{"id":613,"date":"2026-06-02T15:42:02","date_gmt":"2026-06-02T15:42:02","guid":{"rendered":"https:\/\/interstatelogisticshubs.com\/?p=613"},"modified":"2026-06-02T15:42:02","modified_gmt":"2026-06-02T15:42:02","slug":"bailouts-wont-improve-affordability","status":"publish","type":"post","link":"https:\/\/interstatelogisticshubs.com\/?p=613","title":{"rendered":"Bailouts Won\u2019t Improve Affordability"},"content":{"rendered":"
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Spirit Airlines was the butt of many internet jokes after multiple viral videos of wild fistfights. But its demise is no laughing matter. Workers lost jobs, travelers saw their travel plans upended, and consumers lost a low-cost competitor that helped keep fares low.\u00a0<\/p>

Read more The dirtiest words in foreign policy speech<\/a><\/p>\n

The silver lining is that the Trump administration did not intervene and foolishly attempt to prop up a struggling company with a massive taxpayer bailout and potential government-ownership of a private company. Doing so would have turned an unfortunate situation into a complete disaster. The government should never artificially prop up struggling businesses — especially those with multiple bankruptcies in their recent history, like Spirit.\u00a0<\/p>\n

That principle ought to hold firm now that a host of budget airlines are asking for an even larger government bailout of $2.5 billion to help weather the storm caused by high fuel prices.\u00a0<\/p>\n

High fuel prices are undoubtedly an enormous challenge for many businesses, airlines included. Offering a massive bailout to one industry would open the door to a host of other special interest groups seeking aid from Washington.\u00a0<\/p>\n

Trucking companies are taking a significant hit as they pay more for diesel, hotels are seeing some vacationers opt out of trips to save money, and manufacturers are being forced to deal with higher materials and logistics costs since their inputs are sourced from all over the country and world.\u00a0<\/p>\n

With so many companies adversely impacted by high fuel prices, the question in Washington soon devolves from \u201cwho should we bail out?\u201d to \u201cwho should we\u00a0not\u00a0bail out?\u201d<\/p>\n

Rather than proceed down this expensive and unsavory path, the Trump administration and Congress should redouble efforts to address affordability to lower fuel prices and other high costs impacting consumers — while simultaneously dodging policy landmines.\u00a0<\/p>

Read more What you really see when you look at Kamala Harris<\/a><\/p>\n

Of course, ending the conflict in Iran and opening the Strait of Hormuz, through which over 20% of the world\u2019s oil flows, is far and away the best and most effective way to lower prices. But there are many things that will help ease the burden that airlines, consumers, and pretty much every human on the planet are currently facing.\u00a0<\/p>\n

First, continue to lock in the permitting reforms implemented by this administration and Congress. Permitting reform is the key to bringing oil, gas, and other energy sources online to lower prices and build resilience for future disruptions. It will also help foster greater efficiencies in other sectors of the economy, such as telecommunications and logistics. This will place downward pressure on prices.\u00a0<\/p>\n

Next, embrace imports. Opening the door to more imports of other consumer products and manufacturing inputs will do wonders for the affordability crisis and help boost economic growth. For example, the Trump administration was poised to allow more beef imports to drive down sky-high ground beef prices, yet tapped the brakes when the meat industry objected. They need to set aside the gripes of special interest groups and help consumers who are struggling to afford ground beef.\u00a0<\/p>\n

President Trump and Congress must also get serious about fixing our national debt crisis. With a total debt burden now reaching the size of our entire economy and bond yields soaring, it\u2019s clearer than ever that we cannot continue to borrow trillions of dollars every year. Not only is this unfair to future generations who will be saddled with our debt, but more spending and borrowing in Washington means more inflation and higher interest rates for consumers looking to buy homes, cars, or other big-ticket items, and for businesses looking to finance their growth.\u00a0<\/p>\n

Finally, Congress should apply the \u201cdo no harm\u201d principle from medicine. Economic crises invite all sorts of lousy policy ideas, some of which may sound appealing on the surface. For instance, a \u201cwindfall profits\u201d tax to penalize oil companies for higher prices would actually reduce the incentive to explore and extract more natural resources, which is what we want oil companies to do at a time of scarcity. The high price of oil is painful for consumers, but a powerful motivator for the oil and gas industry, which has ramped up production. Similarly, blocking oil and gas exports would reduce the incentive for companies to bring more supply online.<\/p>\n

Until the conflict in Iran is resolved, fuel prices will remain high. Even after a resolution is reached, it will take some time to get prices back to early 2026 levels. Until then, President Trump and Congress should work tirelessly to reform permitting, increase trade, and reduce our budget deficit — all while avoiding horrible ideas like bailing out impacted companies or imposing harebrained new taxes.\u00a0<\/p>

Read more How did the Jewish hostages survive Hamas?<\/a><\/p>\n

Brandon Arnold is the Executive Vice President of the National Taxpayers Union<\/strong><\/em><\/span><\/p>\n

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\"\"<\/figure>\n<\/p>\n

Image: Spirit Airlines<\/strong><\/em><\/span><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Spirit Airlines was the butt of many internet jokes after multiple viral videos of wild fistfights. But its demise is no laughing matter. 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