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Choke points limits economic success

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Tuesday, 06 January 2026

Written by John Hood

While our state continues to best most others in economic performance, not all our households and communities are sharing in North Carolina’s prosperity. Some are struggling to replace lost jobs with new ones. Other folks are gainfully employed but see their real incomes being eroded by the rising costs of housing, health care, transportation, and other necessities.
Washington certainly needs to get its act together. State and local policymakers can also do more to provide the high-quality education and infrastructure needed to compete for tomorrow’s industries. But the primary drivers of a healthy economy are private, not public. And right now, too many of them are constrained, diverted, or blocked by unwise regulation.
These economic frictions — let’s call them choke points — keep existing businesses from growing and hiring, keep new businesses from starting, and keep producers and consumers from realizing the full benefits of competitive markets.
Rigid zoning and permitting delays, for example, continue to deter homebuilders from supplying enough housing stock to meet demand. Occupational licensing makes it unnecessarily expensive and time-consuming for North Carolinians to change careers or launch new enterprises. And outdated state laws limit competition among hospitals and health providers. As a result, North Carolina’s health care costs exceed those of many of our peers.
A recent report by The Charlotte Ledger spotlighted another painful choke point: car and truck prices. For decades, North Carolina law forbade automobile manufacturers from selling their products directly to their customers. Dealers insisted the result wasn’t a system rigged in their favor, since they compete intensely among themselves to sell vehicles and services to consumers.
If this were true, however, there’d be no need for such a law! If independent retailers deliver real value to motorists — a proposition that doesn’t strike me as implausible, actually — they can surely prove their worth in a fully competitive market in which consumers can choose how and from whom to purchase vehicles and services.
In 2019, the General Assembly loosened the automobile choke point, however slightly, by allowing Tesla to open five dealerships in North Carolina. Now that other new companies are entering the hybrid and electric vehicle space, however, the Tesla exception no longer makes sense (and is vulnerable to legal challenge). Many states — including the likes of Virginia, Tennessee, and Florida — already allow all EV comers to sell directly.
North Carolina ought to join them. Indeed, I’d like to see our state eliminate the choke point entirely by repealing our dealer franchising laws and allowing manufacturers of all vehicle classes to strike whatever distribution deals they wish. A radical suggestion? Not really. A 2022 poll found that 83% of North Carolinians favored “allowing North Carolina drivers to purchase a vehicle straight from the manufacturer, and to receive routine service and repairs on a vehicle from the manufacturer, without having to go through a dealership.”
A 2024 report for the U.S. Department of Justice projected that eliminating artificial restrictions on car sales wouldn’t just put downward pressure on prices. “Perhaps the most obvious benefit,” wrote Gerald Bodisch, an economist in DOJ’s Antitrust Division, “would be greater customer satisfaction, as auto producers better match production with consumer preferences ranging from basic attributes on standard models to meeting individual specifications for customized cars.”
As for dealer concerns about potential mistreatment, Bodisch concluded that “competition among auto manufacturers gives each manufacturer the incentive to refrain from opportunistic behavior and to work with its dealers to resolve any free-rider problems.”
“Consumers are used to the idea that they get to decide,” argued University of Michigan law professor Dan Crane. “That they get to figure out, ‘Do I prefer to bargain with a dealer on a lot or do I get to buy it directly from the manufacturer?’”
Whether in real estate, labor markets, health care, or consumer products, regulatory power ought to be used to promote transparency, combat fraud, and protect public health and safety. To go beyond these legitimate ends is to regulate too tightly. Time to loosen.
Editor’s note: John Hood is a John Locke Foundation board member. His books Mountain Folk, Forest Folk, and Water Folk combine epic fantasy with American history (FolkloreCycle.com).

Troy's Perspective: Lumbee recognition will improve lives

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Wednesday, 31 December 2025

Written by Troy Williams

A few weeks ago, residents of Robeson County felt a sense of pride and connection as Congress and President Trump granted the Lumbee Tribe the recognition they had fought for over a century. The
Lumbee Tribe, one of the largest Native American tribes in the Southeast, has a long history rooted in Robeson County. This recognition highlights their cultural contributions and historical
significance, making it an important milestone that can inspire community pride and unity.
Robeson County, one of the poorest counties in North Carolina, is poised for positive change and is likely to benefit neighboring counties as well, fostering a sense of optimism and community pride among residents. While the recognition itself does not guarantee immediate economic gains, it can open doors for grants, cultural programs, and community projects that contribute to local growth. As the community
explores new ideas, this shared progress can strengthen our collective identity and pride in
Robeson's future.
Cumberland County, located just north of Robeson, is poised to benefit from Robeson's increased affluence, especially with the completion of I-295 and improved accessibility to I-95 south. The Lumbees' tribal recognition does not automatically guarantee the establishment of a nearby casino. In fact, only about 42 percent of federally recognized tribes operate gaming facilities, totaling 474 across 28 states. The remaining 58 percent, or 329 tribes, do not have gaming operations, which can help residents feel more informed and less anxious about potential gaming developments.
However, casinos can offer job opportunities for residents of tribal lands, where unemployment rates are often high, such as in Robeson County. Given the potential benefits, it's difficult not to support Robeson and its various growth possibilities. While Robeson faces many challenges, we hope for a lasting positive change in the community.
Gaining national recognition for your shortcomings rather than your strengths can be quite challenging. A few years ago, I spoke with a criminal justice scholar from John Jay College of Criminal Justice in New York about strategies for engaging at-risk communities without relying on law enforcement. My focus was on exploring alternative law enforcement strategies specifically for Fayetteville. During one of our discussions,
the professor unexpectedly shifted the topic to Lumberton in Robeson County, mentioning that its murder rate was higher than that of Chicago. I left that discussion feeling troubled. The profes-sor wasn't prejudiced; he was simply analyzing data from behind his desk, and the statistics regarding Lumberton, NC's murder and crime rates stood out.
I empathize with our southern neighbor. Poverty and crime have a strong, complex correlation. Economic hardship, limited opportunities, and community disadvantage contribute to this issue. While not a direct cause-and-effect relationship, property crime often links directly to need.
I am genuinely excited about how the recent events will positively impact Robeson County and its neighboring areas, because I believe the negatives are about to change into positives. I hope that some scholars are observing this situation with a critical eye. More importantly, I pray that God will bless this community, helping them achieve prosperity and success without limits.

1775: The White Christmas no one wanted

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Wednesday, 31 December 2025

Written by John Hood

Two hundred and fifty years ago during the week of Christmas, thousands of Carolinians were trudging through deep snow. They weren’t in search of Christmas trees, or heading over the river and through the woods to their grandmothers’ houses for holiday feasting. These were Patriot militiamen, from both Carolinas, hunting for Tories in modern-day Greenville County, South Carolina.
The Snow Campaign of 1775, as it came to be known, was the second act of a revolutionary drama that began earlier in the year when the royal governors of North and South Carolina were each chased out of their capitals — New Bern and Charleston, respectively — to the safety of British warships anchored off shore.
The governors, in turn, attempted to rouse anti-revolution Carolinians to come to the defense of king and Parliament. There were, indeed, thousands of such Loyalists in the Carolinas, including merchants, lawyers, and other professionals in the towns as well as Scottish Highlanders, former Regulators, and other dissenters in the backcountry.
Some responded by assembling as Loyalist militia companies. Others responded to Patriot calls to do the same.
The first major clash between the two sides occurred in mid-November in the distinctively named South Carolina town of Ninety Six. 
While more Loyalists than Patriots died in the battle, it produced mixed results. The Loyalists withdrew across a nearby river, allowing the Patriots to withdraw in good order from Ninety Six. The campaign continued into
December. A key Loyalist objective was to transport guns and ammunition westward into Cherokee territory and convince the Indians to join in attacks on the Patriots. Sixteen years earlier, during the final stage of the French and Indian War, Cherokees infuriated by what they viewed as mistreatment by their longtime British allies had switched sides and attacked all along the Carolina backcountry. It proved to be a costly mistake. Cherokees lost men and land.
When the Revolutionary War broke out in 1775, British agents promised guns and revenge if the Cherokees would join their cause and fight the Patriots. This wasn’t as strange an offer as it sounds today. While British governors had supervised the earlier war against the Cherokees, many of the officers and virtually all the men who’d killed Cherokee warriors and burned Cherokee settlements were Carolinians in militia service. Now these men led or filled the ranks of the Patriot militia.
As it happened, the British strategy did bear fruit — eventually. By the summer of 1776, a significant number of Cherokee chiefs were ready to enter the war on the British side. But 250 years ago, as hundreds
of Loyalists marched through the snow with weapons intended for Cherokee hands, they were set upon by many thousands of Patriots.
The main clash occurred on December 22, 1775 at the Great Cane Break on the Reedy River, near modern-day Simpsonville, South Carolina. The Patriots surprised and thoroughly routed the Loyalists, capturing the supplies meant for the Cherokees. All did not end well for the Patriots, however. Right after the battle came a terrible storm. It reportedly snowed for 30 hours straight. Inadequately clothed and provisioned, many militiamen suffered frostbite and other permanent injuries. Even those who made it home intact recalled the “Snow Campaign” of 1775 with dread and  loathing.
Among those homeward-bound militiamen, victorious but chilled to the bone, were my 5th-greatgrandfather John Worke of Rowan County, my 5th-great granduncle Thomas Sumter (who would later win fame as the “Carolina Gamecock”), and Mecklenburg County militia captains Thomas and Moses Shelby, my first cousins, six generations removed.
Thousands of Carolina militiamen had gotten their first taste of battle during the Snow Campaign, at Ninety Six or the Great Cane Break. Some would fight again in 1776, against the Cherokees in the west or British invaders on the coast. Others would next see action in 1780, when the British finally took Charleston and prosecuted their long-desired campaign into the Carolina backcountry.
But few would remember their White Christmas of 1775 with fondness.

Editor’s note: John Hood is a John Locke Foundation board member. His books Mountain Folk, Forest Folk, and Water Folk combine epic fantasy with American history (FolkloreCycle.com).

Jim Hunt: The Legacy of a Very Fine Man

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Wednesday, 31 December 2025

Written by Margaret Dickson

James Baxter Hunt, known to people in North Carolina, across the United States, and around the world as plain old Jim Hunt, left us a few short weeks ago at well-earned age of 88.
His fingerprints are everywhere in our community, in our state, and in educational circles everywhere and have been for about 50 years. North Carolina is successful and growing state in large part because of Jim Hunt.
Native Tar Heels know how he led our state, and newer arrivals have benefited from his political life, whether they know it or not.
Jim Hunt’s list of accompaniments is too long to fit into roughly 600 words, but collectively they changed, shaped, and improved a largely-rural North Carolina. To birth them, he cajoled legislators, educators, and
business leaders. He was relentless and almost always prevailed.
We can thank Hunt, at least in part, for the early learning program Smart Start, which did just that for young children. For universal public kindergarten.
For the state School of Science and Math, which gives North Carolina’s brightest high schoolers a superior educational start in those fields.
For national board certification for teachers. For getting teacher pay up to the national average, although we are at the bottom now.
For the gubernatorial veto and gubernatorial succession, both of which gave North Carolina a more balanced distribution of powers. For the Hunt Institute, a think tank of educational policy, research, and leadership, which partners with the Sanford School of Public Policy at Duke University.
After serving 16 years as Governor in 4 separate terms, Hunt retired from elective politics, but he was hardly out to pasture. He traveled on behalf of causes he supported, largely educational initiatives and economic development opportunities for North Carolina.
He also stirred our state’s political pots, offering his long expertise to fledging and experienced candidates. He was known to say, “Now, looka, here. This is what we need to do.” The wise listener took his advice.
One of those candidates was his own daughter, Rachel Hunt, of whom he was very proud and who now serves as North Carolina’s Lieutenant Governor.
Only once did Jim Hunt ever lose an election, and that was in 1984, when he challenged sitting US Senator Jesse Helms. It was a bitter and racially tinged contest, that many view as the precursor to today’s ugly
politics. 
Buckets of ink have been used writing about Jim Hunt, especially in the days following his death. One remembrance that stands out for me is by Barry Saunders, a retired opinion columnist for the Raleigh News and Observer. Saunders recalls in that paper an economic development trip he took with Governor Jim Hunt and his entourage to South Africa in 1994, shortly after apartheid officially ended there but was fresh in everyone’s minds. Saunders was the only person stopped by South African airport officials, ostensibly because he was a journalist. Saunders recounts the story this way. 
“That’s when Gov. Hunt, who’d been several yards ahead of me when the kerfuffle began, peeled off from this entourage and came back to find out what was the issue.
“He’s with me,” he said and voila, I was admitted to the country.
“I’d first met Governor Hunt 10 years earlier, in 1984, when he’d come…to campaign while seeking to unseat U.S. Senator Jesse Helms….I finagled an invitation.”
“…Hunt…lost a vicious battle with Helms by four points. “As I’m guessing is true of many Tar Heels who traveled to other states during that period, I was often asked how I could live in a state that elected someone like
Jesse Helms. “My immediate and true response was it was a state that also elected people like Jim Hunt.”
His was a life well lived and all of us in North Carolina are better for it.

(Photo: Jim Hunt served North Carolina as governor in four separate terms. He brought about changes in the education system within the state. Photo courtesy of Wikipedia)