Deregulation: The Good, The Bad, and The Ugly
The other day, I had a long conversation with a good friend of mine on the topic of deregulation, the doing away with government regulations on industries, and whether or not it is a good thing. The general consensus seemed to be that some industries require serious regulations, while in other industries; not so much is needed. From looking at our own history, deregulation will lead to companies having monopolies in certain industries, while in other industries; there is innovation and competition that seems to be long lasting. So now the question is which industries benefit and which suffer from deregulation? First we should discuss trusts and monopolies in the United States for those that may be unaware. A trust was an agreement by which stockholders in several companies transferred their shares to a single set of trustees. In return, the stockholders received a certificate allowing them to a specified share of the consolidated earnings of the jointly managed companies