Public vs. private
Posted by aogFriday, 20 November 2009 at 22:38 TrackBack Ping URL

Here is a fine example of how regulations put in a for an obtensibly good reason end up making this worse, not better. UPS is fighting with FedEx about their industrial classification. UPS is classified in a way that makes it vulnerable to unionization, while FedEx is not. It’s a rather, in my opinion, arbitrary classification although it was originally done to protect “critical transportation” from unions1. The end result is that these companies now compete not by improving themselves, but by trying to impoverish each other through lobbying in Washington DC. This is not an aberration, but the almost inevitable result of overly detailed government regulation for a “good reason”. Is this really what we want?

1 I will leave the entire subject of why a nation must protect its critical functions from unions by the side.

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