Join        Login             Stock Quote

Local Lessons In Overregulation

 May 14, 2012 05:55 PM

(By Fisher Investments) Some regulation is necessary. Runaway overregulating, however, can easily impair consumer choice and economic growth—adding costs, complexity and overall barriers to entry, preventing free-flowing competition. And it seems we have plenty of overregulation in the US, from multiple sources—regulation impeding competition and, ultimately, harming consumers and producers.

Most would likely think first of Federal rules and regulations in this regard. And it seems both parties agree, considering both President Obama's administration and Republicans have talked up simplifying rules to cut redundancies and unnecessary regulation. And last year, it seems the government took action, slashing fully 171 pages of rules from the Federal Register, reducing its volume by a whopping … 0.2%. After this huge reduction, the code is only 82,419 pages.

[Related -Automating Ourselves To Unemployment]

It's a … start? The inkling of a start? But state and local governments add plenty more on top. While there should be little doubt some rules are both necessary and sensible, there are plenty that aren't.

In most states, barbers and others who cut hair must be licensed by the state. For example, the state of Maryland (among many others) would like you to turn state's evidence and rat out unlicensed offenders with the gall to offer under-the-table trimmings. Why? The state suggests it's to promote health and safety and ensure professionalism. Whether these hard-to-tally benefits are attained or not is anyone's guess. In fact, Maryland's State Board of Barbers offers a great deal of information on its webpage, but studies showing licensing's huge societal benefits are conspicuously absent. However, it's easy to find licensing standards, including passage of a theoretical hair-cutting exam (that's right)—which requires completion of 1,200 hours of barber training before taking. (A measure of training implying the state believes a bad haircut is 30 times as risky as piloting a private plane, since the FAA requires only 40 hours of flight time.) And this isn't limited to barbers—some studies indicate roughly one in three American jobs requires an occupational license today.

Next Page >>12


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.