Dale Fitzgerald emails:
A beautiful example of the incentive system for government graft and the institutional inertia that keeps even obviously corrupt and destructive systems in place.
A disgusting look at why government fails at every level.
http://www.slate.com/articles/business/moneybox/2012/06/taxi_medallions_how_new_york_s_terrible_taxi_system_makes_fares_higher_and_drivers_poorer_.single.htmlIt should also be noted that while Slurpee-Nazi Bloomberg holds press conferences to call for the ban of sugary drinks larger than 16-ounces, he doesn't have the balls to go after the taxi medallion owners, who have the political power to ban an increase in the number of taxis cruising the streets of NYC. The ban inconveniences millions. Try getting a cab in NYC during a rainstorm. Prices would be half what they are now if the Slurpee-Nazi has real balls and ended the nonsense.
NPR: Federal Reserve low interest rate policy is inflating the cost of NYC taxi cab medallions http://www.youtube.com/watch?v=IhvpEsW6N1k
ReplyDeleteMurray Rothbard talks about this exact issue in the following lecture series: http://itunes.apple.com/us/itunes-u/introduction-to-microeconomics/id380678615
ReplyDeleteIt was recorded back when the medallions were "only" $100,000, in the '80s I think. The specific session where he talks about the Taxi medallions is "Government cartels", but the entire series is entertaining if you haven't listened to it.