Re: Subsidies ...

From:         rna@gsb-crown.Stanford.EDU (Robert Ashcroft)
Organization: Graduate School of Business, Stanford University
Date:         29 Feb 96 02:04:11 
References:   1 2
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In article <airliners.1996.162@ohare.Chicago.COM>,
Michael Carley  <mjcarley@maths.tcd.ie> wrote:
>bosc@perige.eis.enac.dgac.fr (Jean-Francois Bosc) writes:
>
>>However, living in a country where opinions are biased the other
>>way, I've heard and read many times that the only difference
>>between government subsidies in Europe and the US is that
>>European ones are called subsidies ...
>
>>Any comment ?
>
>Think of it this way---would there have been a B707
>without heavy subsidy from the USAF? Does anyone
>know roughly what the value of hidden subsidies to
>the US aero industry from military development
>contracts and NASA work is? Just wondering.

You'd still have to explain the DC-8 (very few bought by the US military),
and, for that matter, the Convair 880 and 990 (707-class jets produced
by Convair simultaneously).

And that's even assuming there _were hidden subsidies, which has yet to
be proven.

In fact the Convair 880/990 is an excellent example of the market at
work.  They weren't competitive with the 707/DC-8, and so the company
exited the market.  No subsidy from the US govt, just the old heave-ho.

Imagine that!

RNA