People who reflexively defend government may feel no pity for businesses that face extra costs: Let businesses pay fees and take tests -- we don't want unlicensed tour guides describing famous statues incorrectly! But these costs add up. Often, they make a small, barely profitable business impossible to operate. These rules also violate Americans' right to free speech. They are unnecessary. If tour guides are no good, people can patronize others. The government doesn't need to be gatekeeper.
These rules generally prevail because existing businesses are politically connected. They capture licensing boards and use license rules to crush competition from businesses just getting started.
In some places, you can't open a business like a limo service or moving van company unless you can prove that your business is needed and won't undermine existing businesses in the same field.
But undermining competition is the whole idea. If Starbucks or Home Depot had to prove new coffee shops and hardware stores were "needed," we wouldn't have those companies. Apparently they were needed, since these companies thrived, but no one could have "proven" that beforehand.
Jeff Rowes, an attorney at the Institute for Justice, a civil liberties group that defends many people caught up in regulatory cases, says, "America was conceived as a sea of liberty with islands of government power. We're now a sea of government power with ever-shrinking islands of liberty."
The little guys don't have an army of lawyers to defend those islands of liberty one regulatory battle at a time. We should get rid of most of these regulations -- and sail back, together, to a free country.