Everyone loves to hate lobbyists and sometimes for good reason. One group of lobbyists’ sole purpose is to make sure you pay higher prices for services by creating barriers to creating …
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Everyone loves to hate lobbyists and sometimes for good reason. One group of lobbyists’ sole purpose is to make sure you pay higher prices for services by creating barriers to creating competition for everything from medical services to teaching to hairdressing.
The argument always goes, ‘we must have government supervision to insure the consumers safety.’ Look at hairdressers. Prior to 1915, there were no licenses required to cut hair, curl or braid hair anywhere in the USA. But today, you must have a state license to cut hair for hire.
Bruce Hillis of Mexico Missouri explains the backstory; “In 1929, Missouri adopted a statute for licensing cosmetologists, hairdressers, and manicurists.
It was amended and made more restrictive multiple times since the original law in 1929. The laws that regulate barbers and cosmetologists have effectively resulted in the state delegating the role of gatekeeper for this occupation group to private cosmetology schools.” (Chapter 329 of the Missouri statutes.)
“Although the Missouri Board of Cosmetology has the technical responsibility to license prospective barbers and cosmetology applicants, all applicants must first jump through the hoops designed by the schools, which includes 1,500 hours of beauty school education credit hours.”
Clearly, the high cost of getting a cosmetology license has nothing to do with safety and everything to do with creating a forced demand for students.
Teaching is perhaps the most extreme example of the state licensing that creates barriers to entry. In the 1950s, a Missouri teaching certificate was issued with just two years of college education. The requirement changed to a four year degree, first for high school and then by 1961 elementary teachers were included. The teachers union and teaching college lobbyists have ratcheted up the education requirements incrementally since 1960. Today we have a shortage of teachers in part because the barrier to entry is so high.
Clearly, the high cost of getting a teaching certificate has nothing to do with better outcomes for our students since Missouri student test scores have declined for 35 years. It has everything to do with creating a government mandated demand for education students at Missouri colleges and Universities.
The list of occupations requiring a Missouri license is a long one. In addition to state regulations, many county and city regulations require licenses such as electrician or home builder. Some examples of state license requirements include Dentists, Sign Language Interpreters for the Deaf, Chiropractors, Massage Therapists, Accountants, Appraisers and Realtors.
In 2011, Missouri Supreme Judge Michael Wolf issued a harsh dissenting opinion in a case where Realtors sued to protect their exclusive turf to profit from real estate transactions:
“These occupational licensing provisions can be analogized to the merchants’ guilds of medieval times. Both economic systems serve to decrease competition by restricting access to the occupation, restricting non-members from participating in economic markets, and attaching legal consequences to “essentially determinations of what are ethically or economically permissible practices.”
“….the Missouri legislature has limited the abilities of Missourians to make a living.”
“…….an infringement of the right to pursue a lawful occupation should be evaluated by the same kind of heightened scrutiny that the United States Supreme Court applies to infringements on the right of free speech.” - Missouri Supreme Court Judge Michael A. Wolf
The Missouri General Assembly is back in session next month. Pre-filing of bills is underway right now.
We must keep a vigilant eye to prevent more laws that limit competition through state licensing, because the consumer always pays more in the end.
Your money and liberty are once again at risk.