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.
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.
The development of communication networks along with the rapidly expanding use of smartphones has resulted in unexpected innovations, revolutionizing taxicab and transportation services. Two new firms, Uber and Lyft, offer a particularly novel transportation service by providing car-share and taxi services via cell phone applications and GPS.
A lame duck session of Congress occurs when legislators meet after an election has been held but before the next Congress has taken office. Lame duck sessions are often criticized by the victorious party in the election, and a common critique is that the lame duck members—undisciplined by electoral constraints—vote irresponsibly. There are subtle but statistically significant differences between voting patterns in regular and lame duck sessions, as revealed by analysis of over 50,000 House and Senate roll call votes.
RegData 2.0 offers three simple and replicable measures of regulation, each created with custom-made text analysis software run on the annual Code of Federal Regulations. This sector brief presents these statistics for five different federal regulatory agencies that are relevant to the railroad industry: Federal Motor Carriers Safety Administration, Federal Railroad Administration, Mine Safety and Health Administration, Occupational Safety and Health Administration, and Pipelines and Hazardous Material Safety Administration.
State and local governments often turn to increases in sales taxes to generate added revenue. Estimates of fresh revenue from the higher tax tend to be overly optimistic, partly because the number of sales tax exemptions tends to rise with the rising tax rate.
The recent decline in federal deficits should not create a false sense that the national debt is no longer a clear and present threat. While this improvement may be encouraging, it represents only a temporary respite from the government’s growing fiscal imbalances.
Instead, policymakers should focus on more direct, effective, and less problematic solutions to reduce the tangle of regulatory burdens encountered by craft brewers. Eliminating regulatory burdens for all firms would allow brewers to succeed or fail on the basis of their ability to provide the greatest value to consumers at the lowest cost to society.
Removing the federal tax deduction for state and local taxes would make taxes more equitable throughout the nation, as both high-tax and low-tax states are treated equally by the federal government. It may also provide an efficiency boost for states and localities, as they abandon some services that could be better provided by private companies. The removal of this deduction would also allow federal marginal tax rates to be cut across the board, providing a secondary boost to the economy while still remaining revenue-neutral at the federal level.
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.