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Sunday, April 18, 2010

Role of Government?

The United States government will now protect us from the unsightly menace of.......

Carry-on baggage fees!


Does the government really need to do anything here? If an airline wants to charge a fee for carry-on baggage and you do not want to pay the fee, what is stopping you from going to another airline. Charging for carry-on baggage could also be more efficient. In this case, Spirit Airlines has actually dropped ticket prices more than the new fee costs, so what is the big deal. They wanted to experiment with this new pricing method and I just do not see any reason why the government should punish them for it with taxes. If it does not work, the market will punish them for it and the government can focus on other things.

Also on CNN.

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