deregulation
The process of removing or reducing government rules and restrictions in a particular industry.
Example
“Deregulation of the airline industry in the 1970s led to lower ticket prices and more competition.”
Memory Tip
DE-regulation — remove the REGULATIONS. Deregulation takes government rules away.
Why It Matters
Deregulation affects the prices you pay for services like airline tickets, electricity, and banking fees. When industries face fewer regulations, competition often increases, which can lower costs for consumers, but it can also lead to reduced safety standards or service quality depending on the industry.
Common Misconception
Many people assume deregulation always leads to lower prices and better services. In reality, removing regulations can sometimes result in higher prices, reduced competition, or worse consumer protections if companies consolidate or prioritize profits over service quality.
In Practice
The airline industry was deregulated in 1978, which eliminated price controls and allowed new carriers to enter the market. Ticket prices initially fell dramatically as competition increased, but over time airlines consolidated and added baggage fees, seat selection charges, and other ancillary fees that increased the true cost of flying for many passengers.
Etymology
De (remove) + regulation — removing regulations from an industry.
Common Misspellings
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