If one wanted to study the difference between an industry that exists in a very free market and its exact counterpart in a system of extreme government regulation, then you don’t need to look further than the New York City taxi industry. New York City yellow cabs entered government regulation in 1937 when city officials decided that something needed to be done about those enterprising people who were buying automobiles and then driving on city streets, charging passengers fares for where they wanted to go. During that year, the existing taxi drivers were allowed to apply for medallions,...