>Howard Hampton is the leader of the Ontario New Democratic Party
>(the leading Canadian political party of a social democratic
>orientation). In the article linked below he blames recent blackouts
>(not just last week but over the last few years) on deregulation.
>I'm curious to know what economists on this list think of his
>arguments. Is he right? And if so, can the recent blackout be used
>as wedge for launching a more broadly based critique of neo-liberal
>policies in North America?
>
It should be, but I'm not optimistic. Our airline industry is a wreck. It's had several brushes with disaster - the recession of the early 1990s and the post-9/11 and recessionary environment of the last two years - and the industry is on the verge once again of slipping into cumulative loss (i.e., the sum of profits and losses since the commercial airline industry was born is about to head into the red, which it last did about 10 years ago). Airlines have disappeared, a number of lines are now in bankruptcy, flying is often confusing and expensive. Despite claims to the contrary, fares have fallen no more rapidly since dereg than they did during the regulated era. Yet no one even suggests that airline dereg has failed. God bless America.
Doug