New York’s Taxi Cartel Is Collapsing. Now They Want a Bailout. Tell Them to Stick It.

The free market: best anti-monopoly weapon ever developed.

“In New York, we are seeing a collapse as inexorable as the fall of the Soviet Union itself.”

Jeffery A. Tuckerjeff writes: An age-old rap against free markets is that they give rise to monopolies that use their power to exploit consumers, crush upstarts, and stifle innovation. It was this perception that led to “trust busting” a century ago, and continues to drive the monopoly-hunting policy at the Federal Trade Commission and the Justice Department.

No more standing in lines on corners or being forced to split fares. You can stay in the coffee shop until you are notified that your car is there.”

But if you look around at the real world, you find something different. The actually existing monopolies that do these bad things are created not by markets but by government policy. Think of sectors like education, mail, courts, money, or municipal taxis, and you find a reality that is the opposite of the caricature: public policy creates monopolies while markets bust them.

For generations, economists and some political figures have been trying to bring competition to these sectors, but with limited success. The case of taxis makes the point.

“Think of sectors like education, mail, courts, money, or municipal taxis, and you find a reality that is the opposite of the caricature: public policy creates monopolies while markets bust them.”

There is no way to justify the policies that keep these cartels protected. And yet they persist — or, at least, they have persisted until very recently.

Taxi-Driver-poster

“In less than one year, we’ve seen the astonishing effects. Not only has the price of taxi medallions fallen dramatically from a peak of $1 million, it’s not even clear that there is a market remaining at all for these permits.”

In New York, we are seeing a collapse as inexorable as the fall of the Soviet Union itself. The app economy introduced competition in a41eQn3GP4ZL._SL250_ surreptitious way. It invited people to sign up to drive people here and there and get paid for it. No more standing in lines on corners or being forced to split fares. You can stay in the coffee shop until you are notified that your car is there.

[Order Jeffrey’s book “Bit by Bit: How P2P Is Freeing the World” from Amazon.com]

In less than one year, we’ve seen the astonishing effects. Not only has the price of taxi medallions fallen dramatically from a peak of $1 million, it’s not even clear that there is a market remaining at all for these permits. There hasn’t been a single medallion sale in four months. They are on the verge of becoming scrap metal or collector’s items destined for eBay….(read more)

Source: Foundation for Economic Education

Jeffrey A. Tucker is Director of Digital Development at FEE, CLO of the startup Liberty.me, and editor at Laissez Faire Books. Author of five books, he speaks at FEE summer seminars and other events. His latest book is Bit by Bit: How P2P Is Freeing the World.  Follow on Twitter and Like on Facebook.


2 Comments on “New York’s Taxi Cartel Is Collapsing. Now They Want a Bailout. Tell Them to Stick It.”

  1. Brittius says:

    Reblogged this on Brittius.

  2. […] New York’s Taxi Cartel Is Collapsing. Now They Want a Bailout. Tell Them to Stick It. | pundit fro… Financial Times Calls For Abolishing Cash DNA Science and the Jewish Bloodline! Ashkenazi Khazars (90+% of Modern Jewry) are NOT Real Jews! | TheFlippinTruth The Safest Place to Escape the New World Order | Christian Patriots Network […]


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