1. Americans believe that gov. Has grown too large, too costly and too intrusive → Politicians of both major parties have committed themselves to shrinking the fed. Bureaucracy D. Where else is deregulation taking place? 1. Highways, airports, utility bills IV. Role of the Federal Communications Commission A. Congress passed legislation in 1934 that est. the Federal Communications Commission (FCC) B. FCC Organization 1. 5 commissioners set FCC policy under guidelines est by Congress C. Regulating the Airwaves 1. Broadcasting licenses a) Right to operate a radio/tv station can mean big profits for the successful bidder b) Licenses must be renewed every 3 years c) Also sets limits on a station’s broadcasting power/hrs. of operation 2. Influence on program content a) FCC may not act as a censor but the agency does affect program content through its licensing power → ie minutes of commercials allowed per hour and a certain # of public service broadcasts are required 3. Equal time requirement a) For 40 years FCC rules required that broadcasters take a nonpartisan position on controversial matters → vanished in 1987 4. Other areas of broadcasting a) Supervises 3 other areas of broadcasting: 1) Cable tv serves an increasing # of communities → awards franchises
and regulates the material sent out over the cable 2) FCC examiners monitor and license marine, amateur, police, fire, industrial and citizen's band radio frequencies to prevent misuse 3) microwave & satellite transmission facilities 5. The battle to deregulate telephone service a) AT&T’s monopoly of the nation’s telephones ended in 1984 b) Telecommunications Act of 1996: FCC let the Baby Bells offer long distance services if they opened their local markets V. The effect of deregulation to the Civil Aeronautics Board and the airlines A. Civil Aeronautics Board (CAB) was est. in 1938 → was responsible for regulating civil air transport industry & for promoting air travel and commerce B. Deregulation caught up w/CAB in 1978 → Congress passed the Airline Deregulation Act which greatly reduce the CAB’s powers C. Jan 1985 the CAB was abolished → critical job of keeping the air lanes safe was left to the Federal Aviation Admin. (FAA) D. Effects of Deregulation 1. Department of Transportation took over the CAB’s responsibilities for supervising air safety/awarding landing rights → reviews and approves airline mergers; arranges subsidies that encourage airlines to maintain these $-losing routes 2. Major post-deregulation phenomenon = widespread use of hub-and-spoke networks → Hubs = centrally located airports that airlines use as transfer points for passengers traveling to a distant city E. High Fares & Fewer Choices 1. Today sharply rising fares & other costs threaten to again price less-affluent travelers out of the market → caused by sharp increases in the costs of jet fuel, landing fees, labor and equipment VI. Ways the Federal Trade Commission protect consumers A. Congress est. the Federal Trade Commission (FTC) in 1914 → 1st task was to enforce the Clayton Antitrust Act → given 2 objectives: ① maintain the free enterprise sys. by helping business & industry
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- Summer '16
- Mrs. Welty
- Woodrow Wilson