Uber and Lift have been industry changing companies and continue to push regulators and consumers to keep up or be left behind. Taxi's for a long time had very little to compete with terms of private, quick, door to door service until these new Gig companies came on the scene. Fast easy service, up front pricing and a modern user interface brought these companies to the forefront of our daily lives faster than the regulators or cities could effectively stay ahead of the business.
The cost of a taxi medallion must be linked to its value, the amount of money to be made from this permit. If the money to be made from a taxi medallion goes down, then the value of the medallion drops with it. Uber allowed drivers to connect with riders and removed a large part of the taxi user base and most likely the revenue gained from the cost of the medallion.
I have enjoyed learning more about the minimum wage from an economics stand point. As a worker I always wanted a higher wage and would be a strong proponent of the minimum wage. However I have read and listened to discussions which point out some fallacies of the minimum wage. I do believe the minimum wage reduces the work force due to the cost. I discussed this some in my discussion post but believe that a more expensive worker can be dropped faster than a less expensive worker. I am starting to believe that markets will set prices. Trying to control human behavior and the changing behavior of supply and demand is fraught with discrepancies and miscalculations.
As the rate increases the labor supply increases but the labor force can decrease. The discussion of supply and demand and its correlation to wages and jobs is a very interesting aspect of economics and of the world we live in today.
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