The Deregulation Act Of The United States

According to the Bureau of Transportation Statistics, the airline industry experienced losses from 2001 to 2004. In 2005, the industry was profitable for the first time in four years and stayed profitable through 2007. The economic and financial crisis in 2008 took a toll on the industry, causing a few airlines to file bankruptcy. The improvement of the economy in 2009 and 2010 helped the industry get back to profitability. Airlines were using tactics to increase revenues, including charging baggage fees, charging for food and drinks on board, and some airlines charged additional fees for seats with more leg-room. The large increases in revenues helped to offset the higher fuel costs, helping the companies achieve profitability.

The full name of the bill is the Dodd-Frank Wall Street Reform and Consumer Protection Act, but it is mostly known as Dodd-Frank. The Dodd-Frank Act is a United States federal law, which is divided into sixteen titles that places major regulations on the financial industry with the purpose of restraining another major financial market collapse. The stated aim of the legislation is: “To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes” (Thomas, 2010).

Regulations imposed on the motor carrier industry have two sided effects on the US economy. The motor carrier industry is a vital aspect of the US economy, transporting goods all across the world. First let’s explore the term regulation this is a law or rule placed into effect by the Federal Motor Carrier Safety Administration (FMCSA) this administration creates and implements the regulations for various reasons, safety, driver qualifications, hours of service, fuel costs and fuel standards and emissions. As with anything when enough restrictions are applied the effects often mean a loss in economic growth. After 9/11 the transportation industry was

Gas economy in today’s times has been one of the major issues that the U.S government has been trying to solve ever since the auto industry had a financial and economic effect in your economy. Now the government must intervene in this Keynesian economist mode of thought in order to get the economy into equilibrium of aggregated demand and short-run aggregated supply. During this time the expectations for vehicle purchases were at an all-time low due to the expectation of the consumer of not making enough wages to cover their financial need. In order to stimulate the economy the government had to promote more spending by creating supply and demand for more fuel-efficient vehicles, trying to keep fuel prices at descent price and

On the morning of September 11th 2001 the United States was attacked by a series of coordinated terrorist attacks and, as a result, thousands of people died that day. After that event took place, tens of thousands of people came together to form a new agency called the Transportation Security Administration, or TSA. Being passed on November 19th 2001, the TSA began taking charge of the aviation security programs that were run by the Federal Aviation Administration (FAA), by training, hiring, and deploying security forces to all of the commercial airports within 12 months and providing 100 percent screening to all luggage in search for any explosives by December 31, 2002.

Ever since 9/11 the safety of a plane and its people has been every airlines top priority. There have been many changes in how an airline runs, some temporary and some everlasting. New advancements in machines for checking bags and people has sky rocketed. For example metal detectors, X-Rays and trace portal machines, all which check the human body for hidden metal and traces of bomb making material. There have also been added safety rules to create stricter guidelines on passenger and luggage screening, only passengers with tickets could go through security and travelers must remove shoes (Villemez 1). Liquids are no longer allowed on the plane unless distributed by the stewardess when you arrive on the plane ( Villemez 1).

Many years before the Federal Aviation Act was created, the airline industry grew with little to no rules for safety. The skies filled with aircraft each year, always adding more numbers than the previous years. Imagine an aviation world where safety was never even thought of. How do we control and monitor all the aircraft in the skies to ensure they all reach their destinations safely. What if airline regulations never existed? Would aircraft just fly till parts literally fell off? Who would be the responsible party to clean up after an aircraft accident? These are the reasons that the Federal Aviation Administration was created.

The Federal Aviation Administration (FAA) along with the Department of Transportation (DOT) controls every facet of aviation. The FAA regulates everything from pilot license requirements to new aircraft certification where “safety” is first 100% of the time. While this sounds good to normal people, the relentless pursuit of “safety” requires airlines to spend millions of dollars every year to keep up with new regulation and operating requirements. The statistics that show fatalities per flight mile traveled are infinitesimally small and have been since the 1960s. Often times the marginal cost of new FAA safety regulation as compared to the marginal benefit of those safety regulations measured in accident incidence per flight mile flown are statistically insignificant. Meaning the new safety regulations really don’t make flights any safer, but do cost the airlines millions of dollars. While the FAA regulatory system is a much needed check and balance, the consequence is that airlines must pass down the increased cost of complying with the safety regulations to the passengers As they continue to muddle through the labyrinth of new regulations on a continuing base, the airlines face a major concern for their bottom line going forward.

“When a station receives a load of gasoline, an invoice is generated that list the price of gasoline by grade. The price will be determined by the prevailing wholesale cost at the time of delivery, the freight, and federal, state and local taxes applicable to the station 's location” (DeCostanza, P1). Labor expense is also factored into the estimation of the cost of gasoline at gasoline stations as a baseline.

The subsidisation of fuel has been a worldwide phenomenon since the volatility of fuel prices began to significantly affect economic interactions within and between local, national and international economies. Whilst originally intended to benefit society, they have since been labelled by some as “the world 's dumbest transportation policy” (Morris 2014 p. 1), due to their widely entrenched and long-lasting economic repercussions. However, proponents continue to maintain that they are a valid economic tool. Claimed advantages of subsidies include the perpetuation of societal stability, creation of economic benefits and the generation of positive externalities. In contrast, claimed disadvantages such as the deadweight loss to society, the

Should our government regulate the fuel economies of our automobiles or should this be left up to the market? The Corporate Average Fuel Efficiency (CAFE) standards that were implemented in the 1970s contributed to great improvements in vehicle fuel economies. While we have environmental and political reasons to want cars with better fuel efficiency, there are also costs involved. The declining fuel economies of the last fifteen years seem to reveal that many Americans are not willing to bear these costs. Still, the vehicles that we drive today may be a misrepresentation of our true values. We may value environmental quality and/or independence from foreign oil, but sometimes our individual

Surprisingly enough, the corroboration that the real cost has not declined after the act does not relate to airlines profit. Steven A. Morrison, the chair of the Department of Economics at Northeastern University, discusses the deregulation affects in his article. Although he evaluates deregulation to be good for the consumers, he argues that the deregulation act has been detrimental to the airlines despite the increase in load factors. Deregulation has created ever-increasing competition that even after mergers, increased efficiency and load factors, the continuous pressure of keeping fares low has resulted in losses for the airlines. His remarks address the airlines’ concerns over the costs. This emphasizes that deregulation has not only harmed the consumers, but also the airlines.

Airline industry is a growing and a challenging industry across the globe and it is becoming more competitive on quality, pricing and most prominently safety in the contemporary world.

One of the industries that was hit the hardest after 9/11 was the airline industry because the airlines did not plan for the risk of their airplanes being hijacked because it seemed so unlikely that an event like this could happen. From reduction in demand to the new air security procedures, the industry has never been the same. An immediate effect of the terrorist attack was seen when the airlines shut down completely for several days due to the event. Even after the airlines reopened a majority of the nation felt uneasy about using airlines as their mode of transportation in fear that the event could happen again. USA Today said that “airlines experienced at least a 30 percent reduction in demand during the initial shock period”. The industry was faced with a dramatic reduction in demand and passengers canceling their flights, and was now faced with the issue of having to increase spending on security. The United States congress had to step in and help the industry and give over ten billion dollars in loans, and even after congress gave loans several airlines still had to declare bankruptcy. One of the airlines that declared bankruptcy

There have been various steps across the globe directed at improving aviation safety. This is done by engaging in partnerships with the various manufacturers, regulators, operators, unions, and other stakeholders in the industry. The most feasible way of dealing with aviation safety is to analyze the main factors that cause risks within the aviation sector, these ranges from human factors and outdated equipment to recent threats like terrorism (Caldwell & Williams, 2012). Insecurity leads not only disruption of the business of airline companies but also loss of lives and this is unacceptable. There should be systems to ensure all the security lapses within