“This is cronyism; this is corporate welfare. The people who are barbers want to raise the barriers so they have less competition so they can get a higher price and that’s true in hundreds of occupations across the country and that’s called occupational licensure. And that’s one of the things we’re fighting against because that is not a free and open society.”
Charles Koch, Chairman and CEO of Koch Industries and author of “Good Profit,” is one of the most successful businessmen in the world. He helped develop his father’s company, valued at $21 million in 1961, into the second-largest private company in America, valued at $100 billion in 2014. So it’s safe to say he knows a thing or two about creating jobs and value in business. In this episode, Charles explains how occupational licensure has become a large barrier to job growth. Too many jobs, like yoga instructor, bartender, barber, teacher, etc…, now require licenses in order to perform them. And these licenses often come at a large expense, whether it’s paying for classes or obtaining certain types of certifications. So these occupational licenses have become obstacles to opportunity for people trying to start a career and find a well-paying job who might not be able to afford the license or obtain it. In most cases, these are obstacles that shouldn’t be there at all (or should be much lower obstacles) and are often created by people in the respective industries in order to block out competition. Charles explains how this too is a form of cronyism and why we must put an end to it.