Friday, May 10, 2019

Living in a World of Un-Free Competition

It is clear and obvious that in economic life, free competition leads to the fast ruin of all the participants. Therefore the absolute need for cartelization.  And cartels can exist only with strong policing. Conclusion: Police is the key to well functioning, efficient and peaceful human societies.

I am reading about the economic history of Britain and how difficult was the transition from an economy regulated by trade guilds to a more open, almost competitive environment. Guilds were imperative for the survival of small tradesmen, limiting free competition that would have ruined all in no time. Guilds were severely self-regulated and they constantly protected their economic niche. They organized public parades to affirm their legality. Their most difficult problem was how to fix the "just price" for their products and services, that would allow their existence and at the same time, be acceptable for their customers. They were necessarily against innovations that would lead to differences between members and possibly destroy their regulated system - see Luddite rebellion. They were against newcomers, especially Jews that were more efficient and would undercut them.

We in the West live in a semi-free competition world. I am an engineer and my income is regulated by my guild and the State protection: for building permits and so a submittal signed by a professional engineer is needed. No building of business can operate without paying a fee to me or my guild members. The medicine trade is even more protected, as are architects and lawyers. To work as a lawyer in Israel, it is not enough to pass the university exams, there are guild exams too (very difficult) and the need to serve for a nominal salary as an intern in a law office. It is the same master system of the medieval guilds. In Israel, the rules to practice the trade were relaxed and suddenly there were thousands of immigrant doctors and layers competing with old, established practitioners. Very rapidly the guilds closed ranks and with the help of the State, they erected tall barriers. Interestingly, Israeli Arabs are accepted in existing guilds, they are equals and even given priority to practice in their ethnic community.

The Israeli state is constantly inventing new regulations and imposing new barriers for everything. I know of public lobbying such as the lawyers, that succeeded in limiting the number of new lawyers. New franchised professions are being created each day, such as teachers of retarded, that have to get master specialization and soon, probably, Ph.D. A building permit may require acoustic experts,  endangered species expert, whatnot. Twenty years ago most fields were open, and I did expert opinions in chicken farm smells, in chimney pollution, in many nascent areas. Today, all those areas are covered by licensed "experts" with officially recognized diplomas. I could find new, yet unregulated niches, but I have too much work and feel tired and old. I am looking forward to retirement and death.

An example of what I am talking about is "Street Sweeping Expert" (see below). Mr Carter offers his services and his certification as expert. He has developed the "Certified Sweeper Operator" which probably merits better salary conditions and may one day evolve into a licensed trade guild a-la attorney or pharmacist. Should Mr Carter get his way, the day will come when you cannot work as a street sweeper without a "Certified Street Swiper" degree.


Additional Information


There are six kinds of sweeping.  While there is some overlap, each has different equipment and skill sets.
• Parking Lot Sweeping
• Construction Site Sweeping
• Highway and Roadway Sweeping
• Municipal Street Sweeping
• Indoor and Warehouse Sweeping
• Private Community Sweeping
Mark Carter has experience in all six types of sweeping.   He has over 10,000 hours of  “in the seat” operator experience as well as 30+ years running a street sweeping company.  He has trained over 100 sweeper operators in the basics, advanced techniques, and best practices.
He is a past president of the North American Power Sweeping Association and has served on the Board of Directors for 20+ years.  He has chaired the National Certification Committee for sweeping companies and chaired the Certified Sweeper Operator committee that developed a national online training course to train and certify sweeper operators.




3 comments:

  1. It's nice that the farmers have never managed to get their act together and form a food cartel.

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  2. Joseph in Egypt (see Bible) organized more than a cartel, he established a food monopoly. It was so successful that he bought up all the farms of Egypt for his boss, the Pharaoh.

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