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New York

The New York Times has produced a fascinating story about turf wars among the city’s food cart vendors, particularly clashes between the traditionally immigrant-run carts and trendy new arrivals. Like in DC, New York set a cap on the number of cart permits. Yet while DC’s cart scene slumped into mediocrity under the city’s burdensome regulations, entrepreneurial New Yorkers worked out their own extralegal ways to operate:

The city, other than blocking certain streets entirely and enforcing parking regulations, does not dictate locations for food carts. But spots are virtually owned by vendors who have worked them for decades; they are handed down within families and even sold on the black market. [...]

Vendors say that the traditional code of the streets may be effective, but that it feeds on fear, intimidation and the city’s lack of enforcement of permit rules.

“It only works because everyone is a little bit in the wrong, and no one is 100 percent clean,” said Mr. Lao [a new cart owner]. “We can’t go through legal channels to resolve our disputes.” Mr. Lao was referring to the notorious black market in the food vendor permits issued by the city’s Department of Health. Most of the vendors interviewed would not talk publicly about the status of their permits. But several of them, asking not to be identified because of the dubious legality of the arrangements, said they had secured theirs by paying unauthorized “fixers” or by entering into partnerships with existing permit holders. A common form of retribution among vendors is to report one another to city authorities for permit violations.

The existing system is a tribute to the spontaneous creation of norms and property rights, but it’s breaking down as outsiders jump into the cart boom. Increasing the number of legal permits and auctioning them off, as one bill proposes, would be a partial solution. Establishing legally recognized, tradeable property rights for cart locations might be another, but it doesn’t appear that anyone is talking about that.

Another significant conflict is between cart owners and owners of restaurants and cafes who resent the low-cost competition. Read the whole thing here.

Previously:
Cart watch, NYC edition
DC cart watch, public choice edition
Hot dogs and beyond

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I’ve posted a couple links on the sidebar about New York’s new tax frenzy, but hadn’t felt compelled to dedicate a post to it until I saw this:

If the proposed budget were to be approved, New York cigar smokers would be forced to pay 50 cents per cigar. The current tax is about 34 cents.

It used to be that we could have an argument about whether there’s any justification for the tax, whether each cigar really is somehow causing 50 cents worth of external harm. But as Rogier van Bakel notes, this is just one of 137 new or increased taxes proposed by Governor David Paterson and there’s no rhyme or reason to the list. Among the other targeted products and services:

MP3s and other downloads
Haircuts, manicures, and beauty services
Movies, concerts and sporting events
Beer
Non-diet sodas
Gasoline
Clothing and shoes under $500

And many more. When the government abandons all pretense at rationale and just taxes things willy-nilly, I don’t even know how I’m supposed to respond. Luckily, New Yorkers do, and I can guess which finger they’ll be holding up to the governor this year.

[As with most cigar stories, hat tip to the Stogie Guys.]

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That New York calorie law that was supposed to only target big chain restaurants? It’s sweeping up some smaller businesses, too:

A few restaurants appeared to be caught completely off guard by the calorie rules, especially the homegrown fast-food chains that pepper New York City’s outer boroughs.

“This has been an absolute nightmare,” said Enrique Almela, director of operations at Singas Famous Pizza, which has 17 restaurants, most in the borough of Queens.

The menu rule only applies to restaurants that serve standardized portion sizes and have 15 or more locations nationwide, a distinction that was intended to target fast-food giants. But in practice, the low threshold has swept up little-known outfits like Singas Famous Pizza and other local franchises that have never done nutritional testing before.

Almela spoke with The Associated Press from his car Wednesday as he rushed sample pizzas to a food laboratory. He said the calorie tests for his 35 different pizza combinations will cost $10,000, and he doubts they will produce accurate data.

“I may put 15 pepperoni on a pie. Someone else may put 12. We don’t measure the amount of cheese we put on,” he said. “If you put up roundabout numbers, how does that help anyone?”

The deadline also looked problematic for a unique class of New York City eateries: loosely affiliated, largely immigrant-owned restaurants that share the same name and sometimes the same suppliers, but operate independently.

Afgan Paper & Food Products, which distributes food and packaging materials to many of the eateries, said it was scrambling to get them calorie info.

“The stores are all calling and asking for information. We don’t have it,” said Mariam Mashriqi, a receptionist at the company.

In the meantime, Mashriqi said, some owners were paying for the laboratory tests themselves.

“These are small stores. They are barely making a profit,” she said.

$10,000 out of a guy’s pocket just to tell customers with dubious precision that pizza isn’t health food. Nice job, New York.

[Via Hit and Run.]

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Christopher Flavelle has a solid article (with video) in Slate today examining New York’s calorie count mandate. He gives a fair representation of both sides, and he ultimately concludes that the hypothesis that forcing nutritional on consumers will make them healthier is far from proven. Once again, I’d add only that the issue is even more complicated than it appears at first glance. To judge the measure’s effectiveness you have to measure not just what people are consuming at the restaurant, but their consumption throughout the day (or over even longer time periods). If people are compensating for their Big Macs at lunch with lighter dinners and breakfasts, then targeting behavior in restaurants is somewhat beside the point. This is the argument made in a paper [.pdf] by economists Michael Anderson and David Matsa.

I also have to take slight issue with this statement:

Yet the absence of unbiased opponents of menu labeling means that lost in the debate over Big Macs and cheesecake has been any serious consideration of whether government agencies ought to be responsible for influencing how many calories we eat.

Since by “unbiased” he appears to mean non connected to the restaurant industry, he should have mentioned the writers at Reason who’ve been hammering away at the issue. Radley Balko, Jacob Sullum, Katherine Mangu-Ward, and Steve Chapman have all been making the case against mandated calorie counts. This blog’s been covering it too, with an increasingly long string of posts.

Read Flavelle’s entire piece here.

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It’s a shame I don’t have $1,500 to blow on dinner in New York, because if I did I would not want to miss this:

A magician, mixologist and chef Mario Batali are combining for a new type of event. The Magic, Martinis and Mario event the first of which is taking place on September 18 at Del Posto, Batali’s restaurant in New York, offers more than just a dinner. Mixologist and Fine Living Network star, Tony Abou-Ganim will design custom cocktails for this special evening and teach diners how to recreate them at home. Also during the cocktail hour, entertainer Billy Harris will show sleight-of-hand magic tricks.

Each of the four courses of the Italian meal will be introduced by Batali and the dishes will be paired with wines from LaMozza, Mario’s own vineyard in Tuscany, as well as the Friuli Bastianich vineyard. After the meal Billy Harris will perform his stage show.

If they want to cut costs for the next event, they should find someone who can cover both the cocktails and the card tricks. I knew I’ve been on the wrong career path this year…

[Via Cold Mud.]

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Quote of the night

by Jacob Grier on January 20, 2008

“There’s too many people smoking on the sidewalks.”

– My friend A, ardent supporter of indoor smoking bans, on the disadvantages of living in New York City.

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