“But How Does Overregulation Hurt Business?”
By Mitch Berg
It’s a question I see from “progressives” all the time; what harm does regulation do?
Via BigGov, we have an example right here in Saint Paul:
Verlin Stoll is a 27-year-old entrepreneurial dynamo who owns Crescent Tide funeral home in Saint Paul, Minn. Verlin has built a successful business because he offers low-cost funerals while providing high-quality service. His business is also one of the only funeral homes that benefits low-income families who cannot afford the high prices of the big funeral-home companies.
It’s not a “shovel-ready” job, but it’s a business. One might think Minnesota’s DFL-strangled bureaucracy would appreciate another tax-paying business on the books.
Oh, no.
Verlin wants to expand his business, hire new employees and continue to offer the lowest prices in the Twin Cities, but Minnesota refuses to let Verlin build a second funeral home unless he builds a $30,000 embalming room that he will never use.
Why?
Minnesota’s law is irrational. Embalming is never required just because someone passes away and the state does not even require funeral homes to do their own embalming. In fact, it is perfectly legal to outsource embalming to a third-party embalmer. Minnesota’s largest funeral chain has 17 locations with 17 embalming rooms, but actually uses only one of those rooms.
In other words, state regulations force Stoll to build an embalming room even though state law doesn’t require anyone to be embalmed, or require him to do it in his own facility in any case.
But why?
So that the big, full-amenity funeral-home businesses can benefit from a law that drives up prices for consumers and operating expenses for competitors such as Verlin.
There you go. Too many regulations not only pick winners and losers – they allow the winners to pick themselves.
The government should not force Minnesotans to do useless things. That is why on January 19, 2012, Verlin and the Institute for Justice challenged the law in state court.
The Minnesota Constitution protects every Minnesotan’s economic liberty, which means that it protects entrepreneurs from being burdened by legal requirements that are either useless or designed to suppress honest competition.
A victory here will not only free Verlin from an unconstitutional restraint on his economic liberty, but protect entrepreneurs across the state from pointless laws and bureaucracy.
And when you bring up stories like this, “progressives” will inevitably snivel “so you want to abolish the FDA and allow bakers to put sawdust in bread and allow child labor and let rats roam through preschools…”
Well, no. We’re just wondering why we can’t have the government we need, and get rid of the parts we don’t? To have the right amount of government.
Via Amy Alkon





January 20th, 2012 at 10:04 am
Reminds me of companies being penalized for not using synthetic biofuel that doesn’t exist.
January 20th, 2012 at 12:35 pm
Somewhere in the story of requiring funeral homes to have an on-site embalming room when embalming isn’t required is a Yakhoff Smirnov joke looking to be made.
January 20th, 2012 at 4:48 pm
And what the hell is wrong with sawdust in bread? Lots of folks need the extra roughage.
January 20th, 2012 at 6:05 pm
Excessive regulation = “invisible tax”
January 23rd, 2012 at 10:13 am
This seems a good example of what appears to be unnecessary regulation, but if you look at the statute with the requirement, it could also be a case of minimum standards for funeral homes being on the books for a long time coming in conflict with more recent business practices. https://www.revisor.mn.gov/statutes/?id=149A.92&year=2011
It would be interesting to know what steps Stoll took to get a change in the law before his lawyers filed suit, since the provisions appear to be in conflict.
As the quoted passages make clear, this is not government at work in isolation. If the funeral chains wanted the requirement gone, it would not be the little guy pushing the case on his own.
January 23rd, 2012 at 12:41 pm
It looks like reducing embalming requirement might be slightly more of a DFL issue. Last session there was a DFL authored bill to reduce a number of embalming requirements for the transport and display of bodies (HF3151) which passed. In the House it looks like all the No votes (7) were GOP and in the Senate the 13 No votes split 7-6 DFL. The whole thing was very bipartisan, but most of the opposition was Republican.
January 23rd, 2012 at 3:22 pm
“…the 13 No votes split 7-6 DFL. The whole thing was very bipartisan, but most of the opposition was Republican.”
Math much?
January 24th, 2012 at 8:13 am
K-Rod, the “Math” is 7 House GOP opposed plus 6 Senate GOP opposed, equals 13 total GOP legislators opposed. For the DFL, there were 0 House opposed and 7 Senate, for a total of 7 opposed. 13 is more than 7, so “most” of the opposition was Republican.