Blended Winglets prove the Superiority of Free Market Capitalism over a Managed Economy

Posted by PITHOCRATES - March 15th, 2014

Week in Review

Too many people still feel that government knows better than market forces.  As if the lessons of the Soviet Union, Eastern Europe, the People’s Republic of China, North Korea, Cuba, the Obama administration, etc., have never been learned.  A managed economy produces inferior results compared to one left to free market capitalism.  Even in achieving the goal of an activist, interventionist government (see Airlines embrace winglets as fashionable fuel savers by Gregory Karp, Chicago Tribune, posted 3/10/2014 on The Seattle Times).

Boeing calls the odd-looking, upturned wingtips on aircraft “blended winglets.” Airbus calls them “sharklets.” And Southwest Airlines, in ads, simply calls them “little doohickeys.”

Whatever the name, these wingtip extensions have become prevalent in aviation, saving airlines billions of dollars in fuel costs…

While winglets could cost $1 million or more per aircraft to install and add several hundred pounds to a plane, they pay for themselves in a few years through fuel savings — about 4 percent savings for the blended winglet and an additional 2 percent savings for the split scimitar…

United expects the new and older wingtip designs on its 737, 757 and 767 fleets to annually save it 65 million gallons of fuel, $200 million worth, and the equivalent of 645,000 metric tons of carbon-dioxide emissions.

That’s not government doing this.  This is the free market.  A design comes along that offers to save airlines money by reducing fuel consumption and the airlines spend money to add it to their fleets.  Thus reducing 645,000 metric tons of carbon-dioxide emissions.  And they do this voluntarily.  This is how free market capitalism works.

Fuel is the greatest cost of airlines.  So there is an incentive for airlines to spend money to reduce fuel consumption.  This one-time investment will reduce fuel consumption in the years to follow.  Making it a very good investment.  Because it is they spend their own money to make this investment.  Unlike solar and wind power.  These are very poor investments.  For the only way anyone builds solar arrays and wind farms is with taxpayer subsidies.  Because the return on investment is so poor they will not spend their own money to build these things.

Good things happen with free market capitalism.  While bad things happen (the Solyndra bankruptcy, for example) when the government interferes with free market capitalism.  Which is why the government should not interfere in the market place.  As blended winglets demonstrate.  Which have reduced far more carbon-dioxide emissions than Solyndra ever did.

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