Why is the government handing out money through subsidies and regulations to preserve dying industries? The living and progressing industries are forced constantly to pay taxes, which keep dying industries alive. As Hayek, in the book “Economics in One Lesson" illustrates, do we keep the ‘horse and buggy’ industry alive because it is dying or do we support the growth of motorized vehicles? Perhaps many of the loans and help granted to such dying industries are because of special interests and the “good ol’ boy” attitude towards friends in high places.
Not only does the practice of subsidizing and regulating some industries promote “keeping the dead alive” but it prevents competition which can and will hurt consumers in the long run. The article "The Price of Deregulation: Subsidies" explains what happens in the long run when subsidies and regulations are taken away. “Just between 1976 and 1990 the estimated savings from deregulation were $5 billion to $10 billion per year (in the airlines industry). Taking the low estimate, that’s $70 billion in savings over just 14 years—and that’s just lower ticket prices. Add in better routes, safety, customer service, innovation, and 14 more years of low prices to the present, and that total’s much larger.”
It’s time to start deregulating and let the ‘horse and buggy’ industries die away. Sure, it will hurt in the short run but it will benefit us all greatly in the long run.