Beltway Confidential

Regulatory Robbery: Dallas taxi edition

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Beltway Confidential,Timothy P. Carney

The arena of government regulation is a home game for the biggest businesses in any industry. WFAA in Dallas reports:

When government regulators give your competition huge advantages, it makes it nearly impossible for a business to compete. But that is exactly what the City of Dallas has done for Yellow Cab.

In short, cab companies are required to carry insurance, but Yellow Cab is the only company allowed to self-insure, while other companies are not allowed to. This puts Yellow at a huge competitive advantage, paying about $650 per car, while smaller competitors pay $1,500 per car.

Sometimes you need government regulations. Sometimes government regulations are more optional. Politicians and commentators should understand that one cost of regulation is that it will normally tilt the playing field against upstarts, innovators, and small businesses.

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