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Privatization (Why nationalization? (Because the government is responsible…
Privatization
Why nationalization?
Because the government is responsible for providing services (especially essential services like Medicare and education), income, wages and jobs to all people. Therefore, governments put their hands on firms or seek to own most of the companies for a number of reasons:
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To increase profitability: the government believes it can run the firm more efficiently and make more money
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Unfair competition
Where government-owned companies compete with privately owned companies, the private companies sometimes complain that the government companies have unfair advantages, some of the complaints are:
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Government-owned companies can cut prices (moving up or down unfairly because they don't have to make profits)
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Definition
The transfer of public sector assets to the private sector, the transfer of management of state activities through contracts and leases and the contracting out of activities previously conducted by the state