Mutual Funds Make Air Travel More Expensive
News from Slate Magazine:

A plane arrives at O’Hare International Airport on May 19, 2012, in Chicago.

Photo by Kevork Djansezian/Getty Images

The great drama of our time is the rise of the 1 percent. Thomas Piketty has done more than anyone else to put this question on the public agenda. But while his book Capital in the Twenty-First Century documents the growth of inequality, he does not offer much of an explanation or a solution. He thinks that capitalism naturally favors investors over workers, and proposes as a remedy a global wealth tax, which no one thinks is feasible. Yet recent work by a brilliant young economist suggests that the problem is not capitalism per se, but the way our financial system is organized. The key to the problem—and to the solution—is the rise of the institutional investor.

Institutional investors are companies that own other companies. A familiar example is the mutual fund. A mutual fund owns shares of dozens or hundreds of co…………… continues on Slate Magazine

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Air Travel Cronyism Hurts Travelers
News from Human Events:

Our big three airlines—United, American and Delta—say they are being undermined by three airlines from the Middle East—Qatar Airlines from Qatar and Eltihad and Emirates airlines from the United Arab Emirates.

They say the Middle Eastern bullies of the airways are vacuuming up market share from them on some international routes because of help both from their own governments in the form of subsidies and ours in the form of loans from the Export-Import Bank.

Such government favoritism distorts the market and creates unfair conditions, they say. So they have asked Washington for – wait for it – government favoritism. The good kind, you know.

According to The Daily Signal (a news website operated by The Heritage Foundation) American, Delta and United have been lobbying the Obama administration through an organization they created known as Americans for Fair Skies to renegotiate their Open Skies agreements with Qatar and the UAE.

These agreements—the U.S. has more than 100, dating back 20 years or more—set the terms for how airlines can operate within the signatory countries in an effort to “eliminate government interference,” according to the State Department.

Americans for Fair Skies claims Emirates Airline, Etihad Airways and Qatar Airways have benefited from more than $ 42.3 billion in subsidies from their governments, which gives…………… continues on Human Events

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