The price of government interference in markets
Tuesday, February 19th, 2008 By David HansenThe Dispatch reports on how Skybus, an economy start-up airline benefiting from some $57 million in government subsidies, has crowded out service to Columbus by other airlines.
I wonder how the Columbus-based employees at Midwest, Delta and JetBlue feel about losing hours and pay, or even their jobs, to Skybus, espcially when the taxes they pay were used to subsidize Skybus and give it a financial advantage over their own employers.
The rest of us will pay a price for this particular government encroachment into the private economy as well. While Skybus may still service the routes dropped by other airlines, Zagat rated Midwest and JetBlue first and third respectively for overall airline quality among economy carriers. Having flown Skybus for business and pleasure, and as many in Central Ohio can attest to, it may be cheap and interesting, but it is not a quality service.
For many traveling to and from Columbus, Skybus would not be their first choice. Thanks to state and local government, however, it is more frequently now their only choice.
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April 5th, 2008 at 2:45 pm
[...] government shouldn’t be in the business of investing your money to “create jobs.” As the Buckeye Institute reported, Skybus received $57 million in government subsidizes. And a number of higher quality airlines were [...]
April 5th, 2008 at 5:15 pm
[...] problem with his argument, and that of the Buckeye Institute as well, is that little if any tax money went to SkyBus directly. Certainly nothing near the $50 [...]