taxi! taxi!

[Brad De Long]

>-----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?

Naw. Today's cabbies will come out behind--but I suspect that you are right
to think that the bulk of the income losses will fall on the medallion
holders.

And all the people who get to drive the extra cabs will gain....

Brad DeLong