Re: The economy - a new era?

["David B. Shemano" <dshemano@xxxxxxxxxx>]

Doug Henwood writes:

>> 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.


You don't need me to argue the merits of deregulation.  Go search the Cato website and I am sure you will find something.

I think the burden on you is not necessarily to show that reregulation is better than deregulation, but to at least explan what reregulation would look like.  Would reregulation mean that JetBlue can't open new routes at lower prices than the exising carriers?  Would it mean that JetBlue couldn't offer DirecTV without permission?  Would it mean that an airline couldn't cease unprofitable routes?  Would it mean that hub and spoke would be prohibited, or required?  Would it mean that all similar seats would have to be identically priced?  Would it mean that meals must be served?

I am trying to understand the point of the reregulation.  To guarantee profitability to large corporations and their shareholders?  Why should a Leftie care that corporations disappear and shareholders lose money?  Are you making a rationalization/efficiency argument, that the present system is wasteful, and the inefficiencies and waste would be solved by centralized planning?

Leaving aside the merits of regulation vs. deregulation, you state that you "don't see why non-captured regulation is impossible, if it's done openly and democratically."  Perhaps, but what would be the odds that non-captured regulation would result?  You don't sound too confident.

David Shemano