A cap on surge pricing doesn't show economic illiteracy. It is a choice made by the people (represented by the government) to prefer longer waits over higher prices.
No, it's only removing option of quicker waits for higher prices, because you can have longer waits for lower prices as it is (just wait till price surge is over). So yes, that's economic illiteracy with strange motivation of "service men should be protected"
Those representatives can still make counterproductive and economically illiterate decisions even if they are representing "the people". There is nothing in that article that shows that these politicians understood all of the unintended consequences of their decisions. You and I may think of these consequences, but that doesn't mean bureaucrats do.
These decisions should be discussed based on the merits of the decisions themselves, not simply assuming that the politicians took everything into consideration and understood all of the consequences. There are many of "the people" who will wholeheartedly disagree with these price caps.
If two individuals agree to a price, what makes the politicians brilliant enough to tell them what the right price is.
Parent is pointing out that cab drivers have an interest in limiting alternatives to taking a cab. By doing so they earn a premium over the market price of the transportation they are providing.
Cab companies are locally based, therefore have more to lose from loss of business in any given market, and are more likely to have connections to local politicians. So parent is suggesting that cab companies may use their political influence to try to shape policy in their economic favor.
That's a good point. I do have the suspicion though that this is more emotion/outrage based legislation. I guess a nice person would give them the benefit of the doubt...
