Walter Russell Mead linked to this Matt Yglesias column about the difficulty of renting out a condo in DC due to the huge amount of regulations, which also affects urban residents of more modest means who would want to start a business.
Key quote from Yglesias (quoted by Mead):
Red tape, long lines, inconvenient office hours, and other logistical hassles probably won’t stop tomorrow’s super-genius from launching the next great billion-dollar company. But it’s a large and needless deterrent to the formation of the humble workaday firms that for many people are a path to autonomy and prosperity.
Key quote from Mead:
Heavy regulation plus bad governance hurts the poor and prevents jobs from being created in big blue cities where so many immigrants and minorities live. Those are exactly the people who most need the freedom to start businesses, and those are the businesses our existing blue model cities do so much to crush.