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Taxi Medallion Prices: Truth in a World of Lies

November 29, 2014

This article, written by Foundation for Economic Education distinguished fellow and Heartland Institute policy advisor Jeffery Tucker, discusses a November 2014 New York Times article about the decline of taxicab medallions in the city and elsewhere in

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This article, written by Foundation for Economic Education distinguished fellow and Heartland Institute policy advisor Jeffery Tucker, discusses a November 2014 New York Times article about the decline of taxicab medallions in the city and elsewhere in the U.S.

Comparing decades of taxicab medallion price increases to the 2000s-era housing market, Tucker explains that the decline is a sign of “the end of a monopoly. It gives an indication of how power falls: not through the intention of planners but through the unavoidable consequences of unstoppable innovation and competition. It is a microcosmic archetype of how many institutions will fail and fall in the future.”

“This is an age of the gradual crumbling of cartels. They are being broken down because innovation is proceeding at a faster pace than existing elites can defend the status quo. It doesn’t matter how old, established, and powerful the monopoly is, it can be brought down under the right conditions,” Tucker adds. “Economic forces operate as if controlled by an invisible hand. This hand is gradually unlocking the prison of control that held us back for far too long.”

Author
Jeffrey Tucker is Chief Liberty Officer and founder of Liberty.me, the global liberty community with advanced social and publishing features.
media@heartland.org @jeffreyatucker