Photo by: tupwanders

As the weather gets warm and people’s thirsts need quenching, young entrepreneurs all over the country setup lemonade stands to satisfy this seasonal demand. Not only is it capitalism at its most pure, it is also an American rite of passage. Children learn bedrock economic principles as well as management and customer service skills. And if they are lucky, or unlucky, enough to have a competing stand just down the street, they can learn a bit about the competitive nature of free enterprise.

Free from pricing restrictions, labor unions, and government intrusion, these stand operators find it easy to determine their profit margins, pay their operating expenses, and set fair market wages to pay their employees. They also learn quickly that they are not the only game in town, something larger companies with government contracts or those that are “too big to fail” need to learn.

However, the U.S. Congress, led by Speaker of the House Nancy Pelosi, is fed up with how these lemonade stands are run. Representative Steve Conway, chair of the U.S. House of Representatives’ Committee on Commerce and Labor said in a statement, “These stands take advantage of the so-called ‘lemonade stand loophole’”.

Congressman Conway continued, “They are not inspected by the Department of Health, the operators do not pay sales taxes or unemployment, and we have reports of some operators not adhering to federal employment laws by paying employees as little as 1/100th of the federally mandated minimum wage. In lemonade stand break rooms all over this country, we see signs that state ‘No girls allowed’, which is a clear violation of the Civil Rights Act of 1964.”

When asked if the lack of government control over this small sector of commerce was worth the hassle of removing the loophole, he responded, “Yes, it is worth it. It is secondary for the education of our children to include free market principles. The paramount issue is that children understand that transferring private property between people in this country is a government concern. They are not simply free to trade toys or sell their possessions to other private citizens without the okay of the government. It’s for their protection. Children need to learn that the government provides valuable services that need to be paid by someone, and their friends who are off playing are not going to do it.”

California Congresswoman Maxine Waters said, “I’ve been trying to get this loophole removed in my state, and it will be a great day when these lemonade stands are properly zoned and run like any other business. Also, my state of California has petitioned the U. S. Government for extra federal aid to pay unemployment benefits to proprietors and employees of lemonade stands that lose their jobs when the school year begins.”