DC taxi cab redux

Back in July I noted an effort by Jim Graham of the DC City Council to restrict the number of taxis on the city streets. Pointing out the flawed thinking behind such a move, I said if such legislation were to pass that "the established interests will win while the little guy, both in the form of the consumer and those who wish to enter the taxi market, will lose."

At the time I simply thought Graham was an economic ignoramus. Now there is reason to think corruption may be the better explanation:

The chief of staff to D.C. Council member Jim Graham was arrested on bribery charges Thursday, accused of taking trips and $1,500 in payoffs in exchange for pushing legislation that would reward some in the taxicab industry.

Ted G. Loza, 44, was taken into custody at his home on Columbia Road NW a little before 7 a.m., just hours before federal agents descended on his office at city hall to search records and computers.

Federal prosecutors allege that Loza accepted a "stream of things of value," including cash, the use of vehicles and trips, to help an unnamed informant with a financial interest in the taxicab industry. The trips included one to Ethiopia and free limo rides to airports and other destinations in the D.C. area, two law enforcement sources said.

Graham (D-Ward 1) introduced legislation that would have benefited the informant, authorities said. The council member is not charged in the indictment and denied any wrongdoing. "I have had no engagement whatsoever in any illegal or unethical behaviors," he said.

Seems that Graham's legislation was exactly what at least one member of the DC taxicab industry was looking for:

On July 10, Individual Number 1 and Loza met again. During the conversation, Loza handed the individual a copy of Graham's bill.

"Beautiful, wow, beautiful," the person said, according to a transcript in the indictment. "Really. I want to thank you very much."

A few thoughts:

• Even if Jim Graham is innocent this episode reflects colossal stupidity on his part. The fact he was willing to introduce such self-evidently ridiculous legislation rather than laugh his chief of staff out of the room for even suggesting such a blatantly anti-consumer move speaks volumes about his approach to governing.

• Once again this shows that business has no inherent conflict with government. Indeed, government regulation presents an opportunity for special interests to harness it to their own ends and block competition.

• If you really want to strike fear in the hearts of corporations and established interests, push for a free market. That is what they truly dread. This is a lesson Michael Moore will never learn.

• This should really make the people of New York reconsider its own medallion system and who it really benefits.

Ugh. HT: Reason.

Update: Forgot to mention this recent episode with Graham. It's been a rough few months.