"Licensing requirements like those in Nevada are part of that broader problem. Known generally as Certificate of Necessity laws, the requirements apply to trucking companies, movers, limousine and taxi drivers, and even hospitals. They allow private companies to use the strength of the state government to keep competitors from entering the market, or to require large up-front investments of time and money that discourage potential competitors. It adds up to a system that benefits the established, entrenched interests at the cost of entrepreneurs ― and, ultimately, consumers, Sandefur said."

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What most people who decry capitalism don’t understand is that business loathes a free market because a free market opens up competition.  Instead, businesses would rather a strong regulating body with their influence helping to shut out competition (a situation known as regulatory capture; where the regulators are the regulated or controlled by them).

Licensing fees, zoning laws, and other government regulation often do not serve to expand the quality of a market, and instead they simply limit competition in that market, meaning if you’re in, you’re in, and if you’re not in yet, well good luck because it probably isn’t happening.

How Licensing Laws Cripple Competition - Reason.com

24 February 2013 ·

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  1. vincenzof posted this

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