Definition
It may involve repealing restrictions, simplifying compliance, opening markets to competition, or changing agency oversight.
Political Dictionary
Deregulation
Deregulation is the reduction or removal of government rules.
Why It Matters
It can lower costs and increase competition, but may also reduce protections or stability.
How It Works
Legislatures or agencies revise laws and rules and monitor resulting market changes.
History
Major U.S. deregulation occurred in transportation, communications, and finance during the late twentieth century.
Example
Removing route restrictions may allow more airline competition.
Common Misconceptions
- Deregulation means no law applies.
- It always lowers consumer prices.
- Only conservative governments deregulate.
Related Terms
- Fiscal Policy
- Monetary Policy
- Inflation
- Economic Growth
- Government Spending
Related Topics
See Also