But if it's a mixed blessing for consumers, deregulation has been devastating for blue-collar workers. The old regulated phone company had a social compact with its workers. This climate, in turn, allowed gains of productivity to be shared with workers. With deregulation the cutthroat battle for market share is often waged via steady erosions in pay, working conditions, and job security. Union workers with decent incomes are played off against casual labor.
Consumers also suffer.
The recent Verizon strike was not primarily about pay scales but about job speedup and the company's war on unions. What is true of telecommunications is also true of the airlines, hospitals and nursing homes, trucking companies, and public utilities. Deregulation guts good jobs. Deregulation of global commerce is also a form of class warfare. It puts pressure on rich and poor nations to shred their social safety nets in order to reassure investors and bankers.