How exactly would private accreditation work. I'm not talking about private in name only agencies that we have now but genuine private agencies. Namely, how would they generate income? For example in health care, would patients pay for a subscription to a list of accredited doctors? Would the doctors pay to take the exams, membership fees etc? If so does it seems like a conflict of interest that the accreditation firm would earn money from the people it accredits?
I'm just curious. Any thoughts?
At least he wasn't a Keynesian!
I think the doctors would pay for the accreditation. Everything else seems strange to me. It is already like that with certain licences in IT, e.g. licences from Microsoft to be "capable" of operating their systems.
When I was looking into a job as financial sales consultant it turned out the fixed monthly cost was about $700/month from mandatory license fees and insurance. Securities commissions don't do charity.
If so does it seems like a conflict of interest that the accreditation firm would earn money from the people it accredits?
Most interests conflict. The possibility of bribery is nothing special.
For example in health care, would patients pay for a subscription to a list of accredited doctors?
That seems like a consumer report.
Rand Paul started a private non-profit one, the National Board of Ophthalmology. It talks about this here.
Check out this Mises Daily about the Underwriter's Laboratory (UL). This might help give you an idea of how private accreditation would work.
Here is a quote:
Most people don't realize that dozens of products in their homes — toasters, fire extinguishers, space heaters, televisions, etc. — have been tested by the Underwriters Lab for safety. The Lab also tests items like bulletproof vests, electric blankets, commercial ice-cream machines, and chicken de-beakers, among thousands of other products. But the Lab isn't an arm of the government. It is privately owned, financed, and operated. No one is compelled by force of law to use its services. It thrives — and makes our lives safer — by the power of its excellent reputation.
Most people don't realize that dozens of products in their homes — toasters, fire extinguishers, space heaters, televisions, etc. — have been tested by the Underwriters Lab for safety. The Lab also tests items like bulletproof vests, electric blankets, commercial ice-cream machines, and chicken de-beakers, among thousands of other products.
But the Lab isn't an arm of the government. It is privately owned, financed, and operated. No one is compelled by force of law to use its services. It thrives — and makes our lives safer — by the power of its excellent reputation.
Also think of how car makers "certify" their used cars for dealerships and vouch for their condition. A Toyota 160 Point Inspection raises the potential resale value for the used car so it is worth doing.
If you want to talk about accrediting people then, right now, you could make the argument that businesses accredit their employees. When you go to Best Buy to have your computer worked on or to buy a big screen TV, Best Buy vouches for the knowledge of their employees. Maybe Best Buy isn't a good example, but you can also see accreditation if you go to a high end restaurant like one of Thomas Keller's. Thomas Keller doesn't prepare your food personally. He instead he stakes his reputation on the competency of the chef's he hires who cook in his name. If he hires and trains them well, then you know you can go to any one of his restaurants and receive excellent food.
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