Saturday, July 11, 2009

Money & Business

Risky Business by Matt Bandyk

Why It's No Problem That Joe the Plumber Lacks a License

October 17, 2008 11:24 AM ET | Matthew Bandyk | Permanent Link | Print

Some of the commenters on yesterday's post seem to think that we can ignore concerns about taxes on small businesses because Joe (Samuel?) Wurzelbacher is not a licensed plumber in the state of Ohio.

First, it's not clear to me how it's deceptive to call yourself a plumber when you do plumbing work for a licensed plumbing company, even if you are not the owner of said company. Maybe that's not good enough for the plumbers union to consider you a plumber, but for 95 percent of people, that job description sounds like "plumber."

But even if we do decide that you need a government license to call yourself a plumber, that begs the question—why are we putting so much value in rules that are generally harmful to working people and wannabe entrepreneurs?

You don't need to be a hardcore free-marketeer to believe that most occupational licensing laws are nonsense. Popular liberal blogger Matt Yglesias weighed in on the issue yesterday:

Like most people, if I needed to hire a plumber, I'd probably look for a recommendation. I don't have any real confidence that these licensing schemes are tracking quality in any meaningful way, just preventing a certain number of people from earning a living and raising the general cost of plumbing services for everyone else.

The case against occupational licensing is even stronger than that. By no means would licensing disappear in a world without licensing laws. Some plumbers would still bother to get a license to get that extra stamp of credibility that might allow him to charge higher rates. People who are willing to pay top dollar for what might be better service would hire those plumbers, while everyone else would still have access to cheaper services from the plumbers who don't get licenses.

Maybe Joe the Plumber could become the symbol of a different political message than he originally intended.

Tags: presidential election 2008 | small business

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Reader Comments

carwaterguide.blogspot.com

I'm excitedly waiting all the changes in technology and availability of vehicles in the near future!!!

I've read some comments on this subject saying an unlicensed person could create a leak or cause some other inconvience and while this is very true plumbing done wrong can be down right dangerous. There have been cases of infants being scalded to death because there was no thermostatic mixing valve on a hot water source, water heaters exploding because they lacked a pressure relief, carbon monoxide poisoning caused by incorrect venting of appliances, people becoming sick from methane gas (sewer gas) exposure from incorrect drainage installs and the list goes on. All of which could be avoided by using a competent professional, who also by the way would have a permit pulled and his work inspected where any problems would be picked up and resolved before a system went into service. And by the way only a licensed contractor can pull a permit not a journeyman or an apprentice. Unlicensed work is no joke and those journalist who imply it's okay almost encouraging it are doing the public a great disservice and could even be responsible for some people being harmed by unlicensed workers. It's also a misdemeanor in most states and if it's not in Ohio I expect your going to see a rash of incidents in that state as its being widely publicized you can get away with it there.

It is a shame that so many of you speak about a trade you know nothing about. The licensing procedures for plumbers is based on the new construction industry. You must put in so much time solding copper, dwv, layout and testing. These traits are great for a new construction plumber, but they teach nothing about diagnosing your plumbing problems.

A service plumber spends most of his time learning all the different problems that arise from defective plumbing. A new construction plumber is not the guy that comes to your home to provide "plumbing" services. Most service plumbers are not licensed since the licensing standards are not designed for the guy that needs to figure out why your toilet is plugged, sewer line is broken or faucet drips. These are all learned on the job over years.

Joe the plumber is a true plumber in the since he has what it takes to fix your plumbing when it doesn't work. A licensed Union plumber couldn't hold a candle to a good service plumber.

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About Risky Business

Matt Bandyk, a reporter for U.S. News, explores capitalism from where it all begins, with the entrepreneur, whose risk taking and experimentation provide the roots from which the rest of the economy grows. As much courage as it takes to create one's own business, even the entrepreneur needs some help, and this blog will look at news, trends, and practical advice for starting and running a small business.

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