Wednesday, March 26, 2014

Gillespie on Occupational Licensing

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From the article:



What the invisible hand of free-market innovation giveth, the dead hand of politically motivated regulation tryeth desperately to take away. 

and 

That’s the only way to describe what’s happening to three wildly innovative and popular products: the award-winning electric car Tesla, taxi-replacement service Uber and hotel alternative Airbnb. These companies are not only revolutionizing their industries via cutting-edge technology and customer-empowering distribution, they’re also running afoul of interest groups that are quick to use political muscle to maintain market share and the status quo.

The battle between what historian Burton W. Folsom calls “market entrepreneurs” and “political entrepreneurs” is an old and ugly one, dating back to the earliest days of the American experiment. Market entrepreneurs make their money by offering customers a good or new service at a good or new price. Political entrepreneurs make their money the old-fashioned way: they use the government to rig markets and kneecap real and potential competitors.

Source: Nick Gillespie, "The Government Is a Hit Man: Uber, Tesla and Airbnb Are in Its Crosshairs," Time, March 20, 20-14

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