Friday, October 21, 2011

TaxiCab Medallions in New York

The cost of a taxicab medallion in New York City (and with it, of course, the right to own and operate a taxi) is now an incredible $1 million. Multiplied by the number of estimated taxis in the city, this results in a present value of rents (as reflected by the medallion costs) of over a staggering $13 billion. Again, this seems to be an example of over-regulation, needlessly restricting the supply of a service or product (in this case, taxis), inuring to the benefit of a few (taxi owners and regulators) and detriment to many. Let the market work. Or at least let it work more.


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