You have a point Jeff. (para)But consider your line: "This is a classic illustration of what economists call "rent-seeking'' ? manipulating the political system to gain economic benefits without providing any additional value to society in exchange." (para)This could also apply to those masters of capitalism, the money manipulators and Wall Street banksters who are also producing nothing of additional value to society and costing us exponentially more in societal damages than government is doing in this and other instances. The people betting on derivatives, commodity futures, currency exchange rates, etc., have taken over an increasing share of our economy to the detriment of the rest of us. Finanacial sectors used to account for only 5 to 10 percent of our economy and now account for nearly 50 percent. (para)I would be a lot more likely to take you seriously on this issue if you also addressed these other, much more important societal problems with the same zeal.

Rather than cite NY, how about Boston the other ultra-liberal city with idiotic medalions and quashing of competition?

I wonder if any of our solons have figured out how to take advantage of the taxi situation and extort a few bucks on the side. Actually, I don't wonder.

Jeff, Your analysis is spot on. The political problem is that, once a system like this is established, there is a special interest group (owners of medallions) who will fight to the death to preserve it. You can't just abolish the medallion requirement or those owners will lose a lot of money. How about announcing that the City of Boston will auction an additional 100 hundred medallions per year until the auction price reaches zero?

It always amazes people when government action leads to such insane unintended consequences. A similar story is emerging as the country slogs toward implementation of Obamacare. Like in Massachusetts, we will see insurance premiums rise, and we will see doctor availability fall. When rent controls were set up to make housing affordable, only the politically connect got these valuable flats. The list goes on. More often than not, government is the problem, and not the solution.

jeff, MANANA ain't never gonna come around this formerly once great city with a blithering numbskull and former driver and director of unearned income for joseph timilty parking his carcass in the mayors seat and a city council that's as bought and paid for as the mayor with no stones to boot, or to whit. good article. i'd love to see you or somebody get a quote from the powers that be at city hall on your article. ma