The author thinks the problem is occupational licensing, which is primarily a function of the states.
- Click here for the article.
- Click here for the article.
The first step on the path to wisdom is to give up on the idea that there’s any such thing as the economy, exactly. What we have instead is a dizzying array of interlocking markets that function (or don’t) to meet consumer demand for specific goods and services, and a vast body of law that defines these markets and regulates their operation.
The economy is the sum of this incomprehensibly complex ecosystem of human exchange, and is far too variegated and decentralized to "rig" all at once. So it gets rigged little by little, one market and one jurisdiction at a time.
The story of how the economy gets rigged is therefore a bunch of homely little stories of people with nice watches screwing over people with less-nice watches. But it’s not class war. It’s not the mega rich against the rest of us. It’s insiders seeking and then protecting special privileges that give them a leg up.
Dentists rig the system against dental hygienists by working to make it illegal for hygienists to clean teeth without totally unnecessary supervision by dentists. Taxi medallion oligopolists rig the system against regular folks with cars who would like turn a buck giving people rides. Beauty school cosmetologists rig the system against hair braiders and sidewalk hair-clipper artistes. "Massage therapists" rig the system against anybody with strong hands who might want to give back rubs for cash.
About 30 percent of all jobs in the United States today require some sort of occupational license, up from 5 percent in the early 1950s. This rather dramatic shift is evidence that the economy has indeed become increasingly rigged — which is really just another word for "regulated."
Click here for Texas' Occupations Code.
