Ron Paul Would Privatize Airport Security – The Economics Works Against Him

But Why is the Crowd Cheering?

The Dismal Political Economist has given the Ron Paul campaign the attention it deserves, which is to say none.  However a small footnote in Mr. Paul's quest for the Presidency does require some mention.  Mr. Paul wants the airlines to take over airport security.

The crowd here cheered when a reporter mentioned Mr. Paul’s proposed elimination of the Transportation Safety Administration. She went on to ask how it might go over in this age of terrorism.

Mr. Paul said airline security should be “the responsibility of the private owner.’’ If airlines were responsible for security, he said, they would have to be mindful of personal intrusions lest they alienate customers and send them to another airline with less intrusive security measures. “The market would solve it,’’ he said.

Exactly how the market would solve it is unclear.  If the airlines took over security, their incentive is to minimize the cost, not maximize the safety.  Now that sounds good when you think it will mean faster lines, less screening, fewer questions and all that because that is how you lower costs.  But of course it will also mean that your local terrorist will have an easier time getting on the plane, thus defeating the goal of the program.

As anyone who flies regularly knows, the airlines are not exactly the model of effectiveness and efficient management.  When it comes to selecting competent people to operate airport security, does the name American Airlines come to anyone?  No, how about United, US Airways, or Delta?  Does anyone really want a company that cannot get luggage from San Antonia to Knoxville without losing it, damaging it or just plain forgetting it somewhere along the way to be in charge of airport security?

As far as those cheering are concerned, it is the natural resentment of government intrusion.  But since the TSA took over airport security, how many planes have been hijacked and flown into buildings?

So thanks anyway Mr. Paul, we don’t like the current system either, except for the fact that it works.