Nicky Cheese

Something I didn’t notice my first time in Hobby…

At baggage claim there are multiple signs (see below) warning travelers of “illegal operators”, that one ought to “refuse offers for transportation” from these individuals.

Never having seen anything like this before, I get the idea that Houston has a problem with taxi-disguised kidnappers or something.

I mean, the signs say “DON’T BE A VICTIM!” and “BE SAFE”. What else am I to infer? That the “illegal operators”, the victimizing “violators”, are simply unlicensed taxi drivers? That’s it!?

Yep, that’s it.

Also known as “gypsy cabs”, these guys can be found anywhere there’s an artificial taxi shortage, and thereby, anywhere — as John Hood described in this ancient 1989 Freeman article — “the government has prevented supply to rise to meet growing demand”.

As unregulated entities, they don’t have set-prices, so passengers and drivers just negotiate the fare at the beginning. Don’t like the price? Just walk out of the cab. More often than not, it’s cheaper than the licensed rate. Furthermore, while most taxis prefer to hover around well-to-do areas, gypsy cabs will service poorer neighborhoods.

Taking everything into account, it’s hardly something to be alarmed about…As Wikipedia states, “passengers sometimes find illegal cabs to be more available, convenient, or economical than licensed ones.”

Of course, the free market would naturally do this–to an even greater, more efficient, more affordable degree (imagine mounted signs on top of taxi roofs displaying prices[awesome!])– if the government would just butt out.

If only…

To conclude, I’ve leave you with more thoughts from the Freeman article:

Markets are resilient. Try as they might, government and the special interests they protect can’t completely suppress the forces of competition….Government is fighting a losing battle when it grapples with the discipline of the market. There’s no real mystery about why this is so. Free enterprise is not some fragile, delicate experiment in constant need of protection. It does not have to be imposed or fostered. It is, in short, the natural order of things.

Coercive government, on the other hand, needs constant attention and tinkering. There is no shortage of ways to compete with a regulated monopoly, but there’s only a limited number of ways government can restrict competition. Insulate an industry from competition, and the resulting price hikes and drops in service encourage consumers to substitute other products or services. Frustrated regulators must feel like they’re chasing a greased pig.