The Shutdown's Real Lesson: Too much of Economy Hostage to Government

By ktsdesign @Shutterstock

“The problem with the shutdown is not that President Trump is holding the government ‘hostage,’ as House Majority Leader Steny Hoyer said, but that the government has taken hostage of too much of the U.S. economy,” writes Chris Edwards editor of www.DownsizingGovernment.org at the Cato Institute, a Washington, DC.,-based think tank focused on limited government.

When security at the nation’s 450 commercial airports depends on the government—a shutdown matters explains Edwards pointing out that a spokesman for the TSA screener’s union said this Tuesday: “Some of [my members] have already quit and many are considering quitting the federal workforce because of this shutdown … The loss of officers, while we’re already shorthanded, will create a massive security risk for American travelers since we don’t have enough trainees in the pipeline.”

From Chris Edwards:

He’s probably exaggerating the risk, but political battles would not impact such important activities if they were separated from the federal government. Many advanced nations, including Britain and France, have privatized their screening or moved it to the control of local airports. If we followed suit, there would not be just one “pipeline” for trainees because airports could contract services from numerous companies.

It is a similar situation with our government-run air-traffic-control system. The spokesman for the federal controller’s union said the negative “ripple effect” of the federal shutdown may last months or years, while the head of the Airline Pilots Association said “the disruptions being caused by the shutdown are threatening the safe operations” of the nation’s airspace.

During the 2013 budget sequester battle, controllers were furloughed and thousands of flights were delayed before the politicians cobbled together a budget deal.

All of this is unnecessary. Dozens of nations have separated their ATC from their government budgets. Canada privatized its ATC system in 1996 as a self-funded nonprofit corporation. That structure has created financial stability, improved management, and generated innovation. The U.S. controller’s union has been so frustrated with federal budget instability and the slow pace of innovation under the current structure that it has backed Canadian-style ATC reforms.

E.J. Smith - Your Survival Guy

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E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.