What are some examples of how deregulation hurts consumers?

First, let’s remember that regulations are usually put in place when a problem has already been identified: when worker or consumer health, wealth and safety have already been jeopardized by business practices already in play. With that said, some of the worst examples of how deregulation (or not implementing or enforcing existing regulation…which is essentially the same thing) hurts consumers and workers:

1. FDA “delayed review” of e-cigs (2017): Vaping deaths and latest wave of teen nicotine addiction.

2. Trump rollbacks of OSHA and other worker safety regulations (2017): steady increases in worker fatalities and injuries, especially in the mining industry.

3. Rollback of FCC oversight (2017–2018): allowed carriers (AT&T, Verizon, etc.) to sell geolocation data of customers to bounty hunters, stalkers and other nefarious surveillance.

4. Non-enforcement of existing EPA regulations (2017–2019): increasing health risks to workers, consumers and children from pesticides and petrochemicals; increasing health risks and shortened life expectancy for millions of people due to air and water pollution (see A Breath of Bad Air: Cost of the Trump Environmental Agenda May Lead to 80 000 Extra Deaths per Decade).

5. Deregulation of airlines (1978): loss of rural routes and service frequency to remote areas and low-volume airports (with the remaining service at much higher prices); decline in consumer safety; “sardine can” seating; nickel-and-dime-you-to-death pricing on everything (luggage, food, drinks, etc.); longer average travel and wait times; many lost jobs; etc. [Something very similar happened with the deregulation of railroads in 1976 and 1980, which likewise led to the abandonment of passenger rail service to rural areas.]

6. Deregulation of banking industry (repeal of Glass-Steagall 1999; deregulation of savings and loan industry in 1982) and lack of SEC oversight: the 2008 economic crash; the savings and loan crisis of the 1980s & 1990s.

7. Deregulation of energy industry (1990s): higher cost of energy; more interruptions and outages with supply; awe-inspiring financial misconduct and fraud (Enron); lack of innovation and new energy sources development.

8. Ending the “Fairness Doctrine” (1987): opened the door to highly biased, inaccurate and deceptive “news” organizations (mainly right-wing like FOX News), that helped deepen polarization and paranoia in America, and eroded trust in journalism.

9. Deregulation of telecommunications (1996): Rapid consolidation of media ownership into just a handful of companies (Clear Channel, etc.) who standardized content across all regions — leading to the loss of local news, local arts and entertainment performers and programming, and a general homogenization of broadcasts into identical, nationwide programs that, consequently, homogenized thought across America as well. The 1996 Telecommunications Act deregulating cable also led to much higher prices across the cable industry.

The list goes on…but these are some of the obvious ones. We will very likely have even more data on negative consequences of deregulation in the years after the Trump Presidency’s aggressive agenda has played out. In particular, the promised deregulation of the FDA approval process on medical products will likely have a devastating effect on human health.

My 2 cents.


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