Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Arcanaut
novahockey
quarterback
ScottC
yellojkt
This story has it all — protectionism and regulatory capture at the expense of honest-to-goodness free market competition. Big limo companies didn’t like the fact that some upstarts were offering the same service for the price of a cab ride. Can’t compete on price? Pass a law requiring the competition to charge more.
Here’s the key point: “Prior to the new laws, Tennesseans could purchase transportation from downtown Nashville to the airport in a limo or sedan for the same price as an average taxi ride. Nashville residents and visitors will now pay almost double for the same service. Nashville folks in need of an affordable ride, and drivers looking to earn an independent living in a sagging economy, join a long line of people caught on the wrong end of a nationwide effort by big car services to squeeze extra profit by regulating competitors out of business.”
Peruse the comments at the link below if you dare. What really, if you’ll excuse the phrasing, chaps my ass, is that this is viewed as a free market failure.
Example: “This regulation kills free market competition from Limo companies who might be willing to do the job for less now doesn’t it. That is Capitalism at work, if you can’t compete or just control or manage a market, maybe increase profits you buy yourself some legislation to kill competition.”
Sigh.
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All Things in Moderation 
Free market fails again. Because governments come in and regulate it! And then it messes up! That's why it fails! Because it doesn't stop the government from mucking about in it . . . .The most powerful way for a company to bend the game in their favor (i.e., distort the market) is to get legislation that favors them over their competitors.
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This is another example. Most of the regulations my clients hate the most and have to deal with daily come from the City.I will tell you that in the employment area complying with Austin's ordinances will get you in trouble with everyone else with a finger in the pie.City taxi licenses? I think they go for $500K in NYC. What the hell is that but an artificial market restriction?Failure of local government by incentivizing monopoly – not what Adam Smith had in mind.
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NPR recently did a story on the market for taxi medallions and they go for over a million each. There is an active market in using them as collateral for loans.
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"NPR recently did a story on the market for taxi medallions and they go for over a million each. There is an active market in using them as collateral for loans."Can medallion CDO's and derivatives be far behind?
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yj – $1m? So whole families of recent immigrants put up money and sign the loan docs? Who the hell has a million for a taxi license? I would expect to net $200K a yearafter taxes just to carry the loan and live like a pauper in the NY metro.How can that be economical and efficient?
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