Tyler Cowen, Columnist

A Radical Solution to the Overuse of Occupational Licensing

The federal government can liberate dog walkers and barbers by taking powers away from states and localities.

Washington can help.

Photographer: Justin Sullivan/Getty Images

Criticism of the proliferation of occupational licensing is now bipartisan. Occupations such as dog walkers, interior designers, auctioneers and barbers do not need state licenses, and those legal restrictions serve mainly to raise prices for consumers and restrict supply, eventually limiting innovation and job creation, too.

But how to move forward? There are thousands of licenses, covering almost a third of U.S. workers, and licenses are proliferating at the city and county levels, too. Constitutional and antitrust and legal challenges to this trend are beneficial, but they bring only piecemeal victories and cannot undo the current morass of restrictions.