Tuesday, July 7, 2015

A Blow for Economic Freedom?




The Texas Supreme Court struck a blow for economic freedom in the case styled Patel v. Texas Department of Licensing & Reg.. In that case the court struck down a licensing requirement for "eyebrow threaders" that required them to undergo 750 hours of training (that's over three months at 8 hours a day) to earn a license. 

Rejecting the highly deferential rational basis test used by the US Supreme Court to clear the way for all manner of ridiculous regulations, the Texas Supreme Court held that the Texas Constitution limits the legislature's power and ruled that if “the statute’s effect as a whole is so unreasonably burdensome that it becomes oppressive in relation to the underlying governmental interest” — focusing on its “actual, real-world effect” — the law is unconstitutional. While hardly libertarian in nature the ruling is a crack in the awful wall of the administrative state the we suffer under.

Licensing rules and regulations, written by the lobbyists for industry clients seeking to shield themselves from competition, punish poor people who lack access to capital, increase the cost of licensed services and impede innovation. Lawyers, accountants, brokers, insurance agents and construction professionals all benefit from licensing schemes intended to "protect the public" but which, too often, just increase costs and create monopolies.

The administrative state is eating our country and freedom alive. It's time to stand up against it and this appears to be one small step in the right direction.


Welcome to the Collaborative Revolution!

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
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