They say it all .... There are too many taxis in Bangkok .. how can they make some living with such competition ?

Spot on! Ridiculous isn't it?

well they must be making a living otherwise they wouldn't be doing it would they?

There are 70000 taxis in BKK already, and demand for 35000 is identified. Provision outstrips demand. Therefore the TiT rule comes into force. If you have empty cabs, then you must increase the price to compensate. Increasing the prices will have the effct of attracting more drivers to try their hand at taxi driving. This will further increase the number of cabs on the road, and fewer drivers will make as much money unless demand for taxis keeps pace with supply. Cheap for Farang, but not so cheap for local workers, even if most posters here are comparing prices with overregulated cabs in the "developed world".

50 baht flag fall seems fair enough. Taxis in bkk are very cheap. I don't know how they make any money with the cost of fuel as it is.

Almost all taxis in Bkk run on LPG, which is very cheap compared to benzene or diesel. The renting drivers do get ripped-off by the taxi owner mafia though.