Protectionism and Nannyism in the Big Apple

This past spring and summer New York City saw an explosion of pedicabs, those little, two-seater fiberglass boxes powered by carbohydrate fuel. It was a little strange for New Yorkers to get used to, pedicabs are something you would expect to see in places that weren't the capital of global capitalism, but there they were. The growth of pedicabs has been spawned by the outrageous escalation of prices for old-fashioned, hydrocarbon-powered automobile taxicabs. Prices for yellow taxis have risen so far so fast that many NYCers and tourists have been craving an alternative. Pedicabs have moved in to grab a big chunk of their business and the boom has been unmistakable. Now though, the yellow taxi cartel is starting to feel the pain and is enlisting the politicians for a little good old fashioned protectionism. Of course the protectionist racket has to be dressed up as concern for public safety in order to pass the laugh test. So, although pedicabs are perfectly safe, and quite frankly downright preferrable to some of the potentially nightmarish rides one can get in a traditional NYC taxi, our betters in city government are moving to suffocate pedicabs in the crib with regualtion in the name of the public good. They are seeking to impose costs on the pedicab industry through licensing, insurance and safety regulations although no evidence exists that such moves are required. Politicians are quick to point out what dangers could happen with pedicabs and conveniently omit any mention that several people are killed every year due to reckless and/or negligent operation of a TLC approved city taxicab. This is protectionism through and through and the inflation in the cost of living is a direct result of government intervention. Yet another example how government and rent-seeking unions conspire to keep our cost of living higher and standard of living lower.