Institute for Justice Makes a Federal Case out of Nashville's Minimum Limo Price Law

Government's incompetence and greed sometimes take creative turns. Recently, in Nashville, Tennessee, the city government turned its corrupt cross-hairs on limousines and other unmarked sedans. The Institute for Justice's Mark Meranta writes via e-mail:

Until last year, limos and sedan cars in Nashville, TN were an affordable alternative to taxicabs. A trip to the airport only cost $25. But in June 2010, the Metropolitan County Council passed a series of regulations requested by the Tennessee Livery Association—a trade group formed by high-end limousine companies. These regulations force limo and sedan companies to increase their fares to $45 minimum. And, in January 2012, companies will have to take all vehicles off the road if they are more than seven years old for a sedan or SUV or more than ten years old for a limousine.

Advocates of government regulation have to come to terms with corrupt special interests' consistent capture of the very government whom they religiously believe will reduce abuses. Here, government regulation is serving to institutionalize high prices and institute monopoly at consumers' expense.

Happily, the Institute for Justice, the group that brought Suzette Kelo's law suit against New London, Connecticut's corrupt city government, is bringing a case against Nashville on behalf of the small operators whom the government bosses and high end limo operators aim to grind under their heels.

According to the Institute:

The regulations prohibit limo and sedan companies from using leased vehicles, require them to dispatch only from their place of business, require them to wait a minimum of 15 minutes before picking up a customer and forbid them from parking or waiting for customers at hotels or bars. And, in January 2012, companies will have to take all vehicles off the road if they are more than seven years old for a sedan or SUV or more than ten years old for a limousine...These regulations have nothing to do with public safety.

IJ has teamed up with some limo drivers to bring suit in federal court. Bless them, and may they win in court.

Gold Surges Toward $1500 Per Ounce

Gold is casting a vote against the American financial system. I'm about 15% in commodities and my portfolio is at an all time high. The question is whether gold will vanquish the $1500 barrier. Just ten years ago the yellow metal sold at $250 per ounce. How high will it go? I am buying a little extra silver for the short term. Expect corrections further down the line. One rule is "sell in May and go away." Gold stocks have been lagging. Maybe they are a better bet now. Silver has been having a great ride. But parabolic rises (something like 20% in the past couple of weeks) cannot last forever. On the other hand, the trend is your friend. I may go with some shares of Barrick Mining and leveraged silver. But this is short term. I don't expect this kind of parabolic increase to continue for more than a few weeks.

America a Republic, Not a Democracy

Mairi sent me the second video below from the Saving the Republic site. I liked the first one even more:

Sixteen Tons of Debt

H/t Mairi.