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I understood the statement to mean that the state takes things that would otherwise be free and adds barriers of entry to the use of them. I was looking for an example of this. I could have misunderstood the statement too.
Oh, well, professional licensing for most things is a state supported barrier to entry. Do you really need "barbershop inspectors?" I think you can have a good rousing discussion of private licensing (think Underwriter's Lab's) versus government licensing on most thing. -XC