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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss the fallout from the S&P downgrade of our credit rating, the false “Tea Party Downgrade” spin from Democrats and the Verizon’s union strike.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

The credibility and integrity of S&P’s ratings action
S&P Seen Surrendering to Tea Party Costing U.S. Taxpayer
“Tea Party Downgrade”? They Can’t Possibly Sell That
Second Recession in U.S. Could Be Worse Than First
45,000 Verizon Workers Go On Strike Over Contract

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Dale Smith has been cutting hair for over 50 years.  The Oregon barber is well-known in his hometown for walk-in appointments and $8 cuts — at least, until he got shut down by bureaucrats from Oregon’s Board of Cosmetology.

Dale’s crime?  He forgot to renew the barber license he earned 54 years ago.

The bureaucrats are saying that in order for Dale to return to work, he has to pass a 75-question examination, similar to the one he passed in 1957.  Further, he has to demonstrate to their satisfaction that he still knows how to cut hair:

Dale had to post a sign in his window saying that he was closed until further notice.  He doesn’t want to cut through all the red tape and isn’t sure what he’ll do next.

As Institute for Justice Senior Attorney Clark Neily explains in the video above:

Americans have a constitutional right to earn a living in the occupation of their choice, free from unreasonable government interference.  What happened to this man is the very definition of unreasonable.  A properly engaged judiciary is one that takes rights seriously, including the right to earn a living.  And it says to government officials, you have to treat people reasonably.  You have to respect their constitutional right to earn a living.

Of course, Dale is not alone.  In November, IJ economic liberty expert Paul Sherman spoke about armed government agents raiding barbershops and handcuffing barbers in front of their clients.  Big Government readers know that occupational licensing abuse is rampant in America.

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What do you get when you mix bureaucrats with a bunch of adorable puppies?

In Kim Houghton’s case, you get a major First Amendment lawsuit.

Kim Houghton decided after a successful, 20-year career in advertising that she wanted more.  She wanted to realize her American Dream and become an entrepreneur in a business focused on dogs.

She had the gumption to quit her job and make her dream come true:  Wag More Dogs is a high-end canine daycare located next to a popular dog park in Arlington, Virginia.  Kim commissioned an outdoor mural on her wall that has cartoon dogs, bones and paw prints as a way to give something back to the park she’d frequented for years, and build up some good will for her new business.

The mural was a big hit.  After all, who doesn’t like puppies?   Things were smooth for a few months.

And then Arlington bureaucrats got involved.

Officials blocked Kim’s building permit and told her that she could not open unless she painted over the mural or covered it with a blue tarp.

Her crime?

Painting a piece of art that—in the eyes of government officials—had too strong a “relationship” to her business.

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Carl Mitz is a third-generation horseman.  The Texan is widely known as one of the nation’s best horse dentists.  He’s treated the teeth of over 100,000 horses and has clients in over 30 states.

But Texas bureaucrats tried for years to shut him down.

In a classic case of economic protectionism, Carl and all other Texas equine dentists were told they had to spend up to $100,000 and four years at veterinary school, where they would learn next to nothing about caring for horses’ teeth, or else abandon their occupation.  To top it off, they were threatened with massive fines and even jail.

Instead of giving up his American Dream, Carl teamed up with other Texas horsemen and the Institute for Justice to fight for their right to earn an honest living.

And this week, they won.

On Tuesday, a Texas judge struck down the effort by the Texas Board of Veterinary Medical Examiners to put equine dentists like Carl—known as floaters—out of business and leave the state’s approximately one million horses without proper dental care.

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Let’s say you have a knack for cutting hair.  If you live in Florida, guess how many hours of government-mandated instruction you’d be forced to sit through before you can become a barber?

1,200.

That’s right, well over a thousand hours.  Plus, you’d have to pay thousands of dollars to cover the cost of your classes and pass a written exam.  Only then will the government give you a license—that is, permission to cut hair.

Now what happens if you’re already a successful barber but didn’t have a chance to stop working and jump through all the hoops needed to get that license?

Armed government agents could raid your business and handcuff you in front of your clients. Indeed, this is already happening.  Institute for Justice economic-liberty expert Paul Sherman explains:

According to the Orlando Sentinel:

As many as 14 armed Orange County deputies, including narcotics agents, stormed Strictly Skillz barbershop during business hours on a Saturday in August, handcuffing barbers in front of customers during a busy back-to-school weekend.

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Nationwide, government at every level is requiring more and more of the workforce to get its permission just to earn a living.

In the 1950s, only about 5 percent of the workforce needed a government license to do their job. Today, that number is over 30 percent.  And governments impose all kinds of other requirements that make it hard for would-be entrepreneurs to start and grow small businesses.

Entrepreneurs like Chuck, here:

Unemployment in the United States has now topped 9.5 percent for 14 straight months—the longest stretch since the Great Depression.  Nearly 14.8 million people were unemployed last month.

Consider the nation’s capital.

Year after year, Washington, D.C., is ranked the worst place in the United States to start a small business. How can the District change its ways to allow entrepreneurs to create more jobs and opportunity?

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Julie Murphy is only seven years old, but she embodies the classic American zeal for entrepreneurship.

She learned about lemonade stands after seeing one in a cartoon.  She got excited and wanted to open one of her own.  And so Julie’s mother worked with her to get everything together and set up shop at a fair in Northeast Portland, Oregon.

20 minutes after opening, a government official approached and asked for their $120 occupational license.  Of course, they had no license.

And so 7-year-old Julie, the budding entrepreneur, was told to shut down her lemonade stand or face $500 in fines.

Julie and her mother were encouraged by others to keep the stand open and ask for donations instead.  Business picked up, and the regulators returned.  This time they made Julie cry.  They also got their wish:  Julie’s mom shut down the lemonade stand.

Unfortunately, this is not an isolated case of licensing gone wild.  Rather it is a classic example of a national problem that affects countless people in America every day.  Institute for Justice President Chip Mellor wrote this week in the Washington Times:

Mired in a nationwide jobless recovery, state and local governments have the power to create jobs and transform communities if they do one simple thing: Get out of the way of aspiring entrepreneurs.

Unfortunately for small businesses, however, laws restricting economic liberty are becoming more commonplace in America. Consider that since the 1950s, the percentage of occupations in the United States that require people to obtain permission from the government in the form of a license before they can pursue their chosen occupation has grown from a mere 5 percent to more than 30 percent.

Consider a few recent IJ cases:

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You’ve probably heard about eminent domain abuse.  That’s where the government takes your land and hands it over to another private party….one that is more politically connected.

But you may not have heard about civil forfeiture.  And yet, today, it could very well be the most egregious abuse of private property rights in America.

We all know that one of the many beautiful things about the United States is that citizens are innocent until proven guilty.  But civil forfeiture turns that fundamental principle on its head.

This sounds bizarre, but with civil forfeiture, your property is guilty until you prove it innocent.

Consider the case of Margaret Davis.

As a 77-year-old woman living alone with multiple medical problems, Margaret left her Pennsylvania home unlocked so her neighbors could regularly check on her.  One day while the police were chasing alleged drug dealers through her neighborhood, they all ran through Margaret’s house.  The dealers dropped some of their stash on Margaret’s floor, in plain sight.

Instead of apologizing to Margaret for the traumatic experience, the government seized her house.

Under civil forfeiture laws, Margaret’s property—her house—was guilty until she could prove it innocent to get it back.  And that’s not all.  As it turns out, most state and federal laws allow the government to keep the property they take through civil forfeiture.  So authorities have a big incentive to pursue property over justice.

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If government is serious about job creation, it should get out of the way of the entrepreneurs who actually create them.

That is the message of a new campaign launched this week by the Institute for Justice—the nation’s leading legal advocate for economic liberty. A series of studies called The Power of One Entrepreneur highlight the tremendous impact that a single entrepreneur can have on their family, employees, community, other entrepreneurs and beyond.

Consider Melony Armstrong of Tupelo, Mississippi.

Melony is an African hairbraider and a mother of four.  She is the owner of Naturally Speaking, a hairbraiding salon that serves her community and has employed dozens of women.  In addition, Melony has taught more than 125 individuals how to braid.

But before she could even open her doors, she had to battle through mountains of red tape. The state forced her to spend 300 hours in cosmetology classes.  And to teach others how to braid, she had to obtain a special license that required over 3,000 hours of additional classes.  Here’s the kicker:  In all of this government-mandating training, she received no actual instruction in hairbraiding.

In August 2004, Melony teamed up with the Institute for Justice to challenge these needless barriers that had the effect of keeping grassroots entrepreneurs just like her from being able to open their own businesses. Less than a year later, her case resulted in a new law that lifted the restrictions, paving the way for hairbraiding entrepreneurship throughout the state.

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If rightwing operatives succeed in bringing down the community group, Democrats and minorities will have lost a valuable ally

By Brad Friedman

Communism is dead. Al-Qaida isn’t as scary as it used to be. But an American rightwing without a bogeyman to fear can’t long survive. Enter Acorn – the Association of Community Organisations for Reform Now.

Finally, something for the Republican party to use to stoke fear among its constituency. Acorn is perfect. The nationwide community group is full of scary black and poor people – who tend to support the Democrats. And, most convenient of all, it registers millions of them, legally, to vote in US elections. Spooky.

Stop Acorn, and you can stop the rise of citizen democracy altogether – you know, “government of the people, by the people, for the people“, as we used to like to say here in the US. Or so the Republicans have convinced themselves… (more…)