You need to regulate economic activity so that the proper incentives and disincentives are in place to lead to the kinds of economic outcomes you desire. You only deregulate if you don't care about the economic outcome.
Ordoliberalism - Wikipedia, the free encyclopedia
Ordoliberalism (also called German neoliberalism) is a school of liberalism emphasizing the need for the state to ensure that the free market produces results close to its theoretical potential (see allocative efficiency). The theory was developed by German economists and legal scholars such as Wilhelm Röpke (who spent the Nazi period in exile in Turkey), Walter Eucken, Franz Böhm and Hans Großmann-Doerth from about 1930-1950; Ordoliberal ideals (with modifications) drove the creation of the post-World War II German social market economy and its attendant Wirtschaftswunder.
Sometime during the deregulation craze of the 80s, my dear old mother--a scarred child of the depression was watch the news. She turned to me and snorted, "Fools! doesn't anyone remember what the economy was like before there were regulation on the banks?"
I have long maintained that the reason regulated economies do better the deregulated ones is that regulations permit the honest businessman to prosper. "Remember the I35W bridge--who needs terrorists when there are Republicans"
the reason regulated economies do better the deregulated ones is that regulations permit the honest businessman to prosper.
Yes, yes, yes!!! In the long run, we're all dead. John Maynard Keynes
