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+--- Thread: What is deregulation and why should we deregulate some industries? (/thread-43320.html)
What is deregulation and why should we deregulate some industries? - Justina - 11-19-2012 02:12 AM
A thorough explanation and websites would be great. But I already tried wikipedia and answers with no help thank you.
- awesomecommunist - 11-19-2012 02:21 AM
Deregulation is when economic "restrictions" are repealed by the government, and a "free" market is advocated. These "restrictions" include taxes, quotas, laws to protect workers' rights, the environment, the welfare of the public.
Why should we deregulate some industries? We should not. We should restructure private enterprise into worker-controlled social industry.
- GreenManorite - 11-19-2012 02:21 AM
Deregulation, is the reduction of government involvement in an industry. Government intervention tends to create inefficiencies if there are complete markets and few externalities.
Profit maximizing behavior of a firms maximizes productivity and "social welfare" if they are in a competitive market. Regulations are also applied to industries with some sort of monopoly power, but markets change so the appropriateness of government regulation changes. Same can be said for externalities, they change so the role of government in addressing externalities change.