Difference between revisions of "The Uneasy Case Against Occupational Licensing (Part 2)"

Successful ideological entrepreneurs change policy-makers’ focus and their presumptions. Those on the right, in particular, have been very effective at shifting attention from core confrontations of capital and labor to peripheral conflicts among laborers. We see this repeatedly in inequality policy, where fundamental tensions between capital and labor are ignored, obfuscated, or trivialized by a tidal wave of technocratic reframing.

Successful ideological entrepreneurs change policy-makers’ focus and their presumptions. Those on the right, in particular, have been very effective at shifting attention from core confrontations of capital and labor to peripheral conflicts among laborers. We see this repeatedly in inequality policy, where fundamental tensions between capital and labor are ignored, obfuscated, or trivialized by a tidal wave of technocratic reframing.

Licensing should be interpreted as a mix of consumer protection and labor market stabilization. In several realms, licensing may be too permissive today and should be strengthened. At a minimum, consumerist critics of licensing rules should examine licensed occupations one at a time and understand the consumer protection implications before dismissing licensing as categorically “overprotective.” Furthermore, due to the unavoidable state construction of markets, licensing must be understood as one type of state action (along with property and contract, among others), not some exceptional outlier. To be sure, current licensing rules are not perfect or above criticism. Some licensing requirements may hurt marginalized populations and have regressive effects. Grappling with, and addressing, these harmful consequences is essential. But, as in many areas, the simplistic Econ 101 account is a hindrance, not a help, to understanding. Stepping outside of this framework reveals that occupational licensing can be a basis for a progressive political economy.

Licensing should be interpreted as a mix of consumer protection and labor market stabilization. In several realms, licensing may be too permissive today and should be strengthened. At a minimum, consumerist critics of licensing rules should examine licensed occupations one at a time and understand the consumer protection implications before dismissing licensing as categorically “overprotective.” Furthermore, due to the unavoidable state construction of markets, licensing must be understood as one type of state action (along with property and contract, among others), not some exceptional outlier. To be sure, current licensing rules are not perfect or above criticism. Some licensing requirements may hurt marginalized populations and have regressive effects. Grappling with, and addressing, these harmful consequences is essential. But, as in many areas, the simplistic Econ 101 account is a hindrance, not a help, to understanding. Stepping outside of this framework reveals that occupational licensing can be a basis for a progressive political economy.