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

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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.
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Unformatted text preview: Oil in Russia privatzed when ±he Sovie± Union collapsed. Now Putn renatonalized ±he oil indus±ry. Privatzaton is ±he curren± ±rend. India sold o´ ±heir ±rain and ±elecommunicatons sys±em. India jus± ±axes ±he priva±e companies. More benef±. The Economis± magazine is reFerring ±o 2008 recession. Bolivia, Ecuador, Nicaragua begins natonalizing due ±o Hugo Chavez's lead. George Bush natonalized ¶reddie Mac and ¶annymae, fnancial inst±utons. Barack Obama par±ly natonalized some banks, fnancial inst±utons, and car manuFac±urers. Examples Any ±rue communis± s±a±es? Nah. Cuba and NK claiming and ±rying ±o do i±. Brunei natonalizes like Saudi Arabia. Nor±hern European coun±ries are so± s±a±es economically. Sweden. How does Sweden pay? Very high ±axes. Income ±ax oF 35%. Adam Smi±h, playbook For capi±alism. England basically inven±ed capi±alism....
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  • Fall '08
  • JDBOYER
  • Privatization, Nationalization, Public ownership, oil industry, Hugo Chavez

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