Limo (Price) Floors

Given yesterday’s post on economics class, I thought I’d share this link to an article on a totally useless price floor for Limo services in Florida:

Let me repeat: The PTC is expressly protecting customers from low prices.  What’s next for the PTC?  Protecting us from pillows that are too soft or food that’s too tasty? (Don’t give Michael Bloomberg any ideas.) There are many good things in this world that undoubtedly must be stopped, so the PTC is going to be quite busy.

via Customers Don’t Need Protection from Low Prices | Cato @ Liberty.

Price floors don’t work.  They cloud the market, and why, oh why, would the local government think that a lower priced competitor would harm consumers?  Sometimes I can make sense out of the government intervention into a market, but this one baffles me.  Oh wait…perhaps there were lobbyists involved…

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