Monday, December 13, 2010

Competition, Rent-Seeking and the Role of Government

This has to be a quick post.  In today's edition of The Wall Street Journal (free content at this writing), there is a great story on food trucks in Chicago. The owners are trying to compete in slow economy. Existing restaurant owners are bringing pressure to bear on local government. And the city council is trying to decide whether and how to change the existing laws to allow trucks to prepare food in the vehicle. Current law says food must be prepackaged and not altered in any way. 

This is a great little piece to bring together a trio of topics for your class.

1 comment:

Corinne W. said...

I don't see what the big problem is with cooking inside your truck! I've seen plenty of shows on travel channel about food trucks and they're actually really clean! The restaurants that are complaining about these trucks don't seem to understand that they're a restaurant too, just a mobile one! I can see why they don't want them too close to other food establishments, though, but its hard for them because of the fact that they don't have a piece of real estate to call home. All these rules are denying them money that the other restraunts are making so i can see why they're mad at all of this.