While all occupational licensing infringes on our freedom to produce and trade, the licensing of some professions has a degree of plausibility. We don’t want an auto mechanic to perform surgery on us. Absent occupational licensing, the argument goes, auto mechanics could offer to perform surgery, and nobody would be the wiser. This argument implies that individuals are too stupid to determine an individual’s qualifications and skills. The government must do it for us. And so, the government licenses doctors and about 800 other professions.
It may seem obvious, but the way to avoid having an auto mechanic do surgery on you is to refrain from hiring an auto mechanic to perform surgery on you. Without occupational licensing how will we know who is competent and who isn’t? The answer is: The same way we determine which products best suit our needs and desires.
One way we do this is referrals from friends, family, and co-workers. Their experiences regarding products and professionals provide us with some insight. Research and consumer reviews on countless websites offer the opportunity to read about a wide range of experiences.
A third alternative to occupational licensing is certification. Many product manufacturers, such as Cisco and GAF offer certification for the use or installation of their products. Many trade associations, such as the National Institute for Automotive Service Excellence and the National Cancer Registrars Association offer certification for professionals in their respective fields. Organizations like Good Housekeeping and Underwriter’s Laboratories test, review, and certify the quality of a wide range of products. There are websites, such as Angie’s List, that do the same for services.
These examples show that we don’t need occupational licensing to find honest and competent service providers, such as doctors. Perhaps most importantly, these private resources provide both service providers and consumers more freedom of choice.
A service provider can choose to become certified and likely obtain higher rates, or he could abstain from certification and offer lower prices. A consumer could pick a certified provider and pay a higher price, or he could choose an uncertified provider. Each could choose based on his own needs and desires.
Occupational licensing is mandatory and coercive. Service providers must act as the government demands or they are prohibited from practicing. Certification is voluntary and allows service providers the freedom to innovate and offer alternatives. Government should be protecting our freedom to choose, not dictating which choices are acceptable and which are not.