Posted on 04/20/2022 4:48:00 AM PDT by Kaslin
The media's ignorance about basic economics is galling.
I expect it from politicians. I expect it from The New York Times. But it's sad to see in the New York Post, my town's rare alternative to Democrat media.
Recently the tabloid freaked out over higher prices imposed by ride-share companies. "New Yorkers are fed up with forking over excessive amounts for Uber and Lyft rides."
Excessive? Just what is "excessive?" Who decides?
Prices were already up because gasoline costs more, NYC keeps imposing new taxes and regulations, and the federal government pays so many people not to work that there's now a shortage of drivers.
That day, unusually high "surge" prices were in effect because there had been a horrible shooting on the subway. Commuters, fearful of another subway shooting, turned to ride-share services.
How should a company like Uber deal with that? Suddenly, there is much more demand for rides than supply. Should customers just wait in line? Most wouldn't get a ride for days.
So, ride-share companies do the sensible thing: They temporarily raise prices. They lower them again when there are free cars. This is the best solution for the most people.
Those who desperately need rides can pay extra for them. Those with spare time can take a bus, walk, call a friend, etc., or just wait for prices to drop
(Excerpt) Read more at townhall.com ...
How do these writers even earn a college degree when they clearly would fail a first-semester college economics class?
Excessive? How much would consumers have had to pay if left to the tender mercies of the cab industry?
It’s the same argument used against ‘price gouging’ during a disaster.
For instance:
I have a store and have four bags of ice left after the hurricane. Wanting to be fair, I keep the price at $2.50 a bag.
Your neighbor comes in, sees the ice and says, ‘Great, we need that for our hurricane party tonight!’ and buys all three bags for $7.50.
You come in 10 minutes later, desperately looking for ice to keep a family member’s insulin from spoiling... there is none.
Now, if I could have adjusted my price to $5.00 a bag, reflecting the scarcity of the product, your neighbor might have only bought one or two. But then, that wouldn’t be fair...
Obviously, math is not my strong suit. All four bags, for $10.
I see you have a future as a writer. /Sarc
New York Post is also anti-gun.
Free market at work. If only the government butted out of things, life would run so much smoother.
The article seems like applied Econ 101 to me. The point is correct
Cause and effect. Costs rise. Prices must rise. Basic inflation
Supply decreases and demand grows. Raise prices to slow demand
The problem is New York City. Land of left wing fools
New York City is still butt hurt over Uber and Lyft screwing up the million dollar taxi medallion racket.
Stossell is forgetting the barriers that have been erected against competition.
So what are the big cities going to do? Regulate the hell out of Uber and Lyft?
That’s exactly what laid the groundwork for companies like Uber and Lyft to appear in first place. So the cycle would just start all over again.
Uber and Lyft thrived because they were massively subsidized by venture capital.
The old idea was, to undercut taxis until they were gone. Due to extreme regulation, taxis could not adjust rates, do surge pricing, use personal cars, etc etc etc.
Uber and Lyft have never turned a profit. They can’t. The cost of a taxi is pretty much the basic cost. Cab drivers are NOT getting rich.
I guess the venture capital has run out.
The big cities could if they cared in the least bit remove the stupid rules for cabs, keep the good ones, and apply the good ones to Uber and Lyft as well.
That would be fair, sensible, and safe for the public.
Oh, and they can pay back the millions that poor lifelong cabbies lost when the medallions they earned over decades were made worthless by their winking at the laws they themselves put into place.
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