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Deregulation

Definition

Deregulation refers to reducing or removing government regulations and restrictions on industries, businesses, or sectors of the economy. It aims to promote competition and market efficiency but can also raise concerns about consumer protection and safety.

Analogy

Think of deregulation as taking down all the traffic lights in a city. While it may allow cars to move more freely, there is a risk of accidents if drivers don't follow rules voluntarily.

Related terms

Monopoly: A situation where one company has complete control over an industry or market due to lack of competition. Deregulation can sometimes lead to monopolistic practices.

Consumer protection: Measures taken by the government or organizations to safeguard consumers from unfair business practices and ensure product quality and safety.

Industry standards: Established guidelines and practices that businesses within a specific industry are expected to comply with. Deregulation may involve relaxing or removing certain industry standards.