In this edition of Progressive Corporatism in Many Lessons:
But as the business grew, so did its troubles. Hundreds of new bike operators arrived, pestering tourists and testing the city’s tolerance. Pedicab owners, alarmed at lax safety standards, began a push for regulation — an effort that stretched for years, encompassing a rare mayoral veto in 2007 and a protracted court battle that ended only last spring.
Now, the upstart enterprise has officially become a profession. Citywide regulation went into effect this weekend. Under the new rules, pedicabs must be insured and inspected for safety. Headlights, seat belts and hydraulic brakes are required. Drivers must be licensed, and prices clearly displayed. Infractions will result in warnings, suspensions and, for repeat offenses, an outright ban.
Read the rest. If you need a crash course in the economics of regulation, I suggest reading something by James Buchanan. If you want some other good places to read about it, see George Stigler and Mancur Olsen. If you want to read about how the Progressives try to convince you what regulation is all about, this would be a great place to start.
HT to Mark L.
