Virtually every time government “deregulates” or “privatizes,” it is a complete misnomer and intellectually dishonest. For example, supposedly the electricity market in Texas was deregulated, yet the website for Texas Public Utilities Commission states: “What We Do: The Public Utility Commission of Texas regulates the state’s electric and telecommunication utilities, implements respective legislation, and offers customer assistance in resolving consumer complaints.” If electricity is deregulated, then why is the PUC regulating electric utilities?
The truth is, deregulated doesn’t mean unregulated. It just means that there are different regulations. The same is true of “privatization.” Generally, “privatization” means that government grants a monopoly to a private company to provide some service. But other companies are prohibited from competing and government regulates the prices and other aspects of the business.
The operative word in “free market” is “free”—the absence of government coercion. “Deregulation” and “privatization” as it is practiced today has nothing to do with the free market. It is fascism—those with political connections get the contracts and other special favors. It is a pretense at a free market—private companies are providing the service under the control and direction of government. And when something goes wrong, it is the private company that takes the fall, not the government. “Deregulation” and “privatization” are slammed, while the government’s continued meddling and intervention is overlooked and ignored.
I am certainly in favor of deregulation and privatization, but I mean something entirely different from most politicians pushing such policies. I mean the complete separation of government and economics—laissez faire capitalism. I mean no government monopolies, no government favors, no regulations, no government involvement in economics.