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What is Interstate Commerce Commission?
There are studies show that there are a number of occupational groups that earn more in the states that are regulated by the Interstate commerce commission, than in those states which do not have these regulations.
There is evidence from historical economists and students of economics that there was support from the railroads for the Interstate commerce commission. It is also said that there was support from many of the utility companies along with the occupational groups.
There are studies show that there are a number of occupational groups that earn more in the states that are regulated by the Interstate commerce commission, than in those states which do not have these regulations.
But there is evidence to show that these groups that are regulated are the ones that are against the repeal of these regulations. There are a few of the regulations that have not been supported by those who are under the regulations. These are the regulations that affect many industries.
It would be like the promotion of worker safety, pollution cleanup, equality of employment, and so on. They are the ones that are not actually liked by those who are regulated. Though this is the case, there are proofs to show that they are in the private interest, and not in the public interest.
What is the private interest hypothesis?
There is the theory of private interest, which must be known to all if you are talking about the interstate commerce commission. This theory tells us that increased regulations would cause inefficiency economically. There should only be a considerable amount of regulations in any case. This would lead to a stable economic condition.
These regulations should come up only in those industries that have a considerable amount of competition in the market. It could be the agricultural sector, oil and gas, transportation, and the like. These regulations would lead to an increase in prices and the quantities would also decrease. This would lead to economic inefficiency, leading to a black market.
These effects can be dealt with to a certain extent by allowing the competition in service to grow rather than the competition in the prices. This is very well proved in the case of airlines in the past. They could increase the prices only up to a certain limit, after which they tried talking about the quality of the services and the food that they provide.
In the long run, the already regulated industries would find no use or benefit from the whole thing. In case there is repealing that is going to be done, it may actually lead to harm to the industry as such. Thus it would be wise to use these regulations properly.
