Quote:
Originally Posted by Frequitude
Can anyone on either side of the debate provide a good answer to the following questions:
Why should the City not increase the number of taxi licenses by 1? 100? 1000?
|
Buster nailed it. City doesn't increase licenses because the taxi lobby is a powerful voice (for some stupid reason).
This is what happens with thoughtless meddling by government, creates all sorts of distortions in the market usually to the detriment of the consumer. If the taxi industry was a free market, problems of supply and demand would for the most part sort themselves out. Not enough supply of taxis? Prices would go up, leading to more people wanting to drive taxis, leading to increased supply of taxis to fulfill the pent up demand. Which in turn would drive the price down to equilibrium levels again.
Wait! That sounds like Uber!