Alex Tabarrok wrote:
> 
>     The President has authorized some 15 billion dollars to bail out the
> airlines and now travel agents and a host of others are asking for help
> also.  Question: Is there any economic defense for this sort of action?
> After all, if the demand for air travel has fallen then isn't the
> optimal response to reallocate resources from the airline and related
> travel industries into other industries?

Especially when the negative externality of flying has been shown to be
far bigger than anyone imagined!  
-- 
                        Prof. Bryan Caplan                
       Department of Economics      George Mason University
        http://www.bcaplan.com      [EMAIL PROTECTED]

  "Familiar as the voice of the mind is to each, the highest merit we 
   ascribe to Moses, Plato, and Milton is, that they set at naught 
   books and traditions, and spoke not what men but what *they* 
   thought. A man should learn to detect and watch that gleam of 
   light which flashes across his mind from within, more than the 
   lustre of the firmament of bards and sages." 
                --Ralph Waldo Emerson, "Self-Reliance"

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