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errorThey Are Lying To You
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Yes its true. People are lying to you. They do it directly or by omission and they do it for a variety of motivations ranging from the profit motive to a quest for power to the classic desire to do it for your own good. Here is just one example.

The Business Licensing Lie

Why do we have licensing The idea is that those involved in an industry are held to certain standards by requiring a license and so this protects the consumer. It may even work in some cases but that is not the motivation.

Look at something like haircutting. Is licensing necessary Is it really that dangerous a profession Is it a great crime if your unlicensed neighbor cuts your hair Does getting a license make someone a good beautician Would it actually matter if the haircutters out there were without a license Or could we just ask about their experience and training before we sat down in that chair

Why is this profession licensed then It all starts with the businesses themselves. You may believe the lie that businesses dont want regulation but the truth is that they are always the first to call for it because it helps their bottom line. It excludes competition or makes it harder for others to compete. Once access has been limited prices and profits can be maintained at a higher level. It isnt about any concern for the consumer although that is where the politicians come in.

Politicians help perpetuate the lie that licensing is necessary in order to look good when they introduce legislation. Some of them may believe they are doing good as well of course. The public meanwhile which never thought about the issue previously (have you ever lobbied for licensing of your dogwalker or local fast food workers) buys into the idea.

It seems to make sense to license people. Never mind that a man can have 1% of the experience of an unlicensed builder and get a contractors license by studying for few days. We think licensing is really about standards and safety so it is easy to agree. In addition many people are inherently (even unconsciously) suspicious and resentful of business people and want them to be controlled or punished by government.

The Beneficiaries Of The Lies

Lets look at another example where licensing isnt yet common. My friend the carpet cleaner complains about the cutthroats who clean carpet too cheap. He is correct in pointing out that they dont have the same expensive equipment and training and they dont do as good a job. His solution We need licensing in our industry.

Why This would force the discount cleaners to spend more money on training licensing and perhaps more expensive equipment. Then they couldnt undercut my friend and other quality carpet cleaners so much on price. Licensing would bring up the profit margins for the whole industry. This is the real motivation for such regulation and why businesses want it.

Of course the claim is that this would be better for the consumer. Personally I used discount carpet cleaners years ago because they were half the price of others. I understand that they didnt do quite as good a job and I wouldnt use them now but I want the option. Never mind what I or other consumers want though. If the carpet cleaning industry is regulated you can bet that it will be for the public good and all the big cleaning companies will be pushing for the law.

The result Well the rich can already pay for what they want including better haircuts and better carpet cleaning. So they dont need any regulations that are supposed to raise standards. But what you are on a tighter budget Such regulations just take away the cheaper options you had. Is this a public good

Warren Buffet once said: If after twenty minutes at the poker table you cant tell who the patsy is its you. If licensing doesnt help us common consumers much who are the real beneficiaries The businesses they get higher profits. The politicians they get praise and votes for their public concern. The bureaucrats they get power as regulators. Us consumers Only if we want lies that make us feel good.

Copyright Steve Gillman. Discover more lies (and the truth) in 99 Lies part of the Secrets Package. For information and a free secrets course visit: http://www.TheSecretInformationSite.com

Tags: bottom line truth motivations profession profits desire few days motivation legislation fast food omission neighbor politicians beautician profit motive



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