Jacob Sullum
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David Groh, who drives a taxi while impersonating Elvis, seems to have struck the fancy of Seattleites. After a taxi inspector fined him for failing to live up to the city's expectations of what a cabdriver should look like, Groh filed a lawsuit that gave rise to "Free Elvis!" bumper stickers and persuaded the city council to loosen its dress code. "Uh, a-thank you verrah much," he said after the vote.

Like Groh, Daniel Steiner, who owns a five-car limousine business in Tampa, is fighting the arbitrary dictates of local transportation regulators. But the most surreal aspect of Steiner's battle is the government's demand: It wants him to raise his prices.

The Hillsborough County Public Transportation Commission insists that car services like Steiner's charge passengers at least $40 per trip, a threshold it says he has failed to meet under his contracts for transporting elderly and disabled patients to their medical appointments. The commission, which has forbade Steiner from fulfilling the contracts and put his business on probation for six months, does not even pretend that sticking it to the old and infirm is in "the public interest." The official rationale for the rule is limiting competition.

According to the St. Petersburg Times, the commission's executive director, Gregory Cox, "says Steiner is interfering with others' efforts to make a buck" by "undercutting the business of cabdrivers who would otherwise field the cheaper service calls." This is like saying that Dell is interfering with IBM's efforts to make a buck by selling cheaper computers, or that Sprint is undercutting the business of AT&T by offering lower rates for mobile phone service.

There is nothing sinister about such interference and undercutting; it's the way markets work. But not in Tampa, where Cox says regulators strive to "keep a balance between the taxi industry and the limousine industry so that both remain solvent." As Steiner remarked after the commission put his business on probation, "They're saying that competition, the driving force of the economy, is unlawful."

To be fair, Hillsborough County is not alone in its medieval approach to economics. As University of Denver law professor Robert M. Hardaway observed in a 2000 law review article, the taxi and limousine businesses are "one of the few remaining fields of economic endeavor" regulated "for the specific purpose of limiting competition and protecting an incumbent oligopoly."

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Jacob Sullum

Jacob Sullum is a senior editor at Reason magazine and a contributing columnist on Townhall.com.
 
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