Monopoly Dentistry - James E. Miller - Mises Daily

Monopoly Dentistry - James E. Miller - Mises Daily: 'To get a good idea of how state occupational licensing works, consider the following example. Imagine Bill runs a lemonade stand in the middle of a bustling city. Instead of facing competition from other street vendors and surrounding eateries and grocery stores, Bill had the foresight to lobby the local city council to outlaw all sellers of lemonade who don't at first obtain a license from the city. Due to his influence and close ties to select city council members, Bill fast tracked through the application process and was able to secure a license to sell lemonade before anyone else. Little competition stands in his way now. Bill is then able to keep his sale price above the established level of a real free market and reap profits as consumers are still willing to take the extra hit on their wallet for his delicious lemonade. Profits are up, times are good, and Mrs. Bill is happy. But now the city council is beginning to change its tune on lemonade licensing and is considering an increase in licensing allotments. The free ride is coming to an end, so Bill, worried the good life will soon be over, launches a countering lobbying effort on the basis that product quality will decrease if more licenses are given out.'