“You'll have lower prices under deregulation than you will through regulation.” Not.

Remember Enron as the Senate votes on health care. 

Here’s a famous quotes on deregulation: “You'll have lower prices under deregulation than you will through regulation.” Sounds like the arguments made for the Senate health care bill.

The quote is from Kenneth Lay. He was the CEO of Enron. Before he died in 2006, a court found that he was a central figure in a massive fraud that took advantage of deregulation of energy markets and deregulation of financial services.

For readers who remember the 1980s, the airline industry was massively deregulated. New, low-cost carriers sprouted up regularly. Today, four airlines control 70% of the market. Service has declined noticeably. You can find good fares at strange hours, but unless you fly Southwest, you’ll be gouged for schlepping your underwear on the plane.

Phones? The federal government broke up AT&T and created “Baby Bells,”— regional carriers. The market used to be competitive. And then it consolidated. Today, try to price-shop between Verizon, AT&T and Sprint. Most people wouldn’t say it’s a consumer friendly market.

Energy? It used to be regulated. Then in the 1990s and 1990s, that system gave way to “market competition.” The result? Companies such as Illinois Power were bought and merged into large regional companies. Good luck trying get service during an outage. If you have an ice storm or such, you could be without power for days or a week. It wasn’t that way when a local workforce was at the ready.

Tom Price, Secretary of Health and Human Service, promises today that the Senate bill will create market competition and benefit the patient.

Having been mistreated by my phone company, power company, and American Airlines-- and having no or very limited market alternatives, as I was promised-- I think this market competition talk is disconnected from reality.  

PHOTO CREDIT: PAUL FELL