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 In contrast, current American deregulation, tax cuts and incentives, and record energy production have given the United States the strongest economy in the world. Victor Davis Hanson, National Review, "History Has Shown That Socialism Isn’t the Cure," 7 Nov. 2019 After the fall of Communist regimes in 1989, The Economist embraced a fervently activist role in Russia and Eastern Europe, armed with the mantras of privatization and deregulation. Pankaj Mishra, The New Yorker, "Liberalism According to The Economist," 4 Nov. 2019 Many European nations have also implemented a series of deregulations, privatizations and other free-market policies. Noah Smith, Twin Cities, "Noah Smith: American socialists should drop the illusions about Europe," 6 Oct. 2019 So, yes on taxes and deregulation, no on trade, immigration, climate and the deficit. Washington Post, "It’s time for America’s business leaders to take a stand on Trump," 4 Oct. 2019 For him, this was a time when the policies that economists almost universally endorsed—tax breaks, austerity, deregulation, free trade, monetarism, floating exchange rates, reduced antitrust enforcement, low inflation, among others—were enacted. Robin Kaiser-schatzlein, The New Republic, "The Tyranny of Economists," 30 Sep. 2019 After Thatcher abolished capital controls in 1979 and began selling off state companies in the 1980s, other European governments followed suit, embracing supply-side policies, deregulation, market liberalization and tax cuts. Bojan Pancevski, WSJ, "Europe’s Struggling Political Parties Promise a Return to the Pre-Thatcherite Era," 26 June 2019 Republicans are hoping to campaign in 2020 on the message of a strong economy buoyed by their tax reductions and deregulation, which began two years ago. Laura Davison, Fortune, "Trump’s Tariffs Have Already Wiped Out Tax Bill Savings for Average Americans," 7 June 2019 Republicans are hoping to campaign in 2020 on the message of a strong economy buoyed by their tax reductions and deregulation, which began two years ago. Bloomberg News, The Mercury News, "Tariffs have already wiped out tax bill savings for average Americans," 7 June 2019

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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Time Traveler for deregulation

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The first known use of deregulation was in 1963

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Statistics for deregulation

Last Updated

8 Dec 2019

Cite this Entry

“Deregulation.” The Merriam-Webster.com Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/dictionary/deregulation. Accessed 14 December 2019.

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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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