Slack (2021) describes rail deregulation in America as an excellent example of how a policy change can significantly impact an industry's economic health and how its structure can be altered. The policies that were created in the first rail operational years were meant to control monopoly and ensure easy access in the industry. However, there was a need to reform the sector due to its imminent collapse. This is after the railroad's share of all intercity freight movements dropped by forty percent by 1975.
The first policy shift included the Railroad Revitalization and Regulatory Reform Act of 1976 that relaxed line abandonment, rates, and mergers (Slack, 2021). The Staggers Rail Act of 1980 followed, granting greater pricing freedom, allowing multimodal ownership and confidential contracts with suppliers. The significant deregulation consequences included reduced operating costs, the introduction of market-rate charges, and important developments in mergers and acquisitions.
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Critique
The article enhanced my knowledge of the history of rail deregulation in the United States. Through the article, I was able to see how rail deregulation improved the railroad industry saving it from collapsing. The deregulation example in the paper shows that any industry can benefit from a regulation's ease without affecting the economy.
The author was comprehensive in his research and availed crucial information concerning the US railroad deregulation example. This enhanced my understanding of specific industrial policies and their importance on economic growth. The article shows that not all regulatory policies are beneficial to the industry. Thus, a policy should be critically analyzed before implementation.
Application
Following the article's example on easing restrictions, I would also convince my company in a decision-making panel to ease some regulations that put pressure on productivity. Besides, a company can quickly reach its goals under maximum production free of unnecessary restrictions.
The article relates to a real-world application in that it focuses on specific market regulations. In the US rail deregulation example, we see that some market regulations can quickly slow or cripple an industry's growth. I would share this article's information with my colleagues through email. We learn that quick intervention is crucial in saving a collapsing industry. Therefore, I would use this strategy in a business setting as well.
Reference
Slack, B. (2021). Rail Deregulation in the United States | The Geography of Transport Systems. Transportgeography.org. https://transportgeography.org/contents/applications/rail-deregulation-united-states/.
