XPost: rec.arts.sf.written, rec.arts.sf.science   
   From: jclarkeusenet@cox.net   
      
   In article , gossg@gossg.org says...   
   >   
   > David Friedman  wrote:   
   >   
   > >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.   
   > >   
   > >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.   
   >   
   > My wife's late second husband owned "half a licence" for cab driving   
   > in Vancouver.  I'm not sure how that worked -- did he have to deliver   
   > a token (a "medallion" in your phrasing) to the other driver when they   
   > traded off?   
   >   
   > If the drivers are not owner-operators, then why are we restricting   
   > supply?   
      
   To allow fares to be maintained at a level that is profitable for the   
   owners.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)