On The Deregulation Reform Of Carter Administration

Regulation usually refers to the regulation of industries and enterprises by government agencies through the formulation of laws and policies,so as to ensure market order and maintain stable and healthy economic development.Since the 20 th century,the U.S.government has gradually established regulatory agencies in various important economic fields to improve the regulatory system.After World War II,the United States ushered in a "golden age" of economic prosperity,which is inseparable from the control system for the protection of economic growth.However,with the change and development of the objective environment,the old regulatory system has gradually become rigid,resulting in low efficiency,serious losses and other negative effects on the regulated industries.At the same time,the United States fell into a serious "stagflation" crisis in the 1970 s.The crisis and the problems exposed by the regulatory system itself made the federal government begin to reform the regulatory system in order to restore the vitality of the industry and get rid of the situation of low economic growth.Before the government pays attention to these problems,the economists have criticized the old regulatory system and regulatory theory.The Neo liberal economists have put forward many arguments for regulatory failure through a large number of empirical studies.In this case,after the 1970 s,the federal government began to carry out the initial attempt of deregulation in the aviation industry,railway industry and other fields,which achieved certain results and paved the way for the large-scale deregulation in the future.After taking office as president,Jimmy Carter carried out drastic deregulation reform in the economic field.Because there are different degrees of problems in the regulation of various economic fields,the reform process in different fields also has different styles.There is a high degree of protectionism in the regulatory agencies of the aviation industry,and the industry resists reform.Therefore,Carter directly appointed the reformers as the chairman of the regulatory agencies,first mastered the regulatory agencies,and at the same time promoted legislation,and implemented a two pronged reform.The regulatory agencies of the railway industry control too much power,and the railway industry,whose autonomy is seriously restricted,suffers serious losses.Before the Carter administration,Congress has promulgated several laws to "loosen the ties" of the railway industry,and has achieved certain results.On this basis,Carter,together with the reformers in the Congress,put forward a more radical deregulation bill,returning the autonomy to the railway companies again.The outbreak of the oil crisis is the direct fuse of deregulation of the power industry.In order to get rid of the dependence on foreign energy resources,the Carter government intends to improve the production capacity of the domestic energy industry by deregulation,and stimulate the industrial efficiency by market competition.The deregulation reform of Carter administration reduced the government’s expenditure on regulation and reduced the financial burden.At the same time,with the introduction of market competition mechanism,the vitality of regulated industries has been restored,and the efficiency of enterprises has been improved to varying degrees.This is the contribution made by the reform of Carter administration to the US economy out of the "stagflation" dilemma.However,the deregulation reform has also brought some new problems: after deregulation,the regulated industries experienced cruel mergers and reorganization,a large number of people lost their jobs or flowed into other industries,and the wage level of the middle and lower classes declined;although some regulatory agencies were canceled,the monopoly phenomenon did not disappear,but once again formed a monopoly situation in which several oligopoly enterprises shared the market The effect of deregulation in the economic field made the later governments expand the deregulation reform to other public utilities,resulting in the loss of people’s rights and interests,resulting in the social polarization between the rich and the poor,and the resurgence of populism.