Business Economics And Politics Economy

LICENSE TO WORK – 30% Of U.S. Workers Require A License To Perform Their Job – Video

Written by JayWill7497

1. Occupational licensing drives up costs to consumers. Licensed workers earn 15% more on average than their unlicensed counterparts in other states. Across the U.S. economy, occupational licensing adds at least $116 billion a year to the cost of services.

2. For several occupations that are regulated in some states but not others (e.g. librarians, nutritionists and respiratory therapists), employment growth for those professions was about 20% greater in the unregulated states between 1990 and 2000 than the regulated states.

3. In the 1970s, only about 10% of workers needed an occupational license, but by 2008, almost 30% of the work force needed them.

4. Occupational licensing does nothing to close the inequality gap in the US, and in fact probably makes it worse because it raises wages for some licensed professions but “does little to help the bargaining power of the most vulnerable workers.” In Minnesota, more classroom time is required to become a cosmetologist than to become a lawyer. Becoming a manicurist takes double the number of hours of instruction as a paramedic. In Louisiana, the only state in the country that requires licenses for florists, monks were until recently forbidden to sell coffins because they were not licensed funeral directors. Professor Kleiner goes on to explain that the growth of occupational regulation has prompted opposition from both the right (concerns about economic liberty and reduced competition) and the left (concerns about the poor, who are forced to pay higher prices and face barriers to getting jobs), and then offers some public choice reasons for the ongoing expansion of occupational licensing:

MP: In other words, it’s a classic case of well-organized, well-funded, concentrated special interest groups using the political process to take advantage of disorganized, dispersed consumers. The well-organized special interest groups can offer politicians benefits and payoffs in the form of political support, donations and votes, while the disorganized consumers offer the politician nothing. Elected officials won’t generally lose any votes or donations from rationally ignorant consumers by supporting more or stricter occupational regulations, but will be handsomely rewarded with votes and donations from the special interest occupations. As Mencken observed, the political process is often like two foxes (special interest groups and politicians) and a chicken (consumers) taking a vote on what to eat for lunch. MP: In other words, it’s a classic case of well-organized, well-funded, concentrated special interest groups using the political process to take advantage of disorganized, dispersed consumers. The well-organized special interest groups can offer politicians benefits and payoffs in the form of political support, donations and votes, while the disorganized consumers offer the politician nothing. Elected officials won’t generally lose any votes or donations from rationally ignorant consumers by supporting more or stricter occupational regulations, but will be handsomely rewarded with votes and donations from the special interest occupations. As Mencken observed, the political process is often like two foxes (special interest groups and politicians) and a chicken (consumers) taking a vote on what to eat for lunch. The best slave is a slave that doesn’t know he’s a slave. #2 The percentage of working age Americans that have a job right now is still about the same as it was during the depths of the last recession. Posted below is a chart that shows how the employment-population ratio has changed since the beginning of the decade. Does this look like a full-blown “employment recovery” to you?…

About the author

JayWill7497

Reporter, Journalist, Blogger, Researcher. Committed to providing information by posting/archiving videos, articles, and links. I also investigate to raise awareness on numerous issues, inspire critical thinking, involvement, and hopefully to help make our world a better place for all. “The truth, always the truth at all costs”

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