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Source link: http://archive.mises.org/5720/the-problem-with-eas/

The problem with EAS

October 6, 2006 by

Set your coffee cup down before you read this pro-market article in the New York Times on the Essential Air Service program:

After all, travelers adjusted very well after deregulation, and started driving the extra distance to busier regional airports nearby that offered increasingly cheap and plentiful jet service. That left the program with mostly empty planes, making them more costly to fly. Add in higher maintenance and fuel costs, and spending has more than quadrupled since 1996, to $110 million.
That, of course, is not a lot in the federal scheme of things. But the program is a good case study of how poorly the government sometimes keeps pace with the free market and consumer tastes, and how entrenched interests, even in the face of some creative map-drawing, can keep such a program aloft in the face of efforts to ground it.

{ 4 comments }

Yancey Ward October 6, 2006 at 12:29 pm

Quote from the articale: But the program is a good case study of how poorly the government sometimes keeps pace with the free market and consumer tastes, and how entrenched interests, even in the face of some creative map-drawing, can keep such a program aloft in the face of efforts to ground it.

Is it really a good case study of how poorly the government sometimes keeps pace?

Francisco Torres October 6, 2006 at 3:42 pm

Poorly, “Sometimes”?? How about “always”!
:-)

Hugh Akston October 6, 2006 at 8:50 pm

Same as the universal service debacle in telecom.

If you want the benefits of living in the middle of nowhere (low crime, cheap land, less pollution, etc.), you should have to pay the costs (in this case, a long drive to the airport).

TokyoTom October 7, 2006 at 8:57 am

Jeff, why are you trotting out purportedly “pro-market, anti-government” pieces by the Times? We know they`re all evil socialists and irredeemable – we hate them even when we agree with them occasionally!

TT

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