Why Economists Love Uber (And Bernie Should, Too)

Why Economists Love Uber (And Bernie Should, Too) by Corey Iacono, Foundation For Economic Education

Curb Your Regulatory Enthusiasm

Over the summer of 2015, senator and presidential candidate Bernie Sanders said that he had “serious problems” with ridesharing company Uber because it was “unregulated.”

Indeed, Uber is relatively unregulated in comparison to traditional taxi services. Economists Judd Cramer and Alan B. Krueger note,

In many jurisdictions, taxi drivers are required to obtain an occupational license in order to transport passengers, and drivers are restricted from picking up passengers outside of the jurisdiction that issued their license. In addition, the number of taxi drivers is often limited by the number of medallions that are issued, and fares are often set by...