If you went to Virginia public schools growing up, then you know that schools often started after Labor Day. But did you ever wonder why? No? Well I’m gonna tell you the answer anyways. The Kings Dominion amusement park lobby played a significant role in pushing for legislation that mandated public schools to begin their academic year after Labor Day. This decision, rooted in economic interests, reflects the ideas outlined by George Stigler in "The Theory of Economic Regulation." Stigler's theory suggests that industries often seek to use the state's regulatory power to enhance their profitability. In this case, Kings Dominion aimed to safeguard its financial interests by ensuring that schools started after Labor Day, believing this would boost tourism and the park's revenue.
However, a critical analysis of this decision reveals its limited economic impact. A report from Old Dominion University found that the economic ripple effect of tourism spending during Labor Day weekend was relatively small, accounting for only approximately $40 million, or one-sixth of one percent of total tourism expenditures in the state. So essentially, the lobby has its power to exercise political control rather than to tangibly impact Kings Dominion’s revenues. The Kings Dominion lobby successfully lobbied for this law, highlighting Stigler's assertion that regulation is often acquired and operated for the benefit of the industry it seeks to protect.
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