Couldn't one argue that airlines are similar to roads, telephones
and other services necessary for a modern economy? Thus, the gov't
might be justified in maintaining transportation in order
to promote more general well being. You then sacrifice short
term optima for long term benefits.
Fabio
On Wed, 26 Sep 2001, Alex Tabarrok wrote:
> The President has authorized some 15 billion dollars to bail out the
> airlines and now travel agents and a host of others are asking for help
> also. Question: Is there any economic defense for this sort of action?
> After all, if the demand for air travel has fallen then isn't the
> optimal response to reallocate resources from the airline and related
> travel industries into other industries?
>
> Alex
> --
> Dr. Alexander Tabarrok
> Vice President and Director of Research
> The Independent Institute
> 100 Swan Way
> Oakland, CA, 94621-1428
> Tel. 510-632-1366, FAX: 510-568-6040
> Email: [EMAIL PROTECTED]
>
