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Subject:
Industries or professions that have been "legislated out of business"
Category: Business and Money Asked by: steve_in_ca-ga List Price: $15.00 |
Posted:
22 Sep 2005 15:03 PDT
Expires: 30 Sep 2005 18:07 PDT Question ID: 571241 |
I am looking for a few examples (3-5) of industries or professions that have been ?legislated out of business.? For example, California is considering new laws that would allow banks to help people buy and sell real estate like Realtors do now. If this law passes, the worst-case scenario is that the profession of being a ?Realtor? as we know it could be wiped out. Virtually everybody has an existing account/relationship with a bank, most trust their bank, etc. As a result, people looking to make a real estate transaction would tend to look to their bank first, not a Realtor. Plus, banks have such deep pockets, they could do real estate transactions for less than realtors, further squeezing realtors out of the picture. Similarly, the profession of being a ?mortgage broker? could be wiped out ? if your bank is handling the transaction when you buy a house, they will have the inside track in terms of getting you your mortgage. I realize the notion that Realtors and mortgage brokers might be ?legislated completely out of business? is a worst-case scenario. Still, I?ve been asked to give a speech at a fund-raiser related to this issue, and I need some examples of industries/professions that have been wiped out because of a change in laws. I am NOT looking for examples of industries/professions wiped out because of a new technology. For example, I don?t need to hear about the Betamax being wiped out by VHS VCRs ? that was because of technology, not because of legislation. Similarly I don?t want to hear that the profession of ?door-to-door encyclopedia salesperson? was wiped out ? again, that was because of a new technology (encyclopedias on CDs), not because selling door-to-door was outlawed, or a law allowed some dominant group that was once prohibited from selling encyclopedias to start doing so. A final example of what won?t work as an example: telemarketing. The government passed the Do Not Call legislation, but telemarketers still exist. That industry is less lucrative than it once was, but it still exists. | |
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There is no answer at this time. |
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Subject:
Re: Industries or professions that have been "legislated out of business"
From: omnivorous-ga on 22 Sep 2005 17:10 PDT |
> That industry is less lucrative than it once was, > but it still exists. I was going to suggest prostitution -- but it still exists. Home brewing of alcohol -- still exists. Resale of tickets -- scalpers still exist. I think the best you might do are places where the state has set monopoly rules for business segments. Some examples are state liquor stores in OH, MN, WA; or monopolies on ferry service as WA has had periodically. Best regards, Omnivorous-GA |
Subject:
Re: Industries or professions that have been "legislated out of business"
From: myoarin-ga on 23 Sep 2005 06:49 PDT |
Your example with real estate broking by banks does not hold true in Germany, where many banks provide this service through subsidiaries (maybe also directly, I am not sure). Sure, the banks may have an inside track to their customers and may also make getting a mortgage easier, since they know the customer's financial situation, but this does not seem to have put independent brokers out of business. Environmental protection laws in California have certainly made life more difficult and expensive for the timber industry and timber landowners, making it more attractive for the latter to sell to Nature Conservancy and get out of the forest industry. |
Subject:
Re: Industries or professions that have been "legislated out of business"
From: myoarin-ga on 23 Sep 2005 09:47 PDT |
Looking back and Omnivorous's comment, I could suggest that some government legislation can put a premium on services and products that the lawmakers wanted to eliminate: prostitution and prohibition, maybe even tobacco, which is a perverse example. They want to tax cigarettes off the market, happily collecting the tax (not just in USA), so a small increase in price gets unnoticed. |
Subject:
Re: Industries or professions that have been "legislated out of business"
From: myoarin-ga on 23 Sep 2005 18:28 PDT |
Steve, thanks for your response. I have been searching with: legislation "negative impact" OR ruined Not very productive, maybe there are better search techniques. Here are a couple of "negative impacts": http://www.mindbranch.com/products/R1-3101.html http://www.apec.org/apec/news___media/2004_media_releases/130304_euchemdlgharmful.html The following is probably not useful, but an example of protective legislation having a negative impact on people in other countries. See the next to last paragraph under Food Security. http://archive.greenpeace.org/geneng/reports/misc/foodsecurity.htm There was a stronger statement somewhere else in the article. European Union legislation protecting and subsidizing farmers (ditto for US legislation) does have a negative impact on 3rd world producers, but I expect this is not what you are looking for. Perhaps you can help open our eyes. Speech at a fund raiser? Audience orientation? Political, industry, ...? Myoarin |
Subject:
Re: Industries or professions that have been "legislated out of business"
From: myoarin-ga on 24 Sep 2005 17:44 PDT |
NOw Omnivorous's comment reminds me - monopolies: Thirsty years ago in Germany, either new legislation or a case under existing legislation gave or upheld the state railway's monopoly on inter-city public transport, putting private bus lines out of business in some areas. The monopoly still exists, or at least appears to, although the rail system as been privatized and some routes spun off. Interesting new question for me: is that legislation still effective, if not, why have bus lines not been reestablished?? But again, a German example probably is literally far fetched for your purpose. Maybe it can joggle someone else's mind. |
Subject:
Re: Industries or professions that have been "legislated out of business"
From: myoarin-ga on 30 Sep 2005 17:55 PDT |
Hi Steve, Thanks for tracking me down at my question. I am real glad that I could help and especially that your speech was a success. Your question is still open so I will post my comments there, as you could have. GA doesn't like people to included e*mail addresses. Actually, I was rather dubious about your theme, but Glass-Stiegal was a good example, although I feel that it was justified. In Germany, banks are sometimes suspected of recommending stocks they want to get off their own books. Just this week, when Porsche announced that it was taking a 20% interest in VW, the Deutsche Bank immediately put out a "sell" recommendation, and then reversed that to a "buy" the next day. The stock dropped 10% and then rose 8%. Hmmm? Anyway, I hope the fundraiser was a success - maybe thanks to repeal of prohibition. Oh, almost forgot: only GA-Researchers like Omnivorous-ga, whose names appear in blue can "answer" questions. My comments are free, but many thanks for your suggestion that they could have been an answer. Regards, Myoarin |
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