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>> Usually when um... uh... businesses or interest groups call for deregulation,
they are saying that that there is too much government restrictions.
>> Talk about deregulation uh...
comes up during election time, campaign seasons...uh, other people call for it
all the time. So, deregulation is an important concept to understand in terms of American
politics and government. Professor Mullins, define the term deregulation for our
students. >> Well, deregulation happens
when the government lifts restrictions on businesses, industries, professional
activities, with the intent of getting the government
out of the private sector.
>> Okay, now I guess Professor Obazuaye, I guess, the starting point there, the
assumption is that
that the government has already been previously regulating uh... certain
industries and behaviors, et cetera, and that somebody think that's a good idea,
I guess, to reduce or eliminate
uh... these regulations. Can you give us some examples, historically,
contemporary, whatever. >> Sure! Uh...
usually when um... businesses or interest groups call for deregulation, they are
saying that that there is too much government restrictions. I would see
example in the 1970's, when the airline industry
lobbied to... for for deregulation
and uh... in the 1980's, the deregulation of the savings and loans
industry that uh... led to the collapse of that uh... industry. And that
created a lot of uh... problems in some counties, Orange County comes to
mind.
>> Oh, I remember, Orange County went bankrupt, >> Yes.
>> in part because of that. >> Yes. >> uh... Professor Mullins and Professor Obazuaye,
both of you, either one of you jump in if you want to, now, the idea, I guess,
behind this is that that people can be more efficient uh... make more money,
more prosperous, et cetera, if if they have less government red tape and
bureaucracy to deal with. I mean, but is the concept of deregulation that simple?
I mean, otherwise, why would government regulate these practices and behaviors
in industries, if there weren't problems? >> Well, I think it depends who you ask. If you're a
conservative, you believe that the market is self-regulating,
therefore, the government's getting in the way.
Uh... if you're a liberal, it's the idea that the people who are in capital,
uh... capitalism are greedy and selfish therefore, you need government to make
things fair. So it really depends on who you're asking
>> Uh....some would blame the
the fall of the uh... financial industry, the collapse of the financial industry
in the last uh... two or three years on deregulation. Uh... during the
last uh... two years that is 2008, 2009,
there was a lot of talk about uh... the Glass-Steagall Act
that was passed in the 1930's, and over the years
was chipped away, and during President Clinton's era
in the 1990's, it was, uh, completely removed from the, from the books. And so
that have allowed the financial industries to expand,
and and uh... and get into other areas of
uh, of insurance and securitization that led to the collapse of the
financial industry.
>> Thanks you guys! That was a great conversation! Thanks!