2/9/17Video Lecture Quiz: Econ #21.Nationalization vs Privatizationa.How does a government make money? A: 1) taxes, income taxes, sales tax. 2) controlresources/businesses. Businesses make money some of that money goes to the bank of thegovernment.b.Nationalization – state physically and literally take over a resources and business privateproperty. Venezuela, US froze all asset of Venezuela to get their Exxon stuff back. Capitalisthate nationalization.c.Privatization – government sells of a private industry. Japan sold post officefor the privatebusinesses. Military to private business could be in the future?d.Liberal Left – On privatization: more regulation, raise taxes on those industry. OnNationalization: let the people run it.e.Conservative right – on privatization: good. On nationalization: No, it’s heading towardcommunism.f.Why nationalize? A: 1) Times of war/emergency. Steel, food because they don’t want theindustry to raise money to sell it to the gov’t. 2) Social good far outweighs the cost.Healthcare nationalize because it’s good for the healthy citizen. 3) save the flailing business.