Business lesson – government regulations result in price increases

Maybe some people are OK with this, but I’m going to continue to point out government regulation of private business results in higher prices. When government mandates a specific service, do you think that the business will just cover the extra cost? It does not work that way, and those flying on Air Canada and WestJet will soon be seeing price increases as a result of a recent Supreme Court ruling.

From Canada.com.

Canada’s two largest airlines must give disabled and morbidly obese passengers an extra free seat on domestic flights, beginning in January, after the Supreme Court refused yesterday to consider the carriers’ appeal of a federal order.

To be up front about the costs, the Canadian Transportation Agency says the mandate would result in fare increases of less than $1 per seat, but that is not really the point.

Where does the regulation stop?

There are plenty of other government mandates that simply raise the prices that we pay for goods and services including minimum wage increases, higher business taxes, higher property taxes and environmental regulations.

Think about that during your companies open enrollment period this year. Wondering why your health insurance premiums are going up?  Take a close look at government mandates and new required coverages demanded of health insurance companies.

8 replies
  1. Gary the socialist
    Gary the socialist says:

    Folks as always i say if you want to live in a land of no regulation and no goverment oversite for the greater good please do consider Mogadsa in Somila both in the past and future or America of the early part of the last century and the factories and remember what happened where was it Penn. and the towers of smog or maybe the berruit of past before they had a working goveremnt or maybe Afgeanstane and rule by the relgious right there or Irag with out a goverment before The army stayed in both of those places to build up a goverment to help make it a more peaceful propreses country .Reamber this is the only Goverment we have and for the 99.99% of you with out the goverment you would not live the standerd of living you do. Never forget it is your taxes dollars that educated you to make you worth while to employers it is your tax dollars that make the roads and briges that business ships there goods through it is your tax dollars that arm the army and navy that protal the water ways to stop pirents and your navy that is guarding a russian tanker for the last several months and it is your tax dollars that let state and federal agencys do there bussiness to help company be it regulations that set standers or the ageny of pantents and the epa that keep dis honest company at the same level as honest business and it is a moin wage that keeps the playing field leval so companys can compete if not for this then there would be no need to guard the borders . America and it's strong Goverment for the People by the People. So do not fear the cry of regulations they are there more to keep companys honest with each other then they are ever going to hurt you.

  2. Dave in EH
    Dave in EH says:

    I thought you said you were an anarchist, Gary… and, yet, here you are, arguing for government micro-management… odd, that.

    But, seeing as you cannot discern the difference between anarchy and chaos, perhaps the point is moot.

  3. Erik
    Erik says:

    This is an exercise in social engineering. People are trained to be disablingly fat. The consequences of morbid obesity are subsidized by the masses.

    Next people with restless leg syndrome will get more room, then everyone claims restless leg syndrome, and costs skyrocket.

  4. Dave in EH
    Dave in EH says:

    I would disagree partially with that, Erik, or perhaps disagree semantically is a better way to phrase it… Society tries to educate that the standard of beauty is thin… even too thin, if you believe the European's knee-jerk need to regulate their modeling industry in some states. They do, however, via their industrial subsidies, subsidize obesity.

    The problem is that, in this day and age, we have educated people that the problems in their lives are not their fault and that the world must be made to accommodate these newly-minted "diseases." Responsibility would seem to be out of fashion, these days.

  5. Steve
    Steve says:

    Remember that this is not just about obesity, I'm using this as an example as how excessive government regulations increase costs for everyone.

  6. Gary the socialist
    Gary the socialist says:

    Here you go again Dave in EH. You once more do not leave a comment but go after those who do. I do wish you would get it straight I have never said I am an anarchist, that was Bill Oreilly and as I said he all said that there is not part of our goverment that he likes or trusts or something to that affect.So dDave back to the story what are your feelings on Regulations and please explain are you for none, some ,those that you personel feel are ok and I would for once love to see you adddress the story with own your comments before going at those that do leave comments.
    .

  7. Dave in EH
    Dave in EH says:

    Gary, as a self-proclaimed anarchist, this sort of petty regulation should be anathema to you. Is a little intellectual consistency too much to ask of you?

    Likewise, your cries of my being off-topic ring slightly hollow, given your tendency to meander to the tune of your own accordionist.

    But, that all having been said, to address the topic, if a person is going to take up the space of two and have the weight of two, why should they *not* pay the price of two? At what level, in your mind, does the intrusion of the government become too much? Police security cameras on every corner? In every house?

    As for my post, if you knew the difference between anarchy and chaos, you'd realize it was addressing your errant comment about "Somila."

Comments are closed.