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Old 09-21-2001, 05:23 AM
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Default Re: Welfare for the Airlines?



>>It's not analogous, since we all use the highways and the government is not giving money directly to trucking companies. Airlines have similarly benefited from taxpayer money spent on airports. >True, such as protection from terrorist attack. However, the federal government has gone far beyond providing essential services that private enterprise is unable to provide. >Are you suggesting that the industry would cease to exist if they don't receive welfare? >Why can't they respond to changing market conditions like other businesses by down-scaling, cost-cutting, merging, increasing efficiency, raising prices, etc? <<


I would hardly characterize terrorist attacks as "changing market conditions."


"Free market economies usually find a way to fulfill vital needs."


Again we don't have a purely free market economy. We have a mixed economy. The government has a role in the economy to provide for services and facilities that the private enterprise can't provide for themselves. I think it's important to realize that government does play a key role in keeping our economy functioning.



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