Barber in Alabama Than Nevada, Thanks to Crony Capitalism

http://i.imgur.com/BcGpo0i.png

So the best states are from East to West NH, VT, OH, KY, IN, MO, SD, CO and WY

The worst states are SC, MS, LA, AZ and OR