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In the Name of Deregulation.(Brief Article)
In the Name of Deregulation Alfred E. Kahn, Whom the Gods Would Destroy, or How Not to Deregulate, AEI-Brookings Joint Center for Regulatory Studies, 1150 17th Street N.W., Washington, D.C. 20036.
From the failure of new local telephone companies to compete against the Big Bells to the electricity crisis in California, it seems that "deregulation" is the culprit for a wide variety of economic woes. But Kahn, a Cornell economist who led the effort to deregulate airlines in the 1970s, suggests that one ought to look carefully at what today's regulatory agencies mean by "deregulation." Far too often, he says, these agencies "regulate pervasively in the name of `deregulation.'"
Consider the recent mergers of giant telephone companies SBC and Ameritech. In both cases, the FCC imposed all sorts of requirements before the merger to benefit the urban and rural poor and the underserved. If the firm fails to meet the ...
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