Tuesday, August 25, 2009

Capitalist engine 082409

Most of America’s airlines now charge exorbitant fees for every checked bag. According to industry analysts these fees add over $600 million to airlines’ bottom line. Airlines also limit the number and size of carry on bags to the point that a change of underwear requires at least one checked bag. This is highflying capitalism’s engine for economic recover.

Airlines are sharing their economic innovations. By losing up to 50 percent of checked bags passengers are forced to buy new clothing for important meetings or strolls on vacation beaches. Because they are strangers in town without transportation they buy at inflated prices in airport and hotel shops. Searching for discount clothing entails a cab, a fuel surcharge and a tip while trusting the cabby to find the nearest “bargain.”

All these new purchases drive economic growth as merchants, truck drivers and manufactures get a piece of passenger pie, or is that hide? Taking the new duds home requires a new bag (luggage industry must get its share). When checking out of the hotel the airline delivers the lost bag so the passenger now has two bags to check and the second at a higher cost.

If 20th century passenger rail had been as creatively capitalistic it might not have failed. Airlines continue to innovate exploring the possibly of no seats allowing passengers the freedom to stand during flight. Possible future innovations could be all nude passengers with no bags for expedited boarding and no lost bags.

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