XPost: rec.arts.sf.written, rec.arts.sf.science   
   From: jclarkeusenet@cox.net   
      
   In article ,   
   ddfr@daviddfriedman.nopsam.com says...   
   >   
   > In article ,   
   >  Greg Goss  wrote:   
   >   
   > > The supply of taxis is artificially held   
   > > low to make the driver's pay a living wage, and to allow adequate   
   > > maintenance on the vehicles.   
   >   
   > I think you have it backwards. The medallion system holds down the   
   > number of cabs, hence holds down the demand for cab drivers, hence tends   
   > to lower their wage, not raise it.   
      
   Cab drivers get a percentage of fares.  The medallion system ensures   
   that they get enough fares to make a decent living.   
      
   > The medallion belongs to someone who has paid a very high price, in many   
   > cities I think well over a hundred thousand dollars, for it. The need to   
   > get a return on that investment is the wedge between the higher revenue   
   > resulting from the reduced number of cabs and the lower wage paid to cab   
   > drivers.   
      
   This would be true if cab drivers got a fixed wage.   
      
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