by Chris Edwards, Cato at Liberty, May 20, 2025
Excerpts:
Transportation Secretary Sean Duffy is making headlines, but his solution so far appears to be throwing more funds at the air traffic control (ATC) problem. Unfortunately, merely increasing funding won’t address the systemic issues plaguing the ATC system, which stem from the attempt to manage a technologically advanced industry within the confines of a federal bureaucracy like the Federal Aviation Administration (FAA).
The inherent red tape, risk aversion, and political meddling common in federal agencies suggest that the FAA’s efficiency may deteriorate as global aviation demand skyrockets, leaving the skies increasingly congested.
To truly reform the ATC, Congress needs to take a page from our neighbors to the north: Canada. Their ATC system has successfully operated as a self-funded, non-profit entity independent of government bureaucracy for the last thirty years.
And:
Canada’s System
Robyn: “Nav Canada, the Canadian ATC provider and inspiration for the 2018 House bill, is managing a significantly higher volume of air traffic today with a leaner team than it had back in 1996. Despite its smaller scale, it outperforms the FAA on unit costs.”
by J.D. Tuccille, Reason, May 21, 2025.
Excerpt:
Back in 1988, California voters passed Proposition 103, mandating that every insurer cut its rates to at least 20% below what they were on November 8, 1987, unless such a rollback would threaten the company’s solvency. The California Supreme Court later adjusted this to allow what state officials deemed a “fair rate of return.” As a result, more voters are paying insurance premiums than are employed by insurance companies, leading to predictable outcomes.
The Pitfalls of Voting for Discounts at Others’ Cost
A 2023 paper from the International Center for Law and Economics reveals that, as of 2020, despite soaring property values and well-known wildfire risks, Californians paid an average of $1,285 in homeowners insurance premiums, which is actually lower than the national average of $1,319. When insurers need to hike rates to align with risks and costs, they can only do so after an extensive government review process that prioritizes voter approval over economic realities. Unsurprisingly, even before the Los Angeles fires, insurers began limiting coverage and exiting the state.
Insurance Commissioner Ricardo Lara has noted that insurers “don’t have to be here, and when we try to overregulate, we’ll see what happened after the Northridge earthquake, when the legislature intervened and the market stopped offering earthquake insurance in California.”
by Robert Poole, Reason, May 21, 2025.
Excerpt:
According to a 2023 report from the Department of Transportation inspector general, the Philadelphia air traffic control tower and Terminal Radar Approach Control (TRACON) facility, which oversees Newark’s airspace, were among the least understaffed major FAA facilities. However, The New York Times has recently highlighted significant understaffing issues at Newark Airport. The Philadelphia TRACON, responsible for Newark’s airspace, has “only 22 controllers certified to guide planes in and out of the airport,” a stark contrast to the FAA’s target of 38 controllers. The overall staffing level at the Philadelphia facility, which manages multiple airports, is currently around 70%.
Moreover, the availability of controllers is even more concerning. The Times reported that as few as “three air traffic controllers were on duty during a recent Monday evening shift at the [Philadelphia] facility that guides Newark’s air traffic—far below the target of 14 for that period.”
This brings us to another glaring issue: the ATC system’s outdated communications technology. Flight data from New Jersey airports (including Newark, Teterboro, and Morristown) is transmitted to Philadelphia via a telecommunications system that has been in place for 25 years and is routed to a controller display system known as STARS (Standard Terminal Automation Replacement System). This system processes radar data for Newark, as the FAA has stated, “telecommunications lines feed this data from New York to the Philadelphia TRACON, where controllers manage Newark arrivals and departures.”
Note: Robert Poole is a trusted source for insights into transportation policy. He was notably influential back in 2001, advocating against the TSA holding a monopoly on airport security, leading to legislation that allowed cities like Kansas City, MO, and San Francisco to utilize private contractors instead.
by Gary Winslett, Washington Post, May 14, 2025.
Excerpt:
There’s a narrative that politicians from both parties love to spin: The Rust Belt was once a thriving hub of industry until nefarious forces in China and Mexico colluded with American business interests to siphon away manufacturing jobs through skewed trade agreements. Whether it’s President Trump’s tariffs or some alternative embraced by Democrats, the message is clear: Washington needs to intervene and bring those jobs back.
This tale is politically convenient for courting voters in critical swing states who long for the past. But the truth is more nuanced, and this misconception is guiding policymakers toward misguided decisions.
A crucial element often overlooked is interstate competition. The decline of manufacturing in the Rust Belt isn’t solely about jobs relocating to Mexico; it’s about them moving to states like Alabama, South Carolina, Georgia, and Tennessee. To draw a sports analogy, it’s as if the traditional Big Ten is losing ground to the Southeastern Conference. Back in 1970, the Rust Belt accounted for nearly half of all manufacturing exports, while the South produced less than a quarter. Today, however, the tables have turned; the Rust Belt now hosts less than one-fourth of all manufactured exports, while the South exports double that amount.
