Q:

What are the advantages of nationalization?

A:

Proponents of nationalization argue that it provides unequivocal economic benefits, including promoting productivity, efficiency, and creating economic stability. Nationalization occurs when governments tap into key industries often controlled and regulated by the private sector, including transportation, manufacturing and electricity. Those who favor nationalization argue that the government, by assuming regulatory control over these industries, makes the economy operate in a way that benefits the majority of the population instead of a small, elite class.

Those in favor of nationalization contend that it asserts critical government control and regulation of prices, which prevents power exploitation and escalated market prices that are more common under free market systems, when the private sector is left in charge of setting its own prices. In turn, proponents argue that government control prevents the private-sector exploitation of monopoly power. Supports of nationalization also contend that it creates social equality and provides greater access to basic needs for the poor and underserviced by providing them with government subsidies and services. Nationalization also frequently draws support from labor unions, who feel that they receive better treatment overall with government regulation than in markets dominated by the private sector. Lastly, nationalization enables governments to make long-term investments in markets, which creates some degree of economic predictability and stability.


Is this answer helpful?

Similar Questions

  • Q:

    Why is America considered the land of opportunity?

    A:

    America is considered the land of opportunity among immigrants because the country is able to provide them with a variety of life options that they would not have had in other countries, such as economic stability and educational resources. However, immigrants can have a difficult time achieving their dreams in the "land of opportunity" because they often have language, educational and cultural factors that are obstacles to their success.

    Full Answer >
    Filed Under:
  • Q:

    What is the formula used to calculate labor productivity?

    A:

    Labor productivity is determined by dividing the output, or total amount of goods or services produced, by the number of workers. Labor productivity is used to measure worker efficiency.

    Full Answer >
    Filed Under:
  • Q:

    What are some advantages to teamwork?

    A:

    Some advantages to teamwork are greater resources, a wider range of ideas and a broader skill set, all of which lead to increased productivity. A group working as a team is usually able to resolve issues and complete tasks more quickly and more efficiently than an individual working alone.

    Full Answer >
    Filed Under:
  • Q:

    What are the advantages and disadvantages of population control?

    A:

    The main advantage of population control seems to be the increase in economic stability and better living conditions, while the most common disadvantages are the difficulty in enforcing such a policy and the lack of success because of this according to a report published by the University of Omaha. There are many other advantages and disadvantages to consider as well.

    Full Answer >
    Filed Under:

Explore