ECONP_004. Deregulation of the Economic System

Since the 1970s, there has been a steady deregulation of the Economic System. This deregulation has unintended consequences on the people and organizations in the economic system. State (Government) establishes the rules for markets.

The following are examples of deregulation activities within the USA.

• Robert Reich, "Saving Capitalism"

  • Deregulation of Markets since 1970

• , "The Strange Order of Things"

  • Repeal of 1949 Fairness Doctrine in 1987

    • leading to Facebook whistleblower

• Deregulation of Financial Institutions (specifically banks)

  • Allowing banks to integrate Savings / Loan with Investment Banking

  • Allowing new types of products and services (junk bonds, derivatives, etc).

  • Monetary policy changes

• Deregulation of Stocks and Bond Markets

  • Altered trading rules (automated trading, lower transaction clearance times, margin changes, etc)