This week's Economist (Schumpeter's column), under the caption "the terrible threat of unlicensed interior designers" gives us a brillant (witty) study of the damage that can be done by over-regulating access to run-of-the mill occupations. Of course professions such as doctors or lawyers are not concerned where true qualifications are required to safeguard the public's health and safety or other interests. The author describes how excessive pandering to lobbyists by politicians weakens their resolve to promote job creation by cutting licensing requirements for positions such as florists, handymen, wrestlers, tour guides, etc. Incumbents can often go to great lengths to defend access to their cash-cows: one advocate seeking regulation on interior designers claimed that amateur practice could lead to clashing colour schemes that might inter alia adversely affect "salivation," and bring about other undesirable effects.
The article does not mention similar current efforts in Europe to curb the tendency under the banner of the Services Directive which calls for a review of all such licenses with a view to eliminate national legal requirements that are discriminatory, unnecessary or disproportionate (and other measures already reported on this blog).
The article does not mention similar current efforts in Europe to curb the tendency under the banner of the Services Directive which calls for a review of all such licenses with a view to eliminate national legal requirements that are discriminatory, unnecessary or disproportionate (and other measures already reported on this blog).
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