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Episode 381: When Business Loves Regulation

Jestina Clayton, former hair braider.

Note: Today's show originally ran inJune 2012.

A few years ago, Jestina Clayton started a hair braiding business in her home in Centerville, Utah. The business let her stay home with her kids, and in good months, she made enough to pay for groceries. She even put an ad on a local website. Then one day she got an email from a stranger who had seen the ad.

"It is illegal in the state of Utah to do any form of extensions without a valid cosmetology license," the email read. "Please delete your ad, or you will be reported."

To get a license, Jestina would have to spend more than a year in cosmetology school. Tuition would cost $16,000 dollars or more.

On today's show: Why it was illegal to braid hair without a license in Utah. And why hundreds of licensing rules in states all around the country are a disaster for the U.S. economy.

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