There is one question that many people wonder everyday. Why are the prices so high? The answer is simple. The federal government is regulating the market.
What Regulation Does
For example, think about all those American Airline flights that got canceled(links below). Why did they get canceled? Because the Federal Aviation Administration (FAA) made American Airline cancel them. Why? Because the FAA was afraid that if the wires were not bundled properly, they could spark, and start a fire. You may ask, “What is wrong with that? Isn’t the government just trying to protect us?” The problem is that the government is trying to protect us from capitalists, or the free market, “Taking Advantage”. So, what they do is place regulations on the market. Yes, This does help protect us, but it hurts the free market. This regulation has cost several large airlines a large amount of money, not to mention the airports. Aloha Airlines and ATA airlines filed bankruptcy because of it. Also, more than 100,000 passengers have been stranded at hotels far from home. Now the question, “Is it worth it?” The answer is a solid and resounding NO! There is a better way.
The Better Way
Now think of what would have happened if the FAA hadn’t have stepped in. The chances are that nothing at all would have happened. That isn’t very interesting, so lets have a worst-case scenario. One day two planes go down because of a wiring problem. Everyone on board dies. Everyone planning to take a plain ride learns about what type of planes crashed, what company they were with, ect. Then they make a decision of if they want to take the chance or not. The airline also decides if they want to fly these planes. The reason the plans went down is because they were not inspected well. The airline gets sued and goes out of business. All the other airlines learn from this and it never happens again. The Free market is the better way. We should let the people operate the market. They will know better if they want to take the risk than the government will. The government has monopolies on a lot of thing that the free market should have control of. Public schools and the postal service are big ones. If these were left to the free market, the quality would go up, and the price would go down.
See articles:
http://www.heraldextra.com/content/view/262153/18/
http://www.heraldextra.com/content/view/262241/18/
http://www.heraldextra.com/content/view/262279/18/
2 comments:
It should be noted that some regulation is nesisary, mainly due to the anamalistic nature of the corporation's civil structure.
NO really, that kind of made sense...
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