Occupational Licensing Hurts Just About Everyone, Says White House

Reason reports:

Horse masseurs. Hair braiders. Funeral attendants. Florists. All are subject, at least in some states, to "occupational licensing," defined by the Treasury Department as "a government permit allowing workers to legally practice." Since the 1950s, the number of U.S. jobs where workers are required to be licensed by the state has increased five-fold, now encompassing about a quarter of our working population. Far from being merely a minor inconvenience for workers, this excessive licensing regime "creates substantial costs, and often the requirements for obtaining a license are not in sync with the skills needed for the job," according to a new report from the Treasury, the White House Council of Economic Advisers, and the Department of Labor.

Libertarians have been objecting to occupational licensing on these grounds for decades, of course; the free-market friendly Institute for Justice has even been systematically suing to bring about their demise. But it's rare to see federal agencies recommend against more economic regulation, so let's all just savor this small victory a moment. The scathing report paints occupational licensing as a regulatory scheme that serves almost no one any good—raising consumer costs while failing to deliver improved quality; reducing employment opportunities, especially among the most economically vulnerable; and hampering state-to-state mobility and market innovation.

The restraint of trade cost money.