One of the biggest arguments against conservatives and libertarians is the belief that evil deregulation is what caused the economic collapse in 2008 and the current income inequality. Politicians like Elizabeth Warren have built their careers around this false argument. They want to use the government to redistribute wealth because they say deregulation has helped big business get ahead at the expense of the poor.
The problem with that argument is that deregulation never really happened. Just look at the graph above it’s as clear as day. Total government rules and regulations increased ever single year from 1976 to 2009. They increased every year before then and every year since then too. This is of course completely contrary to what liberals argue because they think that Reagan and Bush deregulated vast sections of the economy. While a couple industries may have been ever so slightly deregulated it was nothing like the straw man the liberals build.
This deregulation myth is so prolific now that people are even taught about it in school. Professors even claim that deregulation caused the Great Recession but that couldn’t be farther from the truth. In fact, specific government regulations are directly responsible for the recession. The government passed laws that created the real estate bubble and they sanctioned the banks that were gambling with that debt. It was a crony government corporate partnership that encouraged people to buy homes they couldn’t afford, subsidized their risky loans, and created a bubble that inevitably popped.
The deregulation myth is also a good argument against conservatives who claim Reagan was the great deregulator. Just look at the 80’s when regulations kept being signed and the numbers went up every single year he was president. There was no great deregulation. Only a few industries were ever so slightly deregulated. The majority of that small government talk was just that, talk.
Real deregulation would have seen the economy boom greater than ever before. It’s estimated that if we were currently regulated at 1949 levels our GDP would be over $53 trillion a year. That’s more than three times our current GDP. The only people that want to do that though are libertarians. Only a libertarian President will deregulate the economy. Republicrats will just keep piling them on.