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Inequality reduction An argument in favor of deregulation is often substantiated by the belief that it results in greater employment and income wages due to some of the factors mentioned previously. However, the research detailed in the graph below shows that periods of deregulation are characterized by higher rates of inequality.

The research the graph is based on examined the years in which regulation was imposed on US the financial/banking sector and the years in which regulation began to be repealed.

The aforementioned study focused on the US financial and banking sector over the last century to gauge the effect of regulation on the following areas: 1. Bank failures, 2. Share of income of the top 10% of the population (economic inequality), and 3. Failed deposits as a % of US GDP.

Who do you think benefits from deregulation? Interestingly, the graph shows that regulation in the financial sector has reduced inequality, reduced the rate of bank failures, and reduced deposits lost.

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