By Robert A. Vella

The dangers of corporatism (i.e. the close association between big business and government) have been discussed repeatedly on this blog.  It is by far the greatest contributor to political corruption in America and elsewhere.  And, it’s getting worse by the day.  The following story provides an illustrative example of just how pernicious this problem really is.

From ProPublicaThe American Way – President Obama promised to fight corporate concentration. Eight years later, the airline industry is dominated by just four companies. And you’re paying for it.

Three years ago, the Obama administration unleashed its might on behalf of beleaguered American air travelers, filing suit to block a mega-merger between American Airlines and US Airways. The Justice Department laid out a case that went well beyond one merger.

“Increasing consolidation among large airlines has hurt passengers,” the lawsuit said. “The major airlines have copied each other in raising fares, imposing new fees on travelers, reducing or eliminating service on a number of city pairs, and downgrading amenities.”

The Obama administration itself had helped create that reality by approving two previous mergers in the industry, which had seen nine major players shrink to five in a decade. In the lawsuit, the government was effectively admitting it had been wrong. It was now making a stand.

Then a mere three months later, the government stunned observers by backing down.

3 thoughts on “A Lesson in Corporatism: Government collusion revealed in recent Airline Industry consolidation

  1. Whether it’s gouging fares or bullshit security measures at airports, the power to make change has always been in the hands of the sheeple. All that was needed was a simple boycott. How long would it take for security people to vanish; for fares to plummet if for a week no one showed up at the “terminal”? It’s always up to the sheeple, but it’s the one thing they will not do: stand up for themselves through simple non cooperation, non-spending and no show. I haven’t taken a single flight since “Homeland security” forced itself on airline passengers. I just did a bit of reorganizing of my personal life and I’m very glad I did. Life without the BS is very good. I don’t feel a bit sorry for people who get gouged by airlines, theaters or drive-thru businesses. Grow up, sheeple, take responsibility for yourselves once in a while.

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