We all remember the bank bailouts of 2008, but almost nobody talks about the more recent COVID bailouts. $50 billion here; $25 billion there – pretty soon we're talking about real money. The airlines were one of several industries that enjoyed special treatment from the federal government on the grounds that they constituted an "essential business." What would happen if the airports shut down completely? Sounds scary.But the airline industry was never at risk of disappearing, notes Veronique de Rugy, a senior research fellow at the Mercatus Center at George Mason University. In a series of policy briefs co-authored with air travel guru Gary Leff, de Rugy shows the colossal waste of taxpayer dollars that took place while no one was paying attention. Rather than re-organizing under Chapter 11 bankruptcy laws, as businesses do all the time, inefficient airlines were able to keep paying dividends to their shareholders while less privileged businesses went under permanently.Now, politicians like Bernie Sanders are criticizing Southwest airlines for the debacle of its holiday cancellations (and he has a point)But what else should we expect from an industry that makes money whether it performs well or not?
Shining a Spotlight on the Stealth Airline Bailouts
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Shining a Spotlight on the Stealth Airline Bailouts
The Bob Zadek Show
Bob talks about the issues that affect our lives on a daily basis from a purely libertarian standpoint. He believes in small government, fewer taxes, and greater personal freedom.<br /><br />America has lost its way, but it cannot and does not need to be reinvented. Our founders were correct about their approach to government, as were John Locke, Adam Smith and the other great political philosophers who influenced them. The country’s first principles are economic and social freedom, republicanism, the rule of law, and liberty. Bob believes we must take the best of our founding principles and work from them because a country without principles is just a landmass.
Bob talks about the issues that affect our lives on a daily basis from a purely libertarian standpoint. He believes in small government, fewer taxes, and greater personal freedom.<br /><br />America has lost its way, but it cannot and does not need to be reinvented. Our founders were correct about their approach to government, as were John Locke, Adam Smith and the other great political philosophers who influenced them. The country’s first principles are economic and social freedom, republicanism, the rule of law, and liberty. Bob believes we must take the best of our founding principles and work from them because a country without principles is just a landmass.Listen on
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Shining a Spotlight on the Stealth Airline Bailouts