Monday, December 22, 2014

AIN'T COMPETITION GREAT


The free market strikes again

It's already working. And not just for Uber and all those folks in cities like Little Rock who are delighted to have a new, more economical and convenient way to get around town. But also for the city's long established cab franchise and its drivers. That's because Little Rock's city directors are now letting those drivers negotiate lower fares with their passengers in order to meet Uber's rates. This new arrangement works to everybody's benefit: that of the drivers, the passengers, and the local economy in general. For it allows more people to enjoy more disposable income rather than have it eaten up by a local monopoly or forgo transportation to schools, jobs and shopping altogether. They'll now have more money to spend (or invest) however they want. Ain't freedom wonderful? And good for business, too. This is called competition--and it still works. Folks, you ain't seen nothin' yet. Little Rock's yellow cabs are now promoting an app of their own to compete with Uber's. It's called Taxi Hall and can be downloaded at yellowcablr.com . Try it, you'll like it if you like Uber, too. Ain't competition grand? Maybe it's time for local government to give it more of chance, for it benefits all. Here endeth today's lesson in Economics 101. The take-away: Give people more choices, and greater freedom to buy and sell as they like, and everybody thrives. That's the moral of this story. What a pity so many still ignore it, especially in the vicinity of Washington, D.C., where too many politicians and policymakers still seem too intent on taxing, spending and regulating the American economy to death. Or at least into a state of suspended animation à la the Carter Years--instead of reviving an economy that's been sputtering long enough.


 

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