What is meant by deregulation?

Deregulation refers to the process of reducing or eliminating government rules and restrictions that control business operations and industry practices. By freeing organizations from limiting rules, deregulation aims to promote greater competition, enhance efficiency, and spur innovation within different sectors of the economy. This approach allows businesses greater flexibility in how they operate, which can lead to lower prices for consumers and increased economic growth.

When regulations are removed, companies can respond more quickly to market demands and changes, not being constrained by bureaucratic procedures. This can often result in increased investment, as firms are able to allocate resources more freely without the burden of compliance costs associated with heavy regulation. Ultimately, deregulation is seen as a way to empower industries by allowing them to self-regulate based on market dynamics, thereby fostering a more dynamic economic environment.