Airline deregulation in the late 1970s led to expanded cargo service, generally reduced cargo rates, and spurred substantial innovation in the types of services offered. In particular, nationwide overnight shipping became more affordable and virtually ubiquitous. The unanticipated nature of some of the results of deregulation in the 1970s suggests the possibility of further gains awaiting discovery in other regulated areas, including those portions of the air cargo industry that remain regulated.
This week’s charts use data from a National Public Radio compilation of public Department of Defense records of grants issued to state and local law enforcement bodies through its Excess Property Program, also known as DoD 1033. The charts display the total value of all known grants to municipalities in real 2013 dollars along with the total value and number of mine-resistant and combat vehicles distributed from 2006 to April 2014.
Congress has a diverse array of proposed regulatory reforms vying for attention, from targeted reforms aimed at providing relief to small businesses to broadbased reforms of the rulemaking process. Setting priorities will be a challenge, but the common objective is clear: solving more problems at a lower cost with fewer regulations.
In a new study for the Mercatus Center at George Mason University, economist Robert J. Michaels reviews possible economic rationales for compelling electricity users to spend more on efficiency than they otherwise would. The study shows that some benefit-cost tests that have been used to evaluate the Ohio programs are inappropriate and that other data purportedly showing SB 221’s success are far less clear than many believe.
Policymakers need to reconsider whether the nation’s best interests are served by the current expansive global military presence. Limiting American military presence overseas would not only benefit the nation, it would also help control runaway DoD personnel costs.
When market circumstances change dramatically—or when new technology or competition alleviates the need for regulation—then public policy should evolve and adapt to accommodate these realities. This paper concludes with some proposals for further research in this area, and a call for a more informed regulatory approach that accounts for the innovations of the sharing economy.
Unmanned aerial vehicles (UAVs), commonly referred to as “drones,” have gained media attention over the last several years with much of the focus centering on their military uses and their emerging role in newsgathering. News organizations, journalists, and private citizens have employed UAVs to capture and share breaking news, to provide glimpses of natural disasters that would otherwise be too hazardous for journalists to obtain, and to offer unique perspectives that enrich news storytelling.
In a new study for the Mercatus Center at George Mason University, scholar Alexander William Salter examines several different proposed rules that the Fed could follow. Salter provides a framework to help policymakers better understand how incentives and information can affect monetary policy and discusses discretion-based and rule-based approaches to monetary policy.
This week’s chart shows per capita discretionary, mandatory, and net interest spending as a share of total per capita federal spending (real 2014$) since 1962. Rising government spending has largely been fueled by increases in mandatory spending, though there are pressures to push discretionary spending, as well as expenditures on net interest, higher in the foreseeable future.
Professor of Public Policy at George Mason University Kenneth Button shares the story of how air cargo deregulation in the 1970s paved the way for low-cost, reliable overnight shipping, which in turn allowed for groundbreaking new e-commerce businesses like Amazon and eBay. These innovations enable everyone to get their presents on time for the holidays – almost as fast as delivery by Santa himself!
Please join us for lunch with Mercatus Center Senior Research Fellow Jason Fichtner to discuss pro-growth policy options. He’ll also address the research and ideas Mercatus shares with policymakers in order to advance the debate on economic issues.