Recently, during a conversation about state enforced licensing, I got asked the question: “If state enforced licensing is such a monopolist conspiracy then when does the conspiracy occur and who are the conspirators? Are student doctors, teachers and lawyers all ‘in on it’ from the onset, if not when does the transformation take place?” A fantastic question, one that has caused me to sit back, think, read, think, read, and think some more.
I think that the vast majority of doctors, lawyers and teachers do what they do, because they like helping people. They often work, hard, long hours and contribute a great deal to society.
One problem I see with professional guilds is that they have a fraternal nature to them. The current members are seen as in favorable positions and there is a large pool of entrants to choose from (recruiting) Only a small, select group are granted access to join (get accepted to the required schooling). There is a long, arduous apprenticeship to endure (hazing). The leaders (club presidents, union heads) look out for the group, rather than that of the individual (collectivism). Also, it is really hard to get kicked out once you are in (job security).
I think many people feel professional services are above the market. They say things like: “If we don’t have regulated doctors, then there will be widespread disease.” “Teachers deserve 6 figures, because they are so important.” “If the government didn’t control these certifications, there would be utter chaos.” Unfortunately, these institutions have been so ingrained into our society that people have never experienced anyone but the government in control.
In the end, I do think professional certifications are an extremely good thing for the consumer as well as for the professionals. My problem is with the monopolistic nature of them. I believe unregulated, competing, private certifications would be extremely beneficial in both cost and quality of service. Compulsory apprenticeships and certifications are a key issue that Adam Smith spoke out against in his revolutionary Wealth of Nations that helped propel the Industrial Revolution, but they are back…and stronger than ever!
Posted by samduvall 