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.