Deregulation saved the market

Generally, deregulation has been good.

Several posters have pointed out deregulation in transportation, particularly trucking and airlines. It also also been good in energy and financial services.

In energy, the government deregulated natural gas prices, which lead to an explosion in drilling. There is a lot of debate about deregulation in financial services, but it has been good in many aspects. It has increased credit availability to small businesses and the poor, and has lowered interest rates to companies as disintermediation of banks in favor of markets has allowed companies to tap credit availability anywhere in the world.
 
Unfortunately for the airline industry, fuel costs, economic recession, and wanton overexpansion in the wake of deregulation began to have serious negative consequences. The airlines recorded a net operating loss of $421 million as early as 1981, when the number of passengers fell to 286 million. The problems were worsened by the nationwide strike of the Professional Air Traffic Controllers Organization (PATCO) in 1981. One airline, Braniff, collapsed completely in 1982 (although the airline operated from 1984 under new ownership before entering bankruptcy once again in 1989). Other airlines continued to expand in the face of economic problems, putting them at great risk.

Analysts continue to debate the long-term effects of deregulation. The climate in the post-deregulation era was extremely unstable as illustrated by the fates of both Continental and Eastern Airlines, two major domestic carriers. Both airlines suffered through severe financial crises, which were made worse by mismanagement and bad relationships with the labor unions. Both ended up bankrupt by 1989. The most important international carrier for the United States, Pan American, suffered the same fate. Without the cover of regulation on international flights, Pan Am suddenly had to compete with new entrants such as Laker and People's Express. By the end of 1991, after a dramatic downfall through the 1980s, Pan Am was history. The number of major carriers in the United States fell from six in 1978—United, American, Delta, Eastern, TWA, and Pan Am—to three by 1991—United, American, and Delta. Ultimately, most of the big airlines suffered some sort of loss in the 1980s—either facing complete bankruptcy or with less financial growth than hoped.




CG why dont you add something to the thread besides insults?
Well, you have blind partisanship covered. Even I'm willing to say Carter, like a busted watch was right once a day.
 
Regulations are like tools. When used properly they enhance the task and make things easier to accomplish. Unfortunately, like too many chefs, too many tools wreck things too.
 
We need to deregulat everything.
Who cares if our food is safe to eat or our water safe to drink.
Mercury poisioning will just make more republicans.
Drugs and healthcare, just deregulate them as well.

One thing though we would need lots more lawyers and judges.
 
We need to deregulat everything.
Who cares if our food is safe to eat or our water safe to drink.
Mercury poisioning will just make more republicans.
Drugs and healthcare, just deregulate them as well.

One thing though we would need lots more lawyers and judges.

Makes you wonder how the Greeks, Romans, Egyptians, Phoneticians and Babylonians ever got their civilizations out of the gate without 1,000,000 pages of regulations.
 
Come talk to me when regulations aren't written by big business, for big business.

I might be willing to budge a little on my position then.
 

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