Mississippi can’t be “open for enterprise” when it shuts the door on competitors.

Tesla’s Enterprise Mannequin

For all of the speak of creating Mississippi extra enterprise pleasant, the state legislature appears to wish to do the alternative.  Two examples stand out, although there are others.

One is the trouble to forbid Tesla and different electrical automobile corporations from opening their very own, company-owned dealerships in Mississippi.  Present auto sellers, who’ve franchise preparations with producers, need the federal government to forestall a enterprise mannequin that differs from their very own.

Their motive?  Fairly actually, “as a result of we’ve accomplished it this fashion for greater than 50 years.”

Fifty-three years, to be actual.  In 1970, the legislature handed a regulation that allowed an auto producer to promote its autos within the state solely by franchise dealerships that aren’t owned by the producer.  This was not distinctive to Mississippi, as most different states handed comparable legal guidelines.

Alongside comes Tesla and others which have a unique enterprise mannequin.  Their mannequin is to promote direct to customers with out going by a franchise seller.  The auto sellers need the state to make use of its “police energy” (that’s the time period used within the regulation) to maintain that enterprise mannequin from Mississippi.

It could be no completely different than telling Apple it’s not allowed to open an Apple Retailer right here as a result of C-Spire and AT&T promote their merchandise within the state.

Whatever the product or firm or business (we’re no followers of the taxpayer subsidies for electrical autos), and no matter our fondness for native auto sellers, it’s dangerous coverage for the state to decide on winners and losers – actually, on this case – or to decide on one enterprise mannequin over one other.

A number of different states have acknowledged this, and they’re going in the other way from our legislature, making allowances for different enterprise fashions.  We all know of no state aside from ours that’s going the best way of additional protectionism.  And if Tesla or different EV corporations resolve to construct new manufacturing crops, it’s a reasonably protected wager they gained’t select a state that has closed them out.

Preserve These Electrical Charges Excessive

The opposite shining instance of hostility towards enterprise – and customers – is a transfer to ban any competitors in constructing electrical energy strains in Mississippi.  After shedding a bid in Texas to assemble transmission strains, Entergy has been making an attempt to make use of the facility of the state to ensure that doesn’t occur once more.

They succeeded in getting a protectionist regulation handed in Texas, however that regulation was challenged in courtroom.  That problem has made it to the Fifth Circuit Court docket of Appeals, which additionally has jurisdiction over Mississippi.  The Fifth Circuit dominated that the regulation is unconstitutional.  Undeterred, Entergy is making an attempt to make sure that nobody can construct a transmission line in Mississippi except it “will finally be owned by” Entergy, Mississippi Energy Firm, or Cooperative Power.

The place transmission strains have been constructed over the previous few years, aggressive bidding has resulted in value financial savings of tens, and in a number of circumstances, lots of of hundreds of thousands of {dollars} for ratepayers.  That’s what competitors usually does.

It’s no shock Entergy and Mississippi Energy wish to construct their very own strains.  They make a assured revenue on the quantity they spend on their infrastructure.  The extra they spend, the extra they will cost their clients, so there’s no incentive to seek out the bottom value means to generate and transmit electrical energy.  And if they will hold competitors out, they are going to be free to maintain elevating charges for years to come back.

Protectionism Abounds

These are simply two examples of how our state leaders declare to be champions of free market rules however usually act as enemies.  Our present legal guidelines are stuffed with protectionism, from licensure boards that mimic cartels to Certificates of Want legal guidelines that restrict entry to well being care and stop competitors that would decrease well being prices, and plenty of extra.  So lots of our insurance policies scream, “We don’t need your corporation right here.”

Mississippi can’t be “open for enterprise” when it shuts the door on competitors.