Linda & Morris Tannehill. The Market for Liberty (1970), 23:
“Government regulation not only hurts the poor indirectly, by raising prices, but directly as well, by denying them opportunities to move up and out of their poverty. Suppose a black man who couldn’t get a decent job decided to support his family by making sandwiches and selling them to the men on local construction projects. First, he would have to apply, in proper legal language and procedure, for licenses and permissions from all the branches and departments of government which required them. He would probably need licenses from city and state, permitting him to make sales. Then he would have to be regularly inspected and certified under pure food and drug laws. If he managed to comply with all this without going broke or giving up in despair, he would still be faced with the problem of keeping extensive records to enable the city, state, and Federal tax collectors to take part of his earnings and to be sure he paid his ‘fair share.’ This would require an extensive knowledge of bookkeeping, which he probably wouldn’t have. Suppose he decided to hire his brother-in-law, who knew a little bookkeeping, to keep his records. Then he would have to comply with all the laws which harass other employers, including income tax and social security deductions from his employee’s earnings, sales tax, minimum wage laws, and working condition standards. With such powerful barriers to success, no wonder the poor get poorer!”
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