letting the private sector run everything - What does the government know about running businesses? o You have to have specialists who run the businesses
September 14, 2016 o It leads to experimentation and innovation and companies compete with each other and companies have to compete and bad companies go out of business - Isn’t the post office and military etc. property of all of the people? o Why should they have the power to make all the money? - Shouldn’t the state just make all of the money it can form the resources of the state and use it for what it wants? - Nationalize it, take it over, and give the money back to the people - Q: why nationalize? o A: 1. In times of war or emergencies they made the steel industry nationalized in the state of war they can’t have the companies trying to sell to them for so much money 2. When the social good far outweighs the cost of running the resource post office: doesn’t make that much money but it is really good for the society so why doesn’t a private industry run it? Because it doesn’t make much money so the government spends tax dollars to support it health industry: they think that a healthy population is worth the money of nationalizing the health industry 3. Save a flailing business if a company is getting ready to go bankrupt, or it’s very important or critical to the economy or nation the fovenrmetn will go in and save it so that millions of people don’t lose jobs o examples: oil: middle east many countries in the middle east nationalize their oil industries can you blame them? Saudi Arabia and Kuwait 100s of years ago were impoverished
September 14, 2016 BP or Exxon would go in and take all the oil and then give them 50 cents a barrel and they’d sell for 500 dollars a barrel Then saudia arabia and Kuwait decided to nationalize it and take the oil back They have used the trillions and trillions of dollars to provide education and health care The good outweighs the cost of running the company Oil: Russia 100 years ago oil was in private hands in Russia but then they had the communist revolution the state took over the industry the government owned and ran the oil industry but then the USSR collapsed in 1990 and then the government was broke, so they privatized then Putin took back the oil business a decade later and now they are using that money - privatization is all the rage o many governments have sold off resources mostly due to shifting economic systems communist Soviet Union collapsed where they owned everything then they sold it off (then took it back)
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- Spring '08
- Communism, Saudi Arabia, People's Republic of China, Privatization, Nationalization