Deregulation Flashcards
What was new federalism?
Passing power back from federal government to state
What key tool did Reagan see for reducing big government?
Deregulation
By 1982, what had Reagan implemented regarding federal regulations?
Cut federal regulations almost in half, removing 23,000 pages from federal register
What was one financial impact of Reagan’s deregulation on fuel?
Brought down cost of petrol and heating fuel
What was created to combat government fraud and waste under Reagan?
Federal strike force that saved $2 billion in 6 months
How did Reagan’s policies affect federal agencies?
Replaced federal agencies with private sector, federal employees with volunteers
What legislation did Reagan sign on January 28, 1981?
Deregulates oil and fuel prices passed by Carter administration
What was stopped on January 29, 1981?
Wage and price regulation
What deregulation occurred on September 20, 1982?
Deregulates bus service
What was the Foreign Trade & Competitiveness Act of August 23, 1988?
Allows president more rights in making trade treaties benefitting the USA
What did big companies do to smaller companies during the deregulation period?
Big companies bought out smaller companies when they were struggling
What was the effect of deregulation on big businesses?
Expanded while small independent businesses struggled
What did retailers agree to do to end competition after initial price drops?
Freeze prices
How did big businesses maximize profits during this period?
Cut services, e.g., in rural areas like phone companies and airlines
What became cheaper in the 1980s as a result of trade changes?
Buying power of dollar weakened
What was the impact of cheaper foreign imports on American companies?
American business suffered
Give an example of an industry that experienced significant buyouts.
Textile industry with 250 plants closed, 300,000 lost jobs
What did Reagan do to regulations regarding the textile industry?
Used power of veto to stop Congress from introducing regulations
Why would Reagan and his supporters argue that foreign imports were beneficial?
Increased consumer choice and attractive for other countries to trade and invest
What was a negative consequence of deregulation?
Savings & Loans collapse
List one success of deregulation.
Stimulated economic growth through reduced industry restrictions
List one failure of deregulation.
Corporate risk-taking led to the Savings & Loan Crisis
What was a positive effect of deregulation on business investment?
Encouraged business investment with lower compliance costs
What was a negative impact of deregulation on safety standards?
Decline in safety and standards, e.g., fewer inspections in transportation
