Re: The economy - a new era?

[Doug Henwood <dhenwood@xxxxxxxxx>]

David B. Shemano wrote:

> If airline deregulation was not a success, in your view, what do you
> propose to reregulate?  Do you propose to go back to the pre-1978
> era, where "industry capture" was an art form and the CAB actively
> prevented new entrants and price competition in the name of the
> public interest?  Or do you propose nationalization and a single
> airline owned by the federal government?

The last, of course. I'm thinking something kinda like Aeroflot.

I think the burden of proof is on you to show that dereg was a
success. The industry is on the verge of going into cumulative loss
once again (i.e., all losses in its history exceeding all profits).
Scores of airlines have disappeared. Fare increases outpaced
inflation from 1979 through 2000. Formerly high-wage jobs have become
low-wage jobs. I haven't looked at the stats in a few years, but last
time I did, ridership was growing no more quickly under dereg than it
was under regulation. I don't see why non-captured regulation is
impossible, if it's done openly and democratically.

Doug