Earlier quoted context omitted.
The next step beyond the mail was the telegraph and then the telephone. Those were built out by private companies, but operated under a regulatory regime called "common carrier," which protected the network owner from liability so long as it charged and carried traffic from all parties equally. These days, that concept is called "net neutrality" in the context of the Internet, and I suppose you may have heard it ment…
I think your point is generally spot on, but I wanted to nitpick at this one: > airlines needed it No, they didn't. Regulation of fares, routes and market entry of new airlines kept prices artificially high until airlines were deregulated in the late 70s. Quoting from Wikipedia ( https://en.wikipedia.org/wiki/Airline_Deregulation_Act#Effec... ): "A 1996 Government Accountability Office report found that the average f…
A jet airliner's takeoff weight is over 50% fuel.
Robert Gorden inThe Rise and Fall of American Growth:
surprisingly, the period of most rapid decline in the real price of air travel occurred before the first flight of a jet plane. As shown in figure 11–10, the price of air travel relative to other goods and services declined rapidly from 1940 to 1960, declined at a slower rate from 1960 to 1980, and has experienced no decline at all in its relative price between 1980 and 2014. The growth rate of passenger miles traveled has mirrored the rate of change of the relative price except with the opposite sign, because lower prices stimulate the demand for any good or service.
The accompanying figure shows not merely a modest rise, but a sharp spike in airline pirces in 1979.
https://i.imgur.com/uykLMUa_d.jpg
Among Gordon's economic specialisations is the aviation industry.