Home » Carter on the rails vs. Obama on the skids: failing industries and deregulation

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Carter on the rails vs. Obama on the skids: failing industries and deregulation — 20 Comments

  1. -perhaps you could give us a railroad song clip to compensate for your lack of historical knowledge…

  2. Neo : Seems to me there are a number of lessons here, the first of which is that government bailouts without significant government deregulation of unreasonable mandates and taxes hampering a failing industry are doomed to fail themselves, and all such bailouts will therefore be a waste of taxpayer money.

    Yes! There is no point in handing money out to GM and Chrysler if it goes to all the union mandates. Sorry guys, the gravy train has to end. One way or another it will end: either with the collapse of the auto companies or with the auto companies surviving with greatly reduced union mandates.

  3. Neo,

    I couldn’t agree more. I believe, however that while focusing on Jenkins’ excellent analysis, you should have quoted the most important observation in the article where he explains incoherent govt policy as:

    “. . . the impossibility of reconciling stiff fuel mileage mandates with gasoline prices set by the market, with a domestic labor monopoly, with a high degree of openness to international trade. (You can have three, but not four.)”

    I believe that this point is the real key to both Jenkins’ article and to understanding why Obama’s policies will ultimately fail.

  4. There have been calls for rate re-regulation from major rail shippers–I picture the CEOs of large agribusiness and chemical companies marching arm-in-arm, while singing old Grange songs about the iniquities of the railroads. The danger, of course, is that such re-regulation will again bring railroad profitability below cost of capital and inhibit further investment.

    BTW, an excellent book about railroad life circa 1980 is Linda Niemann’s “On the Rails” (my review here.) The author got a PhD in Engish before taking a job as a railroad brakeman, and she writes wonderfully well.

  5. Thank you for pointing out this positive information about President Carter. Now I feel slightly less guilty for having voted for him.

  6. Ozyripus: Hey, I voted for him too—twice. So it’s my duty to point out any good thing the man may have done.

  7. In 1980 [during the Carter administration], Congress passed the Staggers Act

    Cool. Why don’t we call all their bills that?

  8. Years ago there was a Game called Tycoon wherein you built yourself a railroad.

    The included booklet gave the histories of many of the old American RR tycoons, and I noted that the only one who avoided bankruptcy was the one (Hill) who didn’t take any help from the federal government.

  9. Also, everybody didn’t take passenger trains all the time.

    Everybody used phones so when the feds took over the phones it lasted until the next election, proving that congressmen are occasionally trainable.

  10. And blue lights came through little holes in the overhead of the sleeper berth and looked like stars. A gentle rocking, a long, low train whistle, and stars.

    Plus a friendly porter who joshed with a six tear old.

    Boy! I’m glad THAT’s over!

  11. Nolanimrod Says: Years ago there was a Game called Tycoon wherein you built yourself a railroad.

    the game was Railroad tycoon. by sid meier..

    and guess what?

    the company that made it made later ones that people dont like as much..

    but, they put the old one on their website and updated it for new windows, and you can play i now for free… yes FREE..

    but dont play too much, I like commentary 🙂

  12. oh, and if those guys didnt build the railroads and such the way they did, what would the greenies have to lambast us for not using?

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