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The problem here is the classic problem of scarcity and a failure to manage it. If the government wants to create scarcity - which is indirectly what they are doing - then they need a better system of managing it. They should auction X# of licenses in the area (set asides can be set up to protect small businesses, etc...if so desired). Then use money from the auction to induce the kinds of stores they want. low-interest loans. Grants. Spruce of the street. Etc...

BTW, libertarians hate it when the government creates scarcity.

by VC on Jul 1, 2008 4:47 pm • linkreport

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