Entrepreneurs Under Attack

[Winston Smith]

The author doesn't specifically mention higher education, but we know that the same barriers he discusses in this article exist to hamstring small startup operations and religious groups who dare to enter the marketplace and compete against the entrenched, wealthy higher ed cartel.  Some of those would-be cut-rate competitors are sitting in jail cells this very moment.  

Entrepreneurs Under Attack
by John Stossel
09/08/2010

Every day, federal, state and local governments stifle small businesses to privilege well-connected incumbent companies. It's a system of protectionism for influential insiders who don't want competition. Every locality has its share of business moguls who are cozy with politicians. Together, they use the power of government to keep competition down and prices high.

The Institute for Justice, a libertarian public-interest law firm, works to free entrepreneurs from such opportunity-killing regulations. Here are four cases from IJ's files.

Case No. 1. The monks at St. Joseph Abbey had to take the state of Louisiana to federal court to defend their right to make money selling handmade caskets. That's right: empty wooden boxes. But as soon as the monks started selling them, they were shocked to receive a cease-and-desist order from something called the Louisiana State Board of Funeral Directors. The funeral directors had managed to get their state to pass a law decreeing that only "licensed funeral directors" may sell "funeral merchandise" like caskets. To sell caskets legally, the monks would have to obtain a funeral director's license. That required a year-long apprenticeship, passing a funeral industry test and converting their monastery into a "funeral establishment" by installing embalming equipment, among other things.

The state board and the Louisiana Funeral Directors Association -- the profession's lobbyist -- say the law is designed to protect consumers. But that's what established businesses always say about absurd regulations they demand. An unusually candid funeral director told The Wall Street Journal, "They're cutting into our profit." Well, yes, free competition does do that. That's the point.

Another funeral director said that the law must remain unchanged because casket-making is a complicated business: "A quarter of America is oversized. I don't even know if the monks know how to make an oversized casket." Does that even deserve a comment?

Case No. 2. Hector Ricketts wants to offer New York City residents an alternative to New York's slow and clumsy public transportation. He employs drivers who offer commuters rides in minivans. The vans serve mostly low-income neighborhoods and typically charge $2 a head. People like the vans. They're more convenient than unionized government-run public transit -- and cheaper, too. The subways and buses charge $2.25.

So the city's public transit union used its political connections to regulate the vans to death: The politicians have decreed that vans may not drive routes used by city buses or provide service to a passenger unless it is prearranged by phone; and the vans must keep a passenger manifest on board and enter the name of everyone to be picked up.

"Government makes it easier to get on welfare than to grow my business," Ricketts says.

The fight continues.

Case No. 3. Melony Armstrong of Tupelo, Miss., wanted to expand her African hair-braiding business. But Mississippi bureaucrats told her that to teach workers how to braid she needed a full cosmetology license. That required 1,200 hours of classes. Next, she needed a cosmetology instructor's license -- 2,000 more hours.

The courses and license had little to do with her profession. They were simply barriers to entry favored by her competition. Fortunately, IJ won that case.

Case No. 4. Dennis Ballen has a bagel shop located far off the main roads in Redmond, Wash. He couldn't afford to advertise on radio or TV, so he paid someone (typically unemployable people with quirky personalities) to stand on the road with a sign directing traffic to his store. It worked. The sign brought him two or three new customers a day.

Then Redmond police slapped him with a cease-and-desist order, warning he could face a year in jail or up to $5,000 in fines if he didn't stop displaying the sign. Ballen estimates that he would lose at least $200 a day in business if he complied. He and IJ sued the city and won the right to employ the sign-holder.

It's great that IJ and some determined entrepreneurs win a few victories for free enterprise. But in a country with a real free market, such lawsuits would be unnecessary.

[ham]

Case No. 4. Dennis Ballen has a bagel shop located far off the main roads in Redmond, Wash. He couldn't afford to advertise on radio or TV, so he paid someone (typically unemployable people with quirky personalities) to stand on the road with a sign directing traffic to his store. It worked. The sign brought him two or three new customers a day.

Then Redmond police slapped him with a cease-and-desist order, warning he could face a year in jail or up to $5,000 in fines if he didn't stop displaying the sign. Ballen estimates that he would lose at least $200 a day in business if he complied. He and IJ sued the city and won the right to employ the sign-holder.

Damn antisemites...they are everywhere...help!

[Tanya Heddankoff]

A similar article today by Walter Williams.  Again, not discussing the higher ed cartel and their shills explicitly, but clearly the self-appointed "experts" who seek to eradicate the free market in higher education are walking hand in hand with tyrants who would replace liberty with state control and coercion.

Liberal Crackup
Thursday, September 16, 2010
By Walter E. Williams

Charles Krauthammer, in his Aug. 27, 2010 Washington Post column, said, “Liberalism under siege is an ugly sight indeed,” pointing out that overwhelming majorities of Americans have repudiated liberal agenda items such as: Obamacare, Obama’s stimulus, building an Islamic center and mosque near ground zero, redefinition of marriage to include same-sex marriage, lax immigration law enforcement and vast expansion of federal power that includes unprecedented debt and deficits.

The nation’s elite and the news media see being against the Obama-led agenda as being racist, homophobic, xenophobic, Islamaphobic, mean-spirited and insensitive. Paul Krugman, columnist for The New York Times, has a different twist expressed in “It’s Witch-Hunt Season” (8/29/10). Krugman says that the last time a Democrat sat in the White House, Bill Clinton, he faced a witch-hunt by his political opponents. “Now,” Krugman says, “it’s happening again—except that this time it’s even worse,” asking, “So where is this rage coming from? Why is it flourishing? What will it do to America?”

Professor Krugman and others among America’s elite blame some of the rage on talk-show hosts such as Rush Limbaugh, Glenn Beck and Sean Hannity. They are only partially correct. What talk shows have accomplished is they’ve ended the isolation of many ordinary Americans. When the liberal mainstream media dominated the airwaves, Americans who were against race and sex quotas were made to feel as though they were racists and sexists. Americans who were against big government were portrayed as mean-spirited and uncaring. What talk radio and the massive expansion in non-traditional media have done is not only end the isolation, but more important, the silence amongst ordinary Americans.

Krugman says that what we’re witnessing is “political craziness.” Therefore, the overwhelming majority of Americans who think our borders ought to be secure and think we should have the right to determine who enters our country are politically crazy. Americans who can find nothing in the U.S. Constitution granting Congress the power to take over our health care system are politically crazy. Americans who think a mosque should not be built in the shadows of the Muslim-destroyed World Trade Center are simply religious bigots.

By the way, those who oppose the building are not saying there’s no legal or constitutional right to do so any more than they would say a person has no legal or constitutional right to curse his parents, but neither is a good idea. In Thomas Sowell’s column on the topic (8/31/10), he reminds us that “If we all did everything that we have a legal right to do, we could not even survive as individuals, much less as a society.”

Krugman predicts that political craziness, and by inference crazy Americans, will result in a Republican takeover of the House of Representatives and play chicken with the federal budget. Chicken with the budget is precisely what Defundit.org has called for. Already they’ve obtained the pledges of 165 congressional candidates not to fund any part of Obamacare.

While America’s liberal elite have not reached the depths of tyrants such as Lenin, Stalin, Mao and Hitler, they share a common vision and, as such, differ only in degree but not kind. Both denounce free markets and voluntary exchange. They are for control and coercion by the state. They believe they have superior wisdom to the masses and they have been ordained to forcibly impose that wisdom on the rest of us. They, like any other tyrant, have what they see as good reasons for restricting the freedom of others.

Their agenda calls for the elimination or attenuation of the market. Why? Free markets imply voluntary exchange. Tyrants do not trust that people behaving voluntarily will do what the tyrants think they should do. Therefore, they seek to replace the market with economic planning control and regulation.

Why liberalism has become an ugly sight, as Krauthammer claims, is because more and more Americans have wised up to the liberals' agenda.