Subscription Preferences:
4 months ago

Licensing away economic prosperity in Alabama

Do you want to alleviate poverty in Alabama? Do you want to curb the power of special interest groups over government agencies? Do you want more affordable goods and services in basic industries?  Do you want to help disadvantaged groups find good jobs and become productive citizens? Do you want to reduce the population of our overcrowded prisons?

If you answered yes to any of these questions, you should read a new report published by the Alabama Policy Institute titled “The Costs of Occupational Licensing in Alabama.”Coauthored by Daniel Smith (Troy University), Courtney Michaluk (Troy University), David Hall (Troy University), and Alex Kanode (George Mason University), the report details the effects of occupational licensure on our state.

What is occupational licensure? In short, it’s governmental regulation requiring people to obtain a license before entering into certain trades or fields.

Sounds harmless, right? Aren’t these regulations in place to protect consumers from exploitation and inexpert practices? Such reasoning led to the rise in occupational licensure, which today extends to several zones of economic activity.

However well-meaning, occupational licensure has had unintended consequences on the people it’s designed to protect. Instead of helping average consumers, it lines the pockets of industries that have lobbied to regulate away entrepreneurial forces that drive down costs.

If you’re poor and trying to find low-skilled work as a barber, manicurist, eyebrow threader, hair stylist, school bus driver, or shampoo assistant, you must obtain a license first. This license may be prohibitively expensive because of renewal fees, coursework, continuing education, and so forth.

“Alabama licenses a total of 151 occupations,” according to the report, “covering over 432,000 Alabama workers, which represents over 21 percent of the labor force.” Think about that: more than two of every 10 people working in Alabama need a license to do what they do for a living. Licensing boards governing admission standards and prerequisites can mandate expensive training and dues that don’t affect the quality of industry services.

Economists refer to occupational licensure as a barrier to entry. Barriers to entry ensure that those already within a profession or trade can raise prices to artificially high levels, in effect squeezing out competition by using the mechanisms of government to control the market.

Inflated prices harm low-income families who cannot afford to buy what they could have bought if the market had set prices based on natural supply and demand. Spouses of military service members often suffer from occupational licensure because, when they move from state to state, they must jump through hoops to enter the licensed profession in which they practiced in other jurisdictions.

Occupational licensure is, in short, a net burden on the economy, escalating prices, limiting consumer choice, and restricting economic mobility.  The API report estimates that the overall costs of occupational licensure in Alabama exceed $122 million. That’s a lot of money. What can be done to keep some of it in the hands of the ordinary people who need it most?

The report proposes five reforms for Alabama policymakers:

1. “[T]hey can reform current procedures for extending occupational licensing to new occupations and mandate thorough review processes to ensure that licensing is not extended to new occupations without a demonstrable and severe threat to consumer safety that cannot be overcome with the market mechanisms, such as consumer or expert reviews, reputation, guarantees, or private certification, or the already existing government laws, such as those dealing with liability, fraud, misrepresentation, and false advertising.”

2. “[T]hey can establish procedures to systematically review all licensure requirements for currently licensed occupations to ensure that they do not require unnecessary or excessive requirements or costs for licensure.

3. “[T]hey can systematically review all currently licensed occupations to determine, individually, whether a demonstrable severe threat to consumer safety exists. If not, they can remove occupation licensing entirely for those occupations.”

4. “[They] can explore licensure reforms that specifically target ex-offenders” to reduce the prison population and criminal recidivism.

5. “[They] can … explore occupational licensing reform with military members and their families in mind.”
A short article cannot capture the nuance and particulars of the entire report; readers should view the report for themselves to make up their own minds.

During this time of partisan divide and political rancor, people of good faith on both the left and the right can agree that something needs to be done about occupational licensure. The problem cannot continue to grow. It presents a unique opportunity for Republican and Democratic lawmakers to come together to ease economic burdens on the people of Alabama. Let’s hope they seize it.

(Image: Pixabay)

Allen Mendenhall is associate dean at Faulkner University Thomas Goode Jones School of Law and executive director of the Blackstone & Burke Center for Law & Liberty.

Dr. Harry Reeder: The sexual revolution an ‘all-out assault’ on our culture


During the Friday broadcast of “In Perspective,” Tom Lamprecht and Harry Reeder discussed the recent Arizona court case involving Brush & Nib Studio owned by two openly Christian calligraphers, Breanna Koske and Joanna Duka.

Maricopa County Superior Court Judge Karen Mullins ruled these two women could be compelled by the government to use their artistic ability to service same-sex weddings. Although the judge acknowledged that they undoubtedly engaged in a form of speech, she ruled against them since they did not engage in expressive speech. The government defined the types of speech that could be compelled and not compelled.

265


According to Dr. Reeder, we should look at what is happening in terms of the First Amendment with a Christian world and life view.

First, the judge decided that the founding fathers did not mean the free practice of speech, they meant the free practice of expressive speech, and what these calligraphers were doing was not expressive.

Reeder responds to that, saying, “That’s a nonsensical statement. All speech is expressive.”

Second, Reeder states that we are seeing the First Amendment “attacked by the sexual revolution.”

He adds, “You are not going to be able to hide, whether you are calligraphers or cake bakers, or whether you work as a salesperson, this sexual revolution takes no prisoners. You are not going to be able to hide. The churches are going to have to identify their sexual ethics and how they hold to it, compassionately but with conviction. You are going to have to do it in the workplace, you are going to have to do it in your home, you are going to be faced in the school system.”

As further evidence, Reeder mentions a recent Planned Parenthood of New York advertising campaign that was so vile that the details of it could not be discussed on his program.

“Planned Parenthood, has made it very clear. We exist to promote this sexual revolution of sexual anarchy, sexual deviancy; both verbally and visually,” Reeder states. “This is an all-out assault on the culture in the promotion of pagan sexual promiscuity and perversion. Anarchy in the name of liberty, and the removal of any ethical considerations and any ethical boundaries is incessant and insistent.”

3 hours ago

Alabama Power customers start seeing federal tax reform benefits this month

Alabama Power customers are beginning to benefit this month from a decision made by the Alabama Public Service Commission related to federal tax reforms.

Starting with July bills, the typical monthly bill for a residential customer is being reduced by more than $9 each month for the remainder of the year. The savings will be reflected in the “Total Due” section on monthly bills for the remainder of the year.

“We are pleased to begin providing these savings to our customers,” said Richard Hutto, vice president of Regulatory Affairs for Alabama Power.

61

The federal tax reform legislation, approved late last year, lowered corporate income tax rates, which reduces taxes for Alabama Power. Taxes levied on the company are passed on, so a lower tax rate directly benefits Alabama Power’s 1.4 million customers.

This is the first portion of $337 million in savings coming to all Alabama Power customers through 2019.

(Courtesy of Alabama NewsCenter)

5 hours ago

Rep. Martha Roby: Pro-growth policies are working in AL-02 communities

Over the last year and a half, Republicans in Congress and the Trump Administration have worked tirelessly to unleash our economy and foster growth right here in the United States. Since November of 2016, 3.7 million jobs have been created, and one million of those came after the Tax Cuts and Jobs Act became law. Unemployment numbers are at the lowest point they’ve been in decades. Job openings are at a record high – 213,000 jobs were added in June alone. Also last month, there were 6.7 million job openings, which marks the first time since the year 2000 that the number of job openings is larger than the number of people unemployed.

As you may know, the Tax Cuts and Jobs Act roughly doubled the standard deduction while lowering tax rates. Because of this historic tax reform, 90 percent of Americans have seen bigger paychecks this year. Plus, more than four million Americans have seen increased wages, bonuses, and expanded retirement options.

463

Thanks to tax reform and our efforts to spur economic growth, Americans are working and businesses are growing – and Alabama’s Second District hasn’t missed out on the momentum. Since the enactment of our tax overhaul last year, several businesses have announced they are opening branches in our district, expanding existing ones, offering pay increases to employees, and more. I would like to take this opportunity to briefly share some of the great economic news we’ve received so far.

Most recently, Alabama manufacturer Sabel Steel, which has locations in Montgomery and Dothan, announced they will provide pay increases to all employees, invest in new equipment, expand existing facilities, and hire additional workers thanks to tax reform. I believe the company’s CEO Keith Sabel said it best himself: “There’s optimism. With the previous administration, we were hammered by rule changes and regulations. It was like trying to drink water out of a firehose. The change in policy under President Trump was enormous, and the attitude among businessmen and especially other steel manufacturers has been incredibly optimistic. Tax reform and other policies psychologically have made an enormous difference.”

James Hardie Building Products announced plans to open a new manufacturing plant in Prattville. This project is the largest industrial development in Autauga County in 50 years, and it will have a significant economic impact on the area.

U.S. firearms maker Kimber Gun Manufacturing also announced a project in AL-02. By early 2019, the company will open a $38 million production facility in Troy that will create more than 350 high-paying jobs over the next five years.

Also in Troy, Rex Lumber Co. will soon open a state of the art sawmill operation that will employ more than 100 people. This $110 million investment will create quality employment opportunities and a significant new timber market in Pike County.

In Coffee County, Wayne Farms has announced a $105 million expansion at their Enterprise fresh processing facility. This investment will bring a strong economic boost to the area.

Last, but certainly not least, Great Southern Wood Preserving based in Abbeville recently announced it will use savings from the tax overhaul to invest in additional employee benefits, including lower health care costs, more paid time off, and a new scholarship program. In addition, the company has given pay increases to employees across the board.

So you see, thanks to our pro-growth policies and a commitment to fostering economic growth in this country, Americans are confident in our economy – and rightfully so. Hardworking people in our very own communities have already benefited tremendously as a result of these important efforts, and I am eager to see this positive forward momentum continue for all Alabamians.

U.S. Rep. Martha Roby is a Republican from Montgomery.

Listen to the craziest case Jonathan Cooner has ever worked…. WOW

Alexander Shunnarah “Shark of The Week”, Jonathan Cooner came to the studio with some great stories. Jonathan started it off by talking about his time with the law firm and the number of phone calls they get and how he started off. Jonathan told the guys a story about “A toddler and a mechanical bull.”  Jonathan went into depth about what it means to be a member of the Shunnarah Law Firm and even gave his wife and daughter a shoutout.

16

Subscribe to the Yellowhammer Radio Presents The Ford Faction podcast on iTunes or Stitcher.

6 hours ago

Coal company executive, Alabama attorney convicted of bribery

A prominent Alabama attorney and a coal company executive have been convicted on federal charges involving bribery of a state lawmaker.

The verdict against Joel Gilbert, a partner with Balch & Bingham law firm, and Drummond Company Vice President David Roberson was announced Friday after a four-week trial. Jurors found them guilty of conspiracy, bribery, three counts of honest services wire fraud and money laundering.

80

Prosecutors said the two men bribed former state Rep. Oliver Robinson to oppose the Environmental Protection Agency’s expansion of a Superfund site, and also to oppose prioritizing the site’s expensive cleanup. Robinson pleaded guilty last year to bribery and tax evasion. He has not yet been sentenced.

A third defendant, Balch attorney Steven McKinney, was dismissed from the case one day before closing arguments began.

(Associated Press, copyright 2018)

Sign-up now for our daily newsletter and never miss another article from Yellowhammer News.