Wednesday, June 11, 2003

Irwin M. Stelzer Has an interesting article on the state of the Airline industry over at the

  • Weekly Standard

  • I think it is time the Federal government stops subsidizing the inefficiency of the Major carriers. Though this may result in many of them going out of business, this may not be a bad thing. In most industries, Capitalist pressures force those that operate inefficiently to go out of business. The ineffective Airline companies utilizing old and bloated management structures, however, are kept in business by the never-ending flow of funding from the Federal government. This limits the growth of those airlines, like Jet-Blue and Southwest, with a modern management structure that often operate at a profit. Governmental subsidizing of inefficient Corporations only prevents natural economic forces from rooting out those companies that do not have the ability to fulfill the primary goal of all Corporations, to operate at a profit.