deregulation
dee-reg-yuh-LAY-shuhn
/ˌdiːreɡjuˈleɪʃn/
The removal or reduction of government regulations and restrictions in a specific economy or industry.
Often associated with free-market policies intended to stimulate competition and economic activity by removing state oversight.
The story behind the word. Combines the Latin prefix 'de-' (reversal) with 'regulation', which comes from 'regula' (a straight stick or ruler). Thus, deregulation literally means 'removing the straight line of control'.
Word relationships
- liberalization: Liberalization refers broadly to relaxing trade barriers, while deregulation specifically targets government administrative rules.
- privatization: Privatization transfers state assets to private owners, whereas deregulation removes regulatory controls over an industry.
- regulation: Regulation is the imposition of state rules and legal oversight on an industry.
Commonly confused with
- decentralization: Deregulation removes government restrictions, whereas decentralization redistributes government power to local levels.
Word family
- deregulate (verb): To free an industry or activity from government controls.
- deregulatory (adjective): Tending toward or promoting the removal of regulations.
Collocations
- financial deregulation
- wave of deregulation
- industry deregulation
- advocate deregulation
Idioms & expressions
- freeing the market
Example sentences
- "Supporters argued that deregulation of the airline industry would foster market competition and lower ticket prices." Financial market policy critique
- "Subsequent financial crises prompted lawmakers to re-examine the long-term consequences of banking deregulation." Economic history commentary
Memory hook
DE- (Remove) + REGULATION (Rules): Taking away official restrictions. Removing the rulebook.
When not to use
Do not use to describe general lawlessness or total societal anarchy.
Fun facts
- The US Airline Deregulation Act of 1978 led to the birth of modern budget airlines by allowing new carriers to set their own fares.
Related words
Explore more words
laissez-faire, regulation, regulatory, libertarian, antitrust
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