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The payment to the government is irrelevant. The point is that the government artificially restricts the number of occupational licenses.
by ende 10y ago
The payment to the government is irrelevant. The point is that the government artificially restricts the number of occupational licenses.
- ketzu 10y agoThat is not true. If they were non transferable, a limited supply would still stay at the governmental set price.
- aminok 10y agoCompetition for the limited supply of licenses would manifest itself in other ways, resulting in $200,000 worth of economic resources being used, on average, to acquire a license. More importantly, the high market price of a transferrable license indicates there is a shortage of taxis relative to demand for taxi service, which has a cost for the economy.
- stormbrew 10y agoI agree that it's not relevant who the wasted money goes to to the systemic effects, but it certainly implies a very different motive to say the government is taking that fee.