Industry Improvements least 30% in real terms since deregulation, and average prices for commercial and industrial customers have declined more than 30% In addition, service has been more reliable as shortages have been almost completely eliminated Economist Clifford Winston found substantial benefits from deregulation in the five industries he studied—airlines, trucking, railroads, banking, and natural gas Source: Clifford Winston, “U.S Industry Adjustment to Economic Deregulation,” Journal of Economic Perspectives 12(3) (Summer 1998): 89– 110 But there are forces working in the opposite direction as well Many businesses continue to turn to the government for protection from competition Public choice theory suggests that more, not less, regulation is often demanded by firms threatened with competition at home and abroad More and more people seem to demand environmental protection, including clear air, clean water, and regulation of hazardous waste and toxic waste Indeed, as incomes rise over time, there is evidence that the demand for safety rises This market phenomenon began before the birth of regulatory agencies and can be seen in the decline in unintentional injury deaths over the course of the last hundred years [4] And there is little reason to expect less demand for regulations in the areas of civil rights, handicapped rights, gay rights, medical care, and elderly care The basic test of rationality—that marginal benefits exceed marginal costs—should guide the formulation of regulations While economists Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 874