Deregulation
in sentence
358 examples of Deregulation in a sentence
Why Tax Cuts for the Rich Solve NothingNEW YORK – Although America’s right-wing plutocrats may disagree about how to rank the country’s major problems – for example, inequality, slow growth, low productivity, opioid addiction, poor schools, and deteriorating infrastructure – the solution is always the same: lower taxes and deregulation, to “incentivize” investors and “free up” the economy.
The world has undergone massive economic deregulation, prescribed by the monetarist doctrine supported by the conservative forces dominant in the developed countries of North America, Europe, and the Far East.
The idea, simply put, was that countries would benefit from embracing market-based pricing and
deregulation
at home, while fostering free trade and relatively open cross-border capital flows.
In the 1990’s, the Fund went so far as to try to change its Articles of Agreement to mandate
deregulation
of cross-border finance.
The policies of deregulation, privatization, and trade liberalization (the so-called Washington Consensus) that countries adopted in the 1980's, supposedly marked the victory of professional economists over populist politicians.
Any graduate student in economics knows that deregulation, privatization, and trade liberalization cannot be expected to produce economic benefits without a long list of unlikely conditions being satisfied.
Similarly, the principle that private incentives should be aligned with social costs and benefits hardly results in unconditional support for policies of trade liberalization, deregulation, and privatization.
So there is some basis for saying they are overpaid, but why?Philippon and Reshef argue that regulation, or
deregulation
is a big part of the story.
If this explanation is broadly correct (and it incorporates the
deregulation
point as well, as you can see) then what can be done about it?
There is no political will to create a body that could genuinely police international standards and prevent countries from engaging in competitive
deregulation
– and prevent banks from engaging in regulatory arbitrage.
Such speculation was enabled by massive
deregulation
of commodities-derivative markets that began in 2000 – and that now must be reversed.
The periods around World War I and World War II are routinely overlooked in discussions that focus on
deregulation
of capital markets since the 1980s.
And, in the past, assistance has been accompanied by extensive “conditions,” some of which enforced contractionary monetary and fiscal policies – just the opposite of what is needed now – and imposed financial deregulation, which was among the root causes of the crisis.
Investors were initially giddy about Trump’s promises of fiscal stimulus,
deregulation
of energy, health care, and financial services, and steep cuts in corporate, personal, estate, and capital-gains taxes.
To be sure, expectations of stimulus, lower taxes, and
deregulation
could still boost the economy and the market’s performance in the short term.
For the CEOs of Davos, it seems that tax cuts for the rich and their corporations, along with deregulation, is the answer to every country’s problems.
The Trump administration would like us to believe that the dollar’s rise reflects faster economic growth, driven by the president’s agenda of deregulation, massive tax cuts, and substantially expanded defense spending.
The creation of seed monopolies is based on the
deregulation
of seed corporations, including giving them oversight over bio-safety.
But the United States and the United Kingdom then underwent a kind of conservative revolution and a revival of neoliberal economic policies, including widespread deregulation, trade liberalization, and unprecedented capital-account openness.
Increased liquidity in international capital markets also reduced the need to obtain multilateral financing, and with it the need to accept conditions like privatization of natural resources and
deregulation
of public utilities.
Some of the lessons about the need for prudential regulation of the financial system were lost in the Reagan-Thatcher era, when the appetite for massive
deregulation
was created in part by the flaws in Europe’s social-welfare model.
Moreover, though OECD data point to modest
deregulation
of Spain’s labor market, there is little evidence linking deregulated labor markets with improved competitiveness and exports.
Instead, privatization was blocked, while fiscal reforms and
deregulation
remained paper proposals.
From the outset, the Trump administration has maintained a pro-business attitude, exemplified by his commitment to deregulation, raising hopes among investors of a boost to the US and global economies.
In these circumstances, a strong ideological and policy reaction against the pro-market “Washington Consensus,” with its emphasis on liberalization, deregulation, and privatization, is anything but a surprise.
We now know that labor-market
deregulation
does not ensure economic resilience and rapid job creation.
It is interesting to see the world's financial elites seek refuge from the uncomfortable but essential Keynesian advice they are now giving to Japan by changing the subject to financial reform, Big Bang
deregulation
of Japan’s financial institutions, and fixing the half trillion dollars of bad loans on the books of Japanese banks.
Today’s examples of illiberal capitalism range from toleration of extreme inequality to favoring heavy redistribution, and from overweening statism to broad
deregulation
of markets.
A third boost to economic growth will come from
deregulation.
Excessive
deregulation
could cause a re-run of the 2007 financial crisis, but that, too, is a risk for 2018 and beyond.
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