gcannon4
So, instead of my usual post in which I quote an article and discuss it, I’m going to create my own topic, with no outside associations.
The matter presented is Privatization or Nationalization. With so much money going towards buying large portions of companies, this has been considered by some to be a nationalization of these various companies. So, my question is: Which would be better? Total Nationalization or total Privatization. If you are unfamiliar with these terms, Nationalization is the act of taking an industry or assets into the public ownership of a national government or state. Privatization is the incidence or process of transferring ownership of business from the public sector (government) to the private sector (business). In a broader sense, privatization refers to transfer of any government function to the private sector including governmental functions like revenue collection and law enforcement.
While I personally believe that privatization is a much better system, I can understand those who say nationalization is better. The biggest problem I see with Nationalization is that it curbs growth. Regardless of what happens, a corporation is going to be getting the same treatment and pay, regardless of it’s quality. This means that an corporation doesn’t need to advertise or improve their goods or services. Regardless of what they do, good or bad, they are treated the same. In privatization, the goal of any sensible business owner is to accumulate the largest amount of wealth. Two companies, Company A and Company B are selling the same product type at the same price. If Company A offers Product A with Features A, B, C, and D, and Company B offers Product B with only Features A and B, Company A is very likely to have an increased amount of business. If Company B wants to keep up, they need to find a way to make their product more appealing. So Company B upgrades Product B to now support Features A, B, C, and D, then they have met the other product, but to outsell them, they need to find a way to best Company A. Company B decides to do this by offering Product B at %10 less than Product A, lowering the cost. Now people go to Product B because it has the same good, but for a better price. Company A is now in trouble, so they decide to combat Company B by also upgrading their product. Now Product B supports Features A, B, C, D, E, F, and G. People come to Company A because their product is more functional than the product offered by Company B. Company B needs more business, so they have to do something to make the customers happier. This process continues as the products become more in-depth and the companies need to compete more, meaning further development. You also reach in to advertising, which causes the advertising businesses to compete with each other, furthering their development.
