This represents a pretty fundamental reasoning error, I think that a lot of people make - and your argument about city living is the perfect manifestation of it.
While some people do stop living in cities out of fear, obviously most people do not, because otherwise they would not be cities. You could argue that the government needs to come in in a very heavy-handed way and say in order to assuage the fear of the minority, we must pat down everyone that lives in the city hourly and check for weapons. But we don't do that, because it is irrational and unnecessary, and people will take the amount of risk that they feel is comfortable. We trust people to figure that out for themselves.
With airplanes, before the doors were reinforced, the planes could be used as a weapon against people who weren't even flying. That represents an externality. That is a place for the government to come in and say "this is too dangerous to others who cannot protect themselves against this weapon by voting with their wallet". The people who are on the plane, however, can choose to pay a premium to fly on an airline with more stringent security procedures. If people care enough, they will do that. If they don't, they won't, and they should be allowed to make that determination for themselves.
If I don't see terrorism on my flights as a risk, I shouldn't have to socialize those who do. And alternatively, if I do see terrorism as a risk, I damn sure want better security procedures than what the TSA has on offer, and if there were a private market for better secured planes, I don't doubt for a second that it would be substantially safer than what the TSA is able to provide.
Great comment. One thing in regard to this (that's getting off topic, so ignore if you're not interested):
"You could argue that the government needs to come in in a very heavy-handed way and say in order to assuage the fear of the minority, we must pat down everyone that lives in the city hourly and check for weapons. But we don't do that, because it is irrational and unnecessary, and people will take the amount of risk that they feel is comfortable. We trust people to figure that out for themselves."
The reality in most large metros in the U.S. is that the core city competes with its suburbs for resources, the largest of which is people. The region I live in has 2.8 million people, only 300k of which live in the (widely-abandoned) anchor city that gives the region its name. Yes, people are figuring it out for themselves, to the benefit of some interests and the detriment of others. "Let the people figure it out" isn't very useful advice to the losers in that battle.
While some people do stop living in cities out of fear, obviously most people do not, because otherwise they would not be cities. You could argue that the government needs to come in in a very heavy-handed way and say in order to assuage the fear of the minority, we must pat down everyone that lives in the city hourly and check for weapons. But we don't do that, because it is irrational and unnecessary, and people will take the amount of risk that they feel is comfortable. We trust people to figure that out for themselves.
With airplanes, before the doors were reinforced, the planes could be used as a weapon against people who weren't even flying. That represents an externality. That is a place for the government to come in and say "this is too dangerous to others who cannot protect themselves against this weapon by voting with their wallet". The people who are on the plane, however, can choose to pay a premium to fly on an airline with more stringent security procedures. If people care enough, they will do that. If they don't, they won't, and they should be allowed to make that determination for themselves.
If I don't see terrorism on my flights as a risk, I shouldn't have to socialize those who do. And alternatively, if I do see terrorism as a risk, I damn sure want better security procedures than what the TSA has on offer, and if there were a private market for better secured planes, I don't doubt for a second that it would be substantially safer than what the TSA is able to provide.