Sometimes price to pay for regulatory freedom

info@islandpacket.comNovember 26, 2012 

This is in response to two recent letters. The airlines have been deregulated. Before deregulation, the airlines were told where they had to fly (namely small airports across the U.S.), and there were three air fares -- first class, coach and child. Now there are hundreds of fares on routes, and the airlines only wish to fly between large cities where they can make the most money.

Also when smaller airlines have tried to start, larger airlines often practice predatory pricing, dropping their prices to match the start-up airline. This is why Presidential Airways went belly up. United Airlines came right into Savannah and matched their prices. Once the start-up is gone -- "ka-ching." Prices were low in the beginning of deregulation, but now that most of the airlines are out of business, the few left have us at their mercy.

As for the writer complaining about Medicare drug prices, the deal that our politicians made with the drug companies when they passed Medicare Part D (the largest unfunded government program in our history) was that the government was forbidden to negotiate for prices.

So now, Medicare Part D subscribers subsidize all the organizations that are allowed to negotiate. Oh by the way, the U.S. is deregulating everything, including our utility prices. Remember the Enron debacle. When some people cry "freedom," they are really talking about freedom from regulations.

Diana Nadanyi

Sun City Hilton Head

The Island Packet is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service