Heavy Hand of Government vs Lemonade Stands

Thoughts on a Free Market Economy…
“Heavy Hand of Government vs Lemonade Stands”
By Phyllis Hunsinger
August 1, 2018

Summertime and the living is easy. Wait, maybe living is not so easy if you are a youngster wanting to make spending money by running a lemonade stand. Corrinne Ramey wrote in the Wall Street Journal on Monday, July 23, 2018, about a family who set up a lemonade stand in a park in Denver, CO. The six year old manned the cash register while his four year old sister recruited business. All seemed well until…

The Denver police showed up informing the young entrepreneurs they needed three separate permits for their lemonade stand.

An unintended consequence of the police action representing the heavy hand of government was an economic lesson for the lemonade stand owners. Rather than develop experience operating their first business, serving customers, and making money, the lemonade stand owners experienced the world of permits, licensing, vendor fees, and penalties. Government rules and regulations create stumbling blocks to commerce.

Erik Kain, writing “Lemonade Stands and Actually Important Issues,” in FORBES August 27, 2011, noted that closing down lemonade stands reflects a problem with the way we, as a culture, think about the state and its relationship with entrepreneurs and citizens: if it moves, regulate it, tax it, fine it.

Federal, state, and local regulatory barriers to trade stymies business and drives up the cost of doing business. Everything that is purchased costs more because the government is involved. The heavy hand of government discourages an entrepreneurial culture where people are willing to take business risks and innovate. The owners of some lemonade stands can certainly attest to this fact.

https://www.free-dom.co.us, Phyllis Hunsinger © 2013 All Rights Reserved

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