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That prices were falling prior to deregulation and did not fall even faster after deregulation proves that deregulation wasn’t a factor. If you’re coasting to
by Sai_ 3y ago
That prices were falling prior to deregulation and did not fall even faster after deregulation proves that deregulation wasn’t a factor.
If you’re coasting to earth in a parachute and someone gives you a cup of coffee to drink which does nothing to change your rate of descent, would you then attribute your descent to the cup of coffee?
You even say it yourself: There’s lots of reasons… but deregulation wasn’t necessarily it especially not in the axiomatic way you say when you say that by “first principles”, regulations increase prices.
E.g., regulations and legislation around marijuana access have decreased prices, the ultimate “price” being a stint in jail for possession.
- arkis22 3y agoYou are wrong that prices falling prior to deregulation proves that deregulation wasn't a factor in declining prices. A graph of numbers showing decreasing costs measures purely quantitative factors. The trend continuing completely excludes qualitative factors, of which you must understand to properly understand what is going on. For example, the article says that what was expected to happen was that costs would fall because there would be an influx of hundreds of competitors. That in itself is a misunderstanding of qualitative factors. Imagine there being 100 different airlines. More than half of them would be incompetent. The correct qualitative understanding of the situation is that deregulation allows the most competent airlines to consolidate/buy underperforming ones. Did service really get worse? Or is the difference really just that these airlines are now able to transport way more people at a cheaper cost because they are no longer catering to smokers who like to leer at PANAM blondes in short skirts? Also, regulation around marijuana has not decreased prices. This is obvious because in places where marijuana is now decriminalized people still prefer to buy from illegal sellers... because it is cheaper.
- throw0101b 3y ago> That prices were falling prior to deregulation and did not fall even faster after deregulation proves that deregulation wasn’t a factor. Do you have a source for this? I've seen graphs for prices since ~1980, but my search-fu fails to find anything before that.
- ffgjgf1 3y ago> That prices were falling prior to deregulation and did not fall even faster after deregulation proves that deregulation wasn’t a factor No, this on its own doesn’t prove anything.