Assignment 6
The U.S. Occupational License explosion
Cost of acquiring the skills
Amount of money required for one certificate or a degree in order to operate in the licensed occupations is high. It, therefore, discourages most of the people leading to their engagement in the costless occupations.
Time required to study
Time is a necessity in the acquisition of the appropriate skills required. Most of the people weigh between taking the time to study and to engage in the occupations that do not require training. They, therefore, flock the occupations that are unlicensed.
Fees paid to obtain the licenses
Fees are mandatory for licensed businesses. Most of the people are unable to pay the fees as they consider it a reduction in their profit margins. The fees act as a barrier to entry for most of the people who are not already in the businesses. They are also high and only favor the businesses that are already in existence thereby discouraging new entrants into the market.
Use the license fees obtained
A typical government uses the funds obtained from licensing to improve the welfare of the people through offering the much-needed public services. The services include security for the businesses, social amenities such as water, electricity, sewerage services and improvement of infrastructure. Also, the provision of subsidies to sectors where the businesses are vital to the economy but their existence is under threat. The governments also use the funds obtained to regulate business activities in order to ensure that standards of operation are maintained at all times. It, therefore, ensures that the goods and services offered to the people are high quality at all times (Dwivedi, 2014).
References
Dwivedi, Yogesh Kumar. Public Administration Reformation. 1st ed. New York: Routledge, 2014. Print.
