deregulation

noun
de·​reg·​u·​la·​tion | \ (ˌ)dē-ˌre-gyə-ˈlā-shən How to pronounce deregulation (audio) \

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 How to pronounce deregulate (audio) \ transitive verb

Examples of deregulation in a Sentence

Recent Examples on the Web

The design of the new vehicles and accessories was an unintended result of President Ronald Reagan’s deregulation of American industries, including the toy industry. Maude Campbell, Popular Mechanics, "Yo, Joe: How a 12-Inch Soldier Doll Became a Toy Legend," 9 Apr. 2019 High-unemployment countries in Europe saw deregulation as a way to boost jobs. The Economist, "Run, TaskRabbit, run: July 2030," 5 July 2018 One is that a booming economy encouraged by President Trump’s deregulation policy and the tax-reform package passed in December may serve to overcome voter dissatisfaction with the president and the Republicans. Jonathan S. Tobin, National Review, "Will Pelosi Sink Democrats’ Midterm Hopes?," 13 Feb. 2018 And there hasn't been a massive deregulation of gun laws. Fox News, "President Trump demands probe of campaign 'spy'," 22 May 2018 Eventually, though, airline deregulation helped bring about Pan Am’s demise. Sam Blum, Popular Mechanics, "When Pan Am Promised To Fly Us To the Moon," 28 Feb. 2019 The president thinks that he’s done a good job, particularly on the deregulation front. Dino Grandoni, Washington Post, "The Energy 202: Trump appointee at EPA to scrutinize which pollution cases may go to court," 15 June 2018 San Antonio is the largest city exempt from deregulation. L.m. Sixel, San Antonio Express-News, "Deregulated electricty markets paying more," 22 May 2018 The state’s bungled attempt at deregulation in the late 1990s led to market manipulation, soaring prices, blackouts, the bankruptcy of Pacific Gas and Electric Co. and the recall of Gov. Gray Davis. David R. Baker, San Francisco Chronicle, "California’s power grid is changing fast, and ‘we don’t have a plan’," 3 May 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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Statistics for deregulation

Last Updated

18 Apr 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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