Gov. Gregg Abbott recently signed a bill that legalizes temporary lemonade stands–the kind that children operate to make a few dollars. Abbott called the bill a “commonsense law.” While this is true, it fails to address the fundamental issue.
Why should children need the government’s permission to operate a lemonade stand? If a child wants to sell me a glass of lemonade, and I want to buy that refreshment, it’s nobody’s business but ours. And the same is true of any individual who wishes to offer a value (whether a product or service) for sale.
But occupational licensing requires would-be practitioners to obtain government permission before they can offer a service. In principle, this is no different than requiring children to get a government permit to sell lemonade.
Operating a lemonade stand can provide a child with valuable lessons. He must understand his costs and price his product appropriately. He must deal with customers. He must analyze the market and decide where to locate his stand. All of these issues, and much more, must be considered if one is to operate a successful business.
But when we require a child to obtain government permission before opening a lemonade stand, we teach him a very different lesson. We teach him that his own judgment and initiative is subordinate to government bureaucrats. Of course, this is the same premise underlying occupational licensing.
If we want to raise subservient automatons, then licensing lemonade stands is a good way to indoctrinate children. But if we want a citizenry of independent, responsible adults, then we must remove the obstacles to self-initiative. And that means, as a start, abolishing occupational licensing.