The Merits of Deregulation

Paper Summary:

This essay examines the savings and loans industry and argues that deregulation is better in a free market society when properly applied. Corporate America prides itself on providing opportunity for those with ambition and a strong work ethic; deregulation promotes these concepts. According to the paper, any abuses that result from deregulation such as criminal activity are costs involved in a free society that are simply not the fault of the motivated entrepreneurs. The paper further contends that criminals are opportunists and the criminal justice system should play the lead role in deterring their activities; not government intervention, which is completely inappropriate when Congress reaps the benefits of deregulation but fails to properly address its pitfalls.

From the Paper:

"The conviction of deregulators was that the free enterprise system works best if left alone, unhampered by perhaps well-meaning but ultimately counterproductive government regulations (Schichor, Gaines, and Ball, 2002). Private enterprise works best if not overburdened by government bureaucracy. Deregulation allows private industry to offer higher interest rates and attract more money into the economy. An active, vibrant economy creates employment and bolsters the country's economic situation. For, at the same time that the new law unleashed savings and loans to compete for new money, it bolstered the federal protection accorded these "private enterprise" institutions, increasing FSLIC insurance from a maximum of $40,000 to $100,000 per deposit (Schichor, Gaines, and Ball, 2002)."

Sample of Sources Used:

• Schichor, D., Gaines L., and R. Ball. (2002). Readings in White-Collar Crime. Prospect Heights, Illinois: Waveland Press Inc.

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