In 2019, Mark Shirley left his job managing an auto dealership to pursue his dream of owning a restaurant. After doing research, he concluded that a food truck was the best way to start. Costs would be lower than a brick-and-mortar location and he could slowly build his clientele while working out the kinks every entrepreneurial endeavor encounters. He leased space from a private property owner in Farmville, North Carolina.
Even with the pandemic, things were going well for Mark. That is, until the city council decided to intervene. The council passed an ordinance that raised the operational fee from $100 a year to $75 a day. The law also limited food trucks to two days of operation each week. In addition, Shirley couldn’t lease the private space without first obtaining permission from a competitor located across the street.
Faced with similar obstacles, many people would acquiesce or shut down their business. Shirley decided to fight back. First, he moved his truck outside of the town’s limits to avoid this violation of his right to earn a living. Second, he sued the town. The Pacific Legal Foundation is representing him on the case.
Sadly, this is not an isolated incident of protectionism. From plumbers to interior decorators, from barbers to taxi drivers, more than one-third of the nation’s workforce must obtain government permission simply to earn a living. And to obtain that permission, they must submit to whatever arbitrary requirements are established by the licensing board.
As an example, in Texas one must have 8,000 hours (that four years) of on-the-job experience to obtain a plumber’s license. In addition, the applicant must take classes on residential, commercial, and industrial plumbing systems. As a homeowner and owner of rental properties, I have made dozens of low-skill plumbing repairs, such as replacing a faucet and repairing toilets. I didn’t need 8,000 hours of training to acquire the few skills needed. If I wanted to offer such repairs to other homeowners, I would be a criminal. I could do it for far less than a licensed plumber charges for the same repairs. But the state makes such a win-win offer illegal.
Defenders of licensing argue that it protects “the public” from unscrupulous and incompetent practitioners. Yet, “the public” never clamors for licensing. It is always those already in a profession who lobby legislators for licensing laws that create arbitrary barriers to entering a profession. Licensing is used to limit competition. The food fight in Farmville is evidence.