deregulation

noun
de·​reg·​u·​la·​tion | \ (ˌ)dē-ˌre-gyə-ˈlā-shən \

Definition of deregulation

: the act or process of removing restrictions and regulations

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Other Words from deregulation

deregulate \ (ˌ)dē-​ˈre-​gyə-​ˌlāt \ transitive verb

Examples of deregulation in a Sentence

Recent Examples on the Web

Membership was broadened significantly after the Legislature passed an electricity deregulation law in 1997. BostonGlobe.com, "MassEcon’s chief is recruiting: this time, for her replacement," 4 June 2018 Pizarchik, now a consultant on water quality and reforestation, said lower prices for natural gas and renewables will continue to drive down demand for coal, despite deregulation efforts by the Trump administration. Matthew Daly, The Seattle Times, "US coal consumption drops to lowest level since 1979," 5 Dec. 2018 The American business community, which was won over by Trump’s big tax cut and deregulation efforts, seems to be hoping that the president will eventually back down. Evan Horowitz, BostonGlobe.com, "There are no bullets or bombs, but trade wars have real casualties," 6 July 2018 The staffing issues cap a cumbersome process that is adding red tape to U.S. manufacturing even as the Trump administration boasts of its deregulation efforts. David J. Lynch, chicagotribune.com, "Flood of U.S. companies seek relief on tariffs," 20 June 2018 Businesses also applaud the administration’s deregulation efforts. Mark Zandi, Philly.com, "Corporate America loved Trump tax cuts, but the love affair may end," 25 May 2018 The free-freeze provision was included in a banking deregulation bill signed by President Donald Trump last month that rolled back some of the reforms put into place by the Dodd-Frank Act in 2010 after the Great Recession. NBC News, "Credit freezes will soon be free for everyone," 14 June 2018 House Financial Services Committee Chairman Jeb Hensarling and Senate Majority Leader Mitch McConnell have agreed to consider additional financial deregulation measures later this year. John Patrick Pullen, Fortune, "Biggest Rollback of Bank Rules Since Dodd-Frank Clears House," 22 May 2018 Tax cuts were passed, and a loosening of the Dodd-Frank rules governing financial institutions looks likely; meanwhile, momentum seems lost for any deeper financial deregulation or widespread infrastructure plan to boost productivity. Evan Horowitz, BostonGlobe.com, "Volatile stocks hint at a crisis of faith among investors," 4 Apr. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'deregulation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of deregulation

1963, in the meaning defined above

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Last Updated

17 Feb 2019

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Time Traveler for deregulation

The first known use of deregulation was in 1963

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More Definitions for deregulation

deregulation

noun

Financial Definition of deregulation

What It Is

Deregulation occurs when there is a significant decrease or elimination of government regulation over an industry, market, or economy.

How It Works

The transportation industry is one of the most famous industries to feel the effects of deregulation. In 1887, Congress established the Interstate Commerce Commission (ICC), which regulated the railroad industry. Over time, the ICC came to regulate the trucking industry as well. The ICC licensed all truck operators, and it required new entrants to prove they were "necessary for the public convenience" in order to obtain licenses. The ICC allowed established shippers to argue whether the ICC should deny a license to a new entrant. The ICC also reviewed shipping rates, dictated what products the carriers could haul, what routes they could travel, and the cities they could do business in.

The inefficiency imposed by regulation and its focus on helping companies more than consumers became very apparent once the Motor Carrier Act of 1980 deregulated the trucking industry. The number of carriers nearly doubled in the four years after the legislation, freight rates fell as much as 20% in one year, overall industry wages fell, and many inefficient companies went out of business.

A similar situation occurred in the airline industry, which was regulated by the Civil Aeronautics Board (CAB) until 1978. Like the ICC, the CAB issued licenses, set fares, and regulated where carriers did business. The Airline Deregulation Act of 1978 eliminated these constraints, and the airline industry quickly expanded in employment, miles flown, and number of passengers.

Why It Matters

Like most economic policy, deregulation is controversial. Most economists agree that deregulation lowers an industry's barriers to entry and generally increases efficiency, competition, entrepreneurship, and innovation. Established producers have less control over competitors in a deregulated environment. Deregulation also benefits the broader economy because it no longer requires taxpayers to support the regulatory agency's overhead.

Overall, deregulation tends to increase choices and lower prices for consumers. In some cases, however, deregulation can be damaging to consumers, especially when natural monopolies are involved (such as electric utilities or other situations with immense infrastructure or technical needs). Some also point out that the elimination of weaker competitors in a deregulated environment means the loss of jobs.

Source: Investing Answers

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More from Merriam-Webster on deregulation

Spanish Central: Translation of deregulation

Nglish: Translation of deregulation for Spanish Speakers

Britannica.com: Encyclopedia article about deregulation

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