-----Original Message----- From: Doug Henwood <dhenwood at panix.com> To: lbo-talk at lists.panix.com <lbo-talk at lists.panix.com>
>Free marketeers have long complained about what
>an outrage this is, and would throw open the market to everyone, further
>depressing drivers' incomes.) The cabbies are threatening another strike
>next week, and Rudy promises to retailiate with the deregulation move. He
>will, of course, and the better sorts will applaud him, and quite a few of
>the less-than-better sorts too.
Given the $250,000 cost of a cabbie medalion, it is not clear to me that eliminating that monopoly barrier to entry into the cab business is the worst thing in the world for workers. Yes, more cabs will depress revenues, but if cabbies don't have to spend half their time paying the mortgage for their leased medalions on top of the cost of the cab itself, might they not come out ahead?
What are the economics of this for cabbies? If a guy with a $4000 used car can enter the marketplace, won't that be better for a lot of these folks than automatically having to slave for someone else who can afford the $250,000 medalion?
--Nathan Newman