"What would there be more of, in total, if you confiscated a bunch of people's cars?" Road. Fewer cars on the road would mean a more constant speed for the car

"What would there be more of, in total, if you confiscated a bunch of people's cars?" Road. Fewer cars on the road would mean a more constant speed for the cars on the road. "Would you advocate banning most people from a popular public beach on the grounds of overcrowding?" You generally don't have to. Since the benefits of going to the beach are relatively low, people more efficiently self-regulate their usage. That is, if a beach is too crowded to put down a towel, you'll probably leave. That's not the case with taxis. As long as buying taxies and renting them out is profitable, taxi operators will continue to do so. To make things worse, the profitability of driving a taxi is only indirectly related to the profitability of renting that taxi out. The cost of rental is relatively stable while the money made by the driver varies considerably. The drivers absorb short-term (even medium-term) fluctuations in the market.