Econ #2 - Econ#2 Nationalization vs Privatization The state has to have money How does a government make money Two ways The first way is taxes and the

Econ #2 - Econ#2 Nationalization vs Privatization The state...

This preview shows page 1 out of 1 page.

Econ #2 Nationalization vs. Privatization The state has to have money. How does a government make money? Two ways. The first way is taxes and the second way is if the government controls resources/businesses. To do this a state government must nationalize that business and if they suck at running it they may be forced to privatize it. Nationalization: when a state takes over a resource or a industry from private businesses. Hugo Chavez nationalization champion. He did it to the oil industry. Privatization: government sells out an industry. Japan sold its post office. Liberal left on privatization: heavily regulate that private sector and raise taxes that they sold off. Conservative right: Great. Just do it. Liberal left on nationalization: Yay! More money for social programs. Conservative right: Nooo! Reasons for nationalizing: times of war, social good far outweighs the cost, or to save a flailing business. Middle East: many countries there nationalize the oil industry.
Image of page 1

You've reached the end of your free preview.

Want to read the whole page?

  • Fall '08
  • Privatization, Nationalization, Public ownership, oil industry, Hugo Chavez

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes