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by AnimalMuppet 3891 days ago
Some fences need to remain. Take barbers/hairdressers, for instance. It turns out that a barbershop can be a great place for spreading head lice. You want your barber/hairdresser to be trained to prevent that. That's part of what their licensing is about.

So, are there any aspects of being a car dealer that are worthwhile fences? Offhand, I can't think of any, but that doesn't mean there are none.

3 comments

I agree. As an avid "car guy" and a student of regulation, I cannot think of any reason for car dealers, as a whole, to be protected in the long-term. I am, however, perplexed with how we should address the possibility of established manufacturers attempting to cannibalize the sales of their most profitable franchises by building neighboring dealerships with their considerable capital.

I believe the California model actually offers a lot of hope: manufacturers can compete, but they must observe a 10 mile radius from existing franchises.

Pick a model - say, Chevrolet. Is there anywhere within the LA basin that isn't already within 10 miles of a Chevy dealership? Does this rule leave the manufacturer any place to be in a place like LA?
This is why I am perplexed.
How many hours does that take?

Why does it take so long and yet being a waiter requires no (government) training at all?

Right, a waiter could do all sorts of things to contaminate food but doesn't require licensing. Regulations and investigation are sufficient. The same could easily been done for barber shops. Enforcement can also be done via torts. Insurance also requires certain base level of employee training. There are many ways to try and prevent and remediate problems other than requiring a license.
Licensing only provides money to a regulatory system. Health inspectors may prevent head lice but word of mouth is still the main way a business gets shut down for shoddy work.
"Health inspectors may prevent head lice but word of mouth is still the main way a business gets shut down for shoddy work."

The difference, at least in theory, is that the health inspector prevents the outbreak. Word of mouth is generally more reactionary and after-the-fact.