Sometimes price to pay for regulatory freedom

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Sometimes price to pay for regulatory freedom

Published Monday, November 26, 2012   |  251 Words  |  

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