Deregulation is the removal of government strict regulations that constrains market forces in order to allow many people to participate in public business activities. It is the reduction of government control on how businesses are done so that more people can participate. The main reason for deregulation is to allow for competition, economic growth and create a free market.
- It leads to healthy competition and efficiency.
- It leads to creation of employment opportunities.
- It helps to reduce monopoly.
- It allows people to make choices.
- It brings about low prices for goods and services.
- It discourages red-tapism or bureaucracy
- It can promote class system.
- It can lead to increase in prices particularly at the early stage.
- It does not favour the poor in the beginning.
- It makes the few rich richer.
- It makes government redundant.