Monday, March 5, 2012

How Government Works 06/16/2011

The nation’s capital is home to a bustling taxicab business — some 7,300 licensed cabs. That works out to 12 cabs for every 1,000 people — a mighty favorable ratio compared to Chicago’s 2.4 or New York’s 1.6. As a result, D.C. has some of the lowest fares of any major U.S. city, according to a recent survey by the trade publication Chicago Dispatcher.

But not much longer. The D.C. city council appears on the verge of throttling this vibrant competition and twisting it into a government-enforced cartel, by introducing an abomination known as taxi medallions.
Want to drive a cab in the capital? You gotta get a medallion — a very special kind of license — affixed to the hood. They’ve been the law for decades in New York, Chicago and elsewhere.

These days in New York, a medallion costs $700,000. In Boston, $400,000.
Since D.C. plans to issue only 4,000 medallions under this proposal, 3,300 cabs would presumably be mothballed. What’s more, the system’s been rigged so that established companies will pay only $250 for their first medallions. Newer operators will have to fork over up to $10,000.

The Small Business Association of D.C. Taxicab Drivers figures about four out of 10 D.C. cabbies will be thrown out of work.

If you’re planning a trip to the nation’s capital, make it soon. Getting around once you get there is about to cost a whole lot more.


—  Addison Wiggin

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