Customer Reviews

Industry Regulation & the Performance of the American Economy

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Mr. MacAvoy presents an enlightening study of how regulation (specifically in the 60's, 70's, and 80's) has affected the GNP of our country. But, be warned, this is not your high school economics class.

Instead, it would be beneficial for the reader to have a very good grasp on economic principles, and some economic specifics such as rate of return, capitalization, and price ceilings. Not to say that it can't be read, pondered, and enjoyed without having a sound, college-level macroeconomics course; but it may be helpful.

Overall, Mr. MacAvoy presents a strong case for deregulation. It may be thought that regulation by OSHA, the EPA, and the Civil Aeronautics Board (now defunct) can save us from pollution, monopolistic pricing, and dangers in the workplace. This book shows how these organizations have not only failed on those objectives, but have adversely distorted the market and pulled down the economy in the process.

One complaint about this book is that it tends to be a bit dry. Fortunately, it is short.

Another complaint is that the edition I have (1992) is a bit dated. I would love to see an updated copy in print showing how regulation in the 1990's has affected the same areas that this book has covered (communications, railroad, airline, environment, workplace safety, etc.) Have we learned from past mistakes?

"Industry Regulation and the Performance of the American Economy" is an concise, economic analysis which shows how the ideals that we want to promote rarely meet up with the reality of regulation and performance. A worthwhile. if a bit tedious, read to anyone who either makes public policy or would like to influence public policy from an informed standpoint.