Liberals rejoice! Re-regulation of the airline industry in Hawaii possible

[JustaNumber]

Trusting the 'market' to regulate itself is simply not realistic-you cannot remove the human factor of greed.

Interesting discussion. I would argue that in response to the above quote, "greed" is what motivates the best parts of a totally free market.

My favorite example of the effects of government regulation concerns anti-"price-gouging" laws. Looking at the results of a simple situation with and without government price controls is very informative.

Let's say a hurricane wipes out power to thousands of people in Florida. In a scenario with government price controls, the government would say that "price gouging" (a term the jealous and uneducated use to describe the free market at work) is illegal, and generators cannot be priced higher than prices in the rest of the country, let's call it $1000 per generator.

A very few people might try to sell some on the black market, but since their risk is high, they price generators accordingly, at $10,000 each.

Net result of price controls: massive shortages of generators (who has incentive to bring in huge quantities at minimal profit?), with a few for sale at astronomical prices.

Compare that to the same situation, but in which the free market is allowed to work. Joe Blow figures he can make a lot of $$ by loading up a UHaul with Georgia generators, and selling them for $2000 each. Net result: more generators on the market.

But it actually gets better. Now every Billy, Bob, and Bubba hear about all the $$, so they load up their pickups with generators to get in on the action. Since someone on every street corner in Florida is now selling generators, they have to lower their prices, to maybe $1100 each, just to unload them. End result: Lots of generators for sale, at a price that works for the sellers AND the buyers. So free market capitalism actually creates supply to balance demand (and vice-versa). It all works great unless the government tries to get involved, in which case it all gets messed up.

 

[rogerwilcoout]

100% government mandated price controls would mean poverty on a scale never seen in the US.

A free market has no relevance on the formation of unions. Especially for skilled labor unions.

Yeah and we all see how beneficial being in a union has become for this industry.....NOT ! Why do these people still keep their heads in the sand over unions? THEY ARE INEFFECTIVE !

 

[rogerwilcoout]

Hasn't this been proven over and over and over again to not be possible? There is no such thing as a free market...it's complete delusion.

What is the goal of a free market? Isn't it to become the monopoly so you can charge what you want? Um, GO...remember that?

A real, tangible free market is a pipe dream. We are closer to it than ever before, look at gas. Supply down? No. Production down? No. Price up? Yes. It is driven up by your beloved 'free market' in the name of speculation from commodities traders...and no other reason.

You keep hanging on to that high school lesson on lassez-faire econ. and you will continue taking it up the rear from every company that can control a market.

Well said. Every since oil went on the futures it has been a ripoff for the American public.

 

[Poahi]

Well said. Every since oil went on the futures it has been a ripoff for the American public.

So has Southwest been 'ripping off' the American public for all these years?

 

[Soverytired]

For those arguing for regulated airlines, please answer the question:

"What would your optimally regulated US airline industry look like?"

You can have regulation (government sets prices), you can have some profitability, and you can have cheap air travel available to the traveling public, but I don't think you can have all three simultaneously.

Airlines like Ryanair, Easyjet, and Southwest aren't regulated in the sense that you're probably hoping for in the US, yet they're very successful. And they don't pay their pilots peanuts (aka Skybus) either.

 

[Hamburger]

Actually, the vast majority of Liberal doctrines are opposed to government restrictions on economics and are proponents of the free market. Liberals place an emphasis on the importance of Individual Liberty, Governmental price fixing infringes on this.

From Websters: "b: a theory in economics emphasizing individual freedom from restraint and usually based on free competition, the self-regulating market, and the gold standard. "

Some schools believe that the government should take a roll in education, health, and staving off of poverty, but otherwise want it out of everyone's business.

Funny to watch people use the word as such an insult. Isn't Individual Liberty something all Americans find quite important?

 

[Soverytired]

Actually, the vast majority of Liberal doctrines are opposed to government restrictions on economics and are proponents of the free market. Liberals place an emphasis on the importance of Individual Liberty, Governmental price fixing infringes on this.

From Websters: "b: a theory in economics emphasizing individual freedom from restraint and usually based on free competition, the self-regulating market, and the gold standard. "

Some schools believe that the government should take a roll in education, health, and staving off of poverty, but otherwise want it out of everyone's business.

Funny to watch people use the word as such an insult. Isn't Individual Liberty something all Americans find quite important?

I know you probably meant this sincerely, but I think what you're referring to is the classic "liberal" position of the 1700-1800's.

No serious person would suggest that modern liberals are interested in less government regulation or promoting "individual liberty".

 

[Poahi]

Isn't Individual Liberty something all Americans find quite important?

Yes and that tradition is a very conservative idea which doesn't require the liberal notion of reform or protection.