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It is a problem today. Evidence suggests that the market clearing price for taxi services is below the subsistence level for the people doing it, and above a t

by CPLX 7y ago

It is a problem today. Evidence suggests that the market clearing price for taxi services is below the subsistence level for the people doing it, and above a tolerable level of cars and congestion. Your basic premise is also unsound. Markets produce failures and unstable situations constantly, and the government steps in to address what would otherwise be a market failure. We license hairdressers and financial planners, we inspect airplanes and meat, and a million other things. In nearly every case it’s for the same reason we regulate taxis, which is that we tried not regulating it and were unhappy with the outcomes.

Wowfunhappy 7y ago
> We license hairdressers I'm broadly in favor of more regulation, as a way to protect consumers. However, this is absolutely not the example I'd choose. Hairdressing licenses (and a lot of similar laws) are overwhelmingly bad regulations which exists to protect a minority of incumbents. https://www.npr.org/sections/money/2012/06/22/155596305/episode-381-why-its-illegal-to-braid-hair-without-a-license https://www.npr.org/sections/money/2012/06/22/155596305/epis...
- sandworm101 7y ago
  There are a few health code issues too. We too easily forget those days when it was possible to pick up disease when getting a haircut. That has never been much of a thing for cabs.
- ineedasername 7y ago
  There's a need to be properly trained for hair cutting, styling, coloring/dye jobs, perms, etc. These are skilled professions that apply potentially harmful chemicals to people heads, with hygiene issues involved. And the licensing requirement is really not onerous as it's nearly automatic upon passing the requisite curriculum. A 1-year program in the area typically costs between $8000 to $10000 with many students eligible for financial aid grants or subsidized loans. None of this is particularly onerous considering you can easily finish with a job paying ~$35000 a year to start and $50,000 with some experience, much more if you're really good at it and develop a loyal clientele or find a higher end salon to employ you or open your own business. There aren't state quotas on how many people can go through these programs, they aren't otherwise limited, and I'm not aware of any type of incumbency pressure exerted to increase requirements and raise the bar beyond these reasonable levels.
- Gibbon1 7y ago
  That's just people repeating Milton Friedman's blathering about things he knows nothing about. You don't want licensing and regulation of hair dressers? Enjoy your Hepatitis.
dTal 7y ago
Your last two paragraphs are a beautifully succinct takedown of the radical libertarian politics that seems to be on the rise. I suspect that this movement is largely driven by people who hate "regulation" as a concept because they personally resent being regulated, even when said regulation is better for the greater good.
UncleEntity 7y ago
> In nearly every case it’s for the same reason we regulate taxis, which is that we tried not regulating it and were unhappy with the outcomes. Ironically, here in Phoenix, they used to regulate taxis but now they don't since those rules were too much for Uber/Lyft to legally comply with. They didn't regulate supply like the other cities but the cabs would have to get a sticker from Weights & Measures once a year that ensured they complied with things like proper insurance, the meter operated correctly, prices were clearly marked on the outside, &etc... Also had on the road spot checks by Weights & Measures and passengers had a phone number to call if there was some sketchiness going on with their rides. Once the Weights & Measures started hunting the Uber/Lyft "illegal livery service vehicles" the laws changed so now there's no longer anyone ensuring the cabs uphold even a minimum standard -- though, honestly, 99.9% of the iffy cabs were squeezed out of the market since they simply can't compete with SV billionaires trying to put them out of business. These days the cabs you see running around the Phoenix area are mostly just hauling people to/from doctors appointments through insurance company accounts.

by CPLX 7y ago

Wowfunhappy 7y ago

> We license hairdressers I'm broadly in favor of more regulation, as a way to protect consumers. However, this is absolutely not the example I'd choose. Hairdressing licenses (and a lot of similar laws) are overwhelmingly bad regulations which exists to protect a minority of incumbents. https://www.npr.org/sections/money/2012/06/22/155596305/episode-381-why-its-illegal-to-braid-hair-without-a-license https://www.npr.org/sections/money/2012/06/22/155596305/epis...

sandworm101 7y ago
There are a few health code issues too. We too easily forget those days when it was possible to pick up disease when getting a haircut. That has never been much of a thing for cabs.
ineedasername 7y ago
There's a need to be properly trained for hair cutting, styling, coloring/dye jobs, perms, etc. These are skilled professions that apply potentially harmful chemicals to people heads, with hygiene issues involved. And the licensing requirement is really not onerous as it's nearly automatic upon passing the requisite curriculum. A 1-year program in the area typically costs between $8000 to $10000 with many students eligible for financial aid grants or subsidized loans. None of this is particularly onerous considering you can easily finish with a job paying ~$35000 a year to start and $50,000 with some experience, much more if you're really good at it and develop a loyal clientele or find a higher end salon to employ you or open your own business. There aren't state quotas on how many people can go through these programs, they aren't otherwise limited, and I'm not aware of any type of incumbency pressure exerted to increase requirements and raise the bar beyond these reasonable levels.
Gibbon1 7y ago
That's just people repeating Milton Friedman's blathering about things he knows nothing about. You don't want licensing and regulation of hair dressers? Enjoy your Hepatitis.

dTal 7y ago

Your last two paragraphs are a beautifully succinct takedown of the radical libertarian politics that seems to be on the rise. I suspect that this movement is largely driven by people who hate "regulation" as a concept because they personally resent being regulated, even when said regulation is better for the greater good.

UncleEntity 7y ago

> In nearly every case it’s for the same reason we regulate taxis, which is that we tried not regulating it and were unhappy with the outcomes. Ironically, here in Phoenix, they used to regulate taxis but now they don't since those rules were too much for Uber/Lyft to legally comply with. They didn't regulate supply like the other cities but the cabs would have to get a sticker from Weights & Measures once a year that ensured they complied with things like proper insurance, the meter operated correctly, prices were clearly marked on the outside, &etc... Also had on the road spot checks by Weights & Measures and passengers had a phone number to call if there was some sketchiness going on with their rides. Once the Weights & Measures started hunting the Uber/Lyft "illegal livery service vehicles" the laws changed so now there's no longer anyone ensuring the cabs uphold even a minimum standard -- though, honestly, 99.9% of the iffy cabs were squeezed out of the market since they simply can't compete with SV billionaires trying to put them out of business. These days the cabs you see running around the Phoenix area are mostly just hauling people to/from doctors appointments through insurance company accounts.