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One of the big problems with taxi medallions (at least how they're handled now) is that you pay once, and then get access to them forever, which turns them into
by neilparikh 5y ago
One of the big problems with taxi medallions (at least how they're handled now) is that you pay once, and then get access to them forever, which turns them into an asset and the value of the future cash flow is capitalized into the asset value. Allowing people to buy and own a monopoly isn't a great system.
If it was set up as an yearly auction, that would work okay.
- wolverine876 5y agoWhile I can see the drawback you describe, isn't that basic capitalism, in regard to any asset? If someone else wants to buy they medallion, they are welcome to make an offer at any time, not just annually.
- snidane 5y agoNo, that's basic feudalism. In which you trade privileges for infinite time spans and inherit them across generations. Infini-time auctions are a symptom. Corrupt anti-monopoly office another. Free Market Capitalism actually designs markets for optimal allocation. Can be recognized by operating anti-monopoly yearly or so auctions. When people complain about today's capitalism, they actually complain about feudalism. Yet the aristocratic rentiers they actually hate hide behind the productive capitalists, which leaves people confused. The real parasite successfully conceals its presence.
- imtringued 5y agoThe land ownership model has already been considered a failure for centuries, the medallion system is just it's younger brother. The medallions should be leased from the government.