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/econ/ - Economics

Economically IIliterate

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File: 1423100076699-0.png (22.74 KB, 975x186, 325:62, WRQ5BJi.png)

File: 1423100076699-1.png (45.51 KB, 940x489, 940:489, MBr63e3.png)

 No.28

Post stuff about random retards failing to understand the economy.

Pic here is of a Portlander saying the city should put price controls on Uber and taxi services. He also believes that there is a libertarian elite trying to infect the city and his friend says that Portland needs real leftists in their government.

 No.29

File: 1423240736970.gif (1.83 MB, 245x147, 5:3, goofball.gif)

>profiteering

 No.40

>Company with access to large initial investment comes in and provides service below cost to drive out competition
>Competitors/entrepreneurs don't have the resources to compete
>Large company ups prices/reduces quality of service until a new competitor emerges, at which point they repeat the process until the competitor goes out of business
>Cycle continues endlessly

Could you point out exactly what is wrong with this theory? Isn't this already what WalMart does?

 No.48

>>40
Sorry should have explained. The problem is that he is advocating for price controls for cab and town car services without any evidence. He doesn't seem to be aware of regulatory capture.
http://en.wikipedia.org/wiki/Regulatory_capture
He also claims they should do price controls because uber pays shit wages, but that's not true most of the time.
http://time.com/money/3678389/uber-drivers-wages/

https://s3.amazonaws.com/uber-static/comms/PDF/Uber_Driver-Partners_Hall_Kreuger_2015.pdf

Uber actually pays about the same to higher wages, especially if you account for the fact that uber drivers aren't compensated for driving related expenses. He also goes on about how this all part of the libertarian elite which makes me kek.



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