world regions week 4: lecture video 2.docx - ECON#2 Nationalism vs Privatization Governments need money All governments do something or else they

world regions week 4: lecture video 2.docx - ECON#2...

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ECON #2 Nationalism vs Privatization: Governments need money: All governments do something, or else they wouldn’t exist. But they need money to do it. So where do they get this? There are two ways 1. Taxes: income tax, sales tax 2. Control resources and business. a. To do this a state government might have to nationalize an industry or resource. And if they suck at running it, they might privatize that. Nationalization= when a state physically and literally takes over a resource or industry from private individuals and makes it state property. Ex: Venezuela President chavez is a nationalization champion. He nationalized the oil industry--he went to oil companies and bought them out Capitalists despise nationalization bc want no government involvement Privatization= when a government sells off an industry/ leases out the rights to the resources to another private enterprise Ex: japan sold its post office. - Liberal left opinion about privatization: They are iffy about it If the gov is gonna give away resources to private sector, they need to regulate those sectors and keep them in check
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  • Fall '18
  • JohnBoyer
  • Capitalism, Privatization, Nationalization, Social programs, Nationalism vs Privatization

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