Our View

Our View

A look at state licensing policies long overdue

We’re all aware of burdensome and unnecessary taxation, questionable rules and regulations and annoying government oversight all factors that play a role in the decisions private investors make when deciding to build or expand their job creating businesses and industries.

Politicians, with any knowledge of economic development, fully understands that in order to be competitive there needs to be a level playing field for states such as Arkansas, which in some instances is at a disadvantage.

Gov. Asa Hutchinson has definitely proven to be one of those politicians in light of all he has done to lower taxes, address workforce development issues, and solicit Arkansas to prospective overseas investors, particularly in China.

It was interesting to learn recently from Lt. Gov. Tim Griffin of another economic development obstacle that Arkansas needs to address, and it involves something most of us simply didn’t realize.

So seems Griffin met recently with the bureaucrats within the U.S. Labor Department to discuss occupational licensing that more and more economic development leaders believe have spiraled out of control in recent decades.

U.S. Labor Secretary Alexander Acosta has taken it upon himself to start an initiative to identify areas in which occupational licenses hinder job growth.

According to the Institute for Justice, a Virginiabased nonprofit that battles for what it calls “economic liberty,” ranks Arkansas as being the “third most broadly and onerously licensed state.” The institute, which helped convince Arkansas lawmakers in 20915 to eliminate licensing for natural hair braiders, says Arkansas requires licenses for 72 of the 102 professions it reviewed, ranging from fire alarm installers and floor sanders contractors to massage therapists and milk samplers.

There is a growing consensus that unnecessary licensing harms workers as well as consumers. It is well known that occupational licensing in general is bad for the economy because it allows licensed workers to increase their prices by keeping competition out of their occupation.

Although Griffin has no authority in changing the licensing process it is encouraging lawmakers to review all of its licensing requirements, just as what is being done regarding the current study of the state’s tax exemptions.

Most all of us will agree that there is a need for occupational licensing, such as those required for doctors and lawyers, but there are a number of professions that licensing is totally unnecessary.

It certainly can’t be argued that excessive licensing requirements limit competition and makes it harder for qualified people to find employment.

It is clear, and the timing is right, for an in-depth analysis of Arkansas’ licensing standards.

It might be suggested that Gov. Hutchinson call for a special task force similar to what is in place to review the state’s tax exemptions.