Why does it have to be government vs market?

[GUBU]

Deregulation is always a bad idea. 

Even as a Marxist, I have to disagree with this. What about regulations that don't really do anything to benefit the public? What about regulations that were put in place to favor large corporations (who paid for them through lobbying efforts)?

Perhaps you didn't mean it so generally, or perhaps you meant "deregulation for its own sake" is always a bad idea...

Jus' sayin'....

Deregulation in the political and economic senses is not about pruning bad regulations which stifle innovation or productivity with no good end. It is about the wholesale destruction of regulation simply because it exists. When you hear a politician or business person talking about getting rid of useless red tape they're talking about getting rid of the rules which force banks to capitalise properly, construction companies to ensure their sites are safe, landlords to venure their rental properties aren't death traps in a fire emergency and so on.

Look at economic history and you'll find that regulation is rarely, if ever, a barrier to economic performance. That's because when you deregulate you incentivise bad actions and uneconomic actovities.