It can get tedious to constantly correct bad ideas... and so I held my tongue as a friend surmised it was lack of regulation that caused the plethora of food trucks in Portland, Oregon. The ubiquity is causing prices to fall, which is usually a bad thing, but not after expenses incurred are high.
The fact is Portland heavily regulates food trucks, unnecessarily. Between customers and insurance companies (free market versions) necessary and sufficient regulation obtains.
Because of the regulations, the process between decision and sale is very long indeed. Someone may get the notion of providing food by a truck and then engage in the process of actualizing that dream.
Permits proving compliance take time, and it is that time line of uncertainty in who people invest much before they are out of the regulation-compliance pipeline and out on to the street. The pipeline has trucks that have emerged and are making money. The pipeline is full of people inspired by the success of the early trucks to emerge. New applications are entering the pipeline constantly based on the success of the early trucks that emerged. So we have a few trucks sending signals there is money to be made. Those signals will change as people currently in the pipeline emerge. And people entering and in the pipeline will not know their decisions were made on price signals distorted for lack of information.
A list of how many people are in the pipeline cannot substitute for the price signals of the actual market.
The problem of regulations unnecessarily distorting markets cannot be fixed, yet the benefits of third party QC can be provided nonetheless by free market insurance and customer feedback.
I have no doubt the point of these unecessary regulations is to destroy the small businesses. Portland has many small restaurants and such in place so long the owner owns the land. Cities want big biz and big dev so they can have big tax income. By stuffing the streets with food trucks, and monkeying around with parking meter times, costs and violation fines, the cities destroy the small business trade.
The in come the developers to sweep up the property and build massive high-rises to house big business. The problem is these are false economy, welfare/warfare driven big businesses.
Who knows how this will turn out.
Feel free to forward this by email to three of your friends.
The fact is Portland heavily regulates food trucks, unnecessarily. Between customers and insurance companies (free market versions) necessary and sufficient regulation obtains.
Because of the regulations, the process between decision and sale is very long indeed. Someone may get the notion of providing food by a truck and then engage in the process of actualizing that dream.
Permits proving compliance take time, and it is that time line of uncertainty in who people invest much before they are out of the regulation-compliance pipeline and out on to the street. The pipeline has trucks that have emerged and are making money. The pipeline is full of people inspired by the success of the early trucks to emerge. New applications are entering the pipeline constantly based on the success of the early trucks that emerged. So we have a few trucks sending signals there is money to be made. Those signals will change as people currently in the pipeline emerge. And people entering and in the pipeline will not know their decisions were made on price signals distorted for lack of information.
A list of how many people are in the pipeline cannot substitute for the price signals of the actual market.
The problem of regulations unnecessarily distorting markets cannot be fixed, yet the benefits of third party QC can be provided nonetheless by free market insurance and customer feedback.
I have no doubt the point of these unecessary regulations is to destroy the small businesses. Portland has many small restaurants and such in place so long the owner owns the land. Cities want big biz and big dev so they can have big tax income. By stuffing the streets with food trucks, and monkeying around with parking meter times, costs and violation fines, the cities destroy the small business trade.
The in come the developers to sweep up the property and build massive high-rises to house big business. The problem is these are false economy, welfare/warfare driven big businesses.
Who knows how this will turn out.
Feel free to forward this by email to three of your friends.
1 comments:
http://www.slate.com/articles/business/moneybox/2012/06/taxi_medallions_how_new_york_s_terrible_taxi_system_makes_fares_higher_and_drivers_poorer_.html
At least they don't have medallions like in New york for taxis. Maybe just not yet though.
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