Today in Corporatism, a former CEO of H&R Block turned bureaucrat just created a law requiring licenses for small tax preparers. Of course the requirements are waived for lawyers, CPAs, and large tax-preparation companies like H&R Block.
From the Reason article entitled Just What America Needs: More Red Tape:
“Everyone,” said President Obama six months ago, “knows that small businesses are where most new jobs begin. And you know that while corporate profits have come roaring back, smaller companies haven’t.” Perhaps he should pause to ask himself why.
Maybe he has to ask himself why because he’s being advised by people who clearly don’t understand how regulation affects an economy.
Listen, Occupy Wall Street, liberals, social justice people, et al. If you want to get mad about big businesses screwing consumers and the little guy, understand the mechanics of the screwing.
This is how it’s done:
1. Government is a revolving door of business leaders becoming bureaucrats becoming business consultants.
2. These bureaucrats write legislation creating barriers to entry for competitors. This benefits their benefactors and ensures them lucrative consulting positions once their tenure in government ends.
There’s only one way to fix it. Getting rid of business destroys the world’s only producer of wealth. Trying to regulate business creates more of the same. Obviously keeping business from using regulation to hobble competition can only be done by eliminating their power to regulate.