In Part 2 of this series, we saw how minimum wage laws erect barriers to the “little guy” by making it more difficult for him to obtain the job skills that will command a higher wage. Occupational licensing laws are another example.
As one example, suppose you want to offer African hair braiding services. In about twenty states, you would have to first obtain a cosmetology license. In most states, between 1,000 and 2,000 hours of classes are required to obtain such a license. And the cost can easily be thousands of dollars.
Many people simply cannot afford to spend the time and money necessary to get permission from the government to open a business. They are deprived of the freedom to create a value, and their potential clients are denied the freedom to voluntarily purchase that value.
Occupational licensing is nothing more than a barrier to entering a profession. It’s a protection racket, in which the members of a profession seek to limit the supply by using government coercion. And the “little guy” is often a victim. He may be competent in the field, but until he secures the permission of government officials, he is a criminal if he offers his services to the public.
While many think of property rights as a tool for the wealthy and big corporations to protect their “stuff,” property rights protect the freedom of everyone to create and attain “stuff.” And that includes the “little guy.” The violation of property rights, including minimum wage laws and occupational licensing, makes it more difficult for the “little guy” to improve his economic status.