deregulate

Deregulate is a verb meaning to reduce or remove government restrictions and regulations on an industry, activity, or market. It is typically part of broader policy reforms and is contrasted with both regulation and re-regulation. Deregulation can involve loosening price controls, easing licensing and entry rules, simplifying compliance, or rolling back supervisory measures while maintaining core safeguards.

In practice, deregulation is pursued to promote competition, lower costs, and spur innovation by reducing impediments to market activity. Its effects depend on design, enforcement, and the existing institutional framework. Partial deregulation can be followed by targeted regulation in areas where market failures or public interest concerns arise.

Prominent examples include the deregulation of the U.S. airline industry after the Airline Deregulation Act of 1978, which allowed more routes and fare competition; the liberalization of telecommunications and energy markets in the 1980s and 1990s; and financial deregulation in the late 1990s, such as the repeal of elements of the Glass-Steagall Act. Other sectors have seen deregulation attempts with varying degrees of success, often influenced by political and economic conditions.

Critics argue that deregulation can undermine consumer protections, safety, and environmental standards, and may increase volatility or inequality if gains accrue mainly to firms and investors. Proponents contend that well-constructed, transparent rules and robust oversight can preserve public interests while unlocking competitive benefits. The net impact of deregulation is debated and widely context-dependent.