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11.5.05

United Airlines gets bailed out...

I'm not sure when the federal government got into the business of funding pension benefits to employees of private companies, but I'm even more disgusted by another facet of this issue.

The federal government bailed out Chrysler in the 1970's, and it isn't even an American company anymore. I believe that American auto manufacturing would have benefited as a whole if the free market had driven Chrysler out of business.

Similarly, what if we have too many airlines, and by salvaging United the feds actually keep prices artificially too low and thereby cause the other airlines to lose money and finance themselves through more and more debt?

I am simple minded, but I thought the 'invisible hand' concept is one that we in America believed in...