Is Deregulation and the State Arms Race Linked?

When Land refers to deregulation, he's probably not referring to any particular political lobbies pushing for the deregulation of particular industries. He is talking about everyone in any time and place who is generally looking to escape their box. So is it true that deregulation and the state arms race each other? Well, if you look at the history of political economy, I think that we find actually quite a lot of evidence to justify this characterization.