Posts tagged with: regulation

At least Obamacare comes at us head on. The greater legislative threat may be the one that most Americans have never heard of. Economist Scott Powell and Acton friend Jay Richards explain in a new piece in Barron’s:

While Obamacare received more attention, the Wall Street Reform and Consumer Protection Act, also known as Dodd-Frank after its Senate and House sponsors, … unleashed a new regulatory body, the Consumer Financial Protection Bureau, to operate with unprecedented power.

Dodd-Frank became law in 2010 and is supposed to avert the next financial crisis. Yet banks are still too big to fail and Fannie Mae and Freddie Mac remain wards of the state, while the CFPB has been given sweeping authority over consumer credit and other financial products and services that played no significant role in the crisis of 2008.

Powell and Richards then offer some specifics:

Earlier this month, India experienced the worst blackout in global history. Over 600 million people—more than double the number of people in the U.S. and nearly one in 10 people in the world—were left without power.

The crisis highlights the fact that corrupt governance and lawless institutions can keep even an entrepreneurial people in the dark:

Along with a lack of investment in infrastructure, the crisis also had roots in many of India’s familiar failings: the populist tone of much of its politics, rampant corruption and poor management in its government and public sector, weak law enforcement, and a maze of regulations that restrict many industries.

Officials said they did not know what caused the blackout Tuesday, although a similar failure Monday was blamed on individual states drawing too much power from the grid, in defiance of regulations.

“It is open lawbreaking that goes on all the time in India,” said a Power Ministry official, who spoke on the condition of anonymity because of the sensitive nature of the subject. “This time, it went beyond limits.”

Read more . . .

Blog author: John MacDhubhain
Wednesday, July 25, 2012

A Holland, Mich., teenager is being stopped from opening a hotdog cart due to city zoning laws. It’s really disheartening when you consider the fact that this young person was trying to be responsible and work to help his family and build up savings for his future.

In Work: The Meaning of Your Life, Lester DeKoster writes that work is a way in which we provide service to others—a service this teenager has been denied the chance to provide.

The Mackinac Center has a video up about this story.


It’s hard to think of anything more onerous than preventing enterprising people from entering the market. To do so is to interfere with their ability to serve others and engage in their vocation. It keeps people poor by preventing them from improving their lives. And one of the worst barriers of this kind is a type of law known as occupational licensing.

And that’s exactly what a group of monks in Louisiana ran into in 2010 when the state government tried to prohibit them from selling handmade caskets to their fellow Louisianians. Kevin Schmiesing wrote on that issue in 2010 on the PowerBlog.

It’s the coffin business that got St. Joseph’s in trouble. By selling its pine boxes without a funeral director’s license, the monastery violates state law. So the abbey is suing the State of Louisiana in federal court.

It’s a classic case of what economists call “barriers to entry”: regulations put in place by existing businesses or professionals to limit competition and thereby drive up prices and compensation. Usually the vested interest posits some rationale concerning the public good (e.g., not just anybody should be allowed to practice medicine…), but frequently enough the reasoning is pretty thin (e.g., should you really need a license to cut hair or drive a taxi?).

The monks are represented by the libertarian public-interest group, Institute for Justice. They won their case in 2011 and appeared last month before a Federal Appeals Court. A decision won’t be out for several months.

This all started when the Benedictine monks at Saint Joseph Abbey started receiving several requests from their community to sell caskets that the monks had constructed for their own deceased members for many years. In a hard hit post-Katrina Louisiana, this seemed like a reasonable way for them to serve their community and bring in some money to the abbey. Unfortunately, they ran into occupational licensing laws, which forbid non-funeral homes from selling caskets. The Institute for Justice argued that such laws could only serve to reduce competition and drive up the prices of caskets. The BBC has a good video on their troubles with the state. (more…)

I saw Joe Carter’s post on Entrepreneurship and Poverty earlier today, and it got me thinking back to a subject that has been nagging at me for quite a while. It seems to me that starting a business is simply too hard these days, and for rather artificial reasons. But perhaps I’m just biased, and it’s not as hard as I thought? Seeking the truth, I did what any millennial would do and consulted google.

What I found was a fascinating article from John Stossel. In it, he details all the regulatory hoops he would have to jump through in order to engage in the most basic from of entrepreneurship in Americana: the lemonade stand. (more…)

Blog author: jcouretas
Friday, August 27, 2010


Can you explain why you are not recycling, tovarich?

In “Recycling Bins Go Big Brother on Cleveland Residents,” writer Ariel Schwartz reported that the city is introducing a $2.5 million “Big Brother-like system next year to make sure residents are recycling.”

Chips embedded in recycling carts will keep track of how often residents take the carts to the curb for recycling. If a bin hasn’t been taken to the curb in a long time, city workers will go rummaging through the trash to find recyclables. And if workers find that over 10% of the trash is made up of recyclable materials, residents could face a $100 fine.

The system isn’t entirely new. Cleveland began a pilot program with the carts in 2007, according to … Alexandria, Virginia has a similar system, and cities in England have been using high-tech trash systems for years. But if the chip system works in a city as big as Cleveland, other small to medium sized cities will probably take note.

The program makes sense as long as cities don’t go too far. San Francisco, for example, has threatened to fine residents who don’t compost their waste. A chip system installed in San Francisco compost bins could probably make the city a lot of cash–and cost residents dearly.

Well, yes, there is a certain bureaucratic logic to it. It’s just the off-hand concern about going “too far” that leaves me a little uneasy.

Mark Steyn took it to the next logical step. He’s skeptical, as you can discern from the title of his blog post, “Gullible eager-beaver planet savers”:

In 2006, to comply with the “European Landfill Directive,” various municipal councils in England, Scotland and Northern Ireland introduced “smart” trash cans—“wheelie bins” with a penny-sized electronic chip embedded within that helpfully monitors and records your garbage as it’s tossed into the truck. Once upon a time, you had to be a double-0 agent with Her Majesty’s Secret Service to be able to install that level of high-tech spy gadgetry. But now any old low-level apparatchik from the municipal council can do it, all in the cause of a sustainable planet. So where’s the harm?

And once Big Brother’s in your trash can, why stop there? Our wheelie-bin sensors are detecting an awful lot of junk-food packaging in your garbage. Maybe you should be eating healthier. In Tokyo, Matsushita engineers have created a “smart toilet”: you sit down, and the seat sends a mild electric charge through your bottom that calculates your body/fat ratio, and then transmits the information to your doctors. Japan has a fast-aging population imposing unsustainable costs on its health system, so the state has an interest in tracking your looming health problems, and nipping them in the butt. In England, meanwhile, Twyford’s, whose founder invented the modern ceramic toilet in the 19th century, has developed an advanced model—the VIP (Versatile Interactive Pan)—that examines your urine and stools for medical problems and dietary content: if you’re not getting enough roughage, it automatically sends a signal to the nearest supermarket requesting a delivery of beans. All you have to do is sit there as your VIP toilet orders à la carte and prescribes your medication.

In “The New Despotism of Bureaucracy” on NRO, the Heritage Foundation’s Matthew Spalding wrote:

The United States has been moving down this path in fits and starts for some time, from the Progressive Era reforms through the New Deal’s interventions in the economy. But the real shift and expansion occurred more recently, under the Great Society and its progeny. The expansion of regulatory activities on a society-wide scale in the 1960s and 1970s led to vast new centralizing authority in the federal government, such that today the primary function of government is to regulate. The modern Congress is a supervisory body exercising oversight of the true lawmakers — administrative policymakers.

And not just just at the federal level, of course. Now, the distant disembodied “administrative state” may be more and more personified in your neighbor in town and township. And when he strolls up your driveway to talk to you, it won’t be about your interest in coaching Little League or to borrow a weed whacker but to ask: Why did you put those old newspapers in the trash?

Bruce Tinsley’s comic strip Mallard Fillmore has long been an excellent examination of conservative principles, current events, and problems associated with government interventionism. The strip appears in over 400 newspapers across the country. Yesterday featured a particularly simple and poignant strip humorously pointing out early attempts to crush the entrepreneurial spirit and the free market. The December 13 strip simply speaks for itself.

Right before I saw the strip yesterday I just finished reading a proposal in Michigan that has the support of Lt. Governor John Cherry for a new tax on bottled water.