[HN Gopher] It's Time to Nationalize and Then Break Up Boeing
       ___________________________________________________________________
        
       It's Time to Nationalize and Then Break Up Boeing
        
       Author : samsolomon
       Score  : 122 points
       Date   : 2024-01-13 17:06 UTC (5 hours ago)
        
 (HTM) web link (www.thebignewsletter.com)
 (TXT) w3m dump (www.thebignewsletter.com)
        
       | yyyfb wrote:
       | Why, would US govt run it any better?! If you think financial
       | types can't run an engineering and manufacturing business, wait
       | until you see the politicians try.
        
         | tenebrisalietum wrote:
         | You trust the gov to run the military, which is literally
         | essential to the nation's survival, so why not?
        
           | anovikov wrote:
           | Maybe that's the problem actually. We have to wait till Elon
           | Musk turns his eye on the military and starts running it no
           | matter what the states think of it.
        
             | soupfordummies wrote:
             | Well there's a nice horrifying thought on a Saturday
             | morning :D
        
             | 303uru wrote:
             | You Elon cucks are flat out comedy at this point.
        
           | jvanderbot wrote:
           | Gp made a bait and switch, equating government ownership with
           | Congress in the board room. The implication doesn't ring true
        
             | crystaln wrote:
             | The military is not a business. It doesn't have a revenue
             | model that tries to maintain solvency.
        
               | grecy wrote:
               | Given large companies get bailouts whenever they need
               | them, I would argue the same is true of many companies in
               | the US.
        
               | abduhl wrote:
               | Name the last large company to receive a bailout. This
               | question is important to see where you draw the line on
               | something being a "bailout."
        
               | grecy wrote:
               | https://projects.propublica.org/bailout/list
               | 
               | 991 times for a total of $635B
        
           | crystaln wrote:
           | I'm not sure it you're aware of the inefficiencies and
           | corruption of the military, or the fact that - it's a cost
           | center. It's also something we are able to spend unlimited
           | funds on because it is existential. And privatizing the
           | military would be a terrible idea.
           | 
           | We definitely can't afford to operate other industries the
           | way we operate the military, which consumes 15% of the annual
           | budget.
        
             | the_snooze wrote:
             | Efficiency can be a problem in and of itself. Efficiency is
             | a fine enough goal, though too often companies pursue it to
             | the point that other important values like safety,
             | resiliency, and long-term stability fall by the wayside.
             | They'll also pursue efficiency by externalizing costs and
             | risks to other parties. That's basically what you see in
             | the rail shipping industry [1]. Companies will naturally
             | pursue effiency. Nationalizing a company may be going too
             | far, but we need something else (i.e., government) to
             | pressure them to maintain other values too.
             | 
             | [1] https://www.propublica.org/article/train-derailment-
             | long-tra...
        
           | yyyfb wrote:
           | Trust by default. The difference is, I don't trust anyone
           | else to run the military.
        
           | paxys wrote:
           | The US military isn't exactly the picture of efficiency. Let
           | Boeing lose a trillion dollars every year and don't subject
           | it to audits or any other oversight then yeah, I'm sure the
           | government will run it great.
        
           | peterfirefly wrote:
           | And the military is horribly inefficient. So why not
           | privatize it? Because that would almost certainly lead to
           | other, very bad, outcomes...
        
             | TheOtherHobbes wrote:
             | Military procurement in the US is already privatised in
             | everything but name. The brass get a place at the top table
             | in matters of national policy and critical event response,
             | but procurement is essentially privatised, with an open
             | door between senior military figures, politicians, senior
             | contractors/consultants, and C-Suite.
             | 
             | Boeing is one the poster children for that. Costs would
             | definitely be saved if there were more defence and
             | aerospace bidders and engineering cultures, and Boeing
             | couldn't rely on military pork to keeps its enshitified
             | commercial arm in the air.
             | 
             | In fact if I were in some kind of gov procurement position
             | I'd be looking very hard at the quality, costs, and
             | reliability of Boeing's military projects right now.
        
         | CPLX wrote:
         | Read the article. It proposes breaking it up into competitive
         | firms, not having the government run it.
         | 
         | Its premise is actually that it's essentially a government run
         | entity now, and that's what needs to change.
        
       | crop_rotation wrote:
       | Wouldn't that make it much harder for Boeing to compete with
       | Airbus due to the size disparity?
       | 
       | One interesting observation I have is that in Europe, a career at
       | Airbus is competitive with the other industries for talent, due
       | to the relatively lower salaries at big tech and even lower at
       | others. Whereas if you are in the United States, a job at Boeing
       | or in Airspace is mostly not competitive with the tech options
       | (even for a non tech job). SpaceX is doing well, but SpaceX
       | compensation is better due to stock options and hiring is easier
       | due to the Elon cult of personality/or the SpaceX mission.
        
         | chrisco255 wrote:
         | There's fairly low overlap between aerospace engineers and
         | software developers. People that want to build jets and rockets
         | don't tend to transition to enterprise SaaS development,
         | regardless of the pay gap.
         | 
         | At any rate the biggest reason Boeing salaries are lower is
         | because they are the only competitor. The reason why silicon
         | valley companies pay so much is because they're all competing
         | for talent and the talent has optionality to go down the street
         | and get paid more.
         | 
         | SpaceX is a private company so no, the stock options are not
         | the biggest pull there. Hiring may be easier due to strong
         | leadership but that goes without saying.
        
           | prlambert wrote:
           | This is true in mid and late career, but not early. Lots of
           | mathematically and engineering minded college students
           | consider both CS and mech/aerospace as majors. Of course
           | career prospects are a major influence.
           | 
           | Also fwiw my wife left a 10 year aerospace career, moving
           | from NASA to Google, largely for comp reasons. She was a
           | structural aerospace engineer, now she's a data scientist.
        
           | crop_rotation wrote:
           | It's not just about software developers. All the program
           | product management roles, as well as other similar non SWE
           | roles are common across companies. Also as the other
           | commenter said young people going to university will be
           | totally not inclined to choose aerospace in US.
           | 
           | Whether Boeing has competition or not is not relevant if
           | Airbus salaries give their employees a better life and help
           | them to recruit better in the european talent market.
           | 
           | SpaceX does a private company version of stock options
           | though, and Elon frequently cites this in his mails to
           | employees on why they are not hurt by the company not being
           | public.
        
             | chrisco255 wrote:
             | Domain knowledge matters, even at the management level,
             | especially in industries like aerospace. Again, I assert
             | there is very little overlap or talent lost as a result of
             | some kind of Boeing to Silicon Valley brain drain. That's a
             | poor excuse backed up by nothing.
             | 
             | There isn't a need for nearly as many aerospace engineers
             | as there is for software development, so whatever the
             | market works out for that is fine. Nobody is talking about
             | mechanical engineers at Tesla, Ford, GM, Toyota, etc are
             | not doing the same thing nor is anyone blaming silicon
             | valley for a lack of talent in those companies. Absolute
             | scapegoating.
             | 
             | Airbus and Boeing being located on different continents
             | hardly compete for the same talent. Boeing's problems are
             | almost entirely at the leadership level, not at the lower
             | or mid levels. Everything else is downstream of that.
             | 
             | No, SpaceX cannot give out stock options because if they
             | give equity to too many people they will be forced to go
             | public, which Elon has said he doesn't want to do. After
             | 2500 people own a company's stock, the company has to IPO.
             | They just pay well.
        
               | sahila wrote:
               | What's the 2500 rule from? Can the company not sell to
               | another at the size and how long do they have before
               | forced IPO?
        
       | fl0ki wrote:
       | Regulation can raise the floor of company quality, but
       | nationalization also lowers the ceiling, especially if it means
       | no competitors are ever viable. This needs more regulation, not
       | nationalization.
        
         | loloquwowndueo wrote:
         | No competitors? _points at Airbus_
        
           | ajkjk wrote:
           | As the article clearly states near the top: if Airbus
           | physically can't compete with Boeing because they have years
           | of backlog and no ability to take on more orders, they are
           | effectively not competing with Boeing.
        
             | int_19h wrote:
             | Maybe we should just have Airbus do safety reviews for
             | Boeing and vice versa.
        
         | MaxBarraclough wrote:
         | > nationalization also lowers the ceiling on how good it can be
         | 
         | How's that? What private company outshines, say, NASA
         | (especially in its glory days)?
        
           | abduhl wrote:
           | In what metric? SpaceX outshines them on launches. In fact,
           | NASA has consistently outsourced design and construction to
           | the private sector. The space shuttle? Privately built by
           | Rockwell. Hubble? Lockheed. ISS module 1? Boeing.
        
             | geoffreypoirier wrote:
             | How about humans on the moon? NASA's still crushing SpaceX.
             | (Glory days.)
        
           | tekla wrote:
           | What does NASA build?
        
           | dotnet00 wrote:
           | If we're leaning on an excuse like glory days, why do
           | anything to Boeing either?
           | 
           | After all, no one yet outshines their glory days of building
           | classic planes and building the SaturnV?
        
             | MaxBarraclough wrote:
             | I was responding to the suggestion that nationalization
             | imposes a ceiling on quality.
        
         | tehjoker wrote:
         | explain how the soviet space program beat the us on every
         | metric except moon landing (a vanity project hyped by the us to
         | compensate for lagging)
        
           | voakbasda wrote:
           | They beat us by canibalizing their society. It works for a
           | time, but eventually you have a revolution on your hands.
        
           | gcanyon wrote:
           | > every metric
           | 
           | Sure, except:                  - First spacecraft to
           | detect/study the Van Allen belt        - First solar-powered
           | satellite        - First polar-orbit satellite        - First
           | photograph of Earth from orbit        - First satellite
           | recovered from orbit        - First spy photos from space
           | - First aerial recovery of an object returning from orbit
           | - First great ape in space        - First pilot-controlled
           | space flight        - First successful planetary flyby
           | (Venus)        - First spaceplane        - First reusable
           | piloted spacecraft        - First geosynchronous satellite
           | - First geostationary satellite        - First piloted
           | spacecraft orbit change        - First successful Mars flyby
           | mission        - First rendezvous of manned spacecraft
           | - First spacecraft docking        - First direct-ascent
           | (first orbit) rendezvous        - First (and only) human
           | orbit of the Moon        - First (and only) humans to land on
           | the Moon        - First spacecraft to orbit another planet
           | (Mars)        - First spacecraft sent on solar escape
           | trajectory        - First spacecraft to enter the asteroid
           | belt        - First Jupiter flyby        - First Mercury
           | flyby        - First Saturn flyby        - First untethered
           | spacewalk        - First Uranus flyby        - First Neptune
           | flyby        - First Pluto flyby
           | 
           | So, yeah, vanity.
           | https://en.wikipedia.org/wiki/Timeline_of_the_Space_Race
           | https://www.nasa.gov/wp-content/uploads/2023/12/o51254593.pdf
           | https://en.wikipedia.org/wiki/Timeline_of_artificial_satellit
           | es_and_space_probes
           | https://en.wikipedia.org/wiki/Explorer_1
        
           | dehrmann wrote:
           | JFK really moved the goalpost on that one.
        
           | trynumber9 wrote:
           | What was the most useful application of early space launches?
           | Corona observation satellites were operating since 1959. The
           | TRANSIT positioning system was operating with a constellation
           | of 5 satellites from 1960.
           | 
           | Who was focused on vanity projects?
        
         | skywhopper wrote:
         | You missed the second part of the headline apparently.
         | Nationalize and then break it up into new competing entities.
        
           | abduhl wrote:
           | So nationalize then privatize?
        
             | cge wrote:
             | Yes. I'm not sure that a clearer explanation of the
             | author's argument would call this nationalization at all.
             | The author seems to be arguing that Boeing is already
             | essentially nationalized in terms of the disadvantages of a
             | nationalized industry, without the advantages, while at the
             | same time, is nationally essential and can't be made to
             | stop operating, or even punished that harshly. I think the
             | author's suggestion could be better summarized as: seize
             | Boeing, and have the state keep it running during the time
             | it takes to break it up into private companies that would
             | compete with each other and would be actually private,
             | rather than quasi-nationalized. If anything, the author
             | seems to be _more_ pro-private-industry than many comments
             | here.
             | 
             | I'm not sure if the author used 'nationalize' in the title
             | to be provocative, but if so, given the comments here, it
             | seems to have been an unfortunate choice.
        
       | obblekk wrote:
       | I agree with the sentiment more than the solution.
       | 
       | In the American system, the gov should assess punitive fines for
       | regulatory failures, revoke self regulation privileges, and
       | impose consent decrees on company behaviors.
       | 
       | The combined impact of these actions would cost Boeing billions
       | which would result in shareholder action to replace management.
       | 
       | Perhaps the gov should also investigate willful neglect on the
       | part of management. If it's found that engineers complained about
       | policies for reasonable safety concerns and management ignored
       | them, then personal liability, perhaps even criminal, would
       | extend to the directors and executives.
       | 
       | I don't know how much of this would happen, or be found guilty in
       | court. But I do hope this isn't just another administrative slap
       | on the wrist like 2019.
        
         | ToucanLoucan wrote:
         | It's difficult to imagine any meaningful consequences for any
         | of these massive corporations. Their brass rotates in and out
         | of the same regulatory agencies meant to be overseeing them.
         | Conflict of interest, as a concept, is a joke in these spaces:
         | these people all know each other and work together extremely
         | closely. Better jobs in industry get you better jobs in
         | regulation get you better jobs in industry and round and round
         | they go, practically waving as they pass in the hallways.
        
         | anigbrowl wrote:
         | How has that approach been working out? It's become common for
         | CEOs to massively cut corners in pursuit of profits and then
         | fail up or retire in comfort unless. Occasionally one goes to
         | prison for fraud if they've directly lied to stockholders, but
         | 'looking the other way' and hiding behind bland assurances
         | generally pays great. We have one political party that reliable
         | decries any sort of regulatory action as interference with the
         | free market or outright communism; the American system is
         | infested with bad faith actors.
        
         | Andrex wrote:
         | The entire airline industry was nationalized at one time. I
         | wonder how safe things were during this period versus today.
        
           | jagged-chisel wrote:
           | Don't forget to control for advances in technology.
        
           | hawthornio wrote:
           | Private vs public rail might be a good proxy--e.g., britain's
           | privatization under thatcher, NYC acquiring various
           | independent subway operators
        
             | eterm wrote:
             | UK Rail privitisation wasn't under Thatcher.
        
         | Morte42 wrote:
         | Boeing spread its operations over as many states as it could
         | some time ago so any changes made to Boeing would impact a lot
         | of politicians, changes that leave some losers and some winners
         | will be fiercely contested. Its clearly a situation that
         | requires some sort of change but since the government became
         | involved with Boeing, things have gotten worse. Maybe the
         | decline is not associated with that change in particular but I
         | feel very sceptical about further government involvement being
         | a cure.
         | 
         | Boeing is just too integrated in too many places to interfere
         | with. The governments of both Republican and Democratic states
         | would need a comprehensive agreement to even consider making
         | small moves on Boeing. Thats the issue, the biggest fight isnt
         | with Boeing itself but the stake holders and beneficiaries.
         | Boeing are very astute when it comes to business, they covered
         | their bases well long before this drama started.
        
         | arrosenberg wrote:
         | > revoke self regulation privileges, and impose consent decrees
         | on company behaviors.
         | 
         | Why? I'm on board with punitive fines, but why should the
         | government be in the business of being a babysitter to these
         | spoiled executives. If they can't do their job without
         | committing crimes, send them to jail and break up the company
         | if it's too big to fail.
        
           | salawat wrote:
           | >why should the government be in the business of being a
           | babysitter to these spoiled executives
           | 
           | >If they can't do their job without committing crimes, send
           | them to jail
           | 
           | I'm getting mixed messages here. So you want them to be the
           | Government's problem or not?
        
             | arrosenberg wrote:
             | Yes, the government should investigate crimes and prosecute
             | them. They should not make consent decrees and babysit
             | them.
        
       | dudeinjapan wrote:
       | Boeing can be broken up without being nationalized in the
       | process.
        
       | 4ggr0 wrote:
       | socialize losses, privatize profits
        
         | Synaesthesia wrote:
         | Well that's been the modus operandi of American capitalism.
         | Boeing is a fine example. It has existed and profited largely
         | thanks to government funds, military contracts, bailouts etc.
         | But the profits go to the owners.
         | 
         | If it were actually nationalized that would be an improvement.
         | But then there would be no need to break it up.
        
       | amadeuspagel wrote:
       | > [Airbus] was incorporated as the European Aeronautic Defence
       | and Space Company (EADS) in the year 2000 through the merger of
       | the French Aerospatiale and the German DASA, and later acquired
       | full ownership of Airbus, a collaboration of European aerospace
       | companies originally incorporated in 1970 to develop and produce
       | a wide-body aircraft to compete with American-built airliners,
       | which would later merge together.
       | 
       | https://en.wikipedia.org/wiki/Airbus
       | 
       | Europe created Airbus by merging different companies, but the US
       | should break up its only competitor?
        
         | NickC25 wrote:
         | >Europe created Airbus by merging different companies, but the
         | US should break up its only competitor?
         | 
         | If that said competitor is not behaving, and abusing its status
         | as a de-facto monopoly, than yes, the US should break up that
         | competitor.
         | 
         | It's not like Boeing is a book store or a video game developer
         | which has little risk to society if things go belly up - it
         | produces critical transportation infrastructure that can kill
         | people if something goes wrong. That's a responsibility to not
         | be taken lightly, and a track record of Boeing management
         | ignoring safety checks and guidelines because it would cause
         | shareholders to lose a bit in the short-term is just is
         | irresponsible.
        
           | amadeuspagel wrote:
           | > It's not like Boeing is a book store or a video game
           | developer which has little risk to society if things go belly
           | up - it produces critical transportation infrastructure that
           | can kill people if something goes wrong.
           | 
           | I completely agree, I just don't think that more competition
           | is necessarily the solution here, and that's the point of my
           | example. Airbus is a trusted company, and it was created
           | through merging different companies, through removing
           | competition.
        
             | vlovich123 wrote:
             | Aren't we capitalists here? Capitalism would suggest that
             | more competition is indeed good and actually should
             | outcompete a larger behemoth provided you ensure the larger
             | one can't do things like flooding the market or otherwise
             | pushing out the smaller players. But given government
             | contracts keep these players fed and happy (very lucrative
             | military contracts), I'm not sure what the answer.
        
             | NickC25 wrote:
             | I see your point - and i don't disagree, and my overall
             | point is that mergers and all that aren't bad, but when you
             | agree to effectively allow companies to M&A their way to a
             | monopoly, it is imperative for industry safety that that
             | monopoly needs to be policed and regulated heavily
             | ESPECIALLY if it's a piece of critical social
             | infrastructure whcih also happens to be a public company
             | acting in the best interests of its stock performance above
             | all else.
             | 
             | Industry can't M&A its way to a monopoly and then use the
             | power of the monopoly to say "we get to do whatever we
             | want". Great power, great responsibility and all that.
        
         | chrisco255 wrote:
         | Of course the US should. We have multiple manufacturers for
         | every other industry and it's our biggest strength.
        
           | storf45 wrote:
           | Isn't that how Spirit became a standalone company?
        
             | xxpor wrote:
             | It's also how we got United Airlines and United
             | Technologies earlier.
             | 
             | https://en.wikipedia.org/wiki/United_Aircraft_and_Transport
             | _...
        
         | dullcrisp wrote:
         | Yes maybe? There's a story about three bears that I think you
         | should read.
        
         | pydry wrote:
         | Boeing would probably work better with a keiretsu style
         | structure anyway.
        
         | dehrmann wrote:
         | I agree, and I'm not sure how to fix this. You could peel away
         | the defense part of Boeing, but that doesn't solve the issues
         | the commercial side is having. Nationalizing has a sketchy
         | track record in general, and the US isn't experienced in it, so
         | I don't see that going well. It's really that the company has
         | the wrong leadership and the wrong culture, and you can't just
         | fix that.
        
           | ReptileMan wrote:
           | Wasn't the automakers and some banks de facto nationalized
           | for a brief period in the 2008 financial crisis? Not a good
           | analogy, but the US has competent and inventive
           | administrators. Or at least had 15 years ago.
        
       | georgeplusplus wrote:
       | Its Boeings cozy relationship with the FAA that is leading to
       | these engineering problems. If the FAA cannot do its job what
       | makes people think nationalizing the whole thing will make it any
       | better?
        
         | eastbound wrote:
         | Yes, the FAA should also be tried for willful negligence.
        
         | dehrmann wrote:
         | The door plug was likely an assembly issue, not an engineering
         | one. The problem with both is there's too much for a regulator
         | to effectively oversee.
        
         | pydry wrote:
         | Accountability to citizens at the ballot box is a step above 0
         | accountability. Even if it's not as efficient as accountability
         | to informed customers in a competitive market.
         | 
         | It's the same reason that the telco duopoly is worse than
         | municipal telcos.
        
       | testfoobar wrote:
       | Perhaps it should be something else - there should be an upper
       | limit to the size of companies.
       | 
       | The problem is that successful companies converge towards
       | regulatory capture to maintain their advantage - this includes
       | buying up all competitors in order to maintain
       | cartel/monopolistic market positioning. Look at Ma Bell. It was
       | broken up. It slowly reconstituted its old self - albeit in a
       | more competitive, less monopolistic landscape.
       | 
       | Boeing, like the too big too fail banks, like the airlines during
       | Covid is already quasi-nationalized. Perhaps we should make that
       | relationship explicit and demand divesture of business units in
       | order to increase competition and transparency.
       | 
       | https://en.wikipedia.org/wiki/Bell_System
       | 
       | https://en.wikipedia.org/wiki/AT%26T
        
         | crop_rotation wrote:
         | In a single nation world yes, but in a multi country world, if
         | the US limits size of it's companies the world will be simply
         | dominated by Chinese/European companies and the QoL of life for
         | ordinary citizens would nosedive.
        
           | jampekka wrote:
           | This is the reason why there used to be barriers of trade and
           | capital controls.
        
           | xxpor wrote:
           | > if the US limits size of it's companies the world will be
           | simply dominated by Chinese/European companies and the QoL of
           | life for ordinary citizens would nosedive
           | 
           | The conclusion does not follow from the premise. Has the QoL
           | nosedived in NJ because the tech industry is dominated by
           | California?
        
             | crop_rotation wrote:
             | This doesn't make any sense. NJ and California exist under
             | a single nation with a common treasury. You are basically
             | agreeing with my point. If the world was a single nation
             | then sure.
        
             | pixl97 wrote:
             | >QoL nosedived in NJ
             | 
             | A better question may be, has QoL nosedived in the rust
             | belt because the tech industry is dominated by CA?
        
           | arrosenberg wrote:
           | This is projection that gets repeated by corporatists. We've
           | let the large corporations have their laissez-faire way since
           | the early 80's - foreign ownership is way up, middle class
           | ownership is way down, and the QoL for ordinary citizens has
           | nosedived. We need to go in the opposite direction - robust,
           | competitive and small companies that innovate and outcompete
           | foreign behemoths.
        
             | crop_rotation wrote:
             | You are just stating what you think is ideal and not
             | disputing my point. How will these small companies compete
             | in foreign markets against larger foreign rivals.
        
       | dehrmann wrote:
       | Did the article really make this argument without mentioning
       | Spirit? It's not the same as being broken up, but a lot of the
       | work has already been outsourced.
        
       | PaulKeeble wrote:
       | We live in deeply corrupt times where corporations have taken
       | over large chunks of the mechanisms of state that are meant to
       | regulate them. Nationalising it or asking for regulatory
       | intervention isn't going to solve it because its one big club.
       | This isn't just about Boeing, there are criminal corporations
       | openly abusing customers, their staff and buying the government
       | avoiding consequences every day. The electoral system ensures its
       | nearly impossible to fix especially since this collective
       | interest runs the media too. I do not see a way to fix such
       | widespread corruption of democracy especially since its happened
       | throughout the western world and dawned a new age of Feudalism
       | and populism.
        
         | jampekka wrote:
         | > I do not see a way to fix such widespread corruption
         | 
         | Maybe check out e.g. years 1688, 1775, 1779, 1848, 1917, 1947,
         | 1953 and 1989 for some ideas?
        
         | paulryanrogers wrote:
         | Make private financing of campaigns illegal. Require same day
         | primary elections. Outlaw professional lobbying.
        
       | nightski wrote:
       | We should not be nationalizing anything, sorry. The government
       | should not be running companies as it takes away all natural
       | market forces. While private ownership can be corrupt, market
       | forces / competition can keep it in check. If anything we have
       | seen the government's corruption fail us by allowing too much M&A
       | destroying competition.
        
         | nostrademons wrote:
         | Need to have competition and actual market forces for that to
         | actually work. A private monopoly has all of the downsides of
         | the government with none of the oversight.
        
           | nightski wrote:
           | That's my entire point. The government created this
           | situation. It wasn't always like this in aviation/aerospace.
        
         | manmal wrote:
         | > as it takes away all natural market forces
         | 
         | What are those forces exactly, in a defacto monopoly? Building
         | huge jets takes so much money and know how buildup that only
         | nations and maybe the top 5 or so companies could pull it off.
        
           | double0jimb0 wrote:
           | They said the same thing about rockets.
        
         | int_19h wrote:
         | Market forces are only excluded if the entire industry is
         | nationalized, not if one particular company is nationalized.
        
       | gessha wrote:
       | I see a lot of comments about nationalization but I don't think
       | that is the American way.
       | 
       | There should be a range of regulatory/policy actions that could
       | be taken with nationalization being the most extreme.
       | 
       | Just like the banks are regulated by FDIC so can be Boeing.
       | They've done great things before and they can do it again. You
       | "just" need to figure out the right incentive structure.
       | 
       | If regulating it doesn't help, throw some billions into
       | establishing a new Boeing, the US has a history of establishing
       | new industries based on national priorities- most recently with
       | the space industry, before that was the semiconductor industry,
       | etc.
        
         | notatoad wrote:
         | >Just like the banks are regulated by FDIC so can be Boeing
         | 
         | that's a good example, because when the FDIC runs out of
         | regulatory measures it can apply to correct a problem, they
         | have the option of nationalizing a bank to reduce the harm that
         | can be caused. like we saw happen this spring with SVB.
         | 
         | In that case nationalization isn't like argentina, which
         | everybody in this thread seems ot be jumping to. it's a
         | corrective measure to prevent a collapse, where the government
         | takes over keeps things running until the assets can be sold or
         | otherwise transitioned to owners who will handle them better.
        
       | roenxi wrote:
       | This seems like an overreaction. According to Wikipedia [0] the
       | rate of fatal crashes has gone from 0.2 per million to 4 per
       | million. That isn't a change that requires a crisis response.
       | Even grounding the planes is probably overdoing it. Aircraft
       | travel is already safer than makes sense for it to be.
       | 
       | [0] https://en.wikipedia.org/wiki/Boeing_737_MAX
        
         | beAbU wrote:
         | Are you kidding? That's an order of magnitude increase!
        
           | roenxi wrote:
           | An order of magnitude from approximately 0 to approximately
           | 0. If I fly somewhere on a 737 Max, I've got great odds of it
           | being a normal plane flight. And it'd be reasonable to assume
           | the odds are getting better as pilots get used to the plane
           | and remediations are put in place.
           | 
           | If 1 in a million odds are going to scare you off a plane,
           | you shouldn't be flying anyway. The response by the
           | regulators is a waste of time and money. Let alone trying to
           | remake an entire company as this article title calls for.
           | 
           | Maybe a call for people to get a $ discount when flying on a
           | 737 Max as hazard pay would be reasonable.
        
       | wg0 wrote:
       | Unless Americans want America to look like Argentina.
       | Nationalization has a not a great story almost anywhere.
       | 
       | Regulatory measures are what can force bean counters to respond.
        
         | peter-m80 wrote:
         | Argentina is an American country. Perhaps you want to say
         | United States instead of America.
        
           | jagged-chisel wrote:
           | Eh. A large part of the world simply calls the USA "America"
           | and then refers to other North and South American countries
           | by name. It's a known convention.
        
             | panarky wrote:
             | Is that how Argentines speak?
        
               | jagged-chisel wrote:
               | I do not have knowledge about whether they are in the set
               | "large part of the world" or outside of it.
        
         | Andrex wrote:
         | > Unless Americans want America to look like Argentina.
         | Nationalization has a not a great story almost anywhere.
         | 
         | The airline industry has already been nationalized once before.
         | I don't think it was the end of USA.
         | 
         | "Just look at <X> country" is also a really poor, unintelligent
         | argument to make.
        
           | irusensei wrote:
           | Just look at Y continent then? South America is rich with all
           | degrees of Argentina.
        
         | jampekka wrote:
         | Plenty of great stories of nationalized industry all over.
        
         | hawthornio wrote:
         | Nazi germany privatized vast swaths of their economy (steel,
         | rail, etc.) [1]. So you want america to look like Nazi Germany?
         | /s
         | 
         | This is not a serious analysis of history. Besides, a large
         | number of countries (e.g., Sweden, Norway, France) have more
         | public ownership of corporations than Argentina.
         | 
         | 1. http://www.ub.edu/graap/nazi.pdf
        
           | hawthornio wrote:
           | Coincidentally, the state of France holds around a tenth of
           | Airbus stock
        
             | AlbertCory wrote:
             | Indeed, as I recall, government owning _part_ of a company,
             | not all, is a fairly common practice worldwide. It
             | recognizes that the company is quasi-governmental, as
             | Boeing is.
             | 
             | Is this "better?" I don't know, but for an extremely large,
             | capital-intensive, national security-critical industry, it
             | might be the least bad solution (and no, I'm not a
             | socialist).
        
           | wg0 wrote:
           | >Nazi germany privatized vast swaths of their economy (steel,
           | rail, etc.) [1]. So you want america to look like Nazi
           | Germany? /s
           | 
           | And how exactly that privatisation is at all related to
           | fascism? The argument is totally irrelevant. Let's turn this
           | on its head: Most of American corporations are
           | privately/publicly (and not the government) so does America
           | right now look like Nazi Germany?
        
             | jemmyw wrote:
             | ... did you miss the /s for sarcasm on the post you replied
             | to? That's exactly the comments point.
        
         | arrosenberg wrote:
         | Argentina's economic problems have to do with its level of
         | historical development compared to it's current economic
         | potential. The same problems seem to occur cyclically whether
         | things are nationalized or privatized.
        
       | Lammy wrote:
       | Meta: I would love to see "It's Time To..." added to HN's list of
       | automatically-edited-at-submission title cliches, like "How..."
       | and "The Story of..."
        
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