Econ. #2 Quiz Notes - All govts do something for their citizens How does a govt make money(raise revenue 1 Taxes 2 Control resources\/businesses Must

Econ. #2 Quiz Notes - All govts do something for their...

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All govts do something for their citizens How does a govt make money (raise revenue) 1. Taxes 2. Control resources/businesses Must nationalize or privatize Nationalization is when the govt of a state takes over a resource or industry and makes it state property and the state then begins running it and making profit off of it (ex. Venezuela Hugo Chavez exxon and bp pump out Venezuelan oil they bought exxon and bp out) this is why free market capitalist hate nationalization Privatization is when a govt sells off an industry or leases it out to private industry (ex. Japan sold its post office Why nationalize? Times of war or emergency will nationalize critical industries they cant do without during the war (ex. Steel) Social good far outweighs the cost (ex. Post office does not make that much money some countries nationalize healthcare) Save a flailing business (ex. A important company will be saved by the govt. in order to avoid a recession) Examples
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