Comment It was always about limiting competition (Score 3) 329
It's hilarious that the summary of this story uncritically accepts that the origin of taxi medallions was about "public safety." This is a lie and it's always been a lie. The system was about limiting competition. Pure and simple. The people in the industry want fewer people competing, because there's more profit for them. They made friends with the right politicians, who then introduced the system and controlled how the industry was "regulated." I put that word in quotes because it wasn't regulated in the sense that people believe. It was regulated to avoid competitors hurting incumbents operators. This is the way pretty much all regulation really works. (Look up "regulatory capture" if you're interested in how it works.) There is no legitimate reason to control the number of taxis. Period. I don't even see a valid reason to license them, but if it were about safety, licenses would be available to anyone who could meet certain safety and insurance requirements. I don't have much sympathy for the owners of the current medallions. They've had a government-granted license to print money, which is why these medallions have had value. It's time to let the market take over. The medallion system needs to die.