crony capitalism

Ridiculous licensing rules are holding back people who want to work

"Occupational licensing is corrupt and idiotic. It’s idiotic because no one needs a license to braid hair, arrange flowers, or do interior decorating, or 300 hours of training to shampoo hair, all real examples of occupations subject to licensure. And it’s corrupt because although it’s couched in language about protecting the consumer, it’s actually about fleecing consumers and protecting existing players from competition via government power."

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How occupational licensing laws inhibit interstate mobility

"The new study adds to the already substantial evidence indicating that licensing laws are a major obstacle to geographic mobility, particularly for poor and lower-middle class people seeking to move to areas with greater opportunity. We have gotten to the point where some 30 percent of Americans have to have licenses to legally work in their respective fields, including even some states that license florists and tour guides. The evidence also suggests that most of these laws do far more to suppress competition than protect consumers."

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Judge halts Indiana city’s code-enforcement property seizure racket

"The judge had particularly harsh words for Hall, who indicated in emails that it would be 'financially disastrous' for residents to try to improve their homes, because the homes would be demolished anyway. Such statements, coupled with the city’s policy of not levying fines against LLC-owned homes, undermine the goal of maintaining safety, Mount said."

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Occupational Licensing Is Just Another Form of Cronyism

"Special interests argue that occupational licensing somehow protects people, yet we have real-world examples for all 102 professions of states that have zero licensing restrictions and we don’t have examples of people dying or being harmed because of unregulated florists or rogue cosmetologists."

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How Congress and drug company lobbyists worked to neutralize the DEA

"The law was the crowning achievement of a multifaceted campaign by the drug industry to weaken aggressive DEA enforcement efforts against drug distribution companies that were supplying corrupt doctors and pharmacists who peddled narcotics to the black market. The industry worked behind the scenes with lobbyists and key members of Congress, pouring more than a million dollars into their election campaigns."

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Highway bill revives the Export-Import Bank after only five months

"A measure extending the bank through 2019 was included in a massive transportation bill that cleared the House and Senate Thursday and is expected to be signed by President Barack Obama. The small federal agency makes and guarantees loans to help foreign customers buy U.S. exports. Business groups like the U.S. Chamber of Commerce say it's necessary for U.S. competitiveness, since most overseas competitors rely on similar government help. But conservatives decry the bank as corporate welfare and government interference in the free market. A rarely used procedure in the House forced a floor vote on the bank over the objections of top GOP leaders." Continue reading →

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‘Big Short’ Genius Thinks Another Financial Crisis Is Looming

"Well, we are right back at it: trying to stimulate growth through easy money. It hasn’t worked, but it’s the only tool the Fed’s got. Meanwhile, the Fed’s policies widen the wealth gap, which feeds political extremism, forcing gridlock in Washington. It seems the world is headed toward negative real interest rates on a global scale. This is toxic. Interest rates are used to price risk, and so in the current environment, the risk-pricing mechanism is broken. That is not healthy for an economy. We are building up terrific stresses in the system, and any fault lines there will certainly harm the outlook." Continue reading →

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“Green Banks” Will Drown in the Red

"A state solvency report released by the Mercatus Center has each of these five states ranked in the bottom third of the country, with their solvency described as either 'low' or 'poor.' This all raises the question of whether these governments are able to find sound investment opportunities in the first place. Recently, though, there have been calls to extend the struggling green banking system to the federal level. Mark Muro and Reed Hundt at the Brookings Institute assert that demand for green banking institutions and the types of companies they finance is so strong that the existing state-based green banks cannot muster enough capital to meet demand." Continue reading →

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