Do government regulations protect the public? That assumption is getting a lot of play as people react to the problems caused by the subprime mess.

States spend a lot of energy regulating occupations. The Institute for Justice (IJ) explains that there are two kinds of restrictions on occupational freedom. "Title acts" restrict who can use the title of "interior designer," for example. "Practice acts" lay down a government-endorsed set of qualifications that a person must possess to enter the profession.

Do these acts protect the consumer and promote better service? Hardly. Morris M. Kleiner, a professor of economics and public policy, tells IJ "occupational licensing has either no impact or even a negative impact on the quality of services provided to customers by members of the regulated profession."