Wednesday, October 01, 2008

Markets In Everything. Not. Market Pricing To Relieve Airport Congestion Banned by GAO

From a previous CD post:

Proposition 1: Anytime you have congestion or shortages, it's almost guaranteed that market pricing is absent.

Proposition 2: Market pricing will almost always reduce or eliminate congestion and shortages.

WASHINGTON (AP) U.S. aviation officials have no legal authority to auction off takeoff and landing slots at airports, a scheme the government devised to try to curb crippling traffic jams at major airports, congressional investigators say.

Transportation Secretary Mary Peters proposed the auction plan after widespread complaints last year about rampant flight delays across the country. The government says two out of three flights delayed 15 minutes or more were due to cascading backups beginning at one of the New York metropolitan area's three airports: Newark, John F. Kennedy, and LaGuardia.

Trying to fix the problem, the government imposed new limits on the airports and announced plans to auction off some takeoff and landing slots to control the crushing demand for time and space. By auctioning slots, the government reasons, market forces will help restrain such demand and make the system operate more efficiently.

MP: Without market pricing, the congestion at airports during peak times will continue with 100% certainty.

4 Comments:

At 10/01/2008 11:55 AM, Blogger LibFree said...

They could even use the money generated to pay for next generation air traffic control

 
At 10/01/2008 3:17 PM, Anonymous Anonymous said...

YES! Markets for EVERYTHING. Markets in organ-transplants. There's always a 'shortage' of donors. Sounds like a great idea. If you have the 'purchasing power' you get a new heart. Don't? Well the invisible hand just choked the life out of you.

 
At 10/01/2008 3:33 PM, Blogger John Thacker said...

Markets in organ-transplants. There's always a 'shortage' of donors. Sounds like a great idea. If you have the 'purchasing power' you get a new heart. Don't? Well the invisible hand just choked the life out of you.

It seems to me that you already do need purchasing power to get a new heart, anonymous. Or are the doctors, nurses, hospitals, and insurance companies providing them for free these days? And even if they tried to provide them for free, there would still be a shortage.

Would it make you feel so much better about dying for the lack of available organs if you knew that, thankfully, no one had paid anyone to donate? How many additional people must die every year, anonymous, just to satisfy your sick preferences? Is it so much better that someone die rather than a donor get reimbursed?

 
At 10/01/2008 7:39 PM, Blogger Joe said...

I'm wondering why the New York airports don't have strategic pricing for time slots already. Maybe the federal officials don't have authority to impose this on them (which seems like a reasonable interpretation of the law), but these airports should be on the ball without federal intervention. Who runs these airports? Isn't it the New York City Port Authority that runs LGA and JFK? If so I'd say it's a failing of New York City government.

 

Post a Comment

<< Home