Deregulating businesses means you have to trust them to do the right thing. It's like leaving your house and car unlocked, out of trust.
Actually you don't have to trust them, you just have to allow consumers to chose who to do business with. And that's why your government solution is failure out of the gate. They start by removing choice and then you really do have to trust them, and the only thing you can trust politicians to do is screw you. And screw you they do.
Not all regulation is bad. Compare, for example, the medical industry pre-government regulation. Any idiot with $24.95 could get a medical liscence, buy up a few leeches, and send you home with some snake oil.
Before you jump in saying that things are somehow different because of science: Keep in mind that a hell of a lot of scientific innovation happened before the USA regulated the medical industry. The problem was, there was absolutely no reason for the medical industry to change from something profitable to something effective, and even worse the American consumer had no way to gain access to the innovation via free market short of heading off to Europe.