Date of Award
1988
Document Type
Thesis
Degree Name
Master of Business Administration
Department
Business
First Advisor
Jack Kirk
Second Advisor
Joseph Ancona
Third Advisor
Russell Sainz
Abstract
The Motor Carrier Deregulation Act was brought about by consumer groups that created pressure on Congress to deregulate several protected industries. The airline, telephone, and motor carrier industries that were regulated or governed by Federal Departments were deregulated approximately at the sane time due to the national consumerism of the late 1970's.
The Motor Carrier Deregulation Act appears to have been successful on the surface by lowering the price of transportation; however, in reality it has had a negative impact in certain smaller communities where the lack of service and higher cost has deterred future growth of the community. Smaller cities have experienced either freight rate increases or greatly curtailed service to their communities because of nonregulated service and the free market system built into the Deregulation Act.
Prior to the Deregulation Act, freight rates were set by truck rate bureaus that petitioned the Interstate Commerce Commission to establish the rates on a collective basis for the industry. When the ICC granted rate increases, it also required carriers to service all communities within certain geographical areas. This method of full service to communities was a trade-off that the ICC made with various carriers to insure that the entire general public had service available.
Consumer groups of the late 1970's had been organized to voice an opinion and bring about changes in numerous regulated industries. The Carter Administration believed that a more free enterprise system should exist in many of the regulated industries. In January 1979, Senator Edward Kennedy introduced legislation to end the joint setting of freight rates by truckers, kicking off a legislative battle over truck deregulation. Transportation Secretary Brock Adams, as well as the entire Carter Administration, applauded the legislation. It was believed that deregulation within the trucking industry would save consumers two billion dollars a year; however, other economic disadvantages that would appear that had not been calculated into the savings.
Recommended Citation
Scannell, Michael J., "The Effects of Motor Carrier Deregulation" (1988). Theses. 1301.
https://digitalcommons.lindenwood.edu/theses/1301
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