Abstract The paper argues that the Federal government's policy towards deregulation had a dramatic impact on various industries. The paper primarily focuses on the airline, petroleum, trucking and banking industries. The paper continues, showing that deregulation was a big part of President Reagan's economic policy. He saw over regulation as a contributing factor to the economic problems that the country was facing when he took office in 1981. The paper also examines how the deregulation policy has allowed industries to respond better to the market needs and operate more cost effectively.
From the Paper "Labor unions have been opposed to deregulation because competition has forced down wage demands. Previously labor disputes were accepted and the airlines would use this to justify the CAB ordered fare increases. Labor costs have gone from 42 percent of operation costs to 34 percent and the revenue per employee ratio has increased."
Abstract This paper discusses the airline industry within the US from the perspective of post deregulation. The reasons underlying the shift to a deregulated environment are examined in detail as are the competitive forces of supply and demand as they relate to price elasticity. Finally, the overall economic model governing the industry post-deregulation is discussed and is followed by several conclusions and a recommendation supporting some form of mild regulation of the industry.
From the Paper "The airline industry has long been a dynamic and vibrant industry and one that has proved problematic to quantify in real terms from an economic perspective. The airline industry was deregulated in the United States (US) officially in 1978 with passage of the Airline Deregulation Act of 1978 passed by the US Congress (Dilger, 2003, p.46). The reasons for deregulation were varied but they primarily revolved around economic issues. While the airline industry might not have been a true monopoly in that there were a variety of industry competitors, it tended to behave monopolistically in the sense that it, in effect, was an oligopoly."
Abstract The paper describes inter-governmental initiatives for deregulation of the telecommunications industry, the technology facilitating deregulation and economic changes and market effects of deregulation. The paper documents deregulation in North America, Asia Pacific, Europe, Latin America and Africa. It discusses the shortcomings of deregulation and how improper telecommunications networks are an obstacle to economic investments.
From the Paper "The purpose of global and national deregulatory incentives for the telecommunications industry on the inter-governmental level is to reduce prices, foster competition, facilitate the sustained availability of existing products, encourage the launching of and accessibility to new products, and boost bandwidth availability in the international telecommunications market."
Abstract Discusses regulation and deregulation issues. Legal precedent established by Munn v. Illinois regarding interstate commerce and private property rights. Nabbia v. New York. Impact of airline deregulation; instability of the industry. Electric power industry and California deregulation and energy crisis. Telecommunictions deregulation. FDA and drug approval process; Orphan Drug Act.
From the Paper "REGULATION/DEREGULATION ISSUES
Munn v. Illinois
Munn v. Illinois [94 U.S. 13 (1876)] established a legal precedent related to both interstate commerce and private property rights in the United States. The State of Illinois enacted a law designed to protect both farmers and consumers by setting maximum charge for storing grain in privately owned elevators and warehouses. The enactment of the law occurred at the behest of the Grange movement, which was an organization that promoted farming interests. Another requirement of the Illinois law was that warehouse operations must obtain a license from the state to operate grain storage facilities.
Ira Munn violated both of the above-mentioned provisions of the Illinois law. Munn operated a grain storage facility in Chicago without ..."
Abstract This essay examines the savings and loans industry and argues that deregulation is better in a free market society when properly applied. Corporate America prides itself on providing opportunity for those with ambition and a strong work ethic; deregulation promotes these concepts. According to the paper, any abuses that result from deregulation such as criminal activity are costs involved in a free society that are simply not the fault of the motivated entrepreneurs. The paper further contends that criminals are opportunists and the criminal justice system should play the lead role in deterring their activities; not government intervention, which is completely inappropriate when Congress reaps the benefits of deregulation but fails to properly address its pitfalls.
From the Paper "The conviction of deregulators was that the free enterprise system works best if left alone, unhampered by perhaps well-meaning but ultimately counterproductive government regulations (Schichor, Gaines, and Ball, 2002). Private enterprise works best if not overburdened by government bureaucracy. Deregulation allows private industry to offer higher interest rates and attract more money into the economy. An active, vibrant economy creates employment and bolsters the country's economic situation. For, at the same time that the new law unleashed savings and loans to compete for new money, it bolstered the federal protection accorded these "private enterprise" institutions, increasing FSLIC insurance from a maximum of $40,000 to $100,000 per deposit (Schichor, Gaines, and Ball, 2002)."
Abstract The paper explains that deregulation is the process of removing restrictions on prices, products and entry conditions. The paper discusses how regulation hinders competition and causes inefficiencies, while the removal of these regulations, deregulation, can increase market efficiency. The paper shows why deregulation of financial institutions is necessary. The paper includes graphs and tables.
From the Paper "Deregulation is the process of removing restrictions on prices, products and entry conditions. During the past 20 years, deregulation has occurred in domestic air transportation, telephone service, interstate transport, and banking and financial services. Before deregulation, the government influenced the economic activity by determining prices, product standards and types. This was seen as a major disadvantage to the businesses as they had no control over the pricing of their products and thus competition was eliminated because the same product a business was selling was marked down as the same price. There are two types of regulations which are the rate of return regulation and Price Cap regulation. The rate of return regulation sets the price at a level that enables a regulated firm to earn a specified target percent return on its capital which means the profit earnt is fixed. Price Cap regulation is the recent replacement for the rate of return regulation as this type of regulation acts as a price ceiling that specifies the highest price that a firm is permitted to set. This is a small benefit for businesses as they have increased control over their pricing methods but still have a limit."
Abstract This paper provides a general explanation of deregulation and then examines directly the Airline Deregulation Act of 1978. From there, the paper explores the effects the Act has had on the airline industry and how it affects the way the industry operates in the current environment.
From the Paper "One of the most significant events in the air transportation industry was the Airline Deregulation Act of 1978. This paper will review what deregulation, in general is, and then move specifically to the Airline Deregulation Act of 1978. From there, this paper will explore what effects the Act has had on the industry. By understanding these concepts, one can better understand the environment the industry now operates in, and how far it has come."
Tags: removes, regulations, businesses, encourage, governmental, control, passenger, transport
Abstract In this essay, the writer discusses how the airline industry has changed following its privatization after 1978. The writer contends that the Deregulation Act has revolutionized the industry for the better. The writer discusses the success of "boutique" airlines. The writer also examines the effect of the deregulation on the consumer.
From the Paper "Can designer uniforms, satellite TV, the disappearance of first-class signature potato chips and the promise of more legroom, counter-balance America's air travelers' displeasure with congested airports, airline safety standards and many flight's delayed tag seen on departure boards. No. However low fare prices can and have been the reason for much of the success America's airline industry has seen since when the government gave up determining the fares domestic airlines could charge and the routes they could serve, today boutique airlines such as Jet Blue ... "
Abstract This paper discusses the ethical considerations associated with the deregulation of energy, focusing on the electricity sector in the United States. The paper examines the issue from the perspective of both proponents (advantages) and critics (disadvantages) in order to attempt to ascertain if energy deregulation can be an ethical course of action.
From the Paper "How can we reconcile these positions? Democratic, local control of power production is certainly a noble, even ethically important, goal. But if deregulation only results in more corporate control of energy production with less public oversight, it is certainly not an ethical choice. Perhaps the most ethical and rational path would be to remove government's monopolistic control while retaining the public's capacity to oversee the energy market. If policies were put into place regulate the actions of especially the major energy producers while encouraging the development of local, alternative power generation, then it might be possible to achieve the ideals of the deregulation proponents while avoiding the dangers of corporate corruption."
Abstract Argues that deregulation created major economic, human resource and marketing disruptions in the industry. Examines background, pros and cons, examples, liabilities and funding ratios and consumer effects. Uses charts and tables.
From the Paper "CONSUMER EFFECTS OF AIRLINE DEREGULATION, AND EFFECTS ON COMPENSATION AND LABOR RELATIONS IN THE INDUSTRY
Introduction
Subsequent to the completion of the airline deregulation program almost 17 years, ago both the market structure and the ownership structure of the industry have been transformed. Deregulation brought about a rush of new airline companies into the industry. In 1978, the last full year of operation prior to the initiation of deregulation, there were 248 airline companies in the United States ("FAA Opens," 1985). By the end of the first full year of deregulation, there were 349 such companies.
By the end of the second full year of deregulation, however, some carriers-many old line-had failed or were on the verge of financial failure. By early 1983, the industry had ..."
This paper looks at the history of government involvement in the airline industry, noting that even with deregulation, the government still maintains significant regulatory authority.
Abstract The writer takes an historical look at the way in which the government has eased its hold on the airline industry. The paper shows how this form of deregulation has led the airline industry, which employs nearly two million people, to be overwhelmed with competition and the lowering of prices.
From the Paper "Economic deregulation has been described as ?? the state's withdrawal of its legal powers to direct the economic conduct (pricing, entry and exit) of non-governmental bodies.? (Winston, 1993, quoting Stigler). Regulatory reform has become a significant trend in economic policy since the 1970s. The airline industry stands out as a significant example of this trend: formerly almost completely regulated, it has been and continues to go through a process of deregulation and review pending possible re-regulation at both the national and international level."
Abstract The overturning of the Glass-Steagall Act has spawned numerous discussions and debates concerning the resulting effects. This paper reviews literature aimed at explaining the effects the FSMA has had on the values of commercial banks, investment banks, and thrifts, as well as the of effect of deregulation on corporate customers and the conflict of interest versus certification of value debates pertaining to commercial banks operating in the securities market.
From the Paper "Studies done to date, in respect to the deregulation of commercial banks, are not sufficient and in some cases may have missed the boat. For instance, the study conducted by Czyrnik and Klein included thrift stocks (a variable of seemingly little importance) and excluded corporate customers. It would be interesting to see the results of a similar study concerning FSMA's effect on the value of corporations who use investment banks compared to those who use commercial banks for underwriting IPOs. A study of this nature would serve well to examine the possible effects of commercial banks tying investment banking to credit offerings. Another possibility for a future study would be to interview investors with question regarding their perceptions concerning conflict of interest or certification of value that may or may not attribute to commercial banks engaging in underwriting securities."
Abstract This paper provides an examination of the impact of the deregulation process on Australian financial systems in general and the market shares of major institutions in particular. A summary of the research is provided in the conclusion.
From the Paper "As a result of fundamental changes that have taken place since the 1980s, there are two distinct and comparatively new features of Australia's economy today. First, there has been a reluctant acceptance of the vital economic and strategic significance of the Asia-Pacific region and a sharper awareness of the opportunities to be gained there; second, in spite of some resistance in some quarters, Australia's corporate, financial, political, and bureaucratic cultures have steadfastly embraced a more rationalist economic philosophy that seemed to accept as inevitable a comprehensive globalization and deregulation of the nation's economy."
