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Llewtrah
I would say the GA Revitalization Act of ‘94 was actually a very good move by the government to try to control the non-governmental and absolutely dominating issue of liability. I think (we all would agree that) it would be very, very helpful for the litigation issue to be based on common sense. Until then, I see that as one of the key barriers to entry for people wanting to come up with novel solutions of all kinds.Well, again, I don't even really think it is an issue of regulations, per se, but of bureaucratic incompetence and inertia (but also regulation, fwiw). While you might not list regulation and bureaucratic inertia as a top-5 cause of the decline of GA, I bet you would list "cost". My point here is that cost (and also any number of other negative factors) is driven by that same bureaucratic incompetence and inertia. In this sense, cost is the symptom and the FAA's incompetence and inertia is the disease. Like I said, the FAA sets the field that we all - indeed the entire industry - plays on.
To beat a dead horse, for instance, by slow-playing approvals and restricting innovation, far fewer new engine or airframes have been allowed to enter the market, thus restricting supply, thus driving up cost. I don't think anyone would really argue that there wouldn't be far more production of aircraft and engines if it weren't for the FAA. "But new engines and aircraft cost so much" you might say, "so even if more were produced, no one would buy them!". Yes, but why do they cost so much? Because they are so difficult to approve (for one), and because there is such restricted competition that would otherwise put downward pressure on price (for the same reason!). FWIW, I'm not exactly a free-market absolutist and happily take the position that a certain amount of this kind of restriction (e.g. "good" regulation) supports the health of a marketplace by contributing to safety and fair-dealing. But the FAA's approach has effectively strangled the market entirely, killing it.
Then again, even if liability was completely off the table, I think there are other, even non-economic factors keeping interest down. I don’t see a lot of racketball courts these days and there are very few impediments to those. Interests shift over time - and very quickly in our present time, I’d say.