The cost of government created monopolies

Traditional economics textbooks stress the deadweight loss of monopolies. They show how the government can improve the working of markets by using antitrust laws to prevent or break up monopolies.

But I believe that the primary cause of monopolies is government, and that government monopolies cause far more harm than do monopolies that naturally evolve in the private sector.

An excellent data point showing the damage of government created monopolies is the price of New York City taxi medallions. You need such a government medallion to drive a taxi. One just sold for $477,666. The fact that a single medallion is worth so much shows that the price of a taxi ride in New York City is much, much higher than the free market would provide. The only people who benefit from these high prices are taxi cab owners and the politicians they support. It constantly amazes me that so many economists trust politicians to end monopolies when politicians are so eager to create monopolies to benefit their supporters.