The story of United Airlines and Dr. David Dao offers a superb rebuttal to the people who reflexively argue that government is needed to forestall bad acts and address wrongs committed by Corporate America. For those few who remain unaware of the incident, United needed four seats on a full flight to transport a flight crew from Chicago to Louisville. When financial incentives failed to open up the required number of seats, United randomly chose Dao to be bumped from the flight.

Dao refused, and his refusal escalated to a physical “encounter” with law enforcement (who dragged him off the plane) that left him injured and bloody.

The incident, captured on video by other passengers, went viral. The various videos have been viewed millions of times, and Internet memes (some of incredible cleverness: one suggested that it was a bad time for United to update its app wit a new “drag and drop” feature) poured forth. United’s initial response came across as callous and clumsy, the airline took a massive reputational beating, and it has since improved its message and modified its policies. The fact that Dao was very probably in the wrong isn’t particularly relevant, because “right” and “wrong” here are contractual and regulational constructs, and can be changed without violating any moral precepts.

The takeaway is the swiftness with which society in the form of social media, news reporting, and public outrage generated instant and powerful feedback, sufficient to prompt policy changes at United, and all without a single legislator or regulator getting involved. Moreso, the incident prompted other airlines to change policies, including increasing the maximum dollar figure for buying out passengers’ seats on overbooked flights. Again – no regulator, no legislator, no one with the force of government behind him needed to get involved. And, all this happened with a speed that government could not even dream of matching.

This event bolsters what we already know: that market forces do work, that they are powerful regulators of economic and social behavior, and that we needn’t run behind the skirts of Big Nanny Government whenever we worry that some big, faceless corporation will take advantage of us or despoil society.

Furthermore, market forces are far better at producing a “good” solution than a person or persons in government can. The collective opinion of millions, constantly adjusting to actual conditions, produces far better information than even the best, most unbiased, and most wisely benevolent law- and rules-makers can.

Don’t fear the free market, trust it. Trust it more than you trust politicians, and your trust will be amply rewarded.

• About the Author

About Peter Venetoklis

I am twice-retired, a former rocket engineer and a former small business owner. At the very least, it makes for interesting party conversation. I'm also a life-long libertarian, I engage in an expanse of entertainments, and I squabble for sport.

Nowadays, I spend a good bit of my time arguing politics and editing this website.

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