The hack is completely fair, because the existing medallion system is a hack itself, which the cab industry lobbies for in order to ensure regulatory capture.

The hack is completely fair, because the existing medallion system is a hack itself, which the cab industry lobbies for in order to ensure regulatory capture. That position is quite easy to defend if you understand the industry. The reason that you don't know any cab drivers living the high life is in fact because of medallions. Medallion owners don't need to drive taxis. If you control the medallion, you're made. No pun intended. As recently as July 2014, medallions in NYC were being sold privately for over a million dollars (http://www.nyc.gov/html/tlc/downloads/pdf/july_2014_medallion_transfers.pdf http://www.nyc.gov/html/tlc/downloads/pdf/july_2014_medallio...). Some interesting economics on the industry and how we got where we are: http://blog.priceonomics.com/post/47636506327/the-tyranny-of-the-taxi-medallions http://blog.priceonomics.com/post/47636506327/the-tyranny-of...