Deregulation

California's current energy crisis is due to the economic crisis. It is still controversial as to who is responsible for this crisis. In this article I will try to demonstrate that the government and its poor plan are the main cause of this big failure. The timing of government deregulation is very bad. The price of crude oil used in some power plants has nearly tripled since December 1998 around 10 dollars per barrel. In the past two years the cost of natural gas has increased nearly 100% and more than 50% of California power generation companies use natural gas.

Deregulation: Deregulation relates to decentralization or economic intervention at the national level, or reduction of government intervention in the economy. For example, as a result of deregulation, a small number of industries / industries such as insurance, banks, oil, and many industries directly managed by the government are currently being handed over to private companies or companies. Foreign exchange: Foreign exchange rates directly affect international trade as exchange rate changes may affect the structure of money payment. Due to exchange rate issues and constraints, the government may be forced to impose import restrictions on selected projects or to relax the economy to attract foreign exchange for investment purposes.

Menem government introduced deregulation in Argentina. The country has experienced a fixed exchange rate between serious economic deregulation, privatization, and (1989 - 1999). The influence of deregulation in Argentina was argued in the comparison between Enron and Argentina, Krugman (2001) that they experienced economic collapse due to excessive deregulation. However, Krugman's assertion is known to be related to the disorder of causation. Because collapse is not due to excessive deregulation of Herbert (2002). He thinks that if economic deregulation in Argentina has prosperous over the years, how will it collapse in the next few months? The answer is not deregulation, but excessive loan.

In the mid-1970s, deregulation gained momentum, productivity growth slowed, and project costs and capital costs increased in several key areas. Only in 1978, Congress approved the first meaningful deregulation law "Air Deregulation Law". By deregulation of railway and cargo, traffic regulation was relaxed in 1980. In 1982, the interstate bus was deregulated. In addition to relaxing transport regulations, the savings and loan associations and the Bank partially dismissed the 1980 Deposit Deregulation and Currency Control Act and Garn-St. 1982 German Depositary Company Act