Street Vendor Cartels and their Illegal Product
Matthew Yglesias explains why in India chauffeurs and street food are so cheap, which helps account for the popularity of fast food restaurants over street vendors in the US:
Average productivity in the US is much higher than average productivity in India, so wages are much higher in the US. But American drivers are no more productive than Indian ones, so chauffeurs are unaffordable here and affordable prepared food needs to economize on labor with fast food techniques.
But as someone who rightly calls attention to the way dentists and barbers create cartels and restrict entry into the market drives up prices I’m surprised he failed to mention all the laws restricting licenses for street vendors.