Dr. Bailey was a strong supporter of deregulation and, as he put it, “freeing the airline industry from the tentacles of restrictive government.”
Economist Elizabeth (Betsy) Bailey died on August 19. He was one of the key members of the Civil Aeronautics Board that helped deregulate the airlines under President Carter. Carter nominated him in one of the Republican slots.
Why should I call her Betsy? Because I saw her speak once—I can’t remember—where—in the mid-to-late 1970s, and she encouraged the audience to call her Betsy.
Here are some great quotes The Washington Post obit:
“I think we should rely more on market forces to determine the value and diversity of air service,” Dr Bailey told The New York Times after his appointment to the panel. “What’s very exciting about joining the board at this time is that I can point out what regulatory reform is – taking the regulator out of making every little decision about how much a ticket will cost and leaving some things to the market. “
“There are a lot of people who didn’t have enough money to go to Europe,” he added. “The idea of offering low fares and special services is really attractive. I just wish I was on board [sooner]”
“I know a lot of people who are fed up working for the government. I never had that experience,” he told Forbes in 1983, reflecting on his time on the Civil Aeronautics Board. “Actually, I’ve never had so much fun professionally as deregulating the airlines. Every time I step on a front. [discount] I can get some of the benefits of my work in Washington on the flight.”
Elizabeth E. Bailey once reported for a meeting at Bell Laboratories, where she headed economic research in the 1970s, when a male executive directed her to take notes in the back of the room. He assumed she was a stenographer.
HT2 Tyler Cowen.
Here is David R. There are two articles on airline deregulation in Henderson, ed. Concise Encyclopedia of Economics:
1st ed.: Alfred E. Kahn, “Airline Deregulation.”
2nd edition: Fred L. Smith, Jr. and Braden Cox, “Airline Deregulation.”