Understanding Deregulation

What Deregulation Really Means

Deregulation is the removal or reduction of government control over business and markets. It's not about abandoning all rules—it's about recalibrating which regulations truly serve the public good and which have become unnecessary burdens.

Why We Regulate in the First Place

Regulation exists to:

1- Address market outcomes deemed unfair (like wages too low to live on), to prevent monopolies from abusing power,

2- Protect communities from pollution and other harms, and to safeguard consumers when they lack information to make safe choices.

These protections serve important purposes. The challenge is determining when they become excessive.

The Current Push

The Trump administration has launched an aggressive "10 for 1" deregulation effort for every new regulation, 10 existing ones must be eliminated. The order requires that total costs of all new regulations be "significantly less than zero." Meaning more savings than added costs. Already, 78 Biden-era orders have been revoked, covering areas from climate to immigration.

What It Means for the Economy

Financial experts expect this drive to reduce administrative costs, increase efficiency, encourage competition, and possibly spur innovation. Deregulation typically implies stronger growth and lower inflation over time.

However, current policy uncertainty is so high that many companies are frozen, waiting for clarity before making investments. Even good policies struggle when businesses can't plan confidently.

Who Benefits Most

Smaller companies stand to gain the most. They can't afford teams of lawyers to navigate complex regulations the way large corporations can. This levels the playing field for entrepreneurs and small business owners.

Energy policy is shifting toward fossil fuels as climate regulations are rolled back. In banking, reduced capital requirements could make it easier for people and businesses to get loans—though this also raises memories of past financial crises.

Why Deregulation Happens

When airlines were deregulated in 1977, competition increased and prices fell, though some small communities lost service. This shows both the promise and complexity of deregulation.

Political ideology matters enormously. Leaders who believe in minimal government intervention push deregulation, while those favoring stronger oversight expand regulation. The pendulum swings based on who's in power.

Timing matters too. After crises like the 2008 financial collapse, public demand forces strict regulation. As memories fade, industries successfully lobby for relief, and the cycle continues.

The Critical Balance

The pendulum must not swing too far. Lax supervision can harm people and encourage excessive risk-taking. The 2008 financial crisis taught painful lessons about what happens when oversight disappears entirely.

Finding the right balance—enough freedom to innovate, enough protection to prevent abuse—remains one of the great challenges facing policymakers.

Looking Ahead

For small businesses, this could mean genuine relief from crushing compliance costs. For consumers, it might mean lower prices and more choices. For the economy overall, it could mean stronger growth and job creation.

But these benefits aren't guaranteed. They depend on removing genuinely unnecessary burdens while maintaining enough oversight to prevent abuse. They require policy certainty so businesses can invest with confidence.

The path forward requires wisdom: learning from past mistakes, embracing beneficial change without recklessness, and remembering that behind every policy decision are real people whose livelihoods hang in the balance.

Hinds, B., & Dunn, J. (2025, August). Deregulation and the US economy. Wellington Management. https://www.wellington.com/en/insights/deregulation-and-the-us-economy

Van Buren, H. J. (n.d.). Deregulation. In Encyclopaedia Britannica. Retrieved October 4, 2025, from https://www.britannica.com/topic/deregulation

Guerra, M., & Kohen, D. (2025, March 12). US policy pulse: Deregulation risks and opportunities [Regulatory rollback: Four sectors to watch]. Morgan Stanley Wealth Management Global Investment Office. https://www.morganstanley.com/insights/articles/trump-deregulation-sector-investing

Are we in a bubble?

In today's world, it's hard to ignore the rapid escalation in prices across nearly every category. From tangible assets to everyday commodities, everything seems to be surging to unprecedented levels. Real estate values are skyrocketing, stock markets are hitting peaks, cryptocurrencies like Bitcoin are soaring, and even precious metals such as gold and silver are commanding record highs. Gold, for instance, has recently surged past a prolonged period of sideways movement and is now valued at $3,759 per ounce. Silver isn't far behind, reaching over $46 per ounce—a level it has only touched a handful of times historically. Bitcoin is hovering near $110,000, while major stock indices are also testing their limits. The S&P 500 sits at 6,696, flirting with all-time records in recent sessions. The Nasdaq has crossed 24,700 its highest points ever. The Dow Jones Industrial Average stands at 46,247, and even the Russell 2000, which tracks smaller companies, is nearing highs it has only seen sporadically in recent years. When it comes to housing, the U.S. Case-Shiller Home Price Index is at its absolute peak. Alternatively, if you examine the median sale price of homes in the country, it's only marginally below its 2022 peak.

This Is Different From Normal Bubbles

Usually, bubbles are isolated. During the dot-com era, tech stocks exploded while other markets stayed flat. When Bitcoin shot to $20,000 in 2017, the broader stock market barely moved. These were clear bubbles—one thing inflated while everything else stayed normal.

Today is different. When stocks, real estate, gold, Bitcoin, rent, beef, electricity, tuition, and healthcare all hit record highs simultaneously, you can't compare them to find the bubble. They're all expensive relative to each other.

The Real Problem: The Dollar Devaluation

The common thread isn't that everything is in a bubble—it's the measuring stick. Everything is priced in dollars. If the dollar loses value, it looks like everything else is getting more expensive.

You might check dollar charts and see it hasn't crashed. The Dollar Index looks relatively stable since 2015. But here's the catch: it measures the dollar against other currencies like the euro and yen. If all central banks are printing money at similar rates, their relative values stay stable. It's a race to the bottom where everyone is sinking together.

Testing With Gold

To see if things are genuinely expensive or if the dollar is just weak, we can reprice everything in gold. Gold's purchasing power has stayed remarkably consistent for thousands of years. A Roman soldier's salary, a medieval haircut, or a Victorian suit all cost roughly the same in gold.

When you price the S&P 500 in gold instead of dollars, it doesn't look like a bubble. It's elevated but within normal historical ranges. The Nasdaq in gold shows similar patterns. The Dow looks balanced, not frothy.

Everyday costs tell an even clearer story. Yale tuition in gold is near historical lows, not highs. Median home prices in gold are at all-time lows, even though they're at peaks in dollars.

The verdict: things aren't actually more expensive. The dollar is just worth less.

Will This Continue?

The M2 money supply—all the dollars in circulation—typically grows 5-10% yearly. It spiked to 27% in 2021, briefly contracted in 2023, but is now growing again.

With Federal Reserve rate cuts expected, borrowing becomes cheaper. This creates more dollars through loans and credit. Lower rates encourage spending, inflating the money supply further.

For prices to stop rising in dollar terms, we'd need government spending cuts and tolerance for a depression-style deflationary spiral. History shows policymakers won't allow that.

What You Should Do

These aren't real bubbles—they're symptoms of dollar devaluation. This trend will likely continue.

To protect your wealth, diversify. Spread holdings across stocks, real estate, cryptocurrencies, and precious metals. Don't concentrate everything in cash or any single investment.

Holding too much in dollar savings means watching your purchasing power slowly disappear. What looks like everything getting expensive is actually the dollar getting weaker. Understanding this difference helps you make smarter money decisions.