Final answer:
Decreased government regulation can lead to increased competition and changes in the trucking industry's hiring practices. Deregulation in the late 1970s reduced restrictions on route choices and service rates, potentially leading to regulatory capture and affecting the labor market. Technological advancements and a trust in market efficiency drove the deregulation wave.
Step-by-step explanation:
Decreased government regulation in the trucking industry can have a significant impact. During the late 1970s under President Jimmy Carter, a wave of deregulation began, affecting various industries including trucking. This deregulation removed many restrictions, allowing companies within the trucking industry to freely compete, selecting routes and setting their service rates without much government interference.
One effect of decreased regulation is the possibility of regulatory capture. This occurs when the companies being regulated influence the rules to their advantage, often resulting in reduced competition and higher prices for consumers. Additionally, the labor market can be affected, where on the demand side, the presence or absence of government rules can substantially influence the willingness of firms to hire.
The deregulation movement was largely influenced by advances in production technologies and a belief that markets could efficiently provide services without heavy government oversight. As a result, restrictions on entry, pricing, and production quantities in the trucking industry were substantially diminished during the deregulation period.