deregulation
dee-reg-yoo-LAY-shun
/ˌdiːˌreɡjuˈleɪʃən/
The removal or reduction of government regulations in a particular industry, usually enacted to create more competition.
Often associated with 'free market' economics and the belief that businesses operate better without government interference.
The story behind the word. A relatively modern term that became central to economic policy in the 1970s and 80s. It combines the prefix 'de-' (meaning to undo) with 'regulation'.
Word relationships
- liberalization: Liberalization is broader, including social and political freedom; deregulation is strictly about rules and laws.
- regulation: The act of controlling an activity by rules.
Commonly confused with
- privatization: Privatization is selling government-owned assets to private owners; deregulation is removing rules for everyone in the industry.
Word family
- deregulate (verb): To remove regulations from.
Collocations
- market deregulation
- financial deregulation
- push for deregulation
Example sentences
- "The deregulation of the airline industry in 1978 led to lower ticket prices but also more crowded flights." Aviation history
- "Some economists argue that the deregulation of the banking sector contributed to the 2008 financial crisis." Finance
Memory hook
Deregulation = 'De' (Undo) the 'Regulation'. Removing the rules.
When not to use
Don't use it for simply changing a rule; it specifically means removing rules to open up a market.
Fun facts
- The deregulation of the telecommunications industry in the 1980s is what eventually allowed for the explosion of different internet service providers.
Related words
Explore more words
laissez-faire, regulation, regulatory, decentralization, libertarian, antitrust
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